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HomeMy WebLinkAbout2465 U~tE-oaat CoVF.\AN7S. Borrower and Lender covenant and agree as follows: , 1. Payment of Principal and Interest. Borrower shall promptly pay when due tl?e prinapal of and interest on the indebtedness evidenced by the hole, prepayment and late charges as provided in the \ute, and the principal of and inter- est on any Future Advances secured by this Mortgage. 2. fltnds for Taxes aad Insurance. Subject to applicable law or to a written wais•er by Let?der. 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 yearly taxes and assesctnents which may attain priority over this ~(ortgage, and ground renu on the Property, if any, plus one-cwel[th of }•early premium installments [or hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Leader on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender i[ Lender is such alt institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge [or so holding and applying the Funds, analysing said ac- count, or veri[ying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap- plicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of this Mortgage that interest on the Furtds shall be paid to Borrower, and unless such agreement is matte or applicable law requires such interest to be paid, Lender shall trot 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 [or which each debit to the Funds was made. The Funds are pledged as aelditiortal securit}• for the sums secured by this Mortgage. It the amount of the Funds held by Lender, together with the future monthly installments of Funds pa}able 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 renu 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. If 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 da}~s from the date notice is mailed b} Lender to Borrower requesting payment thereof. Upon paymene in full of all sums 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 is otherwise acquired b}• Lender, Lender shall apph•, no later than immediately prior to the sale o[ the Property or its acquisition by Lender. am Ftntds held by Lender at the time of application as a credit agaitut the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all pa}7»ertts received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower - under paragraph 2 hereof, then to interest payable on the Note, then to ehe principal of the hole, and then to interest and ' principal on any Future Advances. 4. Chargex Liens Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priorit}• over this Mortgage, and leasehold payments or ground rents, if any. in the man- ner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making pa}rttent. when due: directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in ehe event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge an}• lien which has priority over this Jortgage: provided, that Borrower shall not be re- yuired 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 co Lender, or shall iu gexxi 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 Propert}• or any part thereof. 5. Harrrd 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 such amounts ar?d for such periods as Lender may require: provided, that Lender shall riot require that the amount of such coverage exceed that amount of coverage required to pay the sums secured 6y this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender: provided, chat such approval shall not be unreasonabh• 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 pa}•tnent. when due, directly to the insurance carrier. ! All insurance policies and renewals theteo[ shall be in form acceptable to Lender ar?c1 shall include a standard mort- gage clause in favor o[ and in form acceptable to Lender. Lender shall pace the right u? hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. ]n the event ~ of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender ma}' 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 economicalh• feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or it the securit}• of this Mortgage would be im- paired, the insurance proceeds shall be applied to the sums secured b}• this Mortgage, with the excess, if anv, paid to Bor- rowgr. If the Property is abandoned by Borrower, or i[ Borrower [ails to respond to Lender within 30 days [tom the date notice is mailed h}' 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, an}• such application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installments referred tr. in paragraphs 1 and 2 hereof or change the amount of such installments. It 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 past 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 commit waste or permit impairment or deterioration o[ the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is o» 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 o[ 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 Jortgage, the covenants and agreements of such rider shall be in- corporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part • hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this - Mortgage, or i[ any action or proceeding is commenced which materially affects Lender's interest in the Property, including. - but not limited to, eminent domain, insohency, code enforcement, or arrangements or pnxeedings incoh•ing 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 attorne}''s tees and entry upon the Property to make repairs. li 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 ef- . feet until such time as the requirement for such insurance terminates in accordance wit or and ntten - ~ ~o~r ~a~.~~ •