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HomeMy WebLinkAbout0503 I~NIfORAI COVENAKI'S. Borrower and Lendrr co~•rna~t aud agree as tollowy: 1. PaYment ot Prlacipa! aad laterest. ~arrowcr shall promptly pay when due the principal o[ and iuterest on the indebtedaess evidenced by the Notc. prcpayment and latc charges as pruvided iti the Note, and tl~t priutipal ot and i~~ter- est on any Fuwre Advanccs securt~l by thi: ~[ortgage. 2 flu~d~ tor Tua and Iasurance. Subject to applicable law or to a written wai~~er by Lender. Borrowr~ shali pay to Leoder o~ the dap mon[hlp installments of principal and interest an payable uoder the Note, until the hotr is paid io tull, a sum (hetein "Fu~d:") equal to one•twel(th ot thc yearly taxes and assesunents which may atui~ priority ovet this 1lortgage, and gtound rents oo the Property. iE any. plus opatwel[th of yearly premium installments to~ harard iiisuranct. plus one-twel[th of yeatly premium insuUments for mortgage insurancc. if any, aU as rrasonably estimated initially and itom time to time by Lender on thc b~.?is o[ assessments and bills and reasonable atimates thereo(. The Funds shaU be held in an institution the deposits or accounta nE which are insured or guuantced b? a Federal or state agency (intluding l.ender it I.ender. is such an institution). l.ender shall appiy the Funds tu Pay said taxes, assessme~u. insunnce pmniums and ground rencs. Lender mar not chuge for ~o holding and applying the Funds, analyiinq said u rnunt. or vKitying and compiling said asxssme~ts and bills, unl~ss I.cnder pays Borrower interat on the Funds and ap~ plinblc law permits Lender to make such a charySe. Borrower and Lender may agree in writing at the time ot exetution of this riortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable la~r requires :uch interest to be paid. Lender shall not be required to pay Botrower any interat or ear~ings on the Funcls. Lender shall give to Borrower, without charge, an annual accounting of the Fu~ds showinp~ crediu and debits to the Funds and the purpose for which each debic to the Funds was made. The Funds are pledged as additional secvrity tor the sums secured by this 11~ortgage. ~ IE the amount o[ the Funds held by Leoder, together with the tuture monthlr installmenu ot Funds payable prior to the due data of taxes, assasments, insurance prcmiuau and ground rents, shall txceed the amount required to pay uid taxes, asxsstmnu, inwnnce p-emiudu and ground renu as thcy tall due, such excess shall be, at BorroMers optio~, either promptly repaid to Borrower or cTedited to Borrower on monthly•installwtnts of Funds. lt tht amount o[ the Funds held by Lender shall not be wt(icient to pay taxes, assessments. insunnce premiums and qrouud rents as thev (all due. Bonower shall pay to Lender any unount naessary to make up the deficienty within 30 days trom the date notice is mailed by L.enda to Borrower requesting payment thereof. Upon payment in fuA of all sums secured by this llfortqage, Lender shall promptly re(und to RorrQwer any Funds held by I.ender. If under pangraph 18 hereo[ the Property is sold or the Property is othecwise acquired by Ixnder, Lender shall apply, no later than immediately priot to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time oE application as a credit against the sums secured .by this ~tortgap,e. 3. Application of Payments. Unless applicable law pro~ides otherwise, all parnents recei~ed by I.ender under the Note and pangraphs 1 and 2 hereoE shall be applied by Lender tirst i~ payment-o[ unounts payable to I.ender by Borrower under paragraph 2 hereof. chen co interest payable on [he Noce, then to the principal of che Note. and then to interest and printipal on any Futu*e Advanccs. 4. Chuge~ Irens. :'orrower shall pay all taxes, assessmenu and other charges, fina and impositions attributable to the Property which mar attain a priority over this ~fortgage, and leasehold pa}Tnenu or. ground renu, i[ any. in the man- ner provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making paynnent, when due, direcdy to the payee thereo[. Borrower shaU promptly furnish to I.ender all notites of amounts due under this paraqraph, and in the event Borrower shall make payTnent direttly, Borrower shali ptompdy furnish to Lender receipts e~idencinR such payments Borrower shall prompdy discharge any lien which has priority~o~•er this Atortgaqe: pro~~ided, that Borrower shall not be re- quired to discharge any such lien so long as Bonower shall agree in writing to the payment ot the obligation secared by such lien in a manner acctptable to L.ender, or shall in gcx,d faith cmuest such lien by, or detend enforcement of such lien in, le- Ral proceedings which operate to pre~ent the en(orcement oE the lien or forteiture ot the Property or any part thereoE. 