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HomeMy WebLinkAbout1213 Borrower and Lender covenant and agree as follows: - 1. Paymettt 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 i•'uture Advances secured by this Mortgage. 2 Ftittds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to lender on the day monthly instalhnenta 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, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus one•twel flh of yearly premium installments for mortgage insurance, i[ any, all as reasonably estimated initially and from time to time by Lender on the basis o[assesaments and bills and reasonable estimates thereof: The Funds shall be held in an institution the deposits or accounts of which are inaurod or guaranteed by a Federal or State agency (including Lender if Lender ie 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 Funds and applicable law permits 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 to be paid, Lender shall not be required tQ pay Borrower any interest or earnings on the Flrnds. Lender shall give to Borrower, without charge, an annual accounting ottee 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 Funds 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, asaeaamente, 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 ~rnda. If the amount of the Funds held by Lender shall -not be sufficient to pay taxes; assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by [.ender to Borrower requesting payment thereof. Upon payment in full of all some secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereofthe Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior - tothe sale of the Property or its acquisition by [.ender, any Fonda held by Lender al 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 !.ender 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 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. Borrowershall pay all taxes, assessments:rnd 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. Ilorrowershall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event Borrower shalt make pay ment 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 inwriting tothe paymen/ of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforirmentof such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Nazard Insurance. Borrower shall keep the improvementsnow existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage, 'and such other hazards as Ixnder may require and in such amounts and forauch periods as !.ender may require; provided, that Ixnder shall not require 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 insurane~r• shall t?e chosen by Borrower subjcYi to approval by Lender, prr?vided, that such approval shall not be unreasonably withheld. All premiums on insuran~•e tN~lici~s shall tee paid in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, dirtti•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favorof and in form acceptable to Lender. I.endershall have the right to hold the policies and renewals thereof. and Borrr?wershall promptly furnish 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 and bender. Lender may make proof of loss 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 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 beimpaired, the insurance proceeds shall be applied to the auma 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 :10 days from the date notice is mailed by Fender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance prrxeeds at Lender s option either to restoration or repair of the property or the auma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of prrxeeds to principal shall rat extend or postpone thedue date of the monthly installments referred to in paragraphs I and 2lrereof or change the amount of such installments. If under paragraph 18 hereof the Property ie 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 m Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; Leaseholds; Condominume; Planned Unit Developments. Borrowershal) 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 ia~on a leasehold. It 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 creatinKor 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 a nd supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements rnntained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, inaolvencjr, code enforcement, or arrangements or proceedings involving a bankrupt. nr decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse each auma and take such aMion as is necessary to protect Lender's interest, . r including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM 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 1 1 paragraph 2 hereof. ~ Any amounts disbursed by Lender persuant to this paragraph T, with interest thereon, shall become additional indebtedness of r Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from (.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from 's 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 T, ehaB ~ require Lender to incur any expense or take any action hereunder. aonz 3~1 pacF 121