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HomeMy WebLinkAbout2692 i I1r,troaM COVL:.NAASTS. Borrower and Lender covrnant and agree as follows: ! 1. Paytntnt of Principal and Interest. Borrower shall promptly pay when clue the principal of and interest on the indebtedness evidenced by the Dote. preps}moot and late charges as provided in the Note, and the principal of and inter- est on any Future Advances secured by this Mortgage. 2 )F~tads for Tun and Insurance. Subject to applicable law or to a written waiver by Lender, 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 a full, a sum (herein "Funds') equal tcs one-twel[th of the yearly taxes and assessments which may attain priority over this ' :Mortgage, and ground rents on the Propert}•, if any, plus. one-twel[th of yearly premium installments for hazard insurance. ~ plus one-twel[th of ytatly premium installments for mortgage insurance, i[ any, all as reasonabl}• estimated initially and from ! time to time by Lender on the basis o[ assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which an insured or guaranteed by a Federal or state agency (including Lender i[ Lender is such an institution): Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding attd applying the Funds, analysing said ac- count, or seri[ying and compiling said assessmenu and bills, unless Lender pays Borrower interest on the Funds and ap- plicable law permits Lender to make such a charge. $orrower and Lender may agree irr writing at the time o[ execution of this Mortgage that interest on the Fwrds shall be paid to Borrower, and unless such agreement is made or applicable law t requires such interest to be paid, Lender shalt not be required to pay Borrower any interest or earnings on the Funds. Lender ( shall give to Borrower, without charge, an annual accounting o[ the Funds showing crrdits and debits to the Furtds and the purpose for which each debit to the Funds was made. The Funds are pledged as aciditienal security for the sums secured by this Mortgage. r 1f the amount of the Funds held by Lender, together with the future monthly irrstallmenu o[ Funds pa},able prior to t the due dates of taxes, assessments, insurance premiums and ground rents, shall exceeel the amount required to pay said i taxes, assessments, insurance premiums and ground tents as they [all due, such excess shall be, at Borrower's option, either ~ promptly repaid to Borrower or credited re Borrower on monthl}• installments of Fund.. 1t the amount of the Funds held by Lender shall not be sufficient to pa}• taxes, assessments, insurance premiums and ground rents as they tall due, Borrower _ shall pay to Lender an)• 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 payment in full of all sutras secured by this Mortgage, Lender shall promptl}• refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold er the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by' lxnder. any, Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise. all pa}moots received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender [first in payment of amounts payable to 1_ender by Borrower under paragraph 2 hereof, them to interest payable orr the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority m~er this Mortgage, and leasehold payments or ground rents, i[ an}•, in the man- ner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the pa}•ee thereof. Borrower shall prompth~ furnish to Lender all notices of amowrts dur under this paragraph, and in the event Borrower shall make payment directly. Borrower shall prvmpth• furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Jortgage: pres•idec[, that Borrower shall not be re- quired to discharge an}• 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 en[orcement of such lien in, le- gal proceedings which operate to present the enforcement of the lien er forfeiture of the Property or any part thereof. • 5. Hazard Insurance. Borrower shall keep the improvemrnts now existing or herea[ter erected on the Property in- cured against loss by tire, hazards included within the term "extended coverage", and such other hazards as Lender may re- j quire and in such amounts and for such periods as Lerrcier mac require: provided, that Lender shall not require that the i amount of such coverage exceed that amowrt of coverage required to pay the sums secured by this JlortgaRe. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval hs• Lender, provided, that such approval shall not be unreasonalrls• withheld. .~11 prrmiums•orr insurance policies shall be paid in the manner provided under paragraph 2 hereof er, 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 Lender and shall include a standard more- gage clause in favor of and in [orm 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 e[ paid premiums. In the event _ o[ loss. Borrower shall give prompt notice to the insurance carrier and lxnder. Lender cosy make proof of loss if nor made ~ promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied eo restoration or repair of the Property damaged, provided such restoration er repair is econemicall}' feasible and the security of this Vertgage is not thereb}• impaired. If such restoration or repair is not economically feasible er if the security of this Mortgage would be im- paired, the insurance proceeds shall be applied to the sums secured b}• this Jortgage. with the excess, if any, paid to Bor- 3 rower. 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 inwrance 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 er repair of the Property or to the sums secured by this ~toregage. 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 er change the amount o[ such installments. If under paragraph 18 hereof the Property is acquired by lender, all right, title and interest n[ Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage t~ the Property 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. Preservation and '.Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste er permit impairment er deterioration of the Property and shall cemph• with the provisions of any, lease if this Mortgage is nn a leasehold. If this Mortgage is on a unit in a condominium er a planned unit development, Borrower shall perform all o[ Borrower's obligations under the declaration or covenants creating or gos•erning the condominium or planned unit development, the by-laws and regulations of 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 Mortgage. 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 F hereof. 7. Protection of Lender'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 er proceedings insoking a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums x and take such action as is necessary' to protect Lender's interest, including, but net limited tn. disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If 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 e[- feu until such time as the requirement for wch insurance terminates in accordance with Borrower's and Lender's written 310 ~~~.2690 -