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HomeMy WebLinkAbout2641 1 ~ Sk~ I i UtrROass Covu+xtvn. Borrower and Leader covenant and agree as follows: 1. ITr~sent of hi¦c4a1 ati Itslerait. Borrower shall promptly pay when due the principal of and interest on the irldObtOdlleae evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of sad interest on any Futuue Advaacea secured by this Morrtgags. t >I<ttNs tar Tames aril Irtte~rce. Subject to applicable law or to a wttirien waiver by Lender. Borrower shall Pay to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note k paid in full. ~ a sum (herein "Ftutds'h equal to onatweltth of the yearly tax~~ and assessments which may arisin priority over this ' Mortgage. and ground rrnts on the Property, it any. plus one-twelfth of yearly premium installments for hazard inwratttx, ~ plea otx-twelfth o[ yearly premium installment: for mortgage insurance:, if any. all as reasonably estimated initially and from i tithe to tune by Leader oa the basis of assessments and hills and reasonable estimates thereof. 'ILe Funds shall be held in an institution the deposiu or accounts of which are insured or gwranteed by a Federal of state sgency (including lender if Lender a such an institution). Lender shall apply the Funds to pay said taxes. assessments. itntrranea premiums and ground rents. lender may not charge For sn holding and applying the Fends. analyzing said account, or veritying_tad compiling said assessments and bilk. unless Lender pays Borrower interest on the Funds and applicable law i permits Lender to make such a charge. Borrower tad Lender may agree in writing at the time of execution of this yy Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law E requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender ' :ball give to Borrottrer, without charge, an annwl accounting of the Funds showing credit: and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by the Mortgage Tf the amount of the Fund: hdd by Lender. together with the future monthly installments of Funds payable prior to the due data of taxes. sttsasments. insrurance premiums and ground rents, shall exceed the amount required to pay said taxes. asseaments, iasuraaex premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Fund: held by Lender shall not be sulticieat to pay taxes, assessments. insurance premiums and ground rents as they fall due, Borrower shall pay to leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requiting payment thereof. Upon payment in tuB of all sums secured by this Mortgage, tender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property u sold or tbe Propeny es otherwise acquired by Lender, Lender shall apply. rto later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Linder at the time of application as a credit against the sums secured by this Mortgage. 3. A~iication of IrpweNs. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs !and 2 herrnf shall be applied by Lender fire in payment of amounts payable to Lender by Borrower under paragraph 2 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. 1. Crarges; I.ieas. 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 has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so beg 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 such7ien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Inewranee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, 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 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 ~ irouraace carrier. j All insurance policies and rcnewafs 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, 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 i by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of , I 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 economically feasible or if the security of this Mortgage would i be impaired. the insurance proceeds shall be applied to the sums secure) 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 Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in 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 .s 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 Mortgage immediately prior to such sale or acquisition. 6. iTreservatioo and Maintenance of Properly; Leaseholds; Condominiums; Phoned Unit lkvebpments. Borrower 3 shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease it 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 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 Jocume:nts. If a condominium or planned unit development s 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 anJ supplement the covenants and agreements of this Mortgage as i[ the rifer were a part hereof. 7. Prote!efion of Lender's Security. If Borrower fails to perform the covenants anJ agreements contained in this Mortgage, or if any action or proceeding is cummcnced which materially affects Lender's interest in the Property. including, but not limited to. eminent domain. insolvency. code enforcement, or arrangements or proceedings'invohing a bankrupt or decedent. then lender at Lender's option, upon notice to Borrower. may make such appearances. Jishurse such t sums and take such action as is necessary to protect Lender's interest. including. but not limbed to, disbursement of reasonable attomey'S fees and entry upon the Property to make repairs. If Lender reyuircd mortgage insurance as a conditwn of making the loan Secure) by this Mortgage. B~rruwrr shall pay the premiums require) to maintain such I insurance in effect until such time as the requirement for Such insurance terminates ~n accordance with Borrowers and ~ ~ ~ ~ ~ BooK 306 PA~E263? - i9 - _ _