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HomeMy WebLinkAbout2970 E7NIFOtuia COVlNAN73. Borrower and Lender covenant and agree as tollows: 1. Payment of Princlpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedntss evidenced by the Note, prepayment and late charges as provided in the rote, and the principal of and inter- est on any Future Advances secured by this Mortgage. Y. Ftitads for Tana sad 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 interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yeuly taxes and assessments which may attain priority over this I?fortgage. and ground renu oft the Property. it any. plus onatwelfth of yearly premium installments [or hazard insurance, plus one-twelfth of yeuly prcmittm installments for mortgage inwrance, if any, all as reasonably estimated initially and from time to time by Lender on the basis o[ assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are inwred or guuanteed by a Federal or state agency (including Lender iE Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. inwrance premiums and ground rents. Lender may not charge Eor so holding and applying the Funds, analyzing said ac- count, or verifying and compiling acid assessments and bills, unless Lender pays Borrower interest on the Funds and ap- • plinble 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 be paid to Borrower. and unless such agreement is made or applinble law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shalt 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 was made. The Funds are pledged as additional security [or the sums secured by this Mortgage. . IE the amount of 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 gronnd rents, shall exceed the amount required to pay said taxes, assessments, inwnnce premiums and ground rents as they fall due, wch excess shall be. at Borrower's option, either promptly repaid to Borrower or txedited to Borrower on monthly installments of Funds. I[ the amount of the Funds held by Lender shall not be sufficient to pay taxes, 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 requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. IE under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender s1ta11 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 applintion as a credit against the sums secured by this 1ltortgage. 3. Applintion of Payments. Unless applinble law provides otherwise, all payments received by Lender under the - Note and paragraphs 1 and 2 hereof shall be applied by Lender tint in pa}7rtent of amounts payable to Lender by Borrower under paragraph Y hereof. then to interest payable on the Note, then to the principal o['the Note, and then to interest and principal on any Future Advances. 4. Chuges: Liens. Borrower shall pay all taxes, assessments and other charges, tines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, iE arty, in• the man- , ner provided under paragraph 2 hereof or, i[ not paid in wclt 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 disdtarge any lien which has priority over this Mortgage; provided, that Borrower shall not be ra quir•ed 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 irr good faith contest such lien by, or defend enforcement of 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. Hanrd Insuranor. Borrower shall keep the improvements now existing or hereafter erected on the Property in- sured against loss by [ire, hazards included within the term "extended coverage", and such other hazards as Lender may re- quire and in wt.h amounts and [or wch periods as Lender may require: provided, that Lender shall not require that the amount of wch coverage exceed that amount of coverage required to pay the sums secured by this ~Eortgage. The insurance nrrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided, that wch approval shall not be unreasonably withheld. All premiums on insurance policies-shall be paid in the manner provided under paragraph Y hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance nrrier. All insurance policies and renewals thereof shalt be in form acceptable to Lender and shall include a standard mort- gage 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 novices and all receipts o[ paid premiums. In the event ~ of loss, Borrower shall give prompt notice to the insurance nrrier 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 repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not econominlly feasible or iE the security of this iaiortgage would be im- paired, the iirsunnce proceeds shall be applied to the wms secured by this Mortgage, with the excess, if any. paid to Bor- rower. If the Property is abandoned by Borrower, or iE Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance nrrier 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 Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shat) not extend t, 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 praeeds thereof rewlting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent o[ the wms secured by this :Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower s1ta11 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 is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perfortn all of Borrowers 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 Mortgage, the covenants and agreements of such rider shall be in- corponted into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Leaders Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or iE any action or proceeding is commenced which maeerially aFfects Lenders interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoking 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 interest, including, but not limited to. disbursement of reasonable attorney's fees and entry upon the Property 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 inwrantx in ef- fect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written - UP 3zc• 3Q5