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HomeMy WebLinkAbout0739• ..l 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 latechargea as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by I.ender,l3oR+-wer ahallpay to (.ender 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 of yearly premium installments for hazard insurance, plus one•twelftl+ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by (.ender on the basis of assessments and bills and reasunable estimates thereof. The Fltnds shall be held in an institution the dep~aita or accounts of which are insured or guaranteed by a Federal or State agency lincluding Lender i~ (.ender is such an institution). (.ender 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 (.ender W 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. (.ender 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 (.ender, together with the future monthly installments of F ands payable prior to the due dates o[taxea, 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+TOwer's option, either promptly repaid to Borrower or credited b Borrower on monthly installments of Funds- If the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice i8 mailed by lender W 13oROwer requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, bender shall promptly refund to Borrower any funds held by (.ender. If under paragraph 18 hereof the Property is sold or the Property i$ otherwise acquired by (.ender, i.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by (.ender, any Funds held by I.enderat the time ofapplication as a credit against thesums 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 amounts payable to (.ender by BoROwer 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 taxis, asassmenls and othercharges, fines and imq+sitiuns attributable G- the Property which may attain a priority over this Mortgage, and IeaSChold payments or Kround rents, if any, in the manner pn,vided under paragraphs hereofor, iC not paid in such manner, by BoRUwer making payment, when due, directly to the payer thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, :+nd in the event 13+)rn-wer shall make payment dinrtly, Borrower shall promptly furnish W (.ender receipts evidencing such payments. li+-rn-wer shall promptly discharge :my lien which has priority over this MortgaKe; provided, that RoROwer shall not be required to discharge any such lien so lung as I;r)rn-wer shall agr+r in writing to the payment of the obliKatiun secured by such lien in a manner acceptable to Ixnder, or shall in K+NxI faith n.nt+•st such lien by• ordefend enfi-nrment ufsuch lien in, I+y;al pnxeedings which operate to prevent the enforcement of the lien nr forfeiture of the 1'n-Ix•rty ur any part ther+r-f. ~. Hazard Insurance. 13orn-wer shall ke+•p the impnwements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the terns "extend+d coverage," and such other hazards as Lender may reyuire and in such amounts and for such periods as Lender may require; provided, that 1.+•nder shall not r+•duire that the amount of such nn•er.+ge exceed that amount of coverage required to pay the sums secured by this MortgaKe. The insurance carrier providinK the inwr:+nc+• shall ix• chosen by Korn+wer subj+•+•t to approval by I.-•nder; pn+vid+d, that such approval ,hall not be unreasonably withheld. All premiums on insuran+•+• IH+licies shall Ix• paid in the manner pn-vid+.l un+ic•r par:+Kr.+ph 2 her+r-f or, if nut paid in such manner, by li+-Rower makin{; payment. when due, dinr•th• to the insurance carrier. All insurance policies and renewals thercr-f shall be in firm acceptable G-1.+•ndermd shall includes standanl mortgageclausein favorof and in form acceptable to 1 ender.l.end+•r shall have the riKht to hold thf• tN-lici+•s and rrn-•wals th+•rc~-f. and Borrower shall promptly furnish to -.ender all renewal notices and all receipts of paid pn•miums. In the+•vent of loss, Born+wer shall give prompt nutim to the insurance carrier and Lender. Lender may make pnx-f of loss if not made promptly by li+)rn,w•er. Unless Lender and BoROwer otherwis+• agree in writing, insurance pr+x•eeds shall tx• appli+d to restoration or repair of the Property damaged, provided such resG-ratiun or repair is c+•unomically feasible and the s+rurity of this Mortgage is not thereby impaired- If such restoration or repair is not economically feasible nr if the scrurity of this Mortgage would tx• imp:ired, the insurance proceeds shall beapplied to the sums secured by this MorigaKe• with the excess, if any, paid to 13--rn)wer. if the Property is abandoned by Borrower, or if &)rrower fails to respond to Lender within 3!) days from the date nutir+• is mail+d by Lender U- It+.rn+wer that ll+e insurance camrr offers to settle a claim fur insurance benefits, Lender is authorized to colt+yt and apply the insurance pr«•+•e•+is at I,+•nder's option either to restoration or repair of the Property or the sums secured by this DlortgaKe. Unless Lender and Borrower otherwise agree in writing, am• such application of pnxr+ds to principal shall not extend or postpone thedue date of the monthly installments rrfeRed G- in paragraphs 1 and'L herc•uf or change the amount ofsuch inst<-+llments_ If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Korrower in and U) any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or anlu+sition shall pass tr- Iknder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6- Preservation and Maintenanceotl'roperty; I.e•ase•holds; ('ondominums;l'lenned Unit I)evelopmenta.l3oROwershall keep the Property in good repair and shall not commit watite or permit impairment nr deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this MortgaKe is on a unit in a rnndominium or a planned unit development, Korrower shall perform all of Kom-wer's ohliKations under the dec•L•+ration or covenants creatin{;or governing thecnndominium 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 ex+ruted by li--rn)wer and seceded together with this 1'dortgage, the wvenants and agreements of such rider shall ix• incortx)rate•ei into and shall amend and supplement therovenants and agreementsof this Mortgage as ifthe rider were a part heme-f. 7. ProteMion of Lender's Security. If BoROwer 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 (.ender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such aMion as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasunable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, BoROwer 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 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 perauant to this par:+graph 7, with interest thereon, shall become additional indebtedness of 13oROwer secured by this Mortgage. Unless Borrower and (.ender agree to other terms of payment, such amounts shall be payable upon notice from (.ender 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 t-e contrary 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 (.ender to incur any expense or take any action hereunder. go~344 ~~~E 7~t9