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HomeMy WebLinkAbout2903 r.. Unt~gw Covtu+aHrs, Borrower and Lender covenant and agree as follows: 1. Il~wset of Mse*al ttwtl Isttesr<sA. eorroww shall promptly pay when due the principal of and interest on the indebtedrtps evidertoed by the Note, prepayment and late charges as provided in the Note, and the principal o[ and interest as any Future Advances secured by this Mortgage. lrtai ter Taus srttl Gtwrsree. Subject to applicable law .x to a written waiver by Leader. Borrower shall pay to Leader on the day monthly installments of principal and intcrcat rte payable under the Note. until the Note is paid in full, a stint (herein "Futtds'~ equal to one-twelfth of the yearly tar?c. and assessrrrents which may attain priority over this Mortgage. and ground teats on the Property. it any, plus one-twelfth of yearly premium installments Ior hazard insurance, plus one-twelfth of yearly premium inuallments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender oft the basis of assessments and hills and reasonable estimates thereof. 'Ilte Funds shall be held in an institution the deposiu or accounts of which are insured or gwranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments. ittsutanoe premiurrrs and ground rents. Lender may not charge for so holding and applying the Frrnds. analyzing said account, ? or vetitying.snd compiling said asseuments and bilk, unless Lender pays Borrower interest on the Funds and applicable law permiq Lender to make such a charge. Borrower and Lender may agree in writing at the tune of execution of this Mortgage 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 not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to.Borrower, without charge, an annwl accounting of the Funds showing credits and debits to the Funds and the purpae [or which eseh debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Mortgage. I[ the amount oI the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessment. insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments. irauranoe premiums and ground rents as they fall 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 htdd by I:ettder shat! not be wtticieot to pay taxes. assesunent, insurance premiums and ground rents as they fall due, Borrower shall pay to Lerrtler any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Letader to Borroww requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by i.eader. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender shall apply, no 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 as a credit against the sums secured by this Mortgage. 3. Appiicatioa of PyrreNs. Unless applicable law provides otherwise, all payments 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 the principal of the Note. and'then to interest and principal on any Future Advances. 1. Crarges; Clefts. 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 providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee ther+oof. 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 Trot 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 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. Hazard Irrwraace. 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 aad 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. - 'Ilre 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 inwrance 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 Ixnder. Lender chef! 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 Ions, Borrower shall give prompt notice to the insurance carrier and Ixnder. Lender may make proof of loss if not made promptly E by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of F 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 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 it 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 insuranct benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Properta• 3 or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree rn writing, any such application of proceeds to principal shall not extend or postpone the due dale of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of 1 s,rch installments. If under paragraph IS hereof the Proferty is acyuired by Lender, all right, title and interest of Borrower ~ in and to any Assurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale t or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. x 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property s and shall comply with the provisions of 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 Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit developme:t. the by-laws and regulations of the condominium 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 incorporated into and shall amend and suppleFn~nt the covenants and agreements o! this Mortgage as if the rider were a part hereof. . 7. Protection of Lender's Security. If Borrower fads h: perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced whi;:h materially affects Lender's interest in the Property, 1 including, but not [united to. eminent domain, insc.lvency, code enforcement, or arrangements or proceedings involving a a ~ bankrupt or decedent. then lender at 1-ender's option, uixm notice to Borrower, may- make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, rncluding. but not limited to. disbursement of reasonable attorney's fees and entry upon the Propcrt}' to make repair. If I.cnder required mortgage insurance as a condition of making the loan secured by This Mortgage. Br~rroHCr shall pay the premiums requrred to maintain such insurance in rffect until such time as the requirement fir wch msurance termmatcs us accordance with Borrower's -arid ~r~.3(~~ _ 203 . a I ~ - 4 r -:.g