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HomeMy WebLinkAbout1822 Borrower and Lender rnvenant and agree e• folbws: 1. Payrueet of IMncipal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and latecharges ae provided in the Note, and the principal of and interest on any bl+turo Advances eerured by this Mortgage. 2 Funds !or Ta:es and Insurance. Subject to applicable law or to a written waiver by 1.ender, Borrower shall pay w Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly taxes and assessments which may attain priority Duet this Mortgage, and ground rents on the Property, i[any, plus one, twelfth of yearly premium inatallmenta for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tine by Lender un the basis of assessments and bills and reasonable estimates thereof. The Funds shall be hekf in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency tinciuding Lender if Lender is such an institution). Lender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Fonda, analyzing said account, or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the 1•l+nda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Ibrrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required b pay Burrower any interest or earnings on the Funds. Lender shall give tD Borrower, without charge, an annual accounting of the F undo showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. They ands are pledged as additional security for thesume secured by this Mortgage. If the amount of the ~tnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asseastnents, insurance premiums and ground rents, shall excred the amount required to pay said taxes, assessments, insurance premiums and ground yenta as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Iorrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by bender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale cf the Property or its acquisition by Lender, any Funds held by Fender at the time otapplication as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender first in payment of amounts payable to !.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. •1. G barges;Liens. Borrowershall pay all taxes, assc:~.+ments and other rharkes, fines and impositions attributable t<, the Property which may attain a priority over this Mortgage, and le:~sehuld payments or gn,und rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee therer?t Bc?rruwer sh:+ll promptly furnish to (.ender all notices of amounts due under this paragraph, and in the event Bc?nrower shall make payment directly. Burrower shall promptly furnish to 1 ,ender receipts evidencing such payments. I3om,wer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so IonK li+?rruwer shall agree in writing h, the payment of throhligation secured by such lien in a manner acceptable to Ixnder, or shall in gc,c?d faith c+mtest wch lien by, or defend enfon•+•rnent of such lien in• !e•tial proceedings which operate to prevent the enforcement of the tiro or forfeitur+• of the I'n?Ix•rty nr am part thenr?f. a. Hazard lnr+uranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and such other hazards as Lender may require and in such amounts and forsuch periods as [.ender may require: provided, that Lender sh:+ll not n•ctuire that the amount of such rnveraKN excised that amount of coverage required to pay the sums s+rurecl M this; MortgaK+•. The insurance carrier pnn•idinK the insurancY• shad) 1?c• chu:en by Borrower subjcvt to appro~•:+t by (a•nder: pnn•idc•d. that such approval shall not be unreasonably withheld. All pmmiurns un insururce tw,lici+•s shall i,c• paid in the manner pn?vid+•d under par.+Kr.+ph hereof ur, if not paid in such manner. M• li+,rn,wer makinK p:n•ment, when du+•, din•+•tl>• to the inwr.+nce carrier. All insurance policies and renewals therruf .hall Ix• in firm acceptable to 1:+•nder and shall include a standanl mortgaKeclause in tavorof and in form acceptable to [.ender. Lender shall have the right to hold the tx~lic•ies and renewals therev,f, and liorrowershall promptly furnish to ,.ender all renewal notices and ap remipts of paid premiums.. (n the event of loss. Born,wer shall Kivr prompt notice to the insurance carrier and [.ender. Lender may make proof of los_k if not made promptly by Burrower. Unless Lender and Borrower othervvisP agree in writinti• ihsuranm proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ec•unumicalh• feasible, and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasif?le or if the security of this ~1urtKaKN would be impaired, the insurance proceeds shall be applied to thesums secured by this 1ltortgage• with the ex+•NSS• if am, paid U? Rurn~wNr. If the 1'rnperty +s abandoned by 13c,rrower, or if Borrower fails to respond to Lender within a0 days from the date notice is mallet! t?y Lender G, Bc,rrawrr that the insurance carrier offers tosettle a claim for insurance benefits, Lender is authorized to collect and apph• the insurance pr+,ce•e•ds at Icnder's option either to restoration or repair of the Property or the sums secured by this MortKaKe. Unless Lender and Borrower otherwise agree in w•riUnK, any such application of prcxee+ls to principal shall notextend or postpone thedue date of the monthly installments referred w in par:+Kraphs 1 and 'l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by (.ender, all right, title and interest of 13+?rmwer in and to any insuranm policies and in and to the proceeds thereof resulting from damage to Property prior to the salty or acquisition shall pass to Fender to the extent of the sums secured by this tilortgage immediately prior to such sale or acquisition- f , 6. Preservation and Maintenanceof Property: l.easeholda; Condominuma; Planned Unit Developments. Borrowershall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this MnrtKaKe is on a unit in a ccmduminium or a planned unit development, t Burrower shalt perform sit of I3c,rruw•er's obligations under thedec•laratiun orrnvenantr: +•n•atin~;orKovernrnR-the condominium or planned unit development, the by-laws and regulations of the cc,nd+,minium or planned unit development; and constituent documents. If a rnndominium or planned unit development rider is executed by Borrower and recurdcd together with this Mortgage, the covenants and aKreementg of such rider shall t?e incorporated into and .hall amend and supplement thec•cwenants and:eKreements of this 111ortkakeas ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, rnde enforcement, or arrangements or prr,ceedinKs involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make ouch appearances, disburse such some and take such action as is necessary to protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's lees and entry upon the Property to make repairs. If [.ender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ( Any amounts disbursed by [.ender perauant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from !.ender to Borrower requesting payment thereof, and shall bear interest fn,m the date of diabureement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall t require Lender to incur any expense or take any action hereunder. r B00lR( PAGE ' ~ ~_r-- - , a -.~-~~.u