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HomeMy WebLinkAbout0124 UntFau?t CoveN~HTS. Borrower :~nd l.ender covenant and ag~ee as follows: 1. Payme~t of Princlpd aod iaterest. Borrower shal) promptly pay whea due the p~iocipal of aad interest on the iadebtedness evidenced by the Note. prepayment and late cha~ges as providcd in the Note, and the principal of and interest o~ any Futurc Advances secured by this Mortgagc. 2. F~~t tor Tua aai luwraace. Subject to applicabk law or t~ A written waive~ by Lender. eo~o~~ ~~i wy to I.ender o~ ~he day monthly installments of principal a~d intercst arc payable under the Note. until the Note is paid in fuU. . a:um (hercin "Funds") cqual to one-twelfth of the yearly tsxes _ and assasments which msy attain priority over tbia . Mortgage. and ground rents on the Pmperty. if any, plus one•twelfth of yeuly premium installments tor hazard insurance, plus oae-twelfth of yearly prcmium installments for mortgage insurance, if any. all as reaso~ably astimatod initially a~d from , ~:me to time by Lender on the basis of assessments and bills and rcuonable estimates thereof. ; 71~e Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Fedenl or ~ state agency (including Lender if Lender is such an institutio~l. Lender shall apply the Funds to pay said tues~ auessmeats. ~ insurance premiums and ground rc~ts. Lender may not charge for so holding and applying the Funds. analyzing said acoount, _ or verifying aad compiling said assessments and bills. unlas Lender pays Borrower interat on the Fu~ds and applicable law ~ permits Len~er to make such a. charge. Bonower and knder may agrce 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 applicabk law F eequires such in~ecat to be paid, Lender shall not be required to pay Borrower any interest or earaings on the Funds. Leoder sliall Sive to Borrower, without charge, an annual acrnunting of the Funds showing credits and debits to the Fuads and t6e purpoae for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured ! by t6is Mortgsge. ~ If tbe smount of the Fu~ds held by Lender, together with the fu~ure monthly installments of Funds payabk prior to t6e due dates of taaes. acseasments. insurance premiums and ground rcnts, shall exceed the amount required to pay said taua. assessments, insurance premiums and ground renu.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 Funds. If the amount of the Funds ~ held by Letider shall not be suflicient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower rcquesting payment thereot. Upon paymeot in full of all aums secured by this Mortgage, Lender shall promptly rcfund to Borrower any Funds held by Lender. If under paragrap6 18 hereof the Propeny is sold or the Propeny is othenerise acquired by Lender. I.ender shal! apply, no Iater than immediately prior to the salc of the Propeny or its acquisition by Ixnder. any Funds held by Lender at the time of application as a credit against the sums sesured by this Mortgage. 3. Applicatio~ ot Paymeats. Unless applicable law provides otherwise, all payments received by Lender under- the Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. t6en to interest payable on the Note, then to thc principal of the Note. and then to interat and principal on any Future Advances. 4. Crarsex I3ens. Borrow~er shall pay all taxes, assessments and other charges, fines and impositions attributable to the PropeRy which may attain a priority over this Mongage, and leasehold payments or ground rents, if any, in th~ manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payrnent, when doe. direcdy to tbt payet thereof.° Borcower sha11 promptly furnish to Lender all notices of amounts due under this paragraph, and ia the event Borrower shaU make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: pruvi~ied, that Borrow~r shal{ not be ~ roquired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation securcd by ~ ? such lien in a manner acceptable to Lender. or shall ingood faith contest such lien by, or defend enforcement of sucb lien in, i legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ~ S. Hazard I~vraece. Borrow~er shall keep the improvements now existing or hereafter erected on the Property insurcd agaiast loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may roquire f and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that tl~e amount of such rnverage excced that amount of coverage required to pay the sums secured by this Mongage. 'Ibe insurance carrier providing t6e insurance shall be chosen by Borrower subject to approval by Lender, providtd, that wch approval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner . provided uader paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeot, when due, diroctly to the f IDSUf2DCC CaTfICC. ~ All insurance policies aad renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ~ clauu in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, - ~ and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. ! Borrower shall give prampt notice to tttie insurance carricr and Lendec. Ltoder may make proof of }oss if not made promptly : ~ by Botrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of ~ the Property damaged, provided such restoration or repair is economically feasible and the security of this Mongage is ~ not thereby imQaited. If such restoration or repair is not economically feasible or if the security of this Mortgage would ~ be impaired, the insurance praceeds shall be applied to the sums secured by this Mortgage, with the exctss, if any, paid to Borrower. If the Propen~~ is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the ~ date notice is mailed b~• Lender to Borrower that the insurance carrier offers to settle a claim for insuraace benefits, L.ender is authorizod to collect and apply the insurance proceeds at Lender's option eit6er to restoration or repair of ihe Property ~ or to t6e sums secured by this Mortgage. Ualess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or poatpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of suc6 installments. If under paragraph 18 hereof the Property is acquired by L.ender, all right, tide and interest of Bonower in and to a~y insurance policies and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or ; • acquisition. f ~ 6. Presen•atioa and Maiatenance of Property; Leaseholds; Condomiaiums; Planned Unit Devebpmeats. Borrower shali keep the Property io good repair and shall not commit waste or permit impairment or deterioration of the Property a 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 { condominium or a planned unit development. Borrower shall perform all of Borrower's obligations under the declaration ~ or covenants creating or governing the condominium or planned unit development, the by-Iaws and regulations of the ~ condominium or planced unit development, and constituent documents. If a condominium or planned unit development ~ ~ rider is ezecuted by Borrower and recorded together with this Mortgage. the covenants and agreements of sueh rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Leode~'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, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Le~der at Lender's option, upon notice to Borrower. may make such appearaaces, disbuise such ~ sutns and take such action as is necessary lo protect Lender s interest, inciuding, but not limited to. disbursement of reasonable attomey's fees aod 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 eHect until such time as the requirement for such insurance terminates in accordance with Borcower's and fi ~ ~ ~ ~ , r' =i ~~:t PAGE ~ ~ . _ - - ~