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HomeMy WebLinkAbout2284 l'N1t:AR!N Covr~~~rrs. Borrower anef l.c•nde•r covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest ou the indebtedness evidenced by the Note, prrpa}•ment and late charges as pruyidcYf in the tote, and the principal of and inter est on any Future Advances secured by this Mortgage. 2. Fonds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to lender on the day monthly installments of principal and iuterest are payable under the Notc, until the Note is paid in full, a sum (herein "Funds") equal u, one-twelfth of the yearly taxes and a+scs+nrrnts which pray attain priority over this Mortgage, and ground rents on the Property, i[ any, plus onatwrlfth of yearly premium iuuallments for hazard ntsurance, plus one-twelfth of yearly premium installments for mortgage in+urance, i( any, all as nau?nably estimated initially and from time to time by Lender oft the basis of assewnertts artci bills artcl reasonable estimates thereof. The Funds shall be held in an institution the de},osits or accounts of which are tenured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). (.ender shall apply the funds to pay said taxes, assessments, insurance premiums and grouuct rents. Lender may not charge for sn holding and apph•ing the Funds, analyzing said ac- count, or s•eri[ying and compiling said assessments and bills, unless Lender pars Borrower interest on the Funds and ap- plicable law permits Lender to make such a charge. Borrower and lender may agree in writing at the time of execution o[ this Mortgage that interest on the.Funds shall be paid to Borrower, and unless such agreement is made or applicable law , requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give 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 ttte Furtcts was made. The Funds are pledgeel as acicfitiortal security, for the Burns secured b}• this Mortgage. If ttte amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due. such excess shall be. at Borrower's option, either promptly repaid to Borrower of credited to Borrower on monthly installments o[ Funds. if the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower ' shall pay to Lender any amount rtecessarv to make up the deficiency within 30 days from the date notice is mailed by Lender ' to Borrower requesting pa}•ment thereof. Upon payment in full of all sums secured b}• this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is wld or the Property is otherwise acquired by Lender, Lender shall apph•, no later than immediateh• prior to the sale of the iroperty or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured b}• this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the \ote and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payai,le to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Notr, and then to interest and principal on any Future Advances. 4. Charges: Liens. 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 man, uer 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 es•urt Borrower shall make payment directly. Borrower shall promptl}• furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge am• lien which has priority over this \(ortgage: providect, that Borrower shall not be re- quired to discharge any such lien so long as Borrower.shall agree in writing to the payment of the obligation secured b}• such lien in a manner acceptable to Lender. or shall in goexl faith contest such lien h}•, or defend enforcement o[ such lien in, le- gal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. _ 5. Hazard Insurance. Borrower stall keep the improvements now existing or hereafter erected on the Property in- sured against loss by [ire, hazards included within the term "extende•d coverage". and such other hazards as Lender may re- quire and in such amounts 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 par the sums secured by this Mortgage. The insurance carrier pros•iding the insurance shall I,e chosen by Borrower subject to approval by Lender: provided, that such approval shall not he unreasnnabh~ withheld. :Vl pn•miums 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. All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mort- gage clause in favor o[ and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event I' 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. ` Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of ~ the Property damaged, provided such restoration or repairis economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be im- paired, the insurance proceeds shall be applied to the~sums warred by this Mortgage, with the excess, if any, paid to Bor- mover. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date i notice is mailed by Lender to Borrower that the in+urance carrier offers to settle a claim for insurance henefits. Lender is authorized to collect and apply the insurance pnx.eeds at Lender's option either to restoration or repair of the Property or ti, 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 18 hereof the Property is acquired by Lender, all right. title :rod 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 or t acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediateh• prior to such sale or acquisition. . s 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit IDevelopmenta. Borrower _ 3 ,hall keep the Property in Rood repair and shall not tortoni[ waste or permit impairment or deterioration of the Proper[}' and shall comply with the provisions of any lease if this ~Iongage 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 creating or governing the condominium or planned unit development, the by-laws and regulations of the condo- minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this ~(ortgage. the covenants and agreements of such rider shall be in- ~ corporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 3 7. Protection of Lender's Searrity. If Borrower fails to perform the covenants and agreements contained in this Jortgage, or if an}• action or proceeding is commenced which materially affects Leude~+ interest in the Property, including. but not limited to, eminent domain. inu,lvency, code enforcement, or arrangements or proceedings incuding 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 iuterest. including, but not limited to. disburument of reawnable 5 attorne}•'s tees and entry upon the Propern• to make repairs. 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 ef- ' feet until such time as the requirement for such insurance terminates in accordance with Borrowers and Lenders written a x ~r_•~!!'JU1 F4fE 1 V y _ - ~ ~t~ - -