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HomeMy WebLinkAbout1206 Borrower and Lender covenant sad agree as folbws: 1. Payment of Prineipal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and Iste charges as provided in the Note, and the principal of and intereston any Future Advances secured by this Mortgage. 2. PLnds for Taxes and Insurance. Subject b 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 one- twelfth o[yearly pre-inium installments for hazard insurance, plus onetwelfth of yearly premium installrnente for mortgage insurance, if any, s' 1 as reasonably estimated initially and from time to titre by !.ender on the basis of assessments and bills and reasonable estimates thereof. The Fltnds 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 lends 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 assessments and bilb, unless Lender pays Borrower interest on the Ftirnds 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 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 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 b the due dates oltaxes, assessments, insurance premiums and ground rents, shall exeeed the amount required to pay said taxes, assessments, insurance premiums and ground rents as They fats due, such excess shaii be, at Botr,wrr a option, eiihrr promptiy repaid [u Burrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground yenta as they tall due, Borrower shall pay b Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, !.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 Lender, !.ender shall apply, no later than immediately prior to the Bale of the Property or its acquisition by Lender, any Fonda held by Ixnder at the time otapplicalion 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 Leader 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. Borrower shall 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 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 Borrowershall promptly furniahtolender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to !.ender receipts evidencing such payments. Borrower shall promptly dischargr 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 theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith rnntest such lien by, ordefend enforcement otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of thr Property ar any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lossby fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount otcoverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall be chosrn t?y lir?rower subjr~t to approval M Lender; provided, that such approval shall not be unreasonably withheld. All premiums un insurancer poicies shall tee paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whin due, dire~•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptableto [.ender and shall include a standard mortgageclause in favorof and in form acceptable 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 receipts of paid premiums. In thr event otlo.4s, E3orn?wer shall give prompt notice to the insurance carrier j and Lender Lender may make proof of loss if not made promptly by Borowrr. ` 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 blortga~e is not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, v~~th the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond tee Lender within 3C? days from the date noti!-e is mailed by 1xndPr to Borrower that the inRUran~r carrier nfferr+ t+e settle A claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Fender's option either to restoration or repair of the Property or the sums secured by this Mortgage. i Unless Lender and Borrower otherwise agree in writing, any such application otproceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such 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 to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; 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 pro~~sions of any lease if this Mortgage is on a leasehold. If this Mortgage is nn 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 p{armed unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borr~~wer and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements o[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 contained in this Mortgage. 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,apon notice to Borrower may make such appearances, disburse such sums and take such action as ie necessary to protect Lender's interest, 1 including, but not limited to, disbursement of reasonable attorney 8 fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain 3 ouch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and Lmdds ! written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under $ paragraph 2 hereof. ? My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, ehail bernme 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 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 contained in this paragraph T, shall require Lender to incur any expense or take any action hereunder. 90~K P4~E1~ r-_-ate^f rs~ ~s'q~._. _