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HomeMy WebLinkAbout1721 UNttwrw Covenxr+TS. Borrower and Lender covenant and agree as follows: 1.. laytwetN o< hYetMl rw IatkrtN. Borrower shall promptly pay when due the principal of and interest on the ittdebtednest< evidenced by the Note. Prepayment and late charges as provided in the Note, and the principal of and interest ' on say Future Advances secured by this Mortgage. 2. Ftt>•tla tote Tta:aa atsi Irtnraaea. Subject to applicable law or to a written waiver by Lender, Borrower :hall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fonda") equal to one-twelfth of the yearly talc. and assessments which may attain priority over this Mortgage, and ground rend on the Property, if any. plus one•twelfth of yearly premium installments for hazard insurance. plus one•twelfth of yearly premium installments for mortgage instrrancc, if any, all as reasonably estimated initially and from tune to time by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposers or accounts of which are insured or gwranteed by a Federsl or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessment:. iaauraaca premiums and ground rents. Lender may not charge for so holding and applying the Frrndc. analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law rtquirea such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall pve to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by the Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. sssessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments. insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either i promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the funds held by Lender shall not be wflicient 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 deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the rums secured by this Mortgage. 3. A~piication of Payoetats. Unless applicable law provides otherwise, all payments received by Leader under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment 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 principal on any Future Advaocxs.- 4. Charges; Lktss. Borrower shall pay all taxes, assessments and other charges, fines and 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 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. 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 Lender 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 Borrower shall agree in writing to the payment of the 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 of the Iren or forfeiture of the Property or any part thereof. 5. Narard Irrwrawce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may reyuirc; 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. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not 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 inwrance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender 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 thereof, sad 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 Lender. lender may make proof of loss if not made promptly by Borrower. i Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restora_ lion or repair of the Property damaged, provided such restoratron or repair is economically feasible and the security of this Mortgage is € not thereby impaired. 1( 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 Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the s date notice is marled by Lender to Borrower that the insurance carrier o6ers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property t or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any 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 the amount of ~ such installments. If under paragraph f 8 hereof the Property is acyurred by Lender, all right, title and interest of Borrower - in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale i or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower P shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property and shall comply wjth the provisions of any lease if this Mortgage is tin a leasehold. If this Mortgage is on a unit in a j condominium or a planned unit development, Borrower shall perform all of Borrower's obhgations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the - condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together wrth thrs 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. t 7. Protection of Lenders Security. If Bomsser fails a. perform the covenants and agreements contained in this = Mortgage, or if any acUOn ur proceeding rs commenced Hhrch materially affects Lender's interest in the Property, ` including, but not limned to. eminent domain. insolccnr). c~xlc enforcement. or arrangements or proceedings invoh•ing a bankrupt or decedent, then Lender at Lender's option, ulx~n nutire to Borrower, ma) make wch appearances, disburse such sums and take such action as rs necessary to protect Lender', interest, including. but not limned to, disbursement of reasonable attorney's fees and entry upon the Proper}~ to make reparrc. If Lender rcyuired mortgage insurance as a cundrUun 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 termu?:Ues m accordance with Borrower's and z °~~Rr 3U1 F: ~~1716 - - ri r ~ _~n