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HomeMy WebLinkAbout0135Borrower and (.ender 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 of and interest on any Flrture Advances secured by this Mortgage. 2. Ftutds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnderon the day monthly installments otprincipa) 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 otyearlypremium installments for hazard insurance, pluaone-twelfth ofyearly premium installmentelor mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The-Funds 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. (.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and Leader 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 ie 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 Fonda was made. The Fonda are pledged as additional security for the soma secured by this Mortgage. If the amount othee Funds held by bender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at BorTOwer R option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by bender shall nut be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall 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 b 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 Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Fender, Lender shall apply, no laterthan immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma 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 amountt+ 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 W the Property which may attain a priority over this Mortgage, and le:+sehold payments ur Krounel rents, i f any, in the manner provided under paragraph 2 hereof or, +f not paid in such manner, by Borrower making payment, when due. <liree•tly t+, the payee thereof. Bc,rrnwrrshall promptly furnish to !.ender all notices of amounts due under this paragraph and in the event Borrower shall make payment directly, Born,wer shall promptly furnish w Lender receipts evidencing such payments. Iie,rrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so IonK as liorn,wer shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to lender, or shall in Kc-cxl faith +-c,nte ;et such lien hy, ordefend enfi,n•e•me•nt of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fi-rfeiture of the• 1'roprrty or any part thereof 5. Hazard Insurance. Borrower shall keep the impn,vements now existing or hereafter erected nn the Property insured against loss by fire, hazards included within the term "extended coverage; 'and such other hau+rds :ts Lender may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not reYtuire that the amount of such n,ver.+ge exceed that amount of coverage required to pay the sums secured by this Mortg;+ge_ The insurance carrier providing the insurance• shall t,e• chosen by Born,we•r subje•et l+, appnn•al by Le•nd+•r, pn,viderl, that such approval shall not be unreasc-nably withheld. All pn•miums un inwr:+nce t>,dicic~ sh:+ll M• paid in the m:+nner pnn id+•cl under p:+ragr.+ph'L hereof or, if not paid in such manner, by lic,rn-wer making payment. when du+•. dire•c•tlp to the insurancee• c:+rrier. All insurance policies and renewals thereof shad) he in lotto aerept:+ble to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender_ Lender shall have the riKhl G, hold the p+dicics and n•ne•wals lherec,f, and Born,wershall promptly furnish to i.ender all renewal notices and all rereipt_~: of paid premiums. In the event of I+as, Itorn,wer shall give pn,mpt notice to the insurance carrier and Lender. Lender may make prr,c,f of los_S if not made promptly by li+,rn,wer_ Unless Lender and Borrower otherwise aKrer in writing, insurance prc,cecrls shall t,e• applied to restoration or repair of the Property damaged, provided such restoration or repair is +r•i,nomically feasible and the security of this Mortgage is net thereby impaired. If such restoration or repair is not economically feasible or if the security of this MortKage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid to liorn,wer. l f the Property is abandoned by Borrower, or if Borrower fails tei respond to [.ender within ao Jaya from the date notim is maih•d by bender t., I;„rn,wer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized t+~ collect and apply the insurance pnw•e•eds at Le•nder's option either to restoration or repair of the Property or the sums secured by this Mortgage. - Unleas Lender and Borrower otherwise agree in writinK, any such applic :+lion of pn,ereds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+Kr.+phs 1 and l hereY-f nr chanKe the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right. title and interest of 13ormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or ac•gwsition shall pass 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; ('ondominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit imp:+irment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a le:~w•hold. If this Mortgage is on :+ unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration.,r cyrvenantx cnatingor Koverning thee•ondominium orplanned unit development, the by-laws and regulations of the cc,nd+,minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded tc,Kether with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage asifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenante 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,upon notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protect Lender s interest. including, but not limited to, disbursement of reasonable attorney a 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 Buch time as the requirement for such insurance terminates 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 paragraph 2 hereof. Any amounts disbursed by [.ender pereuant to this paragraph 7, with interest thereon, shall become 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 o[ disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any aMion hereunder.