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HomeMy WebLinkAbout0717 3.1 - i Borrower sad Leader covenant and ague u follows: 1. Ptyraegt of Peiaeipecl tad Iintereat. Borrower shall promptly Pay when due the principal of and interest on the indebtedness rvideaad by the Note, pteptymettt sad late dtarga u provided in the Note. and the principal of and interest on say Pbtare Advances aecared by this Moefgage. - Z. Fonda for Toes sad Igsnraaoe. Subject to applicable law or to a written waiver by Lander. Borrower shall pay to Leader oa the day - monthly inaWlmeats of principal and interest are payable under the Note, until the NoW is paid in full, a sum (herein "Funds'? equal to ono- _ twelRh of the yearly lazes and aaeamenta which may attain priority over this Mortgage. and groand rents oa the Property. if any, Phu ono- twelfth of yearly premiam indallmatb for bossed insurance, plw ono-twelfth of yearly premium installments for mortgage iruaranee, itaay, all u reasonably estimated iaitial~y and from time b time by Lender on the basis of asaeumenta and bills and rusouable estimates theeeoL TM Pearls shall be held in as inabitutioa Ws deposits or aoDOUats of which are insured or guaranteed by a Federal or State agency _ (including Iwadar if Iwnder is such an institution). Leader shall apply the Ptimds to pay said fazes, as~wnaats, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, snalysing said account, or verifying and compiUng acid asaesameats end bills, unlau Leader pays Borrower interest on the Foredo and applicable law permits Lender to make such a charge. Borrower and Leader may agree is writing at the time'of ezecution of this Mortgage that interest on the Funds shall be paid to Borrower, and anise such agreement is made or applicable law regniees such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Pltnds. Lender shall give to Borrower. without charge. as annual sooounting o! the Fonda showing credits and debits to the Fonds and the purpose for which each debit to the Funds was made. The Fonda are pledged u additional security foe the sums secured by this Mortgage. If the amount of the Frinds held by Leader, togeWer with the future monthly installments of Fonda payable prior to the due dates of fazes. assessments. insurance premiums and ground rents. shall e:c~ted the amount required to pay said fazes, aaaeeamenta. inaueaaoe premiams and ground rents u they fall doe, such ezoew shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly iwtallmeats of Ponds. If the amount of the Fnnda held by Lender shall not be safficient to pay toes, apasmeats. inanranoe premiums end ground rails u they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. ? Upon payment is full of all swiu secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If undo paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Leader thaU apply. no later than immediately prior 1 to the sale of the Properly or its acquisition by Lender, any Inds held by Lender at the time of application u a credit against the sums secared by thin Mactgage. : 3. Application of Payments. Unless applicable law provides otherwise. all payments reodved by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Leader fast in payment of amounts payable to Lender by Borrower under paragraph 2 bez~ then to interest payable on the Note, then to the principal of the Note, and then to interact and principal on any Future Advances. 4. Chtrgea; Liens. Borrower shall Pay all lazes, assessments and other charges, fines and impositions attributable to the Property 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. - ifnot paid in arch manner, by Borrower making Payment, when due. directly to the payee thereof. Borrower shall promptly fnruiah M Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to L.enda receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien ao 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 rnntest such lien by, or defend enforcement of such lien in,legalproceedings = which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard I assurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loos by ; fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as bender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the soma secured by this Mortgage. - The insurance carrier providing-the insurance shall be chosen by Borrower subject to approvai by Lender, provided, that such approval _ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, J not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. AU insurance policies and renewals thereof shall be in fora acceptable to Lender and shall include a standard mortgage clause in favor ~ and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ fender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Larder. Lender may make proof of lose if not made promptly by Borrower. ~ ` Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property € damaged, provided such restoration ar repair is economically feasible and the security of this Mortgage is not thereby impaired. If arch 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 thin Mortgage, with the excess, if any, paid to Borrower. 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 offers to settle a claim far insurance benefits, Lender is authorized to collect and•apply the insurance proceeds at Lender a option either to restoration or repair of the i~ Property or the sums secured by this Mortgage. tE Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedne date of the monthly installments referred to in paragraphs l and 2 hereof or change the amount otsuch installments. if under paragraph 18 hereof the Property 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 Property prior to the sale or acquisition shall pass to Leader to the aslant of the soma secured by this { Mortgage immediately prior to arch sale or acquisition. i 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste 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 cvvenants creatingor governing the rnndominiam or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a eondominiam or planned unit development rider is executed by Borrower and recorded togethtr with this Mortgage. the covenants end agreements of each rider shall be incorporated into and shall amend and supplement the cvvenants and agreements of this Mortgage as if the rider were a part 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 Lenders interest in the Property, including, bet not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's optionnpoa notice to Borrower may make such appearances, disburse such sums and take ouch action u is necessary to protect Leader's interest~ including, but not limited to, dubureement of reasonable attorney's fees and entry upon the Property to make r+epaies. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums repaired to maintain such insurance in effect until such time u the requirement for such insurance terminates in aeoordenoe with Borrower's and Larders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided antler paragraph 2 hereof. Any amount disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtednea of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms ~ payment, such amounts shall be payable aeon noticx from Lender b Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, is which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or talcs any action hereunder. aojK315 racE 71~ • ~ -