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HomeMy WebLinkAbout2087 ~ .~r ; UN1RatAr COVENAtdTi. Borrower and lender covenant and agree u follows: 1.. FgrwetN es hiee4el ttratl I~tlereN. 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 aoy Future Advances ttectu+ed by this Mortgage. t lrreis ter Tttntea orri lawrt~et. Subject to applicable law ur to a written waiver by Leader, Borrower snail pay to Lender on the day monthly installments of principal and interest are payahk under the Note, until the Note is paid in full. a stmr (herein "Funds'q equal to one-twelfth of the yearl~• taxe. and assessments which may attain priority over this . Mortgage, and ground rend on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insttraect:, it any, all u reasonably estimated initially and tram time to time by Lender on the buffs of assessments and hills and reasonable estimates thereof. '1Le Funds shall be held in an institution the deposits or accounts of which are inwted or gwranteed by a Federal of state agency (including Lender if Lender is such an itutitutionl. Lender shall apply the Funds to pay uid taxes, assessments, :nsuraaee premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing uid account, or verifying_and compiling said sssessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permit 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 Fltnds shall be paid to Borrower, and valets 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 purpose for which each debit to the Funds wu made. The Funds are pledged u additional security for the sums secured by this Mortgage. - If the amount o[ the Funds heW 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 uid taxes, aatessrtaents, insurance premiums and ground rents as they fall due, such excess shall at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds beW by Lender shall not be wtfieieat to pay taxes, assessments. insurance premiums and ground rents 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 t+oquesting payment thereof. Upon payment in full of all :ums secured by this Mortgage, tender shall promptly re[und to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs 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 Leader at the time of application as a credit against the :ums secured by this Mortgage. 3. ApplicaRioe of Prtyeeats. 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 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. 1. Charges; Liens. 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, when due, directly to the payoe 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 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. Harard Inwrawce. Borrower shall keep.tbe improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require sad 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. 'tire 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 pail 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 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 all 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 restoratron or repair is economically feasible and the security of this Mortgage is not thereby impaired. tf 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, 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 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 I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Pro ferry 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. Pnsenation and 1laintenance of Property; Leaseholds; Condominiums; Planned Unlt Developments. Borrower shall keep the Property in good repair and shall not comrvit yvaste or permit impairment or deterioration of the Property and shall comply with the proviswns of any lease if thu Mortgage is un a leasehold. If this Mortgage is on a unit in a condomimum 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. if a condominium or planned unit development rider is executed by Borrower and recorded together with the 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 Lender's Security. If Borrower fads ro perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ~s commenced which materially affects Lender's interest in the Property, including. but not limited to. eminent domain. insolsenc), code enforcement. ur 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 to. disbursement of reasonable auotney's fees and entry ulx~n the Property to make repairs. If Lender reyuired mortgage insurance as a condition of making the loan secured by this Mortgage. Rorrawer shall pay the premiums required to maintain such insurance in eliect until such diners the reyuiremt:nt tar such insurance terminates m accordance with Borrowers and . ~R`~ ~ Ef,OK PdCE~~ • • • , .