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HomeMy WebLinkAbout0667 i s Borrower and Lander covenant and agree as folbws: I. Payment of Principal and Interest. Borrower shall 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 for Taxes and Insurance. Subject to applicable law or b 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 (herein "Funds")egos! to one twelfth ottee yearly taxes and assessments which may attain priority over this Mortgage. and ground yenta on the Property. if any. plot one- twelfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, i[any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereo! The Blends shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lander b 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 Borrower. and unless such agreement is made or applicable law requires such inter•eat to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Fonda and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security for the soma secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of razes, asaesamenta. insurance premiums and ground rents, shall exc~.d the amount required to pay said taxes. assessments, insurance premiums and ground rents 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. I[ the amount of the Funds held by [.ender shall not be 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 all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. I[ under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lendes shall apply, no later than immediately prior to the sale of the 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 Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower uli~der 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 taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in /he event Born?wer shall make payment directly, Borrower shall promptly famish to lender receipts evidencing such payments. Bocmwer shall promptiy discharge any lien which has priority overthis Mortgage; provided, that Borrower shall not be required todischarge any such lien so long:+s &?rrower shall agree in writing to the payment of lheobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforc-~•+nent of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture 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 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 Lender may require; provided, that Ixnder sh:+ll not reyuire 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 tx• chosen by li??rrowcr subj+Y•t to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurancer p??lici+s shall he paid in the manner pnn•ided under paragraph 2 hereof or, if not paid in such manner, by Burrower making p:+yment, when due. dirErth• to the imurmm carrier. All insurance policies and renewals thereotshall be in form acceptable to I~+•nder and shall include a standard mortgage clause in favorof and in form acceptable to Lender. lender shall have the right t<? hold the policies and renewals thereof. and Borrower shall promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier i and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherv?-ise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such reswration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. l f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notim is mailed by Lender to Borrower that the insurance carrier offers 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 sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application o[pmceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:+graphs 1 and `L hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Ibrn?wer 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 Lender to the extent of the sums secured by this ` i Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums;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 Mortgage is on a unit in a condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent 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 be incorporated into and shall amend and supplement the covenants and agreementsof this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Bon-over fails to perform the oovenante and agreements rnntained 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, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender s option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender 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 effect until such time as the requirement [or such insurance terminates in accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount o[ all mortgage insurance premiums in the manner provided under paragraph 2 hereof. f Any amounts disbursed by Lender perauant to this paragraph 7, with Interest thereon, shall become additional indebtedness o[ Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date o[ disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall require Lender to incur any expense or take any aMion hereunder. ) • ~