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HomeMy WebLinkAbout0072 Borrower and Lender covenant and ogres u folbws: 1. Payanent of Principal and Interest. Borrower shag promptly pay when due the principal of and interest on the indebtedneu • evidenced by the Note. prepayment and late durge_ s u provided in the Note. and the principal of and interest on any F1~ture Advances secured by this Mortgage. Z. Funds for Tares and Insurance. 3ubjed Lo applicable law or to a written waives by Lender, Borrower shall pay to Lender on the day monthly inetalhaeats of principal and interest are payable ands: the Note, until the Note is paid in full. a sum (herein "Funds'? equal to one- twelf W ofthe yearly taxes and asseuments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus one• twelRl? of yearly premium installments for hazard insurance. Plus onetwelRh of yearly premium installments for mortgage inanrancs, if any, all as reasonably estimated initially and from time to time by Lender on the bait of assessments and bills and reasonable estimates thereof The Funds shall be held in as institution We deposits or accounts of which are,insured or guaranteed by a Federal or State agency (including Lender u Leader is such an institution). Lender shall apply the Funds b pay said taxes, assessments, insurance premiums and ground rents. Lender many not charge for a holding and applying the Funds. analyzing said aeoount. or +reritying and compiling said assessments and bills. unless Lender pays Borrower interest on the Fends and applicable law permits Lender to make such a charge. Borrower and Leader, may agree in writing at We lima 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 interest b be paid, Lender shall not be required to pay Borrower any i.-rtereat or earnings on the Funds. Lender shall give to Borrower. without charge. an annual aeoounting of the Funds showing credits and debits tothe is ands and the purpose for which each debit to We Funds was made. The Funds are pledged u additional security for the sofas secured by this Mortgage. If the amount of We Ptmds held by Lender, together with the future monthly installments oiFunds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall extend the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, each excess shall be, at Borrower's option, either promptly repaid to Borrower or credited b Borrower on monthly installments of Plrnds. U the amount of We Funds held by Lender shall not.be sufficient to pay taxes. assessments, insurance premiums and ground yenta as they fall due, Borrower shall pay to Lender any amount nnoeasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeatireg payment thereof. Upon payment in full of all wms secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold ~ the Property is otherwise acquired by Lender, Larder 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 auras secured by this Mortgage. _ . 3. Application of Paynr~nts. 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 under paragraph 2 hereof, then to intereed payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. ~ 4. Chsrgea; Liens. Borrowershallpay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over thin Mortgage, and leasehold payments or ground yenta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shall promptly furnish to Lender ~ all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower a r~al1 promptly furnish to Lender receipts evidencing such payments. Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement otsuch 1,en in, legal proceedings whidr 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 lost by fire, hazards included within the term "extended coverage; 'and such other hazards as Lender may require and in such amounts and for wch ' periods as Lender may require; provided, that Lender shall not require that the amount of tuck coverage exceed that amount of rnverage required to pay the soma secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. that such approval + 'i shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if ~ not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. AU insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of _ and in form acceptable to Lender. I.enderahall have the right to hold the policies and renewals thereof, and Borrower shall promptly f•.uniah to fender all newal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender Lender may make proof of loss if not made promptly by Borrower. f Unless nder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, vided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If Such restoration repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums nred by this Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to _ ~ respond to nder within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier olfera to settle a claim for ~ insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender a 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 Wedue date of the monthly installments referred to in paragraphs 1 and 2 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 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 Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shalt keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of We• 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 rnndominium or planned ~ unit development, We bylaws 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 rernrded together with this- Mortgage, the covenants and agreements of such rider shat) be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 1 7. Protection of Lender's Security. If Borrower fails to perform the covenants and egreementa contained in this Mortgage, or if any action or proceeding is commarted which materially affects Lender a interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,npon notice to Harrower may make such appearances, disburse such sums and take such action u is necessary to prated Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repeirr. U Lends required mortgage insurance as a condition of making We loan secured by Wia Mortgage, Borrower shall pay We premiums required to maintain such insurance in effect until wch time u We requirement for such insurance terminates in accordance wiW Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ My amounts disbursed by Lender persuant to Wie paragraph 7, wiW interest Wereon, 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 neon ~ notice from Leader to Borrower requceting payment thereof. and shall bear interest from We date of disbursement at We 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 rush amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in Wis paragraph 7, shall require Lender to incur any expense or take any action hereunder. • a~341 P~ ~'2 _ .r u