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HomeMy WebLinkAbout0133 a UNtpoant CoveN,?N'rs. Borrower and Lender covcnant and agree as follows: ' 1. Paymeat of PAaclpd aad Interaf. Borrower shall p~omptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges ac provided in the Note, and the principai of and interest on aay Future Advances ucured by this Mor~gage. 2. Foads [or Ta=es and Insunace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to I.ender on the day monthly installmems of principal and intercct are payable under the Note, until the Note is paid in full, a sum (herei~ "Funds") equal to oae-twelfth of the yearly taxcs and ascessments which may attain priority over this Mortgage, and g~ound rents on the Property, if any, plus a~e-twel(th of yearly premium installments f~~r hazard insur•rnce, plus one-twelfth of yearly premium installments for mortgage insurancr. if any, all as reasonably estimatcd initially and from time to time by Lender on the basis of assessments and bills and reasanable estimates thereof. 'Il~e Funds shall be held in an institution the deposits or accounts ot which are insured or guaranteeJ b~~ a Federal or state agency (including Lender if l.ender is such an institution). I.ender shall apply ~he Funds to pay said taxes, assessments, insurance premiums and ground rents. I_ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compili~g said assessments and bills, unless I.ender p;lys Borrower interest on ~he Funds and applicable law permits Lender to make such a charge. Borrower and I_ender may agree in wnting at ~he time o[ execution of this Nortgage that interest on the Funds shall t+e paid to Borrower, and unless such agreement is made or applicable law requires such interest to he paid, Lender shall not be reyuired to pay Borrower :+ny interest or earnings on the Funds. l.ende: shall give to Borrower, without charge, an annual accounting of ~he Funds showing credits and debits to ~he Funds and the purpose for which eaeh debit to the Funds w•as ma:ie. The Funds are pledged a~ additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together wi~h thc future monthly installments ot Funds payable pr~or to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pa~• saiJ taxes, assessments, insurance premiums and ground rents ~s they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrow•er or credited to Borrow~er on monthly installments of Funds. If the amount o( the Funds held by Lender shall not be sufticient to pay taxes, assessmcnts, insurancc premiums and ground rents as they fall due, Borrower shall pay to l.ender any amount necessary ~o make up the deficiency within 30 da?•s from the date notice is mailed by Lender to Borrower requesting payment thercof. Upon pay~rsent in full of all sums secured by this Mortgagc. 1_endcr shall promptly refund to Borrow~er any Funds held by l.ender. 1[ under paragraph 18 hereof the Propeny ~c sold or thc Propcny is otherwisc acquircd by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by Lender at ~he time of application as a credit against the sum~ secureJ by th~s :lfortgage. ~ 3. Application of Paymeats. Unless applicable law provides otherwise, all payments received bp Lender under the Note and paragraphs 1 and 2 hereof shall bc applied by l.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Notr, then to thc principal of the Notc, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all ta~cti, assessmcnts and ~~thcr charges, fines and ~mpositions attributahle to the Property which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner I provided under paragraph 2 hereof or, if not paid in such manner, by Borrower maicing payment, when due, direcUy to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment direcUy~, BorroK•er shall pr~mptly furnish to l.ender receipts evidencing such payments. Borrower shall promptly discharge any lien w~hich has prioritp over this Mortgage; provided, that Borrower shall not be ~ required to discharge any such lien so tong as Borrower shall agree in ~rihng to the payment of the ,obligation secured by ~ such lien in a manner acceptable to Lender, or shall in go~x1 faith conte~t such lien by, or defend enforcement of such lien in, ~ legal proceedings which operate to prevent the enforcement of the I~zn or [orfeiture of the Property or any part thereof_ f 5. Hazard Insurance. Borrower shall keep the ~mpro~~ement~ no~ existing or here:,ftcr ercctcd on the Property