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HomeMy WebLinkAbout1939Borrower aad Lender cover-ant and a~ee as follows: 1. Payment of Pri~cipa! and Intere~t. Borrower ahall pmmpdy pay when due the principal of and intereet on the indebted~eas evidenced by the Note. prepayment and late chargea as provided in the NoLe. and the principal of and intereat on any Future Advances secured by this Mortgage. 2. ~tnds forT~es and Iesurance. Subject to applicable law or to a written waiver by l,ender, Borrowerahall pay tol.ender on the day monthly inatallments of principal and interest are payable under the Note, until the Note ia paid in full, a aum (herein "Flinds") equal to o~e twelfth of the yearly taxes and asaeasments which may attain priority over this Mortgage, and qround rents on the Property, if any, plus one- twelflh of yearly premium instaUmente for hazard insurance, plua onetwelfth o[yearly premium installments for mortgage inaurance, if any, all as reasonably estimated i~itially and from time to ti~r~e by I.ender on the basis of asseasments and billa and ~eaaonable estimatea thereof. The ~Lnda shall be held in an inetitution the deposita or accounte of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is auch an inetitution). Lender shall apply the Funds to pay eaid taxee, aeaeeamente, insurance premiuma and grou~d rente. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling aaid asseasments and bills, unleaa Lender pays Borrower i~terest on the Funde and applicable law permita l.ender to make auch a charge. Borrower and Leader may agree in writing at the time of execution o[ this Mortgage that intereet on the Funda ahaU be paid to BoROwer, and unlese euch agreement ia made or applicable taw requires auch interest to be paid, Lender eha!! not be requirid to pay Borrower any intereat or earninga un the PLnde. l.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debits to the Funds and the purpoee for which each debit tu the I~'unds was made_ The Funds are pledged as additional security for the suma secured by this Mortgage. [f the amount of the FLnda held by Lender, together with the futurn monthly inatallmenta of Funda payable prior to the due datea of taxes. asaeasments, insurance premiums and ground renta, ahall excxd the amount required to pay eaid taxea. aeseasmente, inaurance premiums and ground rents as they tall due, auch e:ceas ahall be, at Borrower's option, either prompdy repaid to Borrower or.cndited to Borrower on monthly inatallmente of Plinds. I[ the arnount of ihe Funda held by Lender ahaU not be aufficient to pay ta:ee, assesementa. insurance premiums and giround renta ae they fall due, Bormwer shall pay to I,ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting payment thereot. Upon pay-ment in tuU of all auma eecured by this Mortgage, [.ender ahaU promptly retund to Borrower any [unds held by l.ender. lf under paragraph 18 hereof the Property is sold or the Piroperty is otherwise acquired by Lender, Lender ahall apply, no late~ than immediately prior to the nale of the Piroperty or ita acquiaition by I.ender, any Funds held by l.ender at the time of application as a credit againat the aums stcured by thia Mortgage. 3. Application ot Paymente. Unlesa applicable lew provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender f rst in payment of amounts payable to Lender by Borrower under paragraph 2 hereot, then to intemat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancee. 4. Charges; Liena. I;orruwer shall pay all taxrs, assessments and otherchargex, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and teasehoid payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manne~, by Borrower making payment, when due, directly to the payee thereot ~rrower shall promptly furnish to Lender all notices ot amounts due under this paragraph, and in the event Borrower shall make payment directly. Bormwer shall promptly fumish to l.ender receipts evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not be reyuired to discharge any such lien so long ag Borrower shall agree in writing to the payment of the obliga/ion secured by such lien in a manner accept~+ble to I.ender, or shall in goud faith n-ntest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent lhe en[orcrment o( thr lien or forfeiture of the Property or any part thereof. 5_ Nazard Insurance. Borrower shall keep the impruvements now existing or hereaRer erected on the Yroperty insurrd against losa by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for auch periods as l.ender may require; provided, that Ixnder shall not require that the amount of such co~erage exceed that amount of coverage required to pay lhe sums secured by this MortQaKe. The insurance carrier pro~•idin~ the insurance chali be chusen by Rorrower subject to approval by I xnder; providrd, that such approva) shall not be unreasnn:~bly vrithheld. Al) premiums ~,n insurancr p~lii•irs shall be paid in the mt~nner pro~~ided under par:~Kraph'l here.