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HomeMy WebLinkAbout0333 ~ UN~~atnt CoveN~Nrs. Borrower and Lender covenant aRd ag~re as follows: 1. Pqrmeot o[ Pdnclpd aad interest. Barrower shall prompQy pay when duc thc principal of and ioterest on the indebtedneu evidenced by tht Note, prepayment and late charges as provided in the Note. and the principal of and intercst on uny Futu~ Advaoces ~ecured by this Mortgage. - 2. Fbads fo~ Tua aod lawraece. Subjecl to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly instaitments of principal and interest are payabk under the Note, until the Note is paid in full, ~ sum (herein "Funda") equal to one-twelfth of Ihe yearly taxes and asseuments which may attain - priority over this MoHgage, and ground nnt: on the Pt+opcrty, if any, plus one-tweltth of yearly p~emium installmcnts for hazard i~surance, . plus one-twelfth of yearly prcmium installme~ts tor mortgage i~surance, if any. all as reasonably estimatcd inifially and from ; time to time by Lender on the basis of assessment~ and bills and reasonable estimates thereof. 'Ihe.Funds shal! be held in an institution the depasits or accaunts af which are insurcd or guaranteed by a Federal or state agency (includi~g Ler?der if Lender is such an institution). l_ender shall apply the Funds to pay said taxes, assessments, iqsutance premiums and ground rents. Lender may not charge for so holding and apptying the Fuods, artalyzing said account. or verifying and compiling said assessrtxots and bills, unless l.ender pay~s Borrower interest on the Fu~ds and applicable law permits l.ender to make such a cha~ge. Borrower and Lende~ may agree i~ writing a1 ~he time of execution ot this Mortgage that interest on the •Funds shall be paid to Borrower, and unless such- agreement is made or appticable !aw requira such interest to be paid, l.ender sf~alt no~ be required to pay Borrower aoy inlerest or earnings an tho Funds. Lender shall give to 8orrower, without charge, an annua! accoun~ing ot the Funds showing creciits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional secu~ity [o~ the sums secured ' by this Mortgage. ~ - 1f the amount of the Funds hetd by Lender, tagether with the (uture monihly installments uf Funds payable prior to the due dates of taxes, assessments, insurance premiums and g~ound rents, shall exceed the amount required to pay said taxa. assessments, i~su~ance premiums and ground rents as they fall due, such excess shall be, at Borrower s optian, either protnptly repaid to Borrov?•er or credited to Borrower on momhly installments of Funds. If the amount of the Funds held by Lender shall not be suflicitnt to pay taxes, assessments, insur:~ncc pmmiums and ground rents as theg fall due, Borrower shall pay to Lender any amount necessar~~ to make up the deficiency within 30 days from the date nc~tice is mailed by Leode~ to $orrower requesting payment Ihereof. Upon payment in full of all sums secured by~ this Mortg~ge, t_endcr shail promptly refund to BorroWer any Funds held by l.enJer. If under paragraph 1R hereof thc Property is sold or the Property is otherwise acquired by Lende~, 1_en~ier shal! apply, no later than immediately prior to the sale of the Propcrty ar its acquisition by l.ender, any Funds held by Lender at the time of appliration as a credit against the sums secured by this Mortgage. 3. Applicalion ot Payments. Unless applicable law provides otherwise, all payments received by 1_ertder unJer the Note and paragraphs I and 2 hereof shall be applied by I.cncler first in payment ot amoun~s payable to 1_ender by Borrow•er under paragraph 2 hereof, then to interest payablc on the Note, then to thc principal of the Note, and thcn to interest and principal on any Future Advances. _ a 4. C6arges; Lkns. Borrower shall pay all t:~xes, ass~;ssmcnts and c~ther charges. Snes and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehotd payments oc ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the . payee thereof. Berrower shall pmmptly furnish to Lencier all notices of amounts duc under this paragraph, and in the event BorroN•er shall make payment directly, Borrow~er shall promptly furnish to I.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priurity ovcr ihis Mortgage; proviJed. Ihat Borrower shall not be required to discharge any such lien so long as Borrower shall agree in N riting to the payment of the obligatioa secured by such lien in a manner 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 any part thereof. ' S. Hszard lnsurance. Borrower shail keep the impro~•cmcnts now cxisting or hereafter ercc~ed on the Pmpcrty insured ; against Ioss by fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require - and in such amounts and for such periods as Lender may reyuire; provided, that LenJer shall not require that the amount o( such coverage exceed that amount of coverage required to pa~~ the sums secured by this Mortgage. "Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approva! shall oot be unreasonably withheld. All premiums on insurance policies shall be paid in the manner ; provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. AI! insurance policies and renewats thereof shatl be in form acceptabte to Le~der and shall include a standard mortgage clause in favor of and in form acceptable to Lender_ Lender shall have the right to hold the policies and renewals thereuf, - and Borrower shall prompUy furnish to Lencier all renewal notices and all receipts of paid premiums. ln the event of lass, Borrower shalt give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, proviJed such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economic:~lly feasihie or if the security of this Mortgage would be impaired, the insurance proceeds shall be appGed to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If 1he Property is abandoned by Borrower, or il Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance bene6ts, Lender s is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properiy or to the sums secured by this Mortgage. = Unless Lender and Borrower otherwise agree in writing, ar~y such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of ; such installments. lf under paragraph 18 hereo[ the Property is acyuired by I.ender, a!I right, title and interest of Borrower in and to any insurance policies and io 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 sak or " acquisition. _ 6. Presen~aijon aad lfaintenance of Property; Leaseholds; Condominiums; 1'lanned Unit De~•elopments. BorrQwer shatl keep the Property in good repair and shall not commit wastc or permit impairment or deterioration of the Property and shal) comply with thc 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 Borrowers obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulatians of the condominium or planoed unit development, and eonstituent documents. If a conJominium or planned unit development nder is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such nder shall be incorporated i~to and shall amend and supplement the covenants and agreements of this Mortgage as if the riJer were a part hereof. , ~ 7. Protection of Leoder's Security. lf Borrow•er faels to perform ihe covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenceJ which materially aHects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, code enf~rcement, or arrangements or proceedings involving a bankrupt or decedent, ~hen Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect leoder's interest, including: but not limited to, disbursement of reasonable attomey's fees and entry u~n the Property to make repa~rc. 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 effect until such time as the requirement for such insurance terminates in accordance with Bormwer's and ~ ~ ~ ~ a~~?85 3~g