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HomeMy WebLinkAbout0868 • , ~ c, . + ~ . . UN~POaM CoveN~xrs. Borrower and Lender covenant and agrre as foUows: Mymcst ot Prlacipd aud lnterat: Borrower shall promptly pay when due the principal of and interest on the indebtednesi evidenced by the Note. prapayment and late charges as provided in the Note, and the principal of and interest on sny Future Advaaces securod by tl~is Mortga~o. 2. Fbad~ tor Tua aad Iowraece. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to l.ender on the day mor~thly instaliments of principal and interest are payable under the Note, until the Note is paid in fuU. a sum (herei~ "Funds") equal to one-twelfth of the yearty taxcs a~nd assessments which may attain priority over this Mortgage. and ground rents on the Property. if any. plus one-twelfth of yearly prcmium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills aod reasonablc es~imates thereof. The Funds shall be held in an institution the deposits or accounta of which are insured or guaranteed by A Federal or state ugency (including Lender if Lender is such a~ institution). Lender shall apply ihe Funds to pay said taxes, uussments. insurance premiums and grouad rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fu~ds and applicable law permiu l.ender 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 Bottower, and unless such agreement is made or applicable law requires such interest to be paid. Lendet shall not be required to pay Bocrower any interest or earnings on the Funds. • Lender shall give to Borrower, without charge. an bnnual 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 this Mortgage. If the amount of the Funds held by Lender, tugether with the future munthly instaltments of Funds payablc prior to the due data 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 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 Lender shall not be sufficieat to pay tares, assessme~ts, insurance pcemiums and ground re~ts 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 Borrowet requesting payment thereof. Upon payment in fuD of all sums secured by this Mortgage, !_ender shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. no later than immediatcly 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 sums securcd by this Mortgage. 3. Applicstioo of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereaf shall be applied by 1_ender first in payment of amounts payahle to Lender hy Borrower under patagraph 2 hereof, then to interest payablc on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. C6ar~a; Lkns. Borrower shall pay all taxes, assessments and othcr charges, fines and impositions attributable to tfie 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 tbe payce the[~eof. 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. Bonower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to disclfuge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by suc6 lien in a manner acceptable to Lender, or shall in good (aith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof. S. Hu.ard Insurance. Borrower shall keep the improvements now exiscing or hereafter crected on the Property insured against loss by fire. hazards included within ihe 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 eaceed that amount of coverage required to pay the st~ms secured by this Mortgage. ; 'I~e insurance carrier providing the insurance shall be chosen by Borrower s~bject to approval by Lender, provided. that such appmval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided uader paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the ~ insurance carrier. ~ All insurance policies ar~d renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage i clause in favor of 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 of loss. i 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 Bonower otherv~•ise agree in writing, insurance proceeds shall be applied to restoration or repair of } the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby itnpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would Y 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 wit6in 30 days from the € date notice is mailed by L.ender to Borrower that the insurance carrier offers to setde a claim for insurance benefits, Lender ~ is authorized to collect and apply the insurance proceeds at !_ender's option either to restoration or repair of the Property ~ or to the sums secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree ~n 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 L.ender, 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 ~ or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or n acquisition. ~ 6. Puservatioa aod Maintenance of Property; Leaseholds; Condominiums; Planned Uait Deveiopments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage ~s on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall pertorm 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 planaed unit development, and constituent Jocuments. If a condominium or planned unit development 2 rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supptement the covenants and agreements of this Mortgage as if the tider " were a part hereof. ~ 7. Protectioa of Lender's Security. If Borrower fails to perfarm the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. ineluding. but not limited to, eminent domain. insolvency, code enforcement, or arrangements or pr.xeedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, map make such appearances, disburse sqch ~ sums and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement of ~ reasonabie attomey's (ees and entry upon the Properry to make rcpairs. If I.ender required mortgage insurance as a condition of making the loan secured b~~ this Mongage. Borrower shall pay the premiums required to meintain sueh insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and ~ ; . - _ ~OG!! 3U5 t'~f,E JS ! , • ~ I