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HomeMy WebLinkAbout1656 UNtraw COVENA[iTti. Borrower and leader covenant and agree as folbws: 1 ltytwetN d hiaelNl srii 1tNereq. Borrower shall promptly pay when due the principal of and interest on the iadebtednea evidenced by the Note, prcpaytnrnt and late charges u provided in the Note, and the principal of and interest eta any Future Advances secured by this Mortgage. l1Mi tor'l~a swsi Istsrrastet. Subject to applicable law .x to a written waiver by Lender. Bonower shall pay to Lender on the day monthly installments of principal and intcrest ~re payable under the Note, until the Note is paid is full, a sum (herein "Funds'? ogtul to one-twelfth of the yearly taxi. and assessments which taay attain priority over this Mortgage. and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hsurd inwrartce: plus efts-twelfth of yearly premium installments for mortgage insurance, if any, all u rcssonably estimated initially and froa? time to tints by Leader on the hula of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposiu or accounts of which arc insured or guaranteed by a Federal ot• state agency (including lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, inwrattoe premiums and ground rents. l"ender may not charge for so holding and applying the Funds. analyzing said account, or verifying-and rnmpiling aid assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and [.ender 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 applicable law requites such interest to be paid. Lender shall nw 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. - TE the amount of the Funds held by Lender. together with the future monthly installments of Funds payable prior •to the due dates of rues, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, itt:urance premiums and ground rents u they fall 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 htdd by Letxkr shall sot be sufficient to pay cues. assessments, insurance premiums and ground rents as they fall due. Borrower dtall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower regttestiag 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 Propeny rs otherwise acquired by Lender. Lender shall apply. rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application a: a credit against the sums secured by this Mortgage. 3. Arplicatiort of Psp~ttsetsts. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by.,Borrower under paragraph 2 hereof. then to intcrcst payable on the Notc, then to the principal of the Note, and then to intcrcst and principal on any Future Advances. I. CAages; 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 has 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 shalt in good faith contest such lien by, or defend enforcement of such lion ia, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Irtsurawee. 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. 'Itte insurance carrier providing the insurance shall be chosen by Borcower 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 f 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, j and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of Ions, 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 Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is s not thereby impaired. !f such restoration or repair is not economically feasible or if the security of this Mortgage would E 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 liy 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 ProE,eny is acquired by Lender, all right, title and interest of Borrower g in and to any fttsurance 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. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not comrnit yvaste 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 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 trait development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider E shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider s were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property, including, but nut limited to. eminent domain, insuhency. code enforcement, or arrangements or proceedings invoh•ing a bankrupt or decedent, then lender at Lender's option, upon notice to Borrower, ma}~ make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including. but not limded to, disbursement of reasonable attorney's (ees 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 insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrowers and E gOGM ~3U8 ~ACF 1UcJU . f r~ ..y. ' c'