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HomeMy WebLinkAbout2884 • ~ - ~-~t Urrtt'oaut Coverr~rtTS. Borrower and Lender covenant and agree as follows: 1. Payment of Princlpd and lalerest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on aay Future Advances secured by this Mortgage. T, Fuads for Taxes and Iasuraace. 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 [ull. ~ a sum (herein "Funds") equal to one•twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. ~ The Funds shall be held in an institution the deposits or accounts o[ which are insuted or guaranteed by a Federal or ~ state agency (including Lender if 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 so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid 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 purpwe 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 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, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds i held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as 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 in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or 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 Lender, 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 payments received 6y Lender under the Note and paragraphs I and 2 hereof shall be applied by I_cnder first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on 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 alt taxes assessments and other charges, fines and impxitions 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 ma~ing payment, when 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 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 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 hy, 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 Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage". and such other hazards as i.ender may reyuire and in such amounts and for such periods as Lender may reyuire: 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 premiums 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 shat! he in form acceptable to Lender and shall include a standard mortgage douse in favor of and in form acceptable to 1_ender. Lender shall have the right to hold the policiesrnd renewals thereof, i and Borrower shall prompt!}' furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the irsurance carrier and lender. 1_ender may make proof of loss if not made promptly by Borrower. Unless Lcndcr 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 nut economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage. wilh the excess, if any, paid to Borrower. if the Property is abandoned by &irmwer, or if Borrower fails to respond to I_cnder within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier otiers 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. l:nless Lcndcr 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 charge the amount of such installments- If under paragraph t8 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 the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this :1ortgage immediately prior to such sale or acquisition. i 6. Preserxation and ~laiatcnance of Propert}; [.easehotds; Condominiums; Planned Unit Dex•elopments. Borrower ~ shall keep the Property in good repair and shall not commit -waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration i ur -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. If a condominium or planned unit development rider is executed b}' Borrower and recorded together with 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 r were a pan hereof. 7, Protection of Lenders 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 Properly, including. but not limited to. eminent domain. insolvency. axle enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest. including. but not limited ro, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lcndcr required mortgage insurance as a condition of making the loan secured by this 1lfortgage, Burrower shall pay the premiums require) to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and