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HomeMy WebLinkAbout0980 UNrFO~et~ CoveN~rrrs. Borrower and LenJer covenant and agree as follows: 1. laya~esi ot Prtacipal add lste~at. Borrower shall prompily psy when due the principal of and interest on the iadebtedneu evidenced by the Note. ptepayment and late charges as proviJed in the Note, a~d the principal of and intercst on~any Future Advancts socured by this Mon~a~e. 2. Fti~ds [o~ T~a ui i~wn~cr. Stibject to applicabit law or to a written waiver by Lender. Botrower shall pay to l.ender on the day monthly installments ot principal and interest are payable under the Note. until the Note is paid in tull. a sum (herein "Fundt'7 equal to ono-twelfth of the yeariy tazes and assessments which may attain priority over this Mortgage. and `round ren4 on the Propeny, if any, plus one-twelfth o[ yearly premium installments for hazard insurance. plus one-tweltth of yearly pnmium iastallments for martgage in:urance, if any. all as rcuonably cstimated inilially and from time to time by Lender on the basis of assassmenta and bills and reasonable estimates thereof. 'I7~e Funds shall be held in an institution the depoaits or accou~ta of which are insured or guaranteed by a Federal or ~ state agency (including Lender if L.ender is such an institution). ~ender shall apply the Funds to pay said taxes, asseume~ts. ' insurance pnmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said acrnunt~ or verifying and compling said assessmenu and bills, unless Lender pays Borrower interest on the Funds a~d applicable law permits Lender to make such a charge. Bonower and Lender may agrce in writing st the time of execution of this Mortgage that ioterest on the Funds shall be paid to Borrower, and unless such agroement is made or applicabk law 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 a~nual accounting of the Funds showing credits a~d debits to the Funds and the purpose for which eac6 debit to the Funds was made. The Funds are plodged as additional socurity for the sums secured by this Mortgage. If tbe artwunt of the Fun~ held by Lender, together with the future mo~thly installments of Funds payable prior fo the due data of ta~ces. asussmeats, i~urance premiums and ground rents, shall exceed the amount required to pay said taxes, assess~nents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either . promptly repaid to Bormwe~ or crodited to Borrower on monthly installments of Funds. If the amount of the Funda held by l.ender shal! not be suf6cient to pay taxes. assessme~ts, insurance prcmiums and ground rents as they fall due. Borrower shal! pay to Lender any amount necasary to make up the deficiency within 30 days from the date notice is mailed by Leoder to Borrower rcquestiag payment thereof. Upon payment in ful! of dl aums secured by this Mor~gage, 1_e~der shall promptly retund to Borrower any Funds held by Lender. If ur~der paragraph 18 hereoi the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no later than imrnediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by Leader at the time _of application as a credit against the sums secured by this Mortgage. . 3. Appticatloa ot Paymests. 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 paraaraph 2 hertof, then to interest payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. 1. ,C~e~ I3eas. Borrower shall pay al! taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents. if any, in the manner ' prnvided under paragraph 2 hercof or; if not paid in such manner, by Borrower making paymtnt, when due, direcdy to the payee thereof. Borrower shall promptly fumish to L.ender all notices of amounta due under this paragraph, aad in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provickd, that Borrower shall not be required to discharge any such lien so long at Borrower shall agree in writing to ~he payment of the obligation secured by suc6 lien in a manner acceptabk 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 oi the lien or fodeiture of the Properiy or any part thereof. S. Huard lasvrance. Borrower shall koep the improvements now existing or hereafter erected on the Propeny insured against loss by fire. haurds included within the term "extended coverage", and such other hazards as Lender may reyoire and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not r~oyuire that the amuunt of such coverage excced that amount of ~overage required to pay the sums secured by this Mortgage. . ~ 'Ilu iosuraace carrier providing tbe iasurance shall be chosen by Borrower subject to approval by Lender. provided. tbat such approval shall not be unreawnabiy 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. " ' j ' AU insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage i clsuu in favor of and in form acceptable to Lender. [.ender shall have the right to hold the policies and reneveals thereof, ' and Borrower shall promptly furnish to Lender al) renewal notices and all receipts of paid prcmiums. In the event of loss, Bonower shali give prompt notice to the insurance carrier aod L.ender. Lender may make proof of loss if not made promptly i by Borrower. ~ Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of ~ ihe Praperiy damaged, provi~iui such restoration or repair is economically feasible and the security of this Mortgage is ~ not ~hereby impaired. If such restoration or repair is not economically feasible or if the security of this 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 Propeny is abandoned by_Borrower, or if Borrower fails to respond to Lender within 30 days from the date nodce is mailed by I.ender to Borrower that the insurance carrier otiers to settle a claim far insurance benefits, .Lender is aut6orizod to collect and apply tbe insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by ihis Mortgage. Unless l.ender and Borrower otherwise agree in writing, any such applica~ion 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 the amount of such installments. If under puagraph 18 heroof the Propeny is acyuired by Leoder, all right, tide and interest of Borrower in and to any insurance policies and in and to the procceds thereof resulting from damage to the Property prior to the sale ~ ~ or acquisition shall pass to Leader to the extent of the sums secured by this Mortgage immediately prior to sueh sak or . t acquisition. ; 6. lrerervatba aod Mainteaance of Property; Leau6olds; Condominiums; Planned Unit Devdopments. Borrower ~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property 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 creatiag or governing the condominium ~or planned unit development, the by-laws and regulations of the ~ condominium or planoed unit development, and constituent documents. If a condominium or planned unit development ; 4 ricier is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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 heroof. 7. Protectba of Lende~'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 afiects l.ender's interest in the Property, ~ ~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedinga involving a , ~ bankrupt or decedent, ~hen Lender at Lender's option, upon notice to $orrower~ may make such appearances, disburse such ~ ~ sums and take such action as is oocessary to protect I.ender's interest, including, but not limited to, disbursement of ( ~ reasonable attomey's [ees and cntry upon the Property to make repairs. I( I.ender required mortgage insurance as a i = condition of making the loan secured by this Mortgage. Borrower shall pay the premiums requirui to maintain such = € inswance in eftect until such time as the rcquirement for such insurance terminates in accordance with Borrower s and ~ - ~ 4 nno go, ~ 238 Fa~;E " ~;x _ 4 ~ ~ ~ ~ ~ _ e ; _ - - _ - - _ _ ..R