5. Hazud Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- , sured against loss by [ire, haurds included within the term "extended co~•erage", and such oeher hazards as Ltnder may re- quire and in such amounu and tor such periods as I.ender may require; provided, that Lender shall not require that the amount o[ such coverege exceed that amount of m~•erage required to pay the sums secvred by this \fongaqe. The insurance canier providing the insurance shall be chosen by Borrower subject to appro~•al by Lender: provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner f pro~•ided under paragraph 2 hereof or, if not pa'sd in such manner, br Borcower makinq payment, when due, direcdy~to ~ the insunnce carria. ~ 41l insurance policies and renewals thereot shall be in form acceptable to Lender and shall include a scandard mort- ~ gage clause in Ea~•or of and in form acceptable to Lender. Lender shall hace the tight ~to hold the policies a~d renewals thereof, and Bonower shall promptly furnish to L.ender all renewal notices and a11 meipu of paid premiums. In the event of loss, Borrower shal~ give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made prompdy by Borrower. Unless I.ender and Borrower otherwix aqrte in writing, insurance proceeds shall be applied to mtoration or repair of the Property damaged, provided such restoration or repair is econominlly Eeasible and the security of this ~iortgage is not thereby impaited. If such restoration or npair is not economically feasible or if the securit} of this \~ortgage would be im- paired, the insurance proteeds shall be applied to the sums secured bp this Atortgage, with the excess, i[ any, paid to Bor- rower. Ii the Property is abandoned by Borrower, or if BortoMer tails to respond to Lender within 30 days [rom the date notice is mailed bv Lender to Borrower that the insunnce ntrier ofiers to setde a daim for insunnce benefiu, I.ender is authorized w collect and apply the insurance praeeds at Lender's option either to restoration or repair of the Propertr or co the sums secured b~ chis Nongaq~. Unless I.ender and Borroaer otherwise agtce in writing, any such application of proceeds to principal shall not txtend or postpone the due date o( the monthly insialtmenu reEerred tc~ in paraqraphs 1 and 2 hereof or change the amount of wch instaliments. If undet paraqraph 18 hereof the Property is acquired by Lender, all right, title and interest o[ Botrower in and to any insurance policies and in and to the pr~ceeds thereof multinq from damage to the Property prior to the sale or acyuisition ahall pass co :.ender to che extenc o[ ehe wmi secured by this Mortgage immediately prior co such sale or acquisition. 6. Prcservation aad :Naintenwce of Proptrty; Lea~eholds; Condominium~ Planaed Unit Devdopmenu. Borrower st~all kcep the Property in good repair and shall not commit waste or permit impairment or deterioration o( the Proptrty and shall comply with the provisions ot any lease if this 111ortgage is on a leasehold. I[ this ~fottqage is on a unit in a ~ condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declantion ~ or co~enanu aeating or goeerning the condominium or planned unit development, the by-laws and regulations of the condo- ~ minium or planned unit de~elopment, and constituent documents. I( a condominium or planned unit development rider is ~ executed br Borrower and recorded together with this ~iortgage, the covenants and agreements oE such rider shall be in- ~ corporated into and shall amend and supplement ihe covenants and agreements of this ~tortqage as iI the rider were a part ~ hereof. 7. Protection of Lendtr'} Secvriq. If Borrower fails to per[orm the covenants and agrtements contained in this Mortgage, or if any x~tion or praceding is commenced which materially af[ects Lender s interat in the Property. induding, but not limited to. eminent dotnain, insol~ency, code entorcement, or atrangements or pr«eedings im•ol~•ing 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 proeect Lender's interest, induding, but not limited to, disbursernent of reasonablt ~ attorney's tees and entry upon the Property to make repain. If Lender required mortqage insunnce u. a condition of ~ making the loan secured by this Atortgage. Borrower shall pay the premiums required to mainwin such insurance in ef- ~ ~(ece until such time as the requirement for such inwnnce terminata in accordance with Borrower's and I.ender': written ~ °~ox 299 P,~ 503 - _ ~ : - _ _ - .u.~ ~~.~-A. _ ~Slv'.~~ ^-~r~d~~~ ~"''~.G -'2.. . . .