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HomeMy WebLinkAbout1904Borrower and Lender rnvenaat and a~res u loUowr. 1. Payme~t of Prfncipal ~nd Ialereat. Aorrower ehall promptly pay wAen due the pcincipal of a~d interat on the indebtednes~ evide~ced by the Note. prepayment a~d late chsr~a a~ provided in the Note, and the principal ota~d i~tereat on any Fl~ture Advances sccund by this Mort~age. ~ 2. Flu~ds tor Tsses u~d In~urence. Subject to applicable law or to a written waiver by Le~der, Borrower shall pay to Lender o~ the dsy monthly inataUmeots of principal and i~te~est are payable u~der the Nots, unti) !he Note is paid in full, a sum (herein "FLnds") equal to one twelfth oithe yearly taxes and assessmeots which may attain priority over this Mortgage, and gmund renta on the Pmperty, if any, plw one ~ we1Rh of yearly premium inatallments for hasard ineurance, plus onetwelRh otyearly premium installments [or mort~age inaura~ce, if any, all aa reasonably estimated initially and trom time to time by l.ender on the basis of sssessments and bilis and resaonable estimetea thereof. The I~nda ahall be held i~ an institution the depoeita or accounts of which are insured or guaranteed by a Federal or State agency lincluding Lender if Lender ie such an itutitution). Leader shell apply the Funds to pay said taxes, aaseasments, insurance premiuma and ground rents. Lende~ may not charge fo~ w holding and epplying the Funda, ahalysing said account, or verifying and compiling said asseasmenta and bills, u~leas Leader pays Borrower intereat on the ELn~a and applicable law permits L.e~der b make such a charge. Borrowu and I.ender may agree in writing at fhe time of execution of this Mortgage that interest on the ~nds ahall be paid to Borrower. and unless euch agreement is made or applicable law requires such interest to be paid, Lendet shall not be required to pay Borrower any interest or earnings on the Fl~nds. Lender shall give to Bon~ower, without charge. an annual accounting of the Funda showing credita and debita b the Funds a~d the purpose for which each debit to the ~nda wae made. The Fu~ds are pledged aa additional security for the sums secured by this Mortgage. If the amount of the Ftinda held by Lender, together with the future monthly installmenfs of Funds payable prior to the duedatea of iaxes, aseeasmente, inawance premiums and ground renta, shall excred the amount required w pay said ta:ea, asaessments, inaurance premiums and ground rents as they tall due, such exccsa ahall be, at f3orrower a optio~, either prompdy repaid to Borrower or credited to Borrowrr on monthly inetallments of ~nds. 1[ the amount of the Funda held by Lende~ ahaU not be sufficien! to pay taxes, assessmenta, ineuraace premiume and ground rente ae they fall due, Borrower ahall pay to Lender any amount neceaeary W make up the deficiency within 30 days from the date notice is mailyd by Lender to Borrower requesting payment thercof. Upon payment in full of all aums secured by thie Mortgage, Lender ahap promptly nfund w Borrowu any funds held by Lender. If under paragreph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property or its acquieition by Lender. any Funda held by [.ender at the time of application aa a credit againat the suma secured by this Mortgage. 3. Application of Payments. Unleas applicable law providea otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to l.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 Advanoes. 4. Chargea; Liena. Borrower shall pay all taxes, as.gessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenls or ground ~ents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E~rrower making payment, when due, direclly to the payee thereof. Bortower shaU promptly fnrnish to [.ender all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly fumish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to di"scharge any such lien so long as E3orrower shaU agree in writing to thepayment of theobligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, ordetend enforcement ofsuch lien in, lega) proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereot. 