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HomeMy WebLinkAbout0356 • ' . UNtt•o~t?t Co~eN~Nn. Borrower and Lender covenant and agree as follows: l. Paymeat ot Principd aud Interest. Borrower shall promptly pay when due the principai of and interest on the indebtedncu e~~idenced by thc Note. prepayment and late charges as provided in the Note, and the principsl of and inteoest an any Futurc Advances secured by this Mortgage. 2. Foads [a~ Tues and laat~ace. Subject to applicable law or to a written waiver by l.ender, Borrower shaU pay to I.ender on ~he day monthly installments of pri~cipal and interest are payable under the Note. until the Note is paid in (uli, a sum (herein "Funds") equal to ono-twelith o[ the yeariy taxes and assessments w~hich may attain priority over this Mortgage. and ground re~ts on the Prnperty. if any. plus one-twelt~h o[ yearly premium installments for hazard insurance, plus or~e•twelfth of yearly premium installments foc mortgage insurance, if any, all as reasonably estimated initially and from ~ time to time by Lender on the basis of assessments and bills and reaso~able estirnates thereof. 1 'I7~e Funds shall be held in an institutio~ the deposits or accounts of which a~e insurcd or guaranteed by a Federal or state agtncy (tncluding Lender if Ltnder is such an institution). t.ender shall apply the Funds to pay said taxes~ assessments. insurance premiums and ground rcnts. Lender may not charge for so halding and applying the Funds, analyzing said account, or verifying and compiling said assessme~ts and bills, unless I.ender ~ays Borrower interest o~ the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of exccution of this Mortgage that interest on the Funds shall be paid to Borrow•er. and unless such ag~eement is made or applicable law requires such interest to be paid. Lender shalt nat be rcquired ta pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without chargt, an annual accaunting ot the Funds showing credits and debits to the Funds and the pur~wse for which each debit to lhe 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 Lendcr, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shal! exceed the amount required to pay said taxes, asussments, insurance premiums and ground rents 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. !f the amount of the Funds held by Leader shall not be sufficient 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 deficie~cy within 30 days from Ihe date notice is mailed .by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acqu+red by Lender, Lender s6a11 apply, no later thart imtnediately prior t~ the sale of the Properiy or 'its acquisition by Lender, any Funds held by Lender at the time of application as a crcdit against the sums secured by this Mortgage. 3. Applkatlon of Ptyments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applicd by I_ender first in paymtnt of amounts payable to Lender by Borrower under paragraph 2 hereof,. then to interest payable on the Note, then to the principal of the Note, and then to interest and pnncipal on any Future Advances. 4. Char~es; Liens. Borrower shall pay all taxes, assessments and othcr charges, fines anJ impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereo[ or, if not paid in such manner, by $orrower makiog payment, when due, directly to the payce thereof. Borrower shall promptly furnish to Lender all notices of amou~ts due under this paragraph, and in the event Borrower shalt make payment d~rectly. Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shalt promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be required to discharge any such lien so long as 8orrower shall agree in writing to the payment of !he obligation 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 ot the lien or forfeiture of the Property or any part thereof. S. Hazatd Insnrance. Borrower shall keep the improvements nov? existing or hereafter erecte.i on the Property insured against toss by fire, hazards included within the term "e~?tended coverage", and such other hazards as• Lender may require and in such amounis and for such 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. 'ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. . that such approvat sha11 nat be unreuonably withhefd. 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. Al! insurance policies and renewals thereof shall be in form acceptable to Lender and shali inclade a standard mortgage clauu in favor of and in form acceptable to Lender. ~ender sha!! have the right tc hold the policies and renewals thereof,- and Borrower shall promptly furnish to L.ender all renewal notices and all receip~s of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma~ make proof of loss if not made promptiy by Borrower. Ua~ess Lender and Borrower otheruise agree in w•riti~g, insurance proceeds shall be applied lo restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. Ii such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shail be applied to the sums secured by this Mortgage. with the excess, if any, paid to Borrower. If the Property is ahandoned b}• Borrower, or if 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 benefits, I.ender is authorized to collect and apply the insurance proceecis at Lender's option either to restoration or repair of the Property or to the 3ums secured by this Mortgage. Unless Lender and Borrower othervrise agree in writing, an~~ such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change th~ amount of such installments. If under paragraph 18 heroof the Property is acquired by Lender, all right, tiUe and interest of Borrower in and to any insurance policies and in and to the proceeds tttereof resulting from damage to the Propeny prior to the sale or acquisition shall pass to I.ender to tbe extent of the sums secured by this Mortgage immediateiy prior to such sale or acquisition. ~ - 6. Prese~•alioo aod Maintenwce of Property~; I.easeholds; Condominiums; Pianned Unit Developments. Borrower shall keep the Property in good repair and shalt not commit waste or permit impairment or deterioration of the Property and shall comply wiih the provisions of any lease if this Mortgage is on a leaseho!d. 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-laws and regulations of the condominium or planoed unit development, and constituent Jocuments. I( a coodominium or planned unit development rider is eaecuted by Borrower and recorded toge~her 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 Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrow~er fails to perform the covenants and agrecments contained in this Mortgage, or if any acteort or proceeding is commenced which material{~~ afiects Lender's interest in the Propeny. including, but not limited to. eminent domain, insolvenc}~, 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 action as is necessary to protect Lender's interest, including, but not limited to. disbursement of reasonable attomey's fees and entry upon the Properiy to make repairs. If Lender required mortgage insurance as a condition of making the loan secured hy this Mortgage. Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such msurance terminates in accordance wiih $orrower's and ~ R ~ 285 ~tz 351 a~:~~