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HomeMy WebLinkAbout1826 Borrower and Lender covenant and agree ss folbws: 1. Paya?ant of Principal and Interest. Borrower shat! promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. Prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds fos Tues and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum Therein "Funds") equal to one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rent on the Property, i[any,plusone- twelfth of yearly premium installments for hazard insurance, plus one•twelRh ofyearly premium installments for mortgage insurance, i[any. all as reasonably estimated initially and from time to tirr+e by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency !including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground yenta. Lender allay riot charge for so holding and applying the Funds, analysing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower intersat on the Funds and applicable Isw permits Lender b make such a charge. Borrower and Lender may agree in writing at the time of execution of thin Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without ~Irarge. an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit b the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Flrnds held by Lender, together with the future monthly installments of Funds payable prior to the due dgtRS of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said fs:es, assessments, insurance premiums and ground rents as they fall due, ouch excess shall Ix, at Borrower s option, either promptly repaid w Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by Fender shall not br sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of aU sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under , paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, !.ender shall apply, no later than immediately prior to the sale of fhe Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payanents. Unless applicable law provides otherwise, all payments reerived by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender 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. 4. Charges; Liens. Borrower shall pay all lazes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments oryCround rents, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. dinectly to the pay ee thereof Borrower shall promptly furnish to Lender :?11 notices of amounts due under this paragraph, and in the event Borrower shall make pay maul directly. Borrower shall promptly furnish to I xnder receipts evidencing such payments. Iorrower shall promptly discharge any lien which has priority overthis Mortgage; provided, that borrower shall not be required to discharge any such lien so ky+g•a_c Born,wer shall :+gree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith rnntest such lien by, ordefend enforcement of such lien in.legal proceedings which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loesby fire, hazards included within the term "extended coverage; 'and such other hazards as !.ender may require and in such amounts and for such periods as tender may require; provided, that lxnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall I,e ehusen I?y li?,rn,w•er subject tc. approval by 1 xndrr; pn,vided, that suchrpproval shall not be unreasonably withheld. All premiums on insuranm IH?licies sh:+Il t,e p:+id in the m:+nnrr pn,vided under par.+gr.+ph `l hereof or, if not paid in such manner, by Borrower making p:+>mc•nt, when due. direc•tlr d, the inxurmce carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in tavorof and in form acceptable to !.ender. Lender shall have the right p, hold the policies and renewals thereof, and Borrower shalt promptly furnish to - i.ender all renewal notices and all receipts of paid premiums. In the event otlass. Borrower shall gis•e prompt notice to the insurance carrier and Lender. !.ender may make proof of Joss it not made promptly by Borrower. j Unfesa Lender and Borrower otherwise agree in writing, insurance prareds shall be applied to restoration or repair of the Property f damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shat! be applied to the sums secured by this Mortgage, with theexcess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respogd to Lender within :it) days from the date notim i.R mailed by Lender to Borrower that the insurance carrier otTera to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at lender s option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'! hereof or change the amount of such installments. Itundet paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to (.ender to the extent of the soma secured by this ~ Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Prnperty; [.eaaeholds; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ pro~~aiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, f borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing theeondominium or planned unit development, the by-laws and regulations of the condominium or planned unit development. and conatituenl documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall I,e incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageas i[the € rider were a part hereof. 7. Protection of Lender's Security. tf Borrower fails to perform the rnvenants and agreements cnntained in this Morigags, 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, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,opon i notice to Borrower may make such appearances. disburse such some and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement o[ reasonable attorney's fees and entry upon the Property to make repairs- If Lender required ' mortgage insurance as a rnndition 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 Lenders written agreement or applicable Law. Borrower shall pay the amount of al) mortgage insurance premiums in the manner provided under paragraph Z hereof. Any amounts disbursed tby Lender persuant W this paragraph 7, with interest thereon, shall beeoms additiana) indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable neon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable flan ~ time to time on outalsnding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which r event such amounts shall bear interest at the highest rate permissible under applicable caw. Nothing contained in this paragraph 7, shall require Lender Wincur-any expense or take any action hereunder. • - ~ ~~K ~ pd~ 1824 - - - - _ - _ - :rte - _