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HomeMy WebLinkAbout0457 . ~ i UN~FOa~?t Coverr~NTS. Borrower and Lende~ covenant aod agree as fallows: ~ 1. P~yi11l111 OE P~I1ICI~I ~ 1111t~lSI. Borrower shall pr~mptly pay when due the principal of and int~rest on the indebtedness evide~ced by the Note. prepayme~t and late charges as provided in the Note, and the principal of and intercst on aay Future Advances secured by this Mortgage. 2. Fnnds tor Tua aad Iaauraace. Subject to applicable law or to a written waiver by Le~der. Borrower shall pay to Lender on the day moothly installments of principal and interest are payable under the Note, until the Note is paid in [ull, a sum (herein "Funds") equal to one-tweltth ot the yearly taxes and assessments which may attain priority over this ~ Mortgage,~and ground rents on the Property, if any, plus one-twal(ih of yearly premium installments for hazard insurance. ; plus one-twelfth of yearly premium installments tor mortgage insu~ance, if any, al! as reasonably estimated initially and Erom ; time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. F 'il~e Funds shall be held in an institution the deposits or accbunts ~f which are insured or guaranteed by a Federal or state agency (includi~g Lender if Lender is such an institution), l.ender shall aPpIY Ihe Fu~ds to pay said taxes. assessments, insura~ce prcmiums and ground rents. Lender may not charge tor so holding and applying the Funds, analyzing said account, ~ or verifying and compiling said assessments and bills, unless I.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrow~er and Lender may agree in writing at the time of execution of this ; Mortgage that interest on•the Funds shall be paid to Borrawer, and unless such ag~eement is made or applicable law ~ requires such inte~est to be paid. Lender shall not be required to pay Borrawer any interest or earnings on tht Funds. Lender ahall gi~•e 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 was made. The Funds are pleciged as additional security for the sums secured by this Mortgage. . ; If the amount of the Funds held by Lender, tage~her with the future monthly installments of Funds payable prior to ~ the due dates of taxes, assessments. insurance premiums and ground rents, shall eYCeed the amount required to pap said taxes. ? assessments, insuranca premiums and ground rents as thep fall due, such excess shal{ be, at Borrower's option, either promptly repaid to Bormwer or credited to Borrower on manthly installments of Funds. If the amount of the Funds held by Lender shall not be suf6cient to pay t~es, assessments, insurancc premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary ta make up the deficie~cy within 30 da~•s from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fu11 of all sums secured by this Mortgage, l.eoder shall promptly refund to BorroM•er any Funds held by Lender. If under paragraph 18 hereof the Propeny is sold or thc Property is othen~•isc acquired by 1_ender, Lender shall apply, no later than immediately prior to the sale of thc Property or its acquisition by~ I.ender, any F~mds held by Lender at the time ot application as a credit against the sums secured by this Mortgage. 3. AppUcation of Payments. Unless applicable law provides otherwise, all payments received by t_ender unJer the Note and paragraphs I and 2 hereof shall be applied by I.endcr first in pa~~ment of amounts payable ta Lender by Borrower _ ~ander paragraph 2 hereof, then to interest payable on the Note, ~hen to the principal ot the Note, and then to interest and principal on any Future Advances. 4. Charges; Lieas. Borrower shall pay all taxes, assessments and othcr charges, fines and impos:tions attnbutable to ' the Property which may attain a prioriry 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 Borrovver shall make payment directly, Borrower shall promptly turnish to Lender receipts evidencing such payments. Borrower shall promptly dixharge 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 agrce in writing to the pay~ment ot th@ obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforeement uf 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 Insurance. Borrower shall keep the improvements now cxisting or hereafter crected on the Property insured against loss by fire, hazards included within the term "eztended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provideJ, that Lender shall not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums ~ecured by this Mortgage. . I The 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 4 provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to LenJer and shall include a standard mortgage ~ clause in favor of and in form accep~ahle to Ixnder. Lender shatl ha~~e 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 gi~•e prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly , by Borrower. ~ Unless Lender and Borrower otherv?•ise 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 ~ not thereby impaired. If such restoration or repair is not economic:+ll}• feasible or if the security of this Mortgage would ~ be impaired, the insurance proceeds shall be applieJ to the sums secured by this Mortgage. w~ith the excess, if any, paid to Borrowcr. 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 ofiers to settfe a claim for insurance benefits, Lender is authorized to collect and apply the insurance p~oceeds at I_ender's option either to restoration or repair of the Property ~ or to the sums secured by this Mortgage. ~ Unless Lender and Borrower otheru~ise agree in writing, an}~ such application of proceeds to pr~ncipal 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 is acyuired by l.ender, all right, title and interest of Borrower ~ in and to an}~ insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale ~ or acyuisition shall pass to Lender to the extent of the sums secured by this :1lortgage immediately prior to such sale or acquisition. 'j 6. Presenalion and ~taintenance of Propert~; Leaseholds; Condominiums: Planned Unit De~•elopments. Borrower shall kcep the Properiy in good repair and shail not commit waste or permit impairment or deterioration of th~ Ptoperty = and shall comply with the provisions of any lease if this Murtgage rs on a Icasehold. lf this Mortgagc is on a unit in a ~ condominium or a planned unit development. Borrower sh~ll perform all of Borrow~er's obligations under the declaration ~ ur covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the ~ conJominium or planned unit developmem, and constiwent documents. If a condominium or planned unit de~•elopment ;s rider is executed by Borrower and recorded together K ith this Mortgage, the covenants and agreements ot such riJer sha11 be incorporated into and shall amend and supplement the co~enants and agreements of this Mortgage as it the rider ~ uere a part hereof. ~ ~ ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants anJ agreements contained in this ~ Mortgage. or if any action or proceeding is commenced which materially afiects Lender's interest in the Property, ~ including, but not limited to, eminent domain. insolve~uy, ccxle enforcement, or arrangements or proceedings involving a i ~ bankrupt or decedent, then Lender at Lender's oQtion, upon notice to Borrower, ma}~ make such appearances, disburse such ~ ~ sums and take such action as is necessary to protect Lender's interest, incluJing, but not limited to, disbursement of ~ ~ reasonable attomey's fees and entry upon the Properry to make repa~rs_ If Lender required mortgage insurance as a condition of making the loan secured by~ this Mortgage. Borrow~er shall pay the premiums required to maintain such ~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and i ~ ~~~_.310 ~i ` k 457 ~ ~