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HomeMy WebLinkAbout0553 Borrower and Lender 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 intereston any Future Advances secured by this Mortgage. 2. Funds for Ta:es and Insurance. Subject to applicable law or to a written waiver by I.ender, 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 one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one- twelfth of yearly premium installments for hazard insurance, plus one•twelRh of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The I~rrtds 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 Hots. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lendei pays Borrower interest on the Funds and applicable law pern?its 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 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 interest or eaminga on the finds. Lender shall give to Borrower, without charge. an annual accounting of the Funds 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 F1nds held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Pltnds. If the amount of the Funds held by Lender shall not be Sufficient to pay taxes, aa4essmenta. 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 fuQ of all soma 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 bf the Property or its aoauiaition 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 firatin payment otamounta payable to Lender 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 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, i f any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrow er 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 the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:+s pric?rity over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long ~?s Borrower shall agree in writing to the payment ottheobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforcement 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 lose by fire, hazards incladed within the term "extended coverage," and such other hazards :~s Ixnder may require and in such amounts and torsuch periods as Lender may require; provided, that Lender shall not require that the amount of such croverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval bt Lender. provided, that such approval shall not be unreasonably withheld. All premiums on insuranm p~~licies shall 1?e paid in the manner pn?viried under paragraphs hereof or, if not paid in such manner, by Borrower making payment, when due, dinrtly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a stendard mortgage clause in favorof . and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall 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 f and Lender. [.ender may make proof of loss it not made promptly by Borrower. f Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property s 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 economically 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 it Borrower fails to respond to Lender within 30 days from the date notice 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 (.ender 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 of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs !and 2 hereof or change the amount of such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of &,rrower 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 of Property; 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 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, l Borrower shall perforn all of Borrower s obligations under the declaration or covenants creatingor governing thecondominium or planned 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 covenants 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 hereof. i 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreementernntained in this Mortgage. or if any aMion 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 rosy make such appearances, disburse each sums and take such action ae 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 rnndition 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 Borrower's and Lender's ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under i paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower sod 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 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 contrary 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 incur any expense or take any aMion hereunder.