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HomeMy WebLinkAbout2600 3 +i 1 ~ ~ • ~ • F Untrortas Covu+aNn. Borrower and Lender covenant and agree ss follows: 1. )1'~petsestt of hielwl stM 1nNreM. Borrower shall promptly pay when due the principal of and interest on the ittdebtedaps evidenced by the Note„ prepayment and late charges u provided in the Note, and the principal of sad interest ~ an say Future Advances secured by this Mortgage. 1Erois fFar 1ltntsa anti lnwranee. Sltbject to applicable law .x to a written waiver by Lander, Borrower shall pay to Lender on the day monthly installments of principal and intercat arc payable under the Note. until the Note is paid in full, a taro (herein "Ftattds'ry equal to one•twdith of the yearly tax~~ and assessrttents which may attain priority over this Mortgage, and ground rants oa the Ptoperry, it any, phn one-twelfth of yearly premium instalhYtenb for hazard insurance. plus one•twelfth of yearly premium inuallments for mortgage insurance. if any, all as reasonably estimated initially and from lima to lima by Leader on the basis of assessment: and hills and reasonable estimates thereof. 's 'Ilta Funds shall be held in an institution the deposits ar accounts of which are insured or guaranteed by a Federal of ~ state agency (including Lander if Lender is such an institution). Lender shall apply the Funds to pay aid taxes. assessments, inwranoe premiums and ground rents. !.ender may red charge for sn holding and applying the Fttndt. analyzing said account, or verifying and eompling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law permits Fender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mottgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall rtes be required to pay Borrower any interest or earnings on the Funds. Lender shall pve to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the i purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by the Mortgage. - Tf the amount o[ tbe~ Funds held by Lender, together with the future monthly installments of Funds payable prior to the due data of taxes, auessments, imurance premiums and ground rents, shall exceed the amount required to pay said taxes, ssswments, inwrauoe premitttns and ground rents as they fall due. such excess shall be. at Borrower's option, either i promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds htdd by Lender sbaA not be sttl5cieat to pay taxes, assessments. ittsuratttx premiums and ground rents as they fall due, Botrower shall pay to Lender any amount netxssary to make up the deficiency within 30 days from the date notice is mailed try Leader to Borrower requesting payment thereof. Upon payment in [all of all :falls secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs othetwise acquired by Lender. Lender sbaU apply. no !afar than immediately 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 secured by this Mortgage. 3. A~ikatiorr of lstymenb, Unless applicable law provides otherwise, all payments received by Lender under the Nola and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to,L~tder by Borrower under paragraph 2 hereof. then to interest payable on the Nae, then to the principal of the Note. and then to interest and principal on any Futtree Advances. Ctrartts; Liieas. 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. is 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 famish to Lender receipts evidencing such payments. Borrows shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any wch lien so brag 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. Harard Ittarrawce. Borrower shall keep the improvements now existing or herea[ter erected on the Progeny 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. 'Ibe insurance carrier providing the ituurance shall be chosen by Borrower subject to approval by Lender, provided. that such approval shall not be unreasonably withheld. All premiums on inwrance 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 j iawnnce 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 polities 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 otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Properly 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 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 Properly or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any sueh~application of proceeds 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 Properly 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 I acquisition. r 6. treservatioo and Maintenance of Progeny; Leaseholds; Condominiums; Planned Uoit Devebptnents. Borrower shall keep the Properly in good repair and shall not commit Waste or permit impairment or deterioration of the Properly 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 i 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 da:uments. If a condominium or planned unit development r rider is executed by Borrower and recorded together wish this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ' were a part hereof. ' i 7. Protection of I.eoder's Security. If Borrower fails to perform the covenants and agreements contained in this `a Mortgage, or if any action or proceeding is commence.! which materially affects Lender's interest in the Property, ' including, but not limited to, eminent domain, insolvency, code enforcement. or arrangements or proceedings invoh•ing a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, mad 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 auomey's fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a condition of making the loan secured by this Mortgage. Borruwcr shall pay the premiums required to maintain such s 1 insurance in effect until such time as the reyuiremem for such insurance terminates in accordance with Borrowers and t • 8001(WU PAGE~ty9~ , .