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HomeMy WebLinkAbout1661Borrower and I.ender oovenaat and esres as foUow~: 1. Paymeat ot Priacipal aAd Iateraat. Borrower shaU promptly p~y whee due the principal of and intereat on the i~debt~ed~es~ evidenccd by the Note. prepayment eu~d late char~es a~ provided in the Note. and the principal of and interest on any ~tu~e Advances secured by this Mort~a~e. 2. Fltnd~ [or Taze~ and In~uranoe. Subject fo applicable law or to a written waiver by L.ende~. Borrower ahall pay to I.ender on the day monthly installmenta of prinripal and in~t are payable under the Note, until the Note is paid in full, a sum (herein "F~~ds") equal to ont twelAh of the yearly taxes and aasessmente which may attain p~ority over this Mortgage, and ground renta on the Properiy, iiany, plus onc twelfth of yearly premium installments for hasard inaurar~ce. plua onetwelRh of yearly premium instaliments [or morigage inaurance, if any, all as reaso~ably eetimated initially a~d from time to time by Lender on the basie of asseasme~ta and billa end reasunable estimates thereoL The Ilinds shall be held in en institution the deposits or accouats of which are inaured or guaranteed by a Federal or State agency lincluding Lender if Lender ie such an institution). Lender ahall apply the Funds to pay said taxes, aseesaments. insurance premiuma and g~ound rents. l.eader may not charge for w holding and applying the Funds, analyzing said account, or veritying a~d compiling eaid asaesemer~ta and bills. unlese I.eader pay~ Borrower interest on the FLnda and applicable law permits Lender to make such a charge. Borrower ~d Lender may agree in writing at the time of execution ot thia Mortgage that interest on the ~nds shall be paid to Botrower, and unlees such agreement is made or appUcable law requir~ such intereat to be paid, Lender ahall not be required to pay Botrower any intereat or earnings on the ~Lnda. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credita and debita to the Funda aad the purpose for which each debit b the ~nds was made.'11~e Funda are pledged as additional security for the sums secured by this Mortgage. - If the amount of the ~nda held by Lender, together with the future monthly inatallmente o[Funds payable prior to the due dates of taxea, aeeeasments, i~aurance premiume and ground rents, ahaU excaed the amount required to pay said ts:es, aeaeeaments. inaurance premiums and ground renta es theyr fall due, such ezceas shall be, at Botmwei s option, either prompdy repaid to Borrower or credited to Borrower on monthly installments of F1nds. If the amount of the Funds held by Lender ahall not be aufficient to pay ta~ces, eseesaments, insurance premiume and ground renLs as they fall due, Borrower ahall pay to Lender any amount neoeseary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by thia Mortgege, I.ende~ shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property is otherwiee acquired byLender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite acquiaition by Lender. any Funda held by Lender at the time of application as a credit againat the aume arcured by Wis Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, aU paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be epplied by I.ender firat in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances_ 4_ Chargee; Liena. Borrower shall pay all ta:ea, asses:sments and other rharges, fines and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payme~ts or ground rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all nutices of amounts due under this paragraph, and in the event Bormwer shall make payment directly, Bormwer shaU promptly furniah to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrowershall agree in writing to the payment o[theobligation secured by such lien in a mannrr acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or aoy part thereof. 5. Hazard Insurance. Borrow~er shall keep the improvements now existing or hereafter erected on the Property inaured against loes by fire, hazards inciuded within the lerm "extended coverage," and such other hazards as I.ender may require and in such amounts and for euch periods as Lender may require; provided, that Lender shall not require that the amount ot auch coverage ekceed that amount of coverage requ~red to pay the sums secured by this Mnrtgage. ' The insurance carrier pmvidinQ the insurance shall be chosen by Rortower subject to approval by I.ender, pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~licies shall be paid in the manner pmvided under paraRraph 2 hereof or, if not paid in such manner, by Korrower makinq payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof shaU be in form acceptable to Lender and shall include a standard ~nortgageclause in favorof and in form acceptable to I.ender. l.ender shall have the right to hold the policies and renewals thereof, and Aorrower shall promptly furnish to i.ender all rnnewal notices and all receipts of paid pmmiums_ In the event of loss, E;c-rruwer ahall give prompt notice to the insurance carrier and Lender_ I.ender may make proot of ~pss if not made promptly by E3orrower. Unleas l.ender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property damaged, provided such restoratiun or repair is economically feasibte and the eecurity of this Mortgage ie not therepy impaired. It auch restoration or rnpair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall beapplied w the aums secured by this Mortgage, with the excess, if any, paid to Borrower_ If the Property ia abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by I.ender to E3orrower that the insurance carrier of[ers to settle a claim for insurance benefits, Lender is authonzed to collect and apply the inaurance proceeds at Lender's option either to reatoration or repair of the Pmperty or the auma secured by this Mortgage_ Unleae l,ender and E3orrower otherwise agree in writing, any such application of proceeds to principal ehall notexte~d or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 henrof or change the amount of such installments. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof reaulting from damage to Property prior w the sale or acqu~sition shall pass to Lender to the extent ot the sums secured by thie Mortgage immed~ately prior to auch sale or acquisition. 6_ Preeervation and Maintenence of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaione of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, E3orrower ahall pertorm all of E3orrower'e obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documente. I[ a condominium or planned unit development rider is executed by Borrower and recorded together with thie Mortgage, the oovenants and agreements of such rider shall be incurporated into and shall amend and supptement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. It Borrower faila to prrform the oovenante and agreements contained in thie Mortgage, or if any action or proceeding is commenced which materially af[ecta Ixnder e interest in the Propaty, including, but not limited to, eminent domain, ineolvency, code enforcement, or anangements or proceedings involving a banicnipt~or decedent, th~n Lender at I.ender's option,upon notice to Bormwer may make such appearances, dieburse such sncns and take such action as is neressary to protect Lendet's interert, including, but not limited to, disbursement of reaeonable attorney's fees and entry upon the Property to make npain. If I.enda required mortgage insurance as a rnndition of making the loan secured by thia Mortgage, Borrower ahaD pay the premiums required to maintain euch ineurance in dfect until 6uch time as the requinment for such insurance terminatea in accordance with Borrower's and Lender s written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner pmvided under paragraph 2 hereoL ' My amounts diebursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness o! Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms oi payment, such amounte shall be payable upon notice from Lender to Borrower requesting payment thereof, and shell bear intereet from the date of diebunement at the rate payable irom time to time on outetanding pri~cipal under the Note unlesa payment of intereat at such rate would be aontrery to applicable law, in which event euch amounts ahal) bear interest at the higheat rete permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender eo incur any e:pense or take any action hereunder. 80r~K,,~8 PAGE~VUO ~ - .- , ~ ~,~. .~4 ..~_ . >. ,_.. _ Y'~~ ~. . -- - ~ -~ _ I ~~