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HomeMy WebLinkAbout0964 l?xtFOxu CoverwxTS. Borrower and Lender covenant aud agree as tollows: l. Paraeut of Priacipal swd Intereu. Borrower shall promptly pay whe~ clue the principal of and interest on the indebtedness evidcnced by the I~ote. prepayment aud late charges as provided in the Note, and the principal ot and inter- est on any Future Advances securecf by this ~tortgage. , 2~nds tor Taxa aad Iawnnce. Subjat to applicable law or to a written waiver bp Lei~der, Borrovrer shall pay to Lender on the dar monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to onrtwel[th o[ the ytarly taxes and assesuneuts which may attain priority o~•er this rtortgage, and ground re~u on the Property. i[ any, plus onatw~el[th o! yearly premium instaUments [or harani insuranct. plus onrtwel[th ot yearly premiura installments [or mortgage insurance, if any, all as reasonably estimated initially aad trom time to time by I.ender on the basis o[ asse~unents and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts o[ which are insured or guara~teed by a Federal or state agency (including Lender i[ Lender is such an institution). l.ender shall apply the Funds to pay said tares, asseisa?enu. insurance premiums and ground mnts. I.ender may not chuge tor so holding and applying the Funds, analyzing said aa count, or veritying and compilinR said assessments and bills. unless Lender pays Borrower interest on the Funds and ap~ plicable law permiu Lender to make such a charRe. Borrower and Lender may agree in wrtiting at the time of execution oE this ~fortqage that interat on the Funds shall be paid to Borrower, and unless such aqreement is made or applicable law requires such intemt to be paid, Lender shall not be requirtd to pay Borrower any interest or earninps on the Funds. Lender shall give to Botrower, without charge, an annual actounting of the Funds showinR credits and debits to the Funds and the purpox (or which each debit to the Funcls was made. The Fu~ds are pledged as additiona! security (or the sums secured ; by this \iortgage. If the amount of the Funds held br Lender, together with the future monthly installmenu of Funds payable prior to the due data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assesvnents, insurance premiums and qround rents as the}• fall due, such excess shall be. at BorroNer's option. either promptly repaid to Borrower or credited to Bonower on monthly installments ot Fundc. 1t the amount of the Funds held by I.ender shall not be sufficient to pay taxes, assessmenu, insurance premiums and Rrouncl rents as the? tall due, Borrower shall pay to Lender any amount necessary to make up. the deticiency vrithin 30 days [rom the date notice is mailed by Lender to Borrower requestinq pa~Tnent thereot. Upon payanent in [ull of all sums securecl by this \tartqage. Lender shall promptly re(und to Borrower any Funds held by I.ender. It under paragraph IS hereof the Property is sold or the Property is otherwise acquired L}• I.ender. Lender shall apply, no later than immediatel~ prior to the sale o[ the Proper[y or its acquisition by L.ender, an~• Funds held by Lender at the time oE application as a credit apainst the sums secured b~• this \tortgage. 3. Application of Paqmeats. Unless applicabie law provides otherwise, all payments recei~•ed by Lender under the \ote and paragraphs 1 and 2 hereot shall be applicd b}~ Lender firsc in payment o[ amounts payable eo Le~der by Borrower under paragraph 2 hereof, then to interat pa~•aUle on the Note, then to the printipal o( the hote. and then to interest and ; principal on any Futwe Advances. 4. Chargex Liens. Borrower shall pay all taxes, assessments and other charpes, fines and impositions attributable to the Property which may attain a priority o~•er this ~iortgage, and leasehold pa}~ments or ground rents, it any, in the man- ; rzer pro~~ided under paragraph 2 hereoF or, if not paid in such mar.ner, b~ BorroMer making pa~-ment, when due. directly to the payee thereof. Bono~+er shall promptly [urnish to Lender all notices ot amounts due under this paraRraph, and in the event Borrower shall make pa}me~et directly. Borro~er shall promptly furnish to Lender receipts e~•idencinR such pay~nenes. Borrower shall prompdy discharRe ani• lien Nhich has priorit~ o~•er this ~tort~{aRe; pro.-ided. that Borrower shall noe be re- yuired to dixharge any such lien so lo~~R as BorroMer shall agree in writinq to the pa~~ment of the obligation secured by such lien in a manner acceptable to Lender, or shall in R~wci taith contest such lien by, or detend en(orcement o( such lien in, le- t{al proceedings which operate to pre~~ent the enforctment of the lien or Forfeiture of the Property or any part thereof. 