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HomeMy WebLinkAbout1279 4 i . ` • Ut+trottnt Covaetxr~ns, Borrrwer and Leada• covenant and agree as follows: ~t K)teladltal atN hsleraf. Borrower snap promptly pay when-due the principal of and intett;fl on the indebtedness evideaoed by the Note, peepaytrtatt and late char-rs ac provided in the Note, and the principal d,attd interest 4 oa arsy Futuro Advaaas stxnred by thk Martgage. ] !tiffs fotr'iltnoss attd lattt+~ce. Subject to applicabk law or to a written waiver by Lender, 8orroaer shag WY to Leader on the day monthly installments of principal and interest an. payabk under the Note. until the Note is paid in full, a suan (herein "Ftutds'~ equal to Dire-twelfth of the yearly tax~~ and assessments which may attain priority over this MorRgage, and gratrnd rafts on the Property. if any, plus one-twelfth of yearly premium installments for hazard inwranee, plus one-twelfth of yearly premium itutatttnents for mortgage insurance, if any. all as reasonably estimated initially and from time to flirts by Leader on the basis of assessments and bilk and reasonabk estimates thetYOf. ' The Rands shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal=or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge form holding and applyinj the Fonds. analyzing said account. or verityirrS~nd compiling said assessments and bilk, unless Leader pays Borrower interest on the Funds and applicable law permits Fender to make such a charge. Borrower sad Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall ba paid to Borrower. and unless such agroement is made or applicable law roquires such interest to bt paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shW give to Borrower, without charge, an annual accounting of lira Funds showing credits and debits to the Funds and the putpcrse for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Mortgage. _ If the arttount o[ the Funds held by Leader, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exccod the amount required to pay said taxes. asst~stnants, insurance premituns sad ground rents as they fall due. such-excess:: shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of tl~e Funds bdd by Lendersball not be w~ciwt to pay taxes, asxssments, insurance premiums and ground rents ats they fall due, Borrower shall pay to I.ettder any amount necessary to make up the deficiency within 30 days from tlta date notice is mailed by Calder to Borrower requesting payment thereof. - Upott payment in full of all srmu secured by this Mortgage, !.ender shall promptly refund to Borrower any Funds heW by Lander. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender, Lender :hall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Larder at the time of application a< a credit against the sums secured by this Mortgage. 3. ApltkaNoa at Papw,cal~ Unless applicable law provides otherwise. all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under parsgaph 2 hereof, then to interest payable on the Note. then to the principal of the Note. and then to intetYSt and principal on any Future Advaooes. 4, Ctarges; Lies. Borrower shall pay alt taxes, 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 murner provided under paragraph 2 hereof ot, if not paid in such manner, by $orrower making payment, when due. directly to the payee theroof. Borrower :ball promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shaft make payment directly, Borrower shall promptly furnish to Lender 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 so bng'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 enforcement of 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 laatinrrce. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured 1 against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and in su.h amounts and for such periods as Lender may require; provided, that [.ender shalt not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 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 manger provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the imrrrance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have-the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender al! renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss 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 or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance procceds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property a 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 for insurance benefits, Lender ! is authorized-to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. - - 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 or change the amount of such installments. If under paragraph 18 hereof the Proferiy 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 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 Uuit Developments. Borrower shall kcep the Property is good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property 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 covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. It a condominium or planned unit development _ rider is executed by Borrower and recorded together with this Mortgage. -the covenants and agrcements of such rider shalt~be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Sectrrlty. 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 or proceedings involving a bankrupt or decedent, then Lender at t_ender'c option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necw•ssary tv protect Lender's interest, including.. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a • cdndition of making the loan secured by this Mortgage. Borrower 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 B~~x 3~ 7 ~~~12~?