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HomeMy WebLinkAbout1695 .t Ut+ttasua Covarurvts. Bon+ower aril Lender covenant and agree u tdlows: L )~aseM of lriae}al aril Iatersef. borrower shall promptly pay when due the principal of and interest on the indebtedness evidentxd by the Note. prcpayrrxnt and late charges as provided in.the Note, aryl the principal o[ and interest oa soy Future Advanea securod by this Mortgage. 2. llri tK Tiaes atstt Iantaaee. Subject to applicable law ar to a written waiver by Leader, Borrower shill pay to Lender on the day monthly irrstollments of principal and interest are payable under the Note. until the Note is paid in full, a suet (herein "Ftrods'~ equal to one-twelfth of the yearly tax~~. and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hasard insurance. plus orx-twelfth of yearly premium itruallments for mortgage insurance. if any, all u reasonably estimated initially and from lima to time by Leader on the boa of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal of state agency (including Lender it Lender is such an institution). 1_ender shall apply the Furls to pay said taxes. assessments. irtwrarnoe premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account, or verifyingurd compiling uid assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to mske such a charge. Borrower and Lender 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 a made or applicable law r+equircs 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 for which each debit to the Funds wu made. The Funds are pledged u additional security for the sums secured by this Mortpge. If the amount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments. irrwrance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, irr:uranoe premituns 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 heW by Lender shall not be wlGciwt to pay toes, assessments, insurance premiums and ground rents ss they fall due. Borrower shall pray to Letader any amount necessary to make up the deficiency within 30 days from the daft notice is mailed by Leader to Borrower requesting payment thereof. Upon payment in full of all tttutrs secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If uuda paragraph 18 hereof the Properly is sold or the Property is otherwise acquired by Lender. Lender shall apply. no later Wan immediately prior to the sale of the Progeny or its acquisition by [.ender, any Funds held by I.eoder at the time of application as a credit against the sums secured by this Morlgage. 3. Apllicatioa oft 1h,~meMs. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shalt 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. 4. Crarga; Lfiens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Progeny 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, whir dtrr, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts dire 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 hu 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 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 Progeny or any part thereof. S. Huard Iitsartraace. Borrower shat! keep the improvements now existing or hereafter erected on the Properly insured against loss by fire, hazuds included within the term "extended coverage", and such other haurds 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 seci~'ed Eby this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, Wat 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 itrwrance 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, ~ 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 F the Progeny 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 o 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 insurance benefits, Lender I is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propen.• or to the surtts 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 I and 2 hereof or change the amount of s such installments. If under paragraph 18 hereof the Progeny 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 acquisition. ( 6. )rreservattoa soil Maintenance of Progeny; Leaseholds; Condominiums; Planned Unit Ikvebpments. Borrower shall keep the Properly in good repair and shall not cornrvit yi•aste 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 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 rinit development, 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 supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lerder's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, code enforcement. or arrangements or proceedings involving a bankrupt or decedent, then lxnder 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 altomey's fees and entry upon the Property Io make repairs. If tender reyviired mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required So maintain such insurance in effect until such time as the requirement for wch insurance terminates in accordance with Borrower's and 3~`~ 3Uy ~a;.169z Y E+ 1 ~3~~ v..