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HomeMy WebLinkAbout0676 i t - t ..t Borrower and Loader covenant and agree u lollows: 1. Payment of Principal sad Interest. Borrower shall promptly pay when due the principal of and intreat on the indebtednea evidenced by the Notes, prepayment and late charges u provided in the Note. and the principal of and iatrat on any FLture Advances secured by thin Mortgage. 4. lt+ttuds foe Taxes and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of p; incipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? equal to ono twellW of Ws yearly taxes and assewment which may attain priority over this Mortgage, and ground rents on the Property. if any, plw ono twelRh of yearly premium installment for hazard insurance. plus one•twelith of yearly premium installments for mortgage insurance, if any, ¢ll u eeasoaably estimated initially and from time to time by Lender on the bole of assessment and bills and reasonable estimates thereof Ths Ftu?ds shall be held in an institution the deposit or accounts of which are insured or guaranteed by a Federal or State agency (including Lwtder U Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessment. insurance premiums sad gro~td rent. Lnder msy not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said •sssesment sad bills, unless Leader pays Borrower interest on the Funds and applicable law permit Lender to make such a charge. Borrower and Leader may agree is writing at We time of execution of this Mortgage that intrest on the Funds shall be paid to Borrower. and unless snch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any intrest or earnings on the Fonds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credit and debit to the Fonda sad the purpose for which each debit to the Funds vyas made. The Funds are pledged as additional security [ar the sums secured by Wis Mortgage. Ii Ws amount of We Funds held by Lender, together with the futon monthly installment of Funds payable prior to the due dais of taxes, usessmente, insurance premiums and ground rent. shall exceed the amount required to pay said taxes, assessment, insurance premiums and ground neat u Way faU due. such excess shall be, at Borrower s option, either pro~.ptly repaid to Borrower or credited to Borroweron moaWly installment of Funds. If We amount of We Funds held by Lender shall not be sufficient to pay taxes, aeseesment, insurance pnminau and ground rent u they fall due, Borrower shall pay to Lender any amount necessary to make up We deficiency within 30 days from We dot notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fall of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If render paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no lair Wan immediatly prior to We sale of the Property or it aegniaition by Lender, any Funds held by Lender at the time of application as a credit against the soma secured by Wia Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payment received by Lender under the Not and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph Z hereof Wen to intrest payable on We Not; then to the principal of the Not, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payment or ground rent, 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. Borrower shall promptly furnish to I.ettdar all notices of amount due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipt evidencing such payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, Wst Borrows 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 such lien in a manner acceptable to Lender, or shall in good faith conceal such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against toes by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amount and for such periods as Lender may regain; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured 5y this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder, provided. that such approval shall not be unnssonably withheld. All premiums on insurance p~?licies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. Ali insurance policies and renewals thereof shall be in form acceptable w Lender and shall include a standard mortgage clause in favor of j and in form acceptable to Lender. Lender shall have the right to hold the pnliciea and renewals thereof, and Borrower shall promptly furnish to ~ under all renewal notices and all receipt of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not mace promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceed shall be applied W restoration or repair of the Property damaged, provided such restoration or repair is economically fefsible and the~security of this Mortgage is not thereby impaired. If such restoration or repair is rat economically [easible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied I to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Bon; ower, or if Borrower fait to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefit, Lender is authorized to collect and apply the insurance proceeds at lender s option either to restoration or repair of the + Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone Wedue date of the monthly installment referred b in paragraphs !and 2l+ereof or change the amount of such installment. 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 pans to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wiW We provisions of any lease if this Mortgage is on a leasehold. If 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 covenant creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent document. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, We covenant and agreement of such rider shall be incorporated into and sh:+11 amend and supplement the covenant and agreement of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenant and agreement 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 arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender i option,npon notice to Borrower may make such appearances, disburse such sums end take such action as it necessary to protect Lender's interest, ~ including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make npsirs. If Lender regnired ~ f mortgage insurance as a rnndition of making the loan secured by thin Mortgage, Borrower shall pay the premiums required to maintaiit such insurance in effect until such time as the requirement for such insurance tenminatea 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 manner provided under ~i paragraph 2 hereof. My amount disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtednew of Borrower secured by this Mortgage. Unless Borrower and Lender agree b other terms of payment, such amount 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 each amount 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 aMion hereunder. e~~343 P~ 675 t, - - ~ . u~