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HomeMy WebLinkAbout0717 Borrower and Lender covenant and agree as lolbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtednep evidenced by the Nuts, prp?syment and late charges as previded in the Note, and the principal of and interest on any P!?ture Advances secured by thin 1Kortga~e. Z. h`apda for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Ler?der. Borrower sh:Il 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 ono- twelfth of the yearly taxes and assewments which may attain priority over this Mortgage. and ground ren4 on the Property, if any, plus oas twelfth of y~rly premium instalbnents for hasard insurance, plus ono-twellth otyearlry premium installments for mortgage insurance, if any, all v reasonably estimated initially and from time to time by Lender on the basis of assessments and bilb and reasonable estimates thereof. Ths Funds ohaU bs held in an institution the deposits or accounts of which an insured or g~?aranteed by a Federal or State agency (including Leader if Lander is such an institution). Lender shall apply the Funds to pay said taxes. assessments. insurance premiums and ground rents. Lendce may not charge fm ao holding and applying the Funds, analysing said account, or verifying and compilir?g said astwsmenfs and bil4. unless Leader pays Borrower interest on the Funds and applicable law permits Lender tea 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 b>s required to pay Borrower any interest or earnings on the Funds. Lender shall give b 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 yeas made. The Funds are pledged as additional security for the soma secured by this Mortgags.' If the amount of the [~Lnds held by Lender. together with the future monthly installment oI Funds payable prior to the due dates of lases. aaessmenta. insurance premiums and ground rents. shall exceed the amount required b pay said taxes, assesarner?ts, insurance premiums and ground rents as Way fell due, such excess shall be, at Borrower • option; either promptly repaid b Borrower or credited to Borrower on monthly installments of i~mds. If the amount of the Funds held by Lender shall not be sufficient b pay taxes, assessments, insurance premiums and ground rents ss they fall due, Borrower shall pay b Lender any amount necessary b make up the deficiency within 30 days from the date notice is mailed by Lender b Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lander. If under paragraph 18 hereof We Property is solo 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 otapplication as a credit against the sums secured by this Mortgage. 3. Application of Payment. 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 bender 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 ova this Mortgage, and leasehold payments orground rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish b Lender all notices of amounts due under~this paragraph, and in the event Borrower shall make payment directly, Borrower shall pramptly 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 Borrowerehall agree in writing to the payment of the obligation secured by each lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate !o 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 lop by fire. hasards 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 ouch 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 such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the right to hold the policies end renewals thereof and Borrower shall promptly fannish to under all renewal notices and all receipts of paid premiums. In the evert of loss, Borrower shall give prompt notice to the inuurance carrier and Lander. Lender may make proof of lase if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeL? shall be applied to restoration or repair of the Property damaged, provided such restoration or repair :s econamically feasible and the~aecurity of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically tessible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured b this Mo a e, with the excess, if an party is abandoned by Borrower, or J Bon~ower fait to y rtg g y, paid to Borrower. If the Pro respond to Lender within 30 days from the date notice is mailed by Lender W Borrower that the insurance carrier offers to settle a claim for j insurance benefits, Lender is authorized to collect and apply the insurance praceeds at Lender a option either tv 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 thedue ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount otsuch installments. if 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 b Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by thin Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominume; 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 rnndominium or a planned unit development, Borrower shall perform all of Borrower'u obligations under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and oonatituent documents. If a rnndominium 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 the covenants and agreementsof this Mortgagees if the rider were a part hereof. 7. Protection of Lenders Security. It Borrower fails to perform the covenants and wgreements rontair?ed in this Mortgage. err if any i action or proceeding is commenced which materially affects Lender a interest in the Property. including; but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decadent, then Lender at Lender's option.npoa notice to Borrower may make such appearances, disburse such auras 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 repair. If Lender required mortgage insurance a. 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 Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the meaner provided under paragraph 2 hereof. Any amounts dubuned 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 b other terms of payment, such amounts shall be payable upon ~ r?otice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to 4ime on outstanding principal under the Note unless payment o! interest at such rate would be contrary to applicable law, in which event such amounts shall begr'intereat at the highest rate permiwible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. 1::' ? ? ' ~ r eoe rsc~ ?~7 .