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HomeMy WebLinkAbout1712 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interet+t. 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. Ftmds forTaxeaand Insurance. Subject to applicable law or to a written waiver by lender, I3orrowershall pay to l.enderon lhedey monthly installments of principal and interest are payable under the Note, until the Note ie paid in full, a sum Therein "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-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the b:+.gis 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 tincluding !.ender if !.ender is such an institution). !.ender 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 assesamrnta and bills, unless Lender pays Borrower interest on the Fonda 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 Fonda showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security torthesums secured by this Mortgage. - If the amount ottee Fonda held by bender, together with the future monthly insG•+Ilments of Funds 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 fall due, such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. if the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Ixnder any amount necessary to make up the deficiency within 3odays from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by thin Mortgage, !,ender shall promptly refund to Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, !.ender shall apply, no later than immediately prior to the sale of the Property or itsacquisition by Lender, any Funds held l+y I:ender at the timeof application as a credit against the sums secured by thin 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 Fender first in payment of amounts 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. Borrowershall pay all taxes, assessments and other charges, fines and im{xtivilions:+ttributahle to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph l hereofor, if not paid in such manner, by Borrower making payment, when due, dir+•c•th tc. the p:+yc•e therer-f. Burmw•e•rshall promptly furnish to Lender all notices of amounts due under this paragraph, and in the ea•ent ItC:m:w•er shall mak+• payment dire•e•tly. Horr,~wer shall promptly furnish to Lender receipts evidencing such payments. IA~rrower shall promptly discharge any lien which has priurih• over this Mortgage; provided, that Horrower shall not be required to diseharge any such lien su long as li::rrow•cr shat l agnc• in writ ing to the payment of the obligation secured by such lien in a manner acceptable to Iw•nder• or shall in gcNMl faith cunt+•st such lien hy. urdefeud t•nforn•mF•nt ufsuc•h lien in, I+•gal proieedings which operate to prevent the enforcement of the, lien or farfe+ture of the Pra{Mrty or any part therer~f. S. Hazard Insurance. I3orrow•er shall keep the impn~eeme•nts now existing or here:+fter erected on the Property insured against lass by fire, hazards included within the term "extender! c•overage••" :rod such other h:-zanls as Lender may reyuin• and in such amounts and forsuch {xriods as !.ender may require; provided, that lender shall nut re•quirt• that thc• amount of such n+verage exceed that amount of coverage rec{wired to pay the sums secured by this 4lurtgagr. The insurance carrier pn+a•iding the insurance shall Iw• chosen by ltum~wcr subje•c•t to :+pprua•al by I ender, provided, that such approval shall not be unrea.«mably withheld. All pn•mium. nn imur:uu•r {Ndi:•i~•..h:Jl iK• paid in th+• maon+•r prua•id+vl und+•r paraKraph'~ henr+f or, if nut paid in such manner, by liam~wer making p:n•ment• when due, dinrtlc to the inwrmee carrier. All insurance policies and renewals therecdshall tx• in firm acceptable to Ienderand shall include a standard mortg:+gedausein favorof :+nd in form acceptable to Lender. !,ender shall hav+• the right G. hold the {N~lic•ies and renew,:+Is thereat, and Kurrower shall promptly furnish to :.ender all renewal notices and all receipts of paid premiums- In th+• c•cent of loss, Ii::rn:wer shall give prompt notice to the insurance carrier and [.ender. Lender may make proof of loss if nut made promptly by It::m~aa•er. Unless Lender and Borrower otherw•+se• agree in writing, insuranc+• pnx•e•eds shall tx• applied to restoration ar repair of the Property damaged, proaided such restoration ar repair is ec•onumically feasible and the serurih• of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this \tortgaKe would t-e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with theexn•ss, if any, p:+id to Harrower. If the Property is abandoned by Horruwer, or if Borrower fails to respond to Lender within aO days !rum the date notice is madcd by Lender to Rarruwer that the insurance carver offers to settle a claim for insurance benefits, Lender is authuri-tcd to callc•c•t and apph• the insurance pr«•c•e•ds at lender's option either to restoration or repair of the Property or the sums secured by this AtartK~+Ke- Unless Lender and Borrower otherwise agnc• in wntinK, any such application of prcK•e•eds to principal shall notextend or postponethedue date of the monthly installments referred to in par.+gr.+phs 1 and '.'. !:eny:f or ch:+nge the amount of such inst:+llmentg. If under paragraph 18 hereof the Property is acquired by Lender, all right, tit!+• and interest of li::rrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or acquisition shall pass G. Lender to the extent of the sums secured by this ~torigage immediately prior to such sale or acquisition. 6. Preservation and iiaintenanceof Property; Ixasehulds; Condominums; Planned Unit Developments. Borrower shall keep the Property in goad repair and shall not commit wait+• or {x•rmit impairment ar deterioration of the Property and shall comply with the proa•isions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Harrower shall perform all of [i:+rrower's obligations under the de•c•lardion or covenants cn•atingor gcwerning the condominium or planned unit development, the by-laws and regulaticins of the ccmdcrminium or planned unit development, and constituent documents. If a condominium or planned unit dea•elupment rider is executed by Iiarruwer and nrorded together with this Mortgage, the covenants and agreementsg of such rider shall Ix• incarpordcd iota and sh:+ll :unend and supplenu•nt the+•ovenants and agreements aCthis blorigageas if the nder were a part hereof. 7. ProteMion 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, inBOlvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at (.ender a option,upon notice to Borrower may make such appearances, disburse such soma and take such action 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 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 a 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 Lender pereuant to this paragraph 7, with interest thereon, shall I+ecome additional indebtedness of Horrower secured by this Mortgage. Unleea Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shah bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Nate 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 permissible under applicable law. Nothing contained in this paragraph T, shall require Lender to incur any expense or take any action hereunder. a~3~4 P~1.?12