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HomeMy WebLinkAbout1198 r e Borrower and Lender oovsaaat and ogres w tolbws: 1. Payment of Principal and interest. Borrower shall promptly pay when des the prind~al of and interest oa the iadsbtednew evidaaad by the Note, grepaymeat sad !at charge as provided is the Note, and the prindpal of and interest on any Future Advances secured by this Mortgage. Z.1Ptitads for Taxes and Iasuraaos. Subject to applicable law oc to a written waiver by Lender. Borrower she) l pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid is full, a sum (betels "Fl~nds'7 equal to oae• twelfth of the yearly taxes and assessments which may attain priority over thin Mortgage, and ground rents on the Properly. if any. pies oae• 'twelitb of yearly premium installment for haurd insurance, plus onstwelfth ofyearly premium iruWimeat [or mortgage ineuranoa. itany, all w reasonably estimated initially and tlrom time to time by Lender on the basis of assewment and bil4 and reasonable estimates thereof Ths F1mds shall bs held in as iturtitntioa tM deposits or account of which are insured or guaranteed by a Federal or State agency ~ (including Leads: it Leader is such an iastltutioa). Lender shall apply the Funds to pay said taxes, aasesemeats, insurance premiums and I ground teats. Lsadsr rosy sot charge foe so holding and applying the Funds, analysing said account, or verifying and compiling said i aesessraeat sad biW, naless Lendss pays Borrower interest oa the Funds and applicable law permits Leader to make such a charge. Borrows: i and Leader may agree is writing at tbs tams of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agresment i. made or applicable law requires such interest to be paid, Leader shall act be required to pay Borrower any fattest or earning on the Funds. Leader shall give to Borrower, without charge, as annual acoouating of the Flinch showing credits and debits to the fllmds sad the parpow for which each debit to the Ftiinds yes made. The Funds are pledged as additional security for the sums scented by this Mortgage. If the amount of the Funds held by Linder, together with the future monthly instalment of Fnads payable prior to the due dates of tares. assesaneat, iaavanos psaminms sad ground rrnt, shall exceed the amount required to pay said taxes. assesameats, insuraaoe premiums sad ground rents u they fill due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly iasWimeat of Funds. It the amount of the Funds held by Leader shall sot be snifident to pay taxes. assessments, iasuraaos premiums sad ground teat as they tall rive, Borrower shall pay to Lends any amount necessary to make up the deficiency within 30 days from the date notice le mailed by Leader to Borrower rcquestiag payment thereoL Upon payment in t1t11 of all sums secured by thin Mortgage. Center shall promptly refund to Borrower any funds held by Leader. V Hader paragraph 18 hersotthe Property i. sold or the Property is otherwise acquired by Lender, Lender ehaq apply, no later than immediately prior to the sale of the Ptopeety a iq aognidtioa by Lender, any Funds held by Ltndsr at the time of application u a credit against the sums secured by this Mortgage. 3. AppUcatlon of Payments. Ualew applicable law provides otherwise, all payment received by Leader wader the Note and paragraphs 1 and 2 hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrower under paragraph Z hereof then to interest payable on the Note, then to We principal of the Note, and then to interest and principal oa any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessment and other charges, fins and impositions attributable to the Propescy which rosy 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 is such manner. by Borrower making Payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Leads all notices of amwnt due Wade: this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Leader receipts evidencing such payments. Borrows 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 each lien is a manna acceptable to Lender, or shall in good faith rnntest such lien by. ordefend enforcementof such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. b. Hasard Insurance. Borrower shall keep the improvement now existing or bereafter erected on the Property insured against low by fire, hasards iaclnded within the term "extaded coverage," and such other hazards w Leader may require and is such amonat and for such periods u Leader 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 inuurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, that such approval shall sot be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due, directly to the insurance carrrier. All iwurance policies sad renewale thereof shall be in form acceptable to Lender and shall include a standard mortgage dauw in favw d end is form aoosptble to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipt of paid premiums. In the event of low. Borrower shall give prompt notice to the iwurance carrier and Lender. Lender may make proof of low if not made promptly by Borrower. Ualew Leader and Borrower otherwise agree in writing. insurance procee~w shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically fehsible and the~security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any. paid to Borrowrr. Iithe Property is abandoned by Borrower. or if Borrower fails to respond to Fender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insuraaoe benefit. Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair o[ the Property or the sums secured by this Mortgage. - Udess Leader and Borrower otherwise agree iri writing, any such application of proceeds to principal shall not extend os pwtpone the rive date of the monthly instalments referred to in paragraphs 1 and 2 hereof or change the amount of such instalment. If under paragraph 18 hereof the Property is soquired by Lender, all right. title and interest of Borrower in and to any insurance policies and in and to the proceeds ~i thereof resulting ftom damage to Propertt prior to the wle or acqu_ isition shall paw to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or aognisition. j 6. Preservatloa sad Maiatenanoe of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property is good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any leave if this Mortgage is on a leasehold. I[ 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 creatingor governing the condominium or planned unit development. the by-laws and regulations of the condominium or planned unit development, end constituent documents. If • . condominium or planned unit development rider is executed by Borrower and recorded together with thin Mortgage, theooveaant sad i agreement of such rider shall be inrnrporated into and shall amend and wpplement the covenants and agreement of this Mortgage as if the i rider were a part htreo! 7. Protection of Lender's Security. If Borrows fait to perform the ooveaaat and agreement contained in this Mortgage. or if say action or prooseding is commeaeed which materially affect Lsndsrs intered in the Property. including. but not limited to. eminent domain, insolvency, Dods enfor+amsat~ az arrangsmsat or proossdings involving a bankrupt or decedent, then Leader at Iwadsr's option,npon notice to Borrower ay males such appsaranoes, duburw arch sums and take and? action as le necessary W protect Iwndsr's inteesst. inducting, but not limited to, diabursemsat of reawnable attorney's few and entry upon the Property to make repairs. Tt Leader required mortgage iasntaaes u • condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requird to maintain wch iasnraaos in ePtect natll such time a• the requirement for such insurance terminates in accordance with Borrower's and Leadels written agreemsat or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amount disbarred by Leader persuant to this paragraph 7, with interest thereon. shall become additional indebtedness of Borrower secured by this Mortgage. Unlew Borrower and Lender agree to other terms of payment, such amount shall be payable upon notice from Leader to Harrower requesting payment thereof, and shall bear interest from the dot of disbursement at the rat payable from time to time oa outstanding principal under the Note nnlew payment of intrest at such rate would be oanerary to applicable law, is whidy j evrnt sash amount shall bear interest at the highest rat permissible under applicable law. Nothing eoataiaed is this paragraph 7, shall f require Lender to incur any expense or take any action hereunder. I t g~342 P~~~li~ .a