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HomeMy WebLinkAbout0367 Borrower and Lender covenant and agree ea follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of snd interest on the indebtednew 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 Fonda for Ta:ee 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 (herein "Funds") equal to ont twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw one• +welfth of yearly premium installments [or hasard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held 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 b 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 rnmpiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the tithe 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 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 o[the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates ottaxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they [all due, such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Botroweron monthly installments of Funds. If 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 b 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 earns 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 Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by (.ender, 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+IVote and paragraphs 1 and 2 hereof shall be applied by Lender first in payment otamounts payable to Lender by Borrower under paragraph ?~rereof, then to interest payable on the Note, then to the principa! of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or grou nd 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. Borrowershall promptly furnish to Lender :+Il notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Born+wer shall promptly furnish to . Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien sv long ag Borrower shall agree in writing to thepayment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith n+ntest such lien by, or defend enformment ofsuch lien in, legal proceedings which operate to prevent the enforrnment of the lien or forfeiture o[ the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected nn the Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards as lender may require and in such amounts and for such pe+ioda as Lender may require: provided, that lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums second by this Mortgage. The insurance carrier providing the insur.+nm shall Ix• chusc•n by li+~rrower subj+rt to approval by lxndrr; provided, that such approval shall not be unreasonably withheld. All premiums on insuru+c+• policies shall Ise paid in the manner pmvid+d under paragraphs hereofor,_if . not paid in such manner, by l~+rrower making p:+yment, whin due, dinY•tly to the insuranm carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgagedause in favorof and in form acceptable to Lender. I.endershall have the right fr+hold the policies and renewals thereof, and Borrowershal) promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss. Born+wer shall give prompt notice to the insurance carrier . and Lender. Lender may make prcaf of los.4 if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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. If such ~ restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured 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 Lender within :10 days from the date notim is mailed by Lender W 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 soma secured by this Mortgage- Unless Lender and Borrower otherwise :+gree in writing, any such application of proceeds to principal shall nut extend or postpone thedue date of the monthly installments referred tr+ in par:+graphs t 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 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 sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; 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 rnmply with the _ provisions of any lease i[ 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 1 unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the wvenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereoL 7. Protection of Lender's Security. If Borrower [ails 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, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make each appearances, disburse such sums 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 Lends 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 for such insurance terminates in accordance with Borrowei s and Lender's 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 this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, each amounts shall be payable upon . notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of 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 rnntained in this paragraph 7, shall require Lender to inwr any expense or take any action hereunder. 6 ~ 8o~x341 P~~E 367