insured - j against loss by fire, hazards included within the term "e~tended coverage", and such other hazards as Lender may reyuire ~ and in such amounts and for such periods as Lender may reyuire; pro~•ideJ, that Lender shall not reyuire that th:. amount of ~ such coverage exceed that amount of coverage required to pay the sums ~ecured by this Mortgage. € The insurance carrier providing the insurance shall be chosen by Borrower subject ta approval by Lender; provided, that such approval shall not be unreasonably withheld. All premium~ on insurance policies shall be paid in the ~nanner ~ 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 dause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, ~ and Borrow•er shall promptly furnish to Lender all renewal notices and all receipts of paid premiumc. In the event of loss, x Borrower shall give prompt notice to the insurance carrier 3nd Lender. Lender may make pr~f of loss if not made promptl}~ ~ by Borrower. Q Unless Lender and Borrower otherw~isc agrec in writing, insurance pr~ecds shall be applied to restoration or repair of ~ the Property Jamaged, provided such restoration or repair is economicallq leasible and the security of this Mortgage is ~ not thereby impaired. It such restor•rtion or repair is nc~t econ~~mi~~llp feasihle or it the security of this Mortgage would ~ be impaired, the insurance pra:eeds shalf be applied to the sums secured by thi~ Mortgage. with the e~cess, if any, paid to Borrow•er. 1t the Propertp is abandoned h~ Burn,w~er, or i( Borrower fails t~ respc~nd to I.ender within 30 da}•s from the Jate notice is mailed by Lender to Borrower that the inwrance carner otTers to settle a claim for insurance benefits, I_ender ~ is sulhorized to collect and apply the insurance proceeds at LenJer'c option either to restoration or repair of the Propen}' ~ or to the sums secured by this Mortgage. y Unless Lender and Borrower otherwise agree in w•riting, an}• such application c~f proceeds to principal shall not extend ~ or pustpone the due date of the monthly ins~allmentt referred t~~ in paragraphs 1 and 2 hercof or changc the amount of such installments. If under paragraph 18 hereof the Property ia acyu~red b~ Lendrr. all right, title and interest of Borrower in and to an} insurance policies and in and to the pro:.eeds thrreof re~ulting from damage to the Property prior to the sale or acyuisition shrll pass to Lender to the extent of the ~ums secureJ bp th~s ~tortgag~ immediately prior to ~uch sale or acquisition. 6. Preser~~lion aod ~laintenance of Property; Leaceholds; ('ondominiums; Planned Unil 1)evelopments. Borrow•cr shall keep the Property in good repair and shaU not commit waste ~~r permit impairment or deterioration of the Property " and shall compl}' w'ith the provisions of any lease if this 1lortgage ~ti un a Icasehold. If this l~tertgage is on a unit in a condominium or a planned unit development. Borrower shall perfurm sll of Bormv?er's obligations under the declaration ur covenants creaung or governmg the condommium or pl~nned unit development, the by-laws and regulations of the ~ condominium or planned unit development. and cunstituent ~f~umems. If a condominium or planned unrt de~~~lopment ' nder is executed b}' Botrower and recorded together with thiti 1~lortgage, the coven~nts and agreements of such rider = shall be incorporated into and sh~ll amend and supplement the co~enants anJ agreements of this Mortgage as if ~he rider ~ v?ere a part hereof. ~ ~ 7. Protection of Lender's Security. If Borrow~er fails tn perfurm the covenantt and agreements contained in this Mortgage. or if any action ur proceeding ?s commence~i which materiall}' afTects LenJer's interest in the Propertp, s including, but not limited to. eminent domain, insolve~~cy'. ~~de enforcement, or arrangements or proceedings invol~~ing a ~ bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, ma}~ make such appearances, drsburse such - s~ sums and take such action as is necessar}' ta protect Lender's interest, including, but not limired to, disbursement of reasonable attorney's fces and en~ry upon the Property to makc repair~. If Lender required mortgage insurance as a ~ condition of making the loan secured b}~ this :~t~rtgag~. Borrowrr shall pay the premiums requireJ to maintain such ~ insurance in efiect until such time as the reyuirement for such insurance terminates ~n accordance with Borrower's and ~ g;~,}K. ~ '~R313 ~l.~E 1~:3 : !