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HomeMy WebLinkAbout2422 l?„•trosut Covt:tverrts. Borrower and Lender covenant and agree as follows: 1. Paytrseat of Principal stsd Intespt. Borrower shall promptly pay when due the principal of and interest on the indebtedneat evidetrad by the Note, prepayment and late charges as provided in the Note. and the principal o[ and inter- est on any Future Advatrtes secured by this Mortgage. i Fsuds toe Taxes and Lawrence. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments o[ principal and interest are payable under the Note, until the Note is paid in Cult, a sum (herein "Funds' equal to onatweltth of the yearly taxes and assessments which may attain priority over this Aortgage. and ground rents on the Property. if any, plus orte-twelfth of yearly premium installments for hazard insuratce, plus ottatwellth of yeuly premium installments for mortgage insurance, it any. all as reasonably estimated initially and from time to tithe by Lender on the basis of assessments and bills and reasonable estimate thereof. The Fonds shall be held in an institution the deposits or amounts of which art inwred or guaranteed by a Federal or state agency (including Lender i[ Lender is such an institution). Lender shall apply the Fonds to pay said taxes, assessments. irrwrartce premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said ac- count, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap• • plinbk law permiu Lender to make wch 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 wch agreement is made or applicable law requires wch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borro~rer, without charge, an annual accounting o[ the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds arc pledged as additional security (or the sums secured by th& Mortgage. I[ 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 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 raedittd to Borrower on monthly installments of Funds. if the amount of the Funds held ? by Lander shall trot be wfficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lendti any amount necessary to make up the deticienclr 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 heW by Lender. IE under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, fro later than immediatelyprior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of appliation as a credit against the sums secured by this Mortgage. 3. Applicati~ of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I acrd 2 hereof shall be applied by Lender tint in payment of amounts payable to Lender by Borrower under paragraph Y 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. (9targea; 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, it any, in the man- ner provided urrdtr paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices o[ amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts es•idettcing such payments. Borrower shall promptly discharge any lien which has priority Deer this Mortgage; provided. that Borrower shall not be m quired to disclurge any wch 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. Hanrd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- sured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may re- quire and in wch amounu and for wch 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. 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 manner ' provided under paragraph Y hereof or. if not paid in wch manner, by Borrower making payment, when due, directly to the inwrance carrier. AU inwrance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard wort- - gage clause itr favor of and in form acceptable to Lender. Lender shalt 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 Botrowtr otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Properly.damaged. provided wch restoration or repair is economically feasible and the security of this Aortgage is not ~ thereby impaired. If wch ratontion or repair is not economically feasible or if the security of this Mortgage would be im- paired, the insurance proceeds shall be applied to the wms secured by this Mortgage, with the excess, i[ any, paid to Bor- ~ rower. I[ the Property is abandoned by Borrower, or i[ Borrow-er fails to respond to Lender within 30 days from the date ~ notice is mailed by Lender to Borrower that the insurance prrier offers to settle a claim for inwrance benefits, Lender is authorized to collect and apply the insurance praeeds 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 wch application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installments referred a. in paragraphs 1 and 2 hereof or change the amount of such inwllments. IE under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inwrance 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 wms secured by this Mortgage immediately prior to such sale or acquisition. G. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ikvtlopmenu. 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 o[ any lease i( 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 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 wpplement the covenants and agreements of this Mortgage as if the rider were a pan , E hercof_ a 3 7. Protection of Lender's Searrity. I( Borrower [ails to perform 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, including. - but not limited to, tminent domain, insoh•ency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make wch appearances, disburse wch sums and take wch action as is necessary to protect Lender i interest, including, but rant limited to, disbursement of reasonable ~ ~ attorney s fees and entry upon the Property to make regain. It Lender required mortgage insurance as a condition of ? making the Iron secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in ef- fect until wch time as the requirement for such inwrance terminates in accordance with Borrower's and Lender's written k 0 R S~~K 06 ~~~.24 _y