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HomeMy WebLinkAbout2366f , Borrower and Lender rnvenant 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 F afore Advances secured by this Mortgage. 2. Funds forTaxesand Insurance. Subject to applicable law or W a written waiver by Ixnder, Borrower shall pay to lender on theday 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 onetwelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to lime by Lender c,n 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 (.ender if !.ender ie such an institution). Lender shall apply the Funds to pay said taxes, asaesamenta, 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 F ands and applicable law permits !.ender to make auch 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 auch agreement is made or applicable law requires auch interest to be paid, (.ender 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 F ands 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. ltthe amount of the Funds held by Lender, together with the future monthly installments 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, auch excess shall be, at Bo+TOwer s option, either promptly repaid to Borrower or credited to 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 ae they fall due, Borrower shall pay to !.ender 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 h,ll of all soma secured by this 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 cf the Property or its acquisition by (.ender, any Funds held by (.ender at the time otapplication as a credit against thesuma secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by lxnder under the Note and paragraphs 1 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. Borrowershal) pay all taxes, assessments and other charges, fines and impsitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments c,r gmuncl rents, if :+ny, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payer thereof. Bormwershall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event borrower shall make payment directly, born,M•er shall promptly furnish to Lender receipts evidencing such payments4. Itorruwer shall promptly discharge any lien which has priority over this Mortgage; provided, that f;orrower shall not be required todischarge any such lien su lung as li.,rn,wer shall agree, in writing to thc• payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in gc,cxl G+ith contest such lien by, ur defi•nd enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the I'mperty or any part therc.-f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected un the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch Eu•riods as Lender may require; provided, that Lender shall nut reytuire that the amount of such rnvernge exceed that amount of coverage required to pay the sums secured M• this Mortgage. The insuranm carver pnn•iding the +nsuranc•e shall hc• chosen br b~~rn~wer subjcr•t to appru~•al by Lender. pn,vidccl, that such :+pproval shall not be unreasonably withhc•Id. All premiums on insurance policies .hall t,+• paid in the. manner pro~•idcd under paragraphs herc•c,f ur, if not paid in such manner, by l;t~rn,wer making p:,yrnent. ~.~hrn due. directly to the insur:mer c;+rrier. All insurance policies and renewals thereof shall be in form acceptahlc• to I,e•nder and shall include a st:+ndard morigagedause in favorot and in form acceptable to Lender_ lender shall have the right to hold the pc,lic•ies and renewals therer,f, and borrower shall promptly furnish to ,.ender all renewal notices and all receipts of paid premiums. In the event of loss. Itorn,wer shall give prompt notice to the insurance carrier and [.ender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and borrower otherwise agree in writinK. insur.,ncc• proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration ur repair is c•c•onornically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would he impaired, the insurance proceeds shall beapplied t:> the sums secured by this Mortgage, a~th the excess. if any, paid to Borrower. If the Property is abandoned by Burrower, nr if Borrower fails to respond to Lender within 30 days from the date notice is mailed by (:ender to (borrower that the insurance carrier offers to settle a claim for insurance benefits. [.ender is authorized to colle•c•t and apply the incur:+nce pn,cc•cds :+t Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of prcx•eecls to principal shall not extend or postpone thedue date of the monthly installments referred G, in paragraphs I and'L henc-f or change the :+mount of such installments. If under paragraph 18 hereof the Property is acquired by Fender, all right, title and interest of Kurnmer in and to any insurance policies and in and tarthe proceeds thereof resulting from damage to Property prior to the sale or acqu,sition 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; I,cascholds;Condominums; Planned Unit Developmenta.l3orrowershall keep the Property in good repair and shall not commit w•a~te 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 Mortgage is on a unit in a rnndominium or a planned unit development, Korrower shall perform all of Borrower's obligations under the declaration or covenants cn :+tingor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur planned 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 agreements of such rider shall tx• incorpr,ratcd into and shall amend and supplement the covenants and agreements of this Alortgageas ifthe rider were a part hereof. 7. ProteMion of Lender's Security. [f Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects I,ender'e 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 auch appearances, disburse auch sums and take auch action ae is necessary to protect Lenders 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 effeM until auch time as the requirement for auch 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 (.ender perauant to this paragraph 7, with interest thereon,, shall become additional indebtedness of Korrower secured by this Mortgage. Unless Borrower and !.ender agree to other terms of payment, auch 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 be contrary to applicable law, in which event auch 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. ao~K`~44 PaGE23E5 ~~i _.__ _ ;X