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HomeMy WebLinkAbout0644 ~ ~ . ` . f • . • ~ UNIFO1tM COVENANTS. Borrowe~ and I.enJer cavenant and agree as [ollows: 1. h~nneat ot Prioc~l and laterest. Borrower shall promptly pay wheo due the principal of and intercst ort the indebtednesi evidenced by the Note. prepayme~t and late charges as proviJed in tMe Note, and the principal of a~d interes~ on aay Futun Advances secured by tbis Mortgage. ~ 2. Foads tor Tua and lawrance. Subject to spplicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of pri~cipal and interest arc payablc under the Note, until the Note is paid in full. a sum (herein "Funds") equal to one-twel(th of the yearly taxes and assessments which may attain priority over this Mortgage~ and ground nnta o~ the Pr+nperty. if any. plus one-twelfth of yearly premium iastallments for hazard insura~ce. plus one-twelfth of yearly premium i~stallments for mortgage insurance, if any. all as rcasonably estimated initiaUy and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be I~etd in an institution the depoaits or accounts oi which are insurod or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). l_ender shall apply the Funds to pay said taxes, assessmonts. insurance premiums and ground rents. L.ender may not charge for so holding and applying the Funds. analyting said account~ or verifying and compiling said assessments and bills, unless Lender pay~s Borrower i~terat on ihe Funds and applicable law ~ permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of executio~ of this Mortgage that intetest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable Iaw requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. l.ender ~ shall give to Borrower, without charge, an annual accounting of the Funds showing cre<lits and debits to the Funds and lhe purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by [.ender, together with 1he future monthly installmen;s of Funds payable prio~ to the due dates of taxes~ assessments, insurance premiums and ground rents, shal! exceed the amour.t required to pay said taaces, assessments, insurance premiums and ground re~ts as they fall due, such excess shaU be, at Borrowet s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. lf the amount of the Funds held by Lender shall. not be sufticieat to pay taxes, asseuments. insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount nectssary to make up Ihe deficiency within 30 days (rom the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mor~gage, l.ender shall . promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply. no later than immediately prior to the sale of thc Propcrty or ats acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this-Mortgage. 3. Applicatian of Paymeots. Unless applicable law proviJes otherwise, all payments received by Lender under the Note and paragraphs t and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borro~wer under paragraph 2 hereof. then to interest payable on ihe Note, then to the principal of the Note, and then to interest and principa) on any Future Advances. 4. C6arges; Lkas. Borrower shall pay all taxes, assessments and other.charges, fines and impositions attributabte to the Property whi~h may attain a priority over this Mortgage, and leasehold payments or gc~ound rents, if any, in the manner provided under paragntph 2 hereof or, if rtoi paid in such manner, by Borrower making payment, when due, direcdy to the - payee theneof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to L.ender 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 Borrouer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to l,ender, 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 Propetty or any part t~ereof. 5. Nazard l~uurance. Borrower shall keep the improvements now existing or hercafter erocted ort the Property insured against loss by fire,,hazaids included withirt the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require: provided, that Lender shall not require that the amount of such coverage exceed Ehat amount of coverage required to pay the sums secured by this Mor~gage. The insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mann~r provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, direcdy to the insurance carrier. All insurance policies and renewa(s thereof shalt be in form acceptable to Lender aod shall include a standard mortgage ctause in favor of aod in form acceptable to Lender. Lender shall have the right to hold the policies and renewals ihereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lend~r. Lender may make proof of loss if not made promptly by Borrower, Unless Lender and Borrower othervvise 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 Mortgage is not ~hereby impaired_ If such restotation or repair is not economicalty feasibte o? if the security of tt~is Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or i( Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insura~ce carrier ofters to settle a claim for insurance benefits, I.ender is authorized to collect and apply the insurance proceeds at Lender's option either to resroration or repair of the Property or to the sums secured by this Mortgage. Unless l.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or pcntpone 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 t8 hereof the Propeny is acquired by Lender, all right, tiUe a~d interest of Borrower in aad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Presen•ation and Maintenance of Property; Leasehoids; Condominiums; Planned Unit Devdopments. Borrower shatl keep the Property in good re~air aad shal! noi commit waste or permit impairment or deterioration of the Property and shall comply with the ptovisions of any lease if this Mortgage is on a leasehold. If this Mongage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower s obligations under the declaration or coveaants creating or governing the condominium or planned unit devetopment, the by-laws and regulations of the condominium or planoed unet 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 be incorporated into and shall amend and supplement the covenants and agreements of this Mongage as if the rider were a part hereof. Protection of Lender's 5scurity. If Borrower fails to perform the covenan~s and agreements contained in this Mortgage, or iI 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 Lender at Lender's option, upon notice to Borrower, may make such aPpearances, disburse such sums and take such actian as is necessary to protert Lender's interest, including, but not iimited to, disbursement of reasonable attomey's fees and entry upon the Property to make repairs_ ]f Lender required mortgage insurance as a condition of making the loan secured by this Morigage, Borrower shall pay the premiums required to maintain such insurance in efiect until such time as the requirement for such insurance terminates iR accordar~ce with Borrower s and . - - o R ~84 644 BOQK ~ : . - - - _ _ _ : - ~~t~~.~