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HomeMy WebLinkAbout0990 burrower and Lender covenant and agree as follows: 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 as provided in the Note, and the principal otand interest on any Future Advancer secured t,y this Mortgage. 'L. Funds for Taxes and Insurance. Subject to applicable I:+w ur to n written waiver by I.ender,l3urrower shullpay to lender on the day monthly installments of principal and interest are payable under the Nute, until the Note is paid in full, a sum (herein "Funds")equal toone- twelfth ofthe yearly taxes and assessments which may att:+in priority over this Mortgage, and ground rents un the Property, itany, plus one- [~velfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from lime to time by Lender on the basis of assessments :end bills .+rd reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender it Lender is such an institution). Lender shall apply the Fonda to pay said taxes, assessments, insurance premiums and • Kround rents. Lender may not charge for ao holding and applying the Funds, analyzing said account, or_ verifying and compiling said :+ssessmenta and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to makesuch a charge. Borrower ;+nd Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall t2e 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 e:+rnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds sheaving credits and debits to the I•'unda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for theaums secured by this 1ortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to theduedate:s of taxes, :+sseasments, insurance premiums and ground rents, shall exc red the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bu1TOWPr s option, either promptly repaid to Born,wer or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by (render shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as They fall due, Borrower shall pay to (.ender 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, Lender shall promptly refund to Borrower any funds held by Lender. if under p:+ragrapl+ 18 hereof the Property is sold or the Property is otherwise acyuirecl by I.cnder, (.ender shall apply, no later than immediately prior tc, the sale of the Property or its acquisition by !.ender, any F ands held by (.ender at the time of application as a credit against the sums secured t,y this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise. all p:+yments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Fender 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. d. Charges; Liens. Borrower shall pay all taxes, assessmentcand othen•h:+rges, fines and impositions attributat,le U, the Property which inay attain a priority over this Mortgage, and leasehold payments or ground rents, if any in the manner provided under par.+gr.+ph 2 hereof or, :f not paid in such manner, by Borrower making payment, when due, din•c•tly to the- payer therer,f. Burn,wer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Burn,wer shall make payment dirc•c•tly, Bormwer shall promptly furnish to Lender receipts evidencing such payments. 13c,rn,wer shall pnnnpth• discharge am• lien which has priorih over this Mortg:ge; provided, that Korn,wer shall not be required to disc•hxrge any such lien su lung as Rc,rn,wer shall agree in writing to the- payment of theubligation secured by such lien in a manner acceptable to Lender, or shall in g<.cxl faith conU•st such lien by, onleft•nd enfun•ement of such lien in, legal pn,cetdings H bleb operate to prevent the enforcement of the lien ur forfi•itun• of the 1'rupc•rty or any part therc•c,f. 5. Hazard insurance. Burrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by !ire, hazards included within the term "extended coverage-,"and such other hazards as Lender may require and in such amounts and fur such peri„ds as lxnder may. require; pnn•id+d, that l.E•nder shall nut n•ctuire that the amount of such cv,verage e•xcc•ed that amount of coverage n-cauired to pay,the sums secured !?y this MortKaKe. The insurance c:+rrier pn,viding the insurance shall hc• rhoscn h~• ltorn,wer suhjw•t to appro~•al b~• (.ender, pn,vidcd, that such appnn•al :hall nut be unreasonably withheld. All premiums un insuru+ce tH,hcies shall Iw• paid in the manner pn,vidcd under par,+Kr:+ph L hereof or, if not paid in such manner, by li„rn,wer making payment, when due. din•c•tly to the insurance c:+rrier. All insurance policies and renewals thereof shall Fx• in form arc•c•ptatdE• to lender and shall include a standard mertgageclauge iu favorof and in form acceptable to Lender_ Lendershall have the right to hold the pohcus and rem•w:+Is then•e,f, and Korn,wershall promptly furnish to : ,c>nder all renewal notices and all receipts of paid premiums. In the eceut of les, Born,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nut made pn,mpth• by Borrower. j Unless (.ender and Burrower othervvisc• agree in writinK, insuranm pnrc•e.ds shall tx• applied b, restoration or repair of the Property damaged, provided such restoration ur repair is economical{y fe:+sihle and the serarity of this Mortgage is not thereby impaired. If such i restoration or repair is not economically feasible ur if the- security of this Mortgage would Ix• impaired, the insuranceproceedsshall beapplied t, • the sums secured by this Mortgage, with the excess, if :+m•, pa+d to 13orn,wer. If ti+e Property is abandoned by Borrower, or if I3c,rrower fails to re,pond to Lender within :3l) days from the date notim is maiiEd by lender to $urrower that the insurance carrier offers tosettle a claim for insurance benefits, Lender is authorized to colh•ct and apph• the insurance pn,cee•ds at bender's option either to restoration or repair of the Property or the sums secured by this MortK:+Ke_ Unless [.ender and Borrower otherwise agne• in writing,:+ny such application of pn,c•erds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs t and'L hercti,f ar change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Born,wer in and to any insurance p,licies and in and to the proceeds thereof resulting from damage to Property prior U, the sale or acyu+sitiun shall pass to (,ender to the extent of the sums secured by this ~t„rtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance utProperty; Leaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep the- Property in good repair and shall not commit waste ur permit impairment ur deterioration of the Property and shall rnmply with the previsions of any tease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium a>r a planned unit development, borrower-shall perform all of Borrower's obligations under the der•lardion ur covenants creatinkor governing the condominium ur planned snit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~ , ondominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and ~;reementsofsuchridershallt?einror{x,ratcdintoandsh:+llamE•ndandsupplemE•ntthec•uvenantsandagreemrntsufthisMortgageasifthe rider were a part hereof. Protection of Lender's Security. If Burrower fails tr, perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects (,seder'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 Fender at [.seder's option upon notice to Borrower may make such appearances, diabarae such soma and take such action as is necessary to protect Lender's interest, :ncluding, but not limited to, disbursement of reasonable attorney's 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 such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lendei a ~•ritten agreement or applicable Law. Borrower shat! pay the amount of all mortgage insurance premiums in the manner provided under q paragraph 2 hereof. Any amounts disbursed by (.ender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of b„rrower secured by this Mortgage. Unless Borrower and (.ender agree to other teens of payment, such amounts shall be payable upon n,:tice from (.ender to Borrower requesting payment thereof, and shall bear interest from the date of diaburaement 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 perm+saible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~ 3o~X 3~3 ~acf 989