5. Hazard Ineurance. I3orrower shall keep the impmvementa now existing or hereafter erected on the Property insured aqainst lose by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounts and forauch periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. - The insurance carrier prmidinR the insurance shail be chosen by Fiorruwer subjeM to approval by I.ender, pmvided. that such approval shaU not be unreasonably v-ithheld. All premiums on insurance pulicies shall be paid in the manner pn-vided under paragraph 2 hereof or, i[ not paid in such manner, by fiorrow•er making payment, when due, directl~ to the insurance carrier. All insurance policies and renewals thereof ahall be in form acceptable to I.ender and ahall include a standard mortgageclause in favor ot and in form acceptable to [.ender. l.ender shall ha~e the right to hold the policies and renewals thereof, and Bnrrower shall promptly furniah to i.ender all renewal notices and all receipts of paid premiums_ In the event of loss, E3orruwer shall give prompt notice to the insurance carrier and Lender. Lender may make praof of loss if not made prompdy by Borrower_ Unlese Lender and E3orrower otherwise agree in writing, insurance proceeds ahall be applied tc- reswration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the security ot this Moetgage ia not thernby impaired. If such reatoration or repair is not economically feasible or itthe security of this Mortgage would be impaired, the insurance proceeda shall be applied to the auma secured by this Mortgage, with theexcess, if any, paid to Borrower. if the Property is abandoned by Borrower,or i[Borrower faila to reapond to Lender within :30 days from the date notice is mailpd by lrnder to Borrower that the insurance carrier oftera to eettle a claim for inaurance benefits, t.ender is authori:ed to collect and apply the insurance proceeda at Lender'a option either to restoration or repair of the Property or the auma secured by this Mortgage. Unlesa Lender and Eiorrower otherwise agree in writing, any such application of proceeds to principal ahap not e:tend or poatpone thedue date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 hereof the Property is acquired by l.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceedn thereot reaulting from damage to Property prior to the sale or acqwaition shall pass to Lender to the e:tent of the auma secnred by thia Mortgage immediately prior to auch sale or acquiaition. 6. Preaervation and MaintenanceotProperty; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit wasle or permit impairment or deterioration of the Property and sball comply with the proviaions of any lease if this hlortgage is on a leasehold. If thia Mortgage ie on a unit in a condominium or a planned unit development, Borrower shall perform all ot [3orrower a obligations under the declaration ot covenanta creatinRor governing the con~ominium or planned unit development, the by-lawa and regulations of the condominium or planned unil development, and constituent documenta. 1[ a condominium or planned unit develapment rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereoL ~ 7. Protection af Lender's Security. If Borrower faila to perform the ooveaants and agreements rnntained in this Mortgage. or if any action or proceeding is cammenced which metrrially atfects Lender s interest in the Propaty, including, but not limited to, emineot domain, insolvency. aode enforcement, or arrangements or proceedings involving a bankrupt or deoedeat, Wen Lender ~t Lender i aption.apon notice to Borrower may make such appearances, disburse such sums and take such aMion as is neoaury to proteet I.ender ~ interest, including, but not Umited to. disbursement of reasonable ettomey's fees and entry upon the Property to make repain. If Lender reqaired mortgage inaurance as a condition of making the loan secured by thie Mortgage, Bormwer shall psy the premiums required tu maintain euch insurance in effect until euch time as the requirement (or such insurance trrminates in accordance writh Borrower's and Lender'~ written agreement or applicable Law. Borrower shall pay the amount of all mortgege inaurance premiums in the manner provided under paragraph 2 hereof. Any emounta dieburaed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtednea of Borrower secared by this Mortgage. Unleas Borrower end Lender agree to other terms of peymcnt, sach amounte shdl be payabk npon notice from [.ender to Borrower requesting payment thereof, and ahal) bear interest from the date of disbureement at the rate payabk from time to time on outetanding principal under the Note unless peyment of interest at such rate would be oontrary w applicable law, in which event such emounts shall bear interest at the highest rate permissible under applicabk law_ Nothing rnntained in this paragreph ?, shsll require Lender to incur any e:pense or take any action hereunder. 8~1K+.~40 PAGE~.~3 ~ ; , ~ . ~~ ~ ; : ,~ - - . _ , _A ~~ ~ ~.. ..~~ ~_. ~. _ ._ _ ~ .., ~ . 4_. .