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HomeMy WebLinkAbout0731.' .' ~ .+ d /• Borrower 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 of and interest on any h~tture Advances secured by this Mortgage. 2. Funds for Ta:ee and Insurance. Subject to 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 olyearly premium installments for hazard insurance, plus onetwelfth ofyearly premium installments for 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 Plrnds 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 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 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, 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 to the due dates of taxes, asaeasmenta, insurance premiums and ground rents, shall exczed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Fender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by [.ender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereotthe Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time otapplication 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 'l hereof shall be applied by Lender first in payment otamounta payable to bender 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. Borrowershall pay all taxes, assessments and other charges, fines and impositions attributnt-le tc- the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Korrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event I3c-rrc-wer sh:+Il make p:+yment directly, Born-wer shall promptly furnish to bender receipts evidencing such paymenL4. Borrower shall promptly discharge any lien which h;+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as lic-rrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in ga-d faith contest such lien by, ordefend enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or am• part therec-f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage." and such other hazards as Ixnder 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 of coverage required to pay the sums secured by this Mortgage_ The insurance carver providing the insur.+ncY• shall t-e c•hosen by Iiorr+-wer subjcrt to approval by 1 xnder; pn-cided, the+t such approval shall not be unreasonably withheld. All premiums on insur:uu•e policies .hall 1-c• paid in the manner pnn•idcrl under paragraph 'l herec-f or, if not paid in such manner, by lic-rrower making payment, when clue, din•c•ti>• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable d- Ixnder and shall include a standard mortgageclause in favorof and in form acceptable to [.ender. Ixnder shall have the right to hold the policies and renewals thereof, and Bom-wershall promptly furnish to +xnder all renewal novices and all receipt_g of paid premiums. In the went of loss, Itorn~wer s-*all give prompt notice W the insurance carrier and Lender. Lender may make proof of loss if not made promptly by I3.-rn-wer. Unless Lender and Ik-rrower 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 secunty of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible c-r if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to i3c-rrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within :10 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for insurance benefice, i.ender is authorized to collcrt and apply the insurance pnxeeds at Ixnder's option either to restoration or repair of the Eroperty or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pnxreds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:+gr:+phs 1 and 'L l+ereuf or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, 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 acgwsition shall pass tc- bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is c-n a unit in a condominium or a planned unit development, Forrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing thecondominium or planned unit development, the by-laws and regulations of the condominium or pl:+nned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and :+greements of such rider shall be incorporated into and shat l a mend and supplement the covenants and agreements of 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 e option,upon notice to Borrower may make such appearances, disburse such sums and take each aMion as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. 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 efteM until each time as the requirement for such insurance terninatea in accordance with Borrowerb 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 Ixnder persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder 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 penniasible under applicable law. Nothing rnntained in this paragraph 7, shall require Ixnder to incur any expense or take any action hereunder. . 8!10KJ44 PdCE . ~r . _._~_ _ _~