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HomeMy WebLinkAbout1182 Borrower and Lender covenant and agree as folbws: 1. 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 ae provided in the Note, and the principal oI and interest on any Future Advances secured by this Mortgage. 2. Ftitrtds for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, 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 of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ont twelfth of yearly premium installments for hazard insurance, plus onetwelfth ofyearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and from time to tithe by Ixnder on the basis of assessments and bills and reasonable estimates thereof. The Fltnda shall be held 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 rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaeasmente 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 o[execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless ouch 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 Flrnda. Lender shall give to Borrower, without charge, an annual accounting ottee F ands 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 Morigage. Itthe amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior totheduedatea oftaxea, assessments, insurance premiums and ground rents, steal! exrred the amount rcgerired io pay said taxes, assessments, insur:;ncc 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 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, Borrower shall pay to Lender any amount necessary to make up the deficiency within 3(Idaya from the date notice is mailed by Lender Lo.Borrower requesting payment thereof. Upon payment in full of all sums secured by this Morigage, !.ender shall promptly refund to Borrower any funds held by !.ender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by !.ender, 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 !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by [.ender first in payment of amounts payable to !.ender 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 and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the pay ee therec?f. Born?wer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event 1orrower 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 Korrower shall not be required to discharge any sash lien so long :rs l;„rn?wer shall :?gree in writing to the payment of thenbligatiorl secured by such lien in a manner acceptable to Lender, or shall in gc>,xl faith n?ntest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enfonrment of the lien or fi?rfeiture of the Pn?pert}• ur any pan lhere•„f. 5. Hazard Insurance. Borrower shall keep the imprr?vements 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 forauch periods as Lender may require; provided, that. Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranceY• shall tN• chosen h}• Borrower subj~Y•t to approval be 1 a•nder, pn?vided. that such approval shall not be unre:rs,?nably withheld. All premiu?ns on insur:rn?•?• IN+licit•s shall iK• paid in the manner provid?d under paragr:?ph'L hermf or, if not paid in such manner, by Borrower making payment, when due, din•:•tly to the insur:mm carrier. All insurance policies and renewals thercr,f shall be in form acceptable to Lender and shall include a standard morigageclause in favorof and in form acceptable to !.ender. bender shall have the right to hold the Iwlicies and renewals thereof, and Borrower shall promptly furnish to II i.ender all renewal notices and all receipt.4 of paid premiums. In the event of loss, Burrower shall gis•e prompt notice to the insurance carrier and !.ender. Lender may make proof of loss if hat 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 ur repair is economically feasible and the security of this 1ortgage is not thereby impaired- If such restoration or repair is not economically feasible ur if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, with the excess. if any, paid to lio~ower. if the Property is abandoned by Borrower,orif Borrower fails to i respond to [.ender within days from the date notice is mailed by Lender d, Borrower that the insuranre carver offers to settle a claim for ~ insurance benefits, !.ender is authorized to collr•~•t rend apply the.insur•.rnce prr,cet•ds at Lender'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 thedue date of the monthly installments referred u, in paragraphs 1 :end 'l trere:?f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right. title and interest of I3orn?wer in and to any insurance policies and is and to the proceeds thereof resulting from damage to Property prier to the sale or anlursition shall pass b? Lender to the extent of the sums secured by this Morigage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; I.easeholda; ('ondominuma; Planned Unit Developments. Borrowerahall 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 Morigage is on a leasehold- If this Mortgage is on a unit in a condominium or a planned unit development, Iorrower shall perform all of Ik,rn,wer's obligations under the decdardion or covenants creatingor 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 rnvenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower faits to perform the covenants and agreements contained in this Morigage, or if any ~ action 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 may make each appearances, disburse such soma and take such action as ie 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 ae a rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until ouch time ae the requirement for such insurance terminates in accordance with Borrower's and i.ender s 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 b Lender y pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness o[ Borrower secured by this Mortgage. Unless Borrower and !.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender tb 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 action hereunder. ~ ~ . 8r?~K 34z PacE ~82 t-