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HomeMy WebLinkAbout0648 • . - ~ 3 UN~ROR~?~ CoveN~NTS. Bortow~er and Lende~ covenant and agree as follows: 1. Tsymeat ot Principal aad Intend. Eo~rower shall promptly pay when d~u the principal of and interest o~ the indebted~ess evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intercst on aay Futurc Advances secured by this Mortgage. 2. T+bnd~ tor Tua sad IatuJauee. Subject to applicable law or to a written waiver by I.ender. Borrower shall pay to I.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in tuU. a aum (herein "Funda") equal to one-twelfth of the yesrly ~axes and assessme~ts which msy attain pr.ority over this Mongage. and g~ound rents on the Pr+operty. i[ any. plus one•twel[th of yearly premium installme~ts for hazard insurance, plus one-tweltth of yearly premium installmenta tor mortgage insurancc, if any. all as reuonably estimated initially and from time to time by Lender on the basis of assassments and bills and reasonable estimates thereof. 'i?~e Funds shall be held in an institution tht deposits or accounts of which arc insurcd or guaranteed by a Federal or statc agency (including Lender if Lender is auch an i~utitution). Lender shall apply the Funds to pay said taxes, ssseume~ts. insurance premiums and grouad rents. Lender may not charge (or so holding and applying the Funds, analyzing said account. or ~erifying and compiling said assessmenu and bills. unless Lender pays 8orrowe~ interest on the Funds and applicable law permits l,e~der 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 agrcement is made or applicable law rcquires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings an the Fundt. l.ender shall give to Borrower, without charge. an annual acrnunting of the FunJs shawing 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 this Mortgage. 1f the amount ~f the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taaes, assessments, insurance premiums and g~ound 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 Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by L.eader shall not be sut6cient to pay taues, 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 rcquesting payment thereof. . Upon payment in fuli of all sums secured by ~his Mortgage, 1_ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Proper~y 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 Funds held by Lender at the time of apQlication as a credit against the sums secured by this Mortgage. 3. Applicatioa of PaymeMs. Unless applicable lav? provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [_ender 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 Advances. 4. C6uges; Lkns. Bormwer shall pay aU taxes, assessmcnts and other charges, fines and impositions attributable to the Property which may attain a priority c+ver this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the payte thereof. Borrower shall promptly furnish to Lender all notices of amounu due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments. Borrbwer 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 iien by, or defend enforcement of such lien in, legal proceedings v?~hich operate to~prevent the enforcement of the lien or forfeiture of the Propeny or any part therzof.. S. Hazard lnsurance. Borroaer shall keep the ~mprovements now~ existing or hercafter 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 require: provided, that Lender shall not require that the amou~t of such coverage exceed that amount of coverage required to pay the sums secured by this Mortg2ge. _ I 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 manntr ' 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 shall include a standard mortgage ~ clause in favor of and in form acceptable ~o 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 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 otherw~se agree in w~riting, insurance proceeds shall be applied to restoration or repair of F the Property damaged, pruvided such restoration or repair is economically feasible and the security of this Mortgage is ~ not Ihereby 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 ihe 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 ~ date notice is mailed by L.ender to Borrower that the insurance carrier oR'ers to settle a claim for insurance benefits. Lender is aulhorizai 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 L.ender and Borrower otherwise agree in writing, an}~ such application of proceeds to pnncipal 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, tide and interest of Borrower ~ in and to any insuraace policies and in and to the proceeds 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 acquisition. ~ 6. Preservatloa and ~faintenance of Property; Leaseholds; Condominiums; Planned Uait Developments. Borrower ~ shall keep the °roperty in good repair and shall not commit waste or permit impairment or deterioration of the Property j ~ 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 obligat~ons under the declaration ° or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the ~ cor.dominium or planned unit development, and constituent documenu. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such ri er ~ s= shall be incorporated into and shalf amend and supplement the covenants and agreements of this Mortgage as it 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 which materially afiects Lender's interest in the Propert~•. including, but not limited to, eminent domain, insolvenc}'. code enforcement, or arrangements or proceedings involving a t~ 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 necessar~~ to protect Lender s interest, including. but not limited to, disbursement o ~ reasonable attorney's fees and emry upon the Property to make repairs. lf Lender required mortgage insurance as a condition of making the loan secured b~ this Mortgage. B~rrower shall pay the premiums required to maintain such ~ insurance in effect until such time as the reyuirement for such insurance terminates in accordance with Borrower s and ~ ~ g~V~ 3U4 ~.~~F 648 _ - - - - _ ~ _ . . _ . . ~ . - _ . r~_