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HomeMy WebLinkAbout0052 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and lntereat. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latechargea aaprovided in /he Note, and the principal of and interest on any Fltture Advances secured by this Mortgage. i 2. Funds forTaxesand Insurance. Subject to applicable is+w or to a written waiver by (,ender, Born,wershull pay to I.enderon theday monthly inatallmenta of principal and interest are payable under the Note, until the Note is paid in full, t+ sum (herein "Ftisnds'") equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, sled ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus onetwelfih of yearly premium installments fur mortgage insurance, itany, all as reasonably estimated initially and from time to tithe 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 it Lender is such an institution). (.ender shall apply the Funds to pay avid taxes, s+asesaments, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Funds, atealyzing said account, or verifying and compiling said assessments and bills, unless Gender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrrower 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 to pay Borrower any interest or earnings on the Funds. 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 pledq~d as additional sserurity for thesums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future morethly installments; of Funds payable prior to (lee duedatea of taxes, as;seasments, 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 Bo+mwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Fonda held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they'fall due, Borrowers;hall pay to Lender any amount necessary to make up the deficiency within all days from the date notice is mailed by Lender W Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Rc?rrower any funds held by [.ender. (fonder paragraph 18 hereof the Property is sold or the I'mperiy 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 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 first in payment of amounts payable to Fender 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 othf•rrh:vges, firers and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kn,und mots, if any, in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower makinti payment, when due, diree•tiy to the paym thereof. Born?wer shall promptly furnish to Lender all notices of amounts due under this paragraph, :+nd in the event Borrower shall make payment dirc•c•tly. Borrower shall promptly furnish to Lender receipts evidencing such pa}•menLa. )A,rrower shall prumpth• disehar{;e:?ny lien which has priority uvcr!!:is:l3s,rtF::gc; ps°c:vidcd, that Borrower shall not be required to dischargf• any such lien so Ion{; as liorn,wer shall agr+r• in writing to the payment of theublig:+tion secured by such lien in a manner acceptable to Lender, or shall in good Geith e•ssntfat such lien by, uniefend enfi,rcement utsuf•h lien in, legal pn,cefdings which operate to prevent the enforcement of the lien or fi?rfi•iture of the 1'rulx•rty or any p:vt thenr,f. 5. Hazard Insurance. Borrower shall keep the impn?vements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cover.+ge,"and such other hazards as IA odes may mcluire and in such amounts; and forsuch periods as lxnder may inquire; provided, that Lender ah:+Il not rc•etuin• that the amount of such cf?verage e•xc•c•+d that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pn,viding the insurance shall l,f• f•1?ose•n he Burn,wer suhjf•f•t to :q?pruval b~• I.f•ndrr, pnsvidcd, that wc•h approval shall not I,e unm:+afswhly withheld. All pmmiunes un inwranec lwdicie•..hall !w• paid in the manner providfrl under paragraph l hen•of or, if I~ not paid in such mamu•r, by liorn,wer making payment, when due, din•+-tl~• to the insoranf•f• f:+rrier. All insurance policies and renewals thereof shall l,e in fisrm acceptable u, Lf•nder and ah:ill include a standard mortgage clause in favor of and in form acceptable to Lender. (.ender shall have the right to hold the lwlieies and n•newals therfr,f, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid pn•miums. In the eyent of b,as. Burrower shall give proml,t notice G? the insurance r.+rrier ~ and Lender. Lender may make pns,f of loss if not made promptly by Burrower. Unless Lender and Burrower otherwise agne• in writing, insur,+ner proceeds shall M• applied to restoration osr repair of the Property damaged, provided such rcwtor.+tion or repair is f•c•onumically feasible and the security of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impain•d, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to i3e,rn,w•er_ If the Property is abandoned by Iturrower,or if Iorrower fails to j respond to Gender within a0 days from thc• date notirn is mailwi by Lendf•r to ltf,ruwrr that the insurance carrier ofrers to settle a claim for 1{ insurance benefits, Lender is aUthOfl'LtYI t0 c1,IIfY't and apph• the insuranm prfK•ef•ds at Lf•nder's option either to restoration or repair of the rroperiy or the awns securest by [his ;+ioriK:+Kr. UnlesaLenderandBorrowerotherwiu•agreeinwriting.anysuchapplif•ationufpn,c•c•eYistoprincipalahallnotextendorpstponethedue - date of the monthly installments referred Ur in paragraphs 1 and'L hereof or ch:+ngc• the amount of such lost:+liments. If under paragraph IS hereof the Property is acquired by fender, all right, title and inten•at 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 acgwsition shall pass tf? Lender to the extent of the sums; secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Uevelopmenta. Borrowershall keep the Property in good repair and shall not commit waste or pf•rmit impairment or deterioration of the Property and shall comply with the provisions of stny lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Korn,wer's obligations under the declaration or covenants ematingor governing the condominium or planned unit development, the by-laws and regulations of the eonduminium or planned unit development, and cons;tituent documents. If a eonduminium or planned unit development rider is executed by Ilornswer and ref•ordcd together with this Mortgage, the covenants; and :+grecments of such rider shall tx• incorporated into :rod shat I amend and supl?lement the covenants and :?grtements of this Mortgage as if the rider were a part here:•of. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materia!!y affects Fender's interest in the Property, including, he:t not lim~t~•d tn, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at I.ender'e option,upon $ notice to Borrower may make such appearances, disburse such sums and take each action as is necessary to protect Lender a interest, j including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Tf Lender required ~ mortgage insurance s+a a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain s ~ such insurance in effeM until each time as the requirement for such insurance terminates in accordance with Borrower a and [.enders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ' paragraph 2 hereof. Any amounts disbursed by !.ender perauant 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, such amounts shall be payable upon notice from Lender to liormwer 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 each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~~ax 342 Pa~E 52