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HomeMy WebLinkAbout1995 UNtiFqur Covewawrs, Borrower and Lender covenant and agree u follows: >b PyrrneN et 1hic1N1 ttttsi 1Meresf. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prcpayttuent and late charges as provided in the Note, and the principal of turd interest on any Ruturc Advances secured by this Mortgage. F>sntis toe TturM tttoti IttwraK~e. Subject to applicabk law ..r to a written waiver by Lender, Bot'rower shall pay to [.ender on the day monthly installtents of principal and interest arc payable under the Nate. until the Note is paid in full, a sum (herein "Funds' equal to one-twelfth of the yearly taxe. and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearly premium installments [or hazard insurance. plus one-twel[th of yearly premium installments for mortgage insttnncc, if any, all u reasonably estimated initially and from time to time by Lender on the buffs of assessments and hills and reasonabk estimates thereof. The Funds shall be bald in an institution the deposits or •rccounts of which are insured or guaranteed by a Federal of state agency (including Leader if Lender is such an institution). 1_ender shall apply the Furtds to pay said taxes. assessments, insurance premiums and ground rents. lender may not charge for so holding and applying the Fttnds. analyzing said account, or verifying and rnmpiling 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 Ix paid to Borrower. and unless such agreement a 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 the Funds wu made. The Funds are pledged u additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installtents of Funds payable prior to the due dates of faxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. auessments, inuurance premiums and ground rents as they tall due, such excess shall be. at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds 6dd by Lender shall not be wlficient to pay taxes, assessments, insurance premiums and gtround 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 fuU of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under puagraph 18 hereof the Property is sold or the Property es otherwise acquired by Lender, Lender sba~l apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Leader at the tune of application u a credit against the sums secured by this Mortgage. 3. Appiicatioa of Pay-eats. Unless applicable law provides otherwise, all payments received by Lender under the Note sad paragraphs 1 and 2 hereof shall be applied by tender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to interest payabk on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. I. 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 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 hu 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 forfeiture of the Property or any part thereof. S. Sazard lrssaratxre. Bo:sowcr shall k~,~ flee imprevemen!s o~w a=.icti.!g or hereafter erected on the Property insured against loss by Ere, 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. i '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, 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 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. Unless Lender and Borrower otherwise agree in wasting, 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 impaired. I[ 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 date notice is mailed by Lender to Borrower that the insurance carrier offers 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 Propertv or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pra:eeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired 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 or acquisition shall pass to Lender to the extent of the sums secured by this l~fortgage immediately prior to such sate or k acquisition. _ 6. Preaenatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower _ shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property sad shall comply with the provisions of any lease if thu 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 planned unit development, and constituent documents. If a condominium or planned umt development rider is executed by Borrower and recorded together Kith this Mortgage. the covenants and agreements of such rider S,-, >3 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 I,ende~s Security. If BorroKCr fads n• perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced Khi~h materially atTects Lender's interest in the Property, including. but nut limded to, eminent domain. inu~i~ency. c.xle enforcement. or arrangements or proceedings invoking a bankrupt or decedent. then Lender at Lender's option, ulx~n notice to Borrower. ma} make such appearances, dishurse such sums and take such action as is necessary to protect Lender's interest. including. but not limited to, disbursement of reasonable attorney's ices and entry ulxm the Property to make repair. If Lender required mortgage insurance as a condition of making the loan stcured by this Mortgage. BurruKCr shall pap the premiums required Io maintain such insurance in effect until such time as the rcyuirement for nick irnurance terminates in accordance with Bormwer's and -T ~ k~.305 „ 199 _ .