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HomeMy WebLinkAbout0554 - • ~ti, UN1PORlAr t„oveNAPrTtt. Borrower and Lender covenant and spree of follows: 1. best eft lriselpl ttttrei Itrtetred. Borrower shall prompttf pay when due the principal of :nd inter+at on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances sectued by this Mortgage. Rssels [e?tr Tttaea asd lswrasce. Subject to applicable law eu to a written waiver by Lender, Borrower shall pay to Linder on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Fuads'q equal to ono-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents ore the Property. it any, plus one-twelfth of yearly prcmitrm 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 o[ assessments and hilts and reasonable estimates thereof. The Funds sh:11 be held in an institution the deposits orrccounts of which are insured or gwrantexd by a Federal otr 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 ~ paid t!+ Rnrmwu; aexf unless such agreement is made or applicable taw requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lertdtr shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to-the Funds and the purpose for which earth debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Mortgage. If the tunount o[ the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due data of taxes, sssessments, 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 [x.M by Lender shall not be sufEtt:ieat to pay taxes. assessments, insurance premiums and ground rents as tlxy tall 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. - Upar payment io full of all sums t~ecurcd by this Mortgage, lender shall promptly refund 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 tune of application as a credit against the sums secured by this Mortgage. - 3, Applicatlos o[ Psymeafa. 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 piyabie can the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 1. Cfsarges; Liras. 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 Z hereof or, if nat paid in such manner, by Berrewer making 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 rtceipts evidencing such payments. Borrower shall promptly discharge any- lien which has priority aver 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. Nazrtrd lanrrtrreee. Borrower shat! keep the improvements now existing or hereafter erected on ttx Property insured against loss 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 Lender may require: provided, that Lender shall not req_ wire 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, dirtxtly 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 shalt 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 nvt 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 it 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 1 and 2 hereof or change the amount of such installments. !f under paragraph 18 hereof the Property is acyuired 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. Presen•~etiun and Jtaintenance of Property: Leaseholds; Condominiums; Planned Unit Devebpments. Borrower shall keep the Property in good repair and shall not comtpit yvaste 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 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. end constituent Documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall emend and supplement the covenants anJ agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lenders Security. If Borrower (ails m perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is u?mmcnccd which materially eBects Lender's interest in the Property, including, but not Gmued to, eminent domain. insi.lvenrs, c~xie enforcement, or arrangements or proceedings invoh•ing a bankrupt or decedent, then Lender at Lender i option, ulx~n notice to Borrower, tna}• make such appearances, disburse such sums -end fake suth etti.~n as is neccstiu}' pent.^ce l.ender'c inrerecs, incl:aling. brit riot limficd to, disburscmeni of reasonable attorney's fees and entry ufxm tt~i Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured h}- this Mortgage. Bnrmwcr shall pay the premiums required to maintain such insurance in effect until such time as the reyuiremcfit for wch +nsurance terminates ~n accordance with Borrower's and • ~~~K~26 Pd~E 552 • ~ ~*324 ~~~~0 4?