5. Hazard Insurance. Bonower shall keep the improvements no~+ existing or hereateer erected on the Ptoperty in- sured against loss by [ire, hazards induded wiehin ehe term "extended coverage", and such other hazards as Lender may re- quire and in such amounts and tor such periods as Lender may require: proyided, that Lender shall ~iot require that the li amount of such coverage exceed that amount of co~•erage required to pat the sums secured b~• this ~tortgaRe. ! The insurance carriei providing the insurance shall be chosen by BorroNer subject to approcal b~• Lender: provided, that such approval shall not be unreasonably Mithheld. All premiums on insurance policies shall be paid in the manner ~ pro~ided under paragraph 2 hereof or. i( not paid in such manner. by Borrower makinR payment, when due, directly to ~ the insurance carrier. ~ ~11 insurance policies and reneNals thereof shall be in form acceptable to Lender anci shall include a standard mort- € Rage clause in ta~•or of and in totm acceptable to Lender. I.ender shall ha~•e the riRht to hold the policies and renewals ~ thereof. and Borrower shall prompth• furnish to Lender all renewal notices and all receipts ot paid premiums. In the event ~ of loss. Borroher shall gi~~e prompt notice to the insurance carrier and Lender. I.ender map make proo[ of loss if not made = a prompcly by Borrower. ` ~ Unless Lender and Bonower otherwise aRree in r,riting, insurance proceeds shall be applied to restoration or repair of { ~ the Property damaged, providecl such restoration ot repair is economically Eeasible and the securitY ~f this ~tortgaqe is not ' ~ thereby impaired. If such reseoracion or repair is noc economically [easible or iE che securit}~ of ehis ~Iortpage ~vould be im• a Paired, the insurance proceeds shall be applied to the sums secured by this ~fortgage, with the excess, i( any, paid to Bor- ~ row•er. If the Propen~• is abandoneci b~ Borroher, or if BorroM-er fails to respond to Lcnder within 30 da}•s irom the date ~ notice is mailed 6~ Lender to Bortower that the insurance tartiet offers to settle a claim (or insurance benefits, Lender is ~ authorized to collect and apply the insurance prcxeeds at Lender's option either to restoration or repair of the Property or ~ to the sums secured by this \tortgal{e. ~ Unless Lender and Borrower ntherwise aqree in writing. any such application of proceeds to principal shall not extend ~ or postpone the due date of the monttily installments referred t~. in paraRraphs 1 and 2 hereof or change the amount of such inctallments. If under paraqraph 18 hereo( the Property is acquired b}' Lender, all riRht, title and interest o[ Borrower in ~ and to any insurance policies and in and to the pr«eeds thereof resultinR imm damaRe to the Propert}' prior to the sale or ~ acyuisition shall pasc to Lender to the extent ot the sums secured by this ~tortRaqe immediately prior to such sale or ' acquisition. ~ 4;. ~ 6. Preservation and :ltaintenanct of Property; I.eaxholds: Condominiums; Planned Unit De~elopments. Borrowet ~ sLall keep the Property in good repair and shall not commit waste or permit impairmcnt or deterioration oE the Property and shall comply with the pro~•isions of an}• lease if this ~tortRage is on a leasehold. If this ~tortRaRe is on a unit in a I condominium or a planned unit de~•elopment, BnrroNer shall Perform all of Borrower's obliRations under the dedaration z:~ or covenants creating or go~'erninq the condominium or planned unit de~•elopment, the b~•-laws and reRulations of the condo- ~ minium or planned unit development, and constituent documents It a condominium or planned unit de~•elopment rider is ~ executed by Bortower and recorded together with this ~tortgage, the co~•enants and ai{reements of such rider shall be in- ~ corporated into and shall amend and supplement the covenants and aqreements of this ~torti{aRe as if the rider were a pan ~ ~ hereof. ~ 7. Protection of Lender's Secvrity. I[ Borrower (ails to perform the co~~enants and agreementc contained in this ~tortgage, or if any action or proceedinq is commenced whith materially aifects Lender s interest in the Propert}~. including. ~ ~ but not limited to, eminent domain, insoh~ency, code entorcement, or arrangements or prcxeedin~{s incoh•inq a bankrupt ~ or decedent, then I.ender at Lender's option, upon notice to Aorrower, may make such appearances, disburse such sums ~ and t~ke such action as is necessary to protect [.ender's intere~~, indudinq, but not limitecl to. disbursement o( reasonable ' ~ ~ttorne~'s fees and entry upon the Property to make repain. if I.ender requiresl mortqaqe insurance as a condition of _ = makinq the loan secured b}• this ~tortgap,e. Borrower shall pay the premiums required to maintain such insurance in e[- ~ fece uneil wch time as the requirement for such inwrarice terminates in accordance with Botrower's and Lenders written . ~s~ ~ ~ 90Ur J~O PaG: ~ ~ .