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HomeMy WebLinkAbout0139ti Borrower and Lender rnvenant and agree as follows: 1. Payment o[ Principal and laterest. 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 Future Advances secured by this Mortgage. 2. Fonds tot Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowerahall pay to l.enderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid iri 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 Properly, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plusonetwelflh of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Ixnder 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). (.ender shall apply the Funds to pay said taxes, asaeasmenta, 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 bills, unless. Lender pays Borrower interest on the Funds 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, Lendet 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 some secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable priorto theduedates of taxes, assessments, insurance premiums and ground rents, shall excxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+rower's option, either promptly repaid to Borrower or credited b Borroweron monthly installments of Funds. If the amount o[ the Funds held by (.ender shall not 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 to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, bender shall promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by bender, Lender shall apply, no laterthan immediately prior to the sale cf the Property or its acq uisition by lxnder, any Fu nds held by (.ender at the time of application as a credit agai nst 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 I and 2 hereof shall be applied by Lender first in payment of amounts payable to !.ender 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,:+ssessments and otherrharges,tines:+nd impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay mentsor Krr,und rents. if:+ny, in themanner provided under paragraph 2hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee therec,f. Borrower shall promptly furnish to !.ender all notices of amounts due under this paragraph, and in the event Itorn,wer shall make payment directly, liurmwer shall promptly furnish to Lender receipts evidencing such paymenL~. Rc,rrower shall prompth• discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge am such lien s..lung a+ It„m,wer shall :+gree in writinK to the p:n•ment of theobligation secured by such lien in a manner acceptable to 1 xndrr, or sh:+ll in gcwK1 f:+ith contest such lien hy, ordefe•nd enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'mperty ur any part therc•c,f. i. Hazard I naurance. Borrow er shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended rnverage,"and such other hazards as (xnder may require and in such amounts and for such periods as Lender may require: provided. that (xndrr shall nut require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pnrviding the, insur:mcrc, shall Ix• chosen by It,~rrowcr subje•c•t to approval by Lcnacr: prt,videcl, that such approval shall not be unreasc,nabh• withheld. A!! premium. on incur:u+~•c tN~licic•s shall bc• paid in the manner pmvidwt under par,+graph'L hereof or, if not paid in such manner, by Fi~~rrower making p:+ymcnt, when due. dirw•th• t.. the insurance r.+rrier. Al) insurance policies and renewals thereof shall tw• in form aneptahle to 1 xnderand shall include a standard mortgagedause in favorof and in form acceptable to (xnder. Ixndershall have the right G. hold the tH~lic•ies and renewals therecif,:md Korruw•ershall promptly furnish to xxnder all renewal notices and all receipts of paid premiums. In the event of loss. Rormwer shall give prompt notice to the insurance carrier and (.ender. Ixnder may make prcaf of loss if not m:+de promptly by liorrc,wer. Cnless Ixnder and I3orruwrr otherwise agree in writing. insurance proceeds shall tK• applied to restoration or repair of the Property damaged, prodded such restoration nr repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the ururity of this titortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this 1ortgage. v-•ith the excess, if any. paid to Borrower. If the 1'n,perty is abandoned by Borrower, or if Borrower fails to respond to [.ender within alt days from the date notice is mailed by 1 xnder to Korrower that the insurance carver offers to settle a claim for insurance benefits. Ixnder is authorized to collect and apply the insurance procecvls at Ixnder's option either to restoration or repair of the Property or the sums secured by this Mortgage. l'nless Lender and Borrower otherwise agree in writing. any such application of prcK•eec)s to principal shall not extend or postpone thedue date of the monthly installments referred G~ in par:+gr:+phs 1 and'( l+ereof or change the :+mount of such inst:+llmenta. If under paragraph 18 hereof the Property is acquired by Ixnder. all right, title and interest of Rc,rn,wer in rend tc-:+ny insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale err acyuisition shall pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otI'roperty; I.easeholda; (;ondominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this '.btnrtg:+ge is c,n a unit in a n,ndominium or a planned unit development, Borrower shall perform all of Borrower c obligations under the declaration or ruvenant.R ere:+tingor governing the condominium or planned unit development, the by-laws and regulations of the condominium c.r planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Burrower :end recorded together with this Mortgage, the oovenanta and agreements of such rider shall I,e incorpuratcd into and shall amend and supplement thecovenants and agreementsof this Mortgagees ifthe rider N•ere a part hereof. 7. Protection of Lender's Security. I[ Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is rnmmenced which materially affects Ixnder'a 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 W Borrower may make such appearances, disburse each soma and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of reasonable attomey'e fees and entry upon the Property to make repairs. If Lender required mortgage insurance 88 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 i and Lenders 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 Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and (.ender 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 disbun+ement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be rnnlrary 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 action hereunder. 8~x 344 ~~~E 1.39 __ 1 -~ :~ `~ ~ _