~f or, if not paid in such manner, b} Fiorrow•er makinK payment, when due, dirrctly tu the in~urance carrier. All insurance policies and renewals thereof shall be in form accept~~ble to l.ender and shall include a standard mortgage clause in favoruf and in form acceptable to l.ender. l.ender shall ha••e the right t~ hold the pulicies and renewals thereof, and E3orrowershall pr~mptly furnish to i.ender al) renewal notices and all receipts of paid premiums. In the event of loss,l3orn-wer shall give prompt notice to the insurance carrier and t.ender. Lender may make proof of loss if not made promptly by Esarrower. Unless I.ender and Eiorrower otherwilse agree in writing, insurance proceeds shall be applied to restoration or repair o[ the Property damaged, provided such restoratiun or repai~ is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ~~r if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the aums secured by this Mort{~age, with the excess, if any, paid to E3orrower. if the Property is abandoned by Borrower, or i[ ~3orrower faila to reapond to Lender within 30 days from the date notice is mailed by I.ender to E3orruwer that the insurance carrier otiers to settle a claim for inaurance benefits, l.ender is authorized to collect and apply the insurance pn~ceeds at I.ender's option either to restoration or repair of the Property or the suma serured by this MortKage. Unlesa Lender and E3orrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue date of the monthly inslallments re[erred tu in paragraphs 1 and'l t~ereo(or change the amount of such inatallments. lf under paragraph 18 hereof the Property is aequired by l.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the praeeds thereof resulting from damaqe to Property prior to the r.ale or acqu~sition shall pass to I.ender to the extent of the auma secared by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; I.easeholds; Condominuma; Planned Unit Developmente. E3orrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisiona of any lease if this Mortgaqe is on a ieasehold. If this Mortgage is on a unit in a condominium or a planned unit development, E3orrower ahall pertorm aU of E3orrower's obligations under the declaration or covenants creatinRor governing thecondominium or planned unit development, the by-laws and regulationa of the condomi~ium or planned unit development, and conatituent documenta. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with thia Mortgage, the rnvenante and agreements otsuch rider shall be incorporated into and shall amend and supplement the covenants and agreementsof this Mortgage as if the rider wern a part hereof. 7. Protectioa of I.ender's 3ecurity. If Borrower laila to perform the oovenante and agreemente contained in thie Mortgage, or if any action or proceeding is rnmmenced which materially affects Lender'e interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then I.ender at Lender's option,upon notice to Borrower may make such appearances, dieburse euch aums and take auch action as is neceasary to protect L,ender'~ interest, including, but not limited to, diabursement of reaeonable attorney'e fees and entry upon the Property to mal[e repairs. If Lender required mortgege insurance se e condition of making the loan aecured by thia Mortgage, Borrower ehall pay the premiums required to maintain auch insurance in eftect until such time ae the requirement for such ineurance tetminatea in accordance with Borrower'e and Lendei s written agreement or applicable Law. Borrower ahall pey the amount of all mortgage ineurance premiume in the manner provided under paragraph Z hereoL - _ Any amounta disbureed by Lender pereuant to thie paragraph 7, with intereat thereon, ehall become additional indebtednees of Borrower secured by thie Mortgage. Unleas Borrower and Lender agree to other terma of payment, such amounte shall be payable upon notice from Lender to Borrower requeeting payment thereof, and shell bear interest from the date of disbureement at the rate payable from time to time on outstanding principal unde~ the Note unleas payment o[ interest at such rate would be rnntrary to applicable law. in which event euch amounte ahall bear interest at the highest rate permiesible under applicable law. Nothing cont~ined in thi~ paragraph ~, "shap require I.ender to incur any expense or teke any action hereunder. ~~oi 3~ ~ncE 19~~'