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HomeMy WebLinkAbout0330 UruFORt?t CoveN~NTS. Bormwer and Lender covcnant and agree as follows: ~ 1. Paymeat ot Priacipd aod Interest. Borrower shall pro~nptly pay when due the principal of and interest on the inckbtedncss evidenced by the Note. prepayment and late charges as provided i~ the Note, and the principal of and interest on aay Futurc Advances secured by this Mortgage. Z. I~ndc for Tua and In~urasce. Subject to applicable law or to a written waiver by L.ender. Borrower shall pay ~ to Lcndcr on ~he day monthly installments of principal and interest are payable under the Note, until the Note is paid i~ full. s a sum (herein "Funds") equal to onc-twelfth of the yearly taxes a~d assessments which may attain priority over this j Mongage, a~d ground rents on tl~e Property. if any, plus o~e-twelfth of ycarly premium installments for hazard insurance. ~ plus one-twelfth of yearly premium installments for mortgage insurancc, it any, all as roasonably estimated initially and trom # time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. s 'Il~e Funds shall be held in an institution the depoaits or accounts of which are insured or guaranteed by a Federal or i state agency (including I,ender if Lender is such an institution). l.ender shall apply the Funds to pay said taues. assessments. ; insurance premiums and ground rents. Lender may not charge for so holding and applyi~g the Funds, 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 a~d I.ender may agree in writing at the time of execution of ihis Mortgage that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law rcquires such interat 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 ` purpoae for which each debit to the Funds was made. The Fu~ds are pledged as additional security for the sums secured by this 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. asstssments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes, ; sssessments. insurarce premiums and gmund rents as they fall due, such excess shall be, at Borrower s option, either ~ promptly repaid to Borrower or credited to Bormwer on monthly installments of Funds. If ihe amount of the Funds held by Lender shall not be sufticient to pay taxes, assessments, insurance premiums and ground rents as tfiey 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 I.ender to Borrower requcsting payment thereof. Upon paymeat in full of all aums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by I.ender. If u~der paragraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any runds held by Lender at the time of application as a credit against the sums secured by this Mongage. 3. Application of Payments. 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 6rst in payment of amounts payable to Lcnder 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 Advances. { : 4. C6argts; Lkas. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable to the Property which may attain a priority uver 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 . payce 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 L.ender receipts evidencing such payments. ~ ; Borrower shall promptly discharge any lien which haz 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 lien or torfeiture of the Property or any pan thereof. ; S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propeny 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 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. 'Ibe 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, direcUy to ihe insurance 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. s and 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. ; Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of z the Property Jamaged, provided such restoration or repair is 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 impaired, the insurance procceds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid c to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the r date notice is mailed by Lender to Borrower that the insurance carrier oliers to settle a claim for insurance benefits, L.ender ~ is aut6orized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property ~ 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 rcferred to in paragraphs I and 2 hereof or change the amount of ~ ~ such installments. If under paragraph 18 hereof the Propeny is acyuired bp L.ender, all right, title and interest of Borrower i ~ in and to any insurance policies and in and to the proc:eeds thereof resulting from damage to the Property prior to the sale , ~ ~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or } Y acquisition. ' ~ 6. Preservation nnd Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and.s6a11 not commit waste or permit impairment or deterioration of the Property ~ and shall comply with the provisions of any leas~: 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 creating or governing the condominium or planned unit development, the by-laws and regulations of the " condominium or planne~ unit development, and constituent documents. If a condominium or planned unit development rider is ezecuted by Bonower and recorded together 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 Borrower fails to perform the covenants and agreements contained in this ~ ~ Mortgage, or if any action or proceeding is commenced v?hich materially afTects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ bankrupt or decedent, then Lender at LendePs 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 3 ~ reasonable attomey's fees and entry upon the Propeny to make repairs. If Lender required mortgage insurance as a , `r condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ~ # insurance in effect until such time az the requirement for such insurance terminates in accordance with Borrowers and ~ x - ~ ; z ' . . 3~~;r3U4 ~~a~~ 330 ~ ~ , , - - - e ~ - . ~ _