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HomeMy WebLinkAbout0810 Borrower and Lender covenant and agree as follows: - - 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on We indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Plrture Advances secured by thin Mortgage. 2. Ftirnda for Taues said Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly instsllmerrts of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds'? equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. ilany. plw otra twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis oI assessments and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lends is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may tat charge for so holding and applying the Funds, analysing said account, os verifying and coaupilitrg said assessments and bills, odes Lender pays Borrower interest on the Funds and applicable lanv permits Lender to make such a charge. Borrower and I.wder may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unleq arch agreement is made or applicable law requires such interest to be paid. bender shall not be required to pay Borrower any interest ~ earnings on We Funds. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credits acid debits to the Funds and We purpose for which each debit to the Funds vyas made. The Funds are pledged as additional security for the stuns secured by this Mortgage. If We amount of the Fends held by Leader, together with the future monthly installments of Fonda 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 premiuau and ground rents as they fall due, such excess shall be. at Borrower's option, either promptly repaid b Borrower or credited to Borroweron monthly installments of Funds. If the amount'of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrowed 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. - - Uponpayment iafull of aUs~masecured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie 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 Lender, any Funds held by Lender at the time of application sa a credit against the soma 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 Leader first in payment of amounts 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. Borrowerahall pay all taxes, assessments and otherchargea, fines and impositions attributable b the Property which may attain a priority over this Mortgage, and leasehold payments orground rents, i[any, in the manner provided under paragraph 2hereofor. if not paid in ouch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to i..etrder - allnotices 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 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 rnntesi such lien by, or defend 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 loss by fire, hazards included within the term "extended coverage," -and such other hazards as Lender may require and in such amounts and for such periods 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 soma secured by this Mortgage. - The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that sur_h approval - ahall 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, directly to the insurance carrier. - Allinsurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage claws in favorof and in form acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof end Borrower shall promptly famish to i.ender all renewal notices and all receipts of paid premiums. in the event of loan, Borrower shall give prompt notice to the insurance carrier and Lander. Lender may make proof of loss if not made promptly by Borrower. Unless Leader and Borrower otherwise agree in writing, insurance proceerrc shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically fusible and the~sexurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feaBible 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, ifany, paid to Borrower. If the Property is abandoned by Borrower, or if 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 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 the due date of the monthly installments referred. to in paragraphs 1 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 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 of Property; Leaseholds; Condominums;Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit 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 unitdevelopment, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, •~e 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 rernrded together with this Mortgage. the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thernvenanta and agreementaof this Mortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender • interest in the Property. including, but not limited to, eminent domain. insolvency, node eaforarnent, or arrangements or proceedings involving a bankrupt or deortlent. then Lender'at Larder's option,npoa 1 notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Larder's interest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repai». 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 iasurarrce in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. - - My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon. shall become additional indebtedness of Borrower aewred 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 of disbursement al the rate payable Pram time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which accent 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 action hereunder. . 1-. - ~ ,p.,. . ~