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HomeMy WebLinkAbout0686 . ~ t UNUgw Covet~urm. Borrower and Letnder covenant and ogres ss follows: 1. Tsgoett eft hiiaelMl tenet IrNereM. Borrower shall promptly Pay when due the principal of and interest on the itrdebtedtxa evidenced by the Note, prepaytmeat and late charges as provided in lire iyuit, and the principal of and interest oa any Fwure Advsrnoa secured by the Mortgage. 2. ltii Mr ?1~es w irnrtree. Subject to applicable law ~x to a written waiver by Lerrdu, Borrower shah pay to Lender on the day monthly installments of principal and interest rre payable under the Note. until the Note is paid in full, a soon (herein "Fuads•7 egwl to one-twelfth of the yeari)~ taa~-. ar>el assesunents which troy attain priority over this Mortgage. and ground rents on the Property, it any, plus one-twelfth of yearly premium installments for hazard insursrrce, plus one-twelfth of yearly premium installments for rriortgrtge insurance. if any, all as reasonably estimated initially and from tires to time by Lender on the basis of assessments and hills and reasonable sstimatts thereof. The Funds shall be held in an institution the deposits or accounts of which art itrwred a gwranteed by a Federal or state asency (including Lender i[ Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. lender may not charge for st+ holding and applying the Funds, analyzing said account. or verifyint_and compiling said assessments and bilk, unless Lender Pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Ler~:: :g:r :n .vr:tinr at the time of exaution of this Mortgage that interest on the Funds shall be poid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an-annual accounting of the Funds showing credits and debits to the Funds and the purport for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the -future monthly installments of Funds payable prior to the due dates of taxes, assessments. insurance premiums and ground rents, shalt exoeod the amount required to pay said taxes. asspsmtnts, insurance premiums and ground rents as they tat! due, such excess shall be, at Borrower's aptic*rt, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds heW by Leader shall not be wti'icieat to pay taxes, assessrrrents, insurance premiums and ground rents as they faN due, Borrower shall pay to Lerrdtr any amount trtcessary to make up the deficiency within 30 days from the date notice is mailed by leader to Borrower requesting payment thereof. Upon payraeat is full of all sums secured by this Mortgage, tender shall promptly refund to Borrower arty Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Properly rs otherwise acquired by Lender, Lender shall apply, no lattr than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. 3. Arpllcatios of Payeettrls. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Notc, then to the principal of the Note. and then to interest and principal on any Future Advances. d. Charges; Lkds. Borrower shall pay all 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 manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whoa due, directly 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 directly, Borrower shall promptly furnish to Lender rrceipts 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 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 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 lnstrrawce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by Ere, hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall 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 premiumc on insurance policies shall be paid in the manner 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 Lender and shalt 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 all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance corner 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 restoratron or repair is economically feasible and the security of this Mortgage is not thereby impaired. I[ such restoratron 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 b}• this Mortgage, with the excess. if any. paid to Borrower. if the Property is abandoned by Borrower, or if Burrower 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 collect 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 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acywred by Lender, all right, title and interest of Borrower in and to any Arsurance 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. Prtsersatioo and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease rf this Mortgage rs on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borross•~r shall perform all of Borrower s obligations under the declaratrun or covenants creating ~r 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 Nuh this Mortgage, the covenants and agreements of such rider shall 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 Ixnders Securffy. If Borrc•..er fails to perform the covenants and agreements contained in this Mortgage, or if any action or prcxeedrng rs commenced whrch materially affects Lender's interest in the Property. including. but not limited to. eminent domain, inN.h•ency, code enforcement. or arrangements or proceedings involyrng a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. roar make such appearances, dishurse such sums and take such action as is necessary ar pn~rect t_ender'c interest, including. but not limited to. disbursement of reasonable attorney's lees and entry up~m the Properly to make repain_ If Lender reyuired mortgage insurance as a condition of making the loan secure) by this Mortgage. Born,wer shall pay the premiums required to maintain such insurance in effect until such time as the requirement for wch insurance terminates in accordance with Borrower's and • u~} 32i P~F 1 rl~