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HomeMy WebLinkAbout1270 ;!1 U CovErtatvrs. Borrower and Lender covenant and agree as f~lbws: 1„ )<pyrnetM d)<ei~ rttttd ltttlsraf. Borrower shall promptly pay when due the principal of and interest on the indebtedness evideuoed by the Note. prepayment and late charges as provided in the Note. and the principal of tad interest oa any Fwtue Advantces secured by this Mortgsge. !ti¦is tK Ti:es trti Itwra~ce. Subject to applicabk law ~~r to a written waiver by Lender. Borrower shall pay to Lender on the day ntottthty installments of principal and intcrrct arc. payable under the Note, until the Note is paid in full. a sttm (herein •'Fuads'7 equal to onctwelfth of the yearl}~ tax~~ and assessments which stay attain priority over this Mortgage, and grottttd rents on the Property, if any, plus Otte-twelfth of yeary?~ premium installments for heard insurances. plus one-twel[th of yearly premium installments for mortgage inu,rancs, if any. all as reasonably estimated initially and from tints to titrte by Lender on the buffs of assessments and hills and rcasonabk estimates thereof. The flnnds shall be held in an institution the deposits or accounts of which aro itsstttrcd or gwr:nteed by a Federal or state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, inwratsoe premiums and ground rents. Lender may not charge for sn holding and applying the Fttnds, analyzing said acrnunt, or verifying_nutd compiling said assessments and bills, unless Lender pays Borrower interest ors the Funds and applicabk law permit: Lender to make such a charge. Rnrmwer !~d I:radar may agree in writing at the time of exocution of this Mortgage that interest on the Funds shall be paid to Borrower, and urtkss such agreement is made or :?pplicabk law regtdtoes 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 whicA each debit to the Funds was made. The Funds arc pledged u additional security for the sums secured by this Mortgage. Tf the atttount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments. inwrance premiums and ground rents, shall exceed the amount required to pay said taxes. aae~tnents, insurattoe premiums and ground rents as they tall due, such excess shall be. at Borrower's option, either pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds heW by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall dtx, Borrower dtall pay to Lender any :mount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower negtnestiag payment tl~reof. Upon payment in full of all :ums secured 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 Propeny rs otherwise acquired by Lender, Lender aball apply. rto 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 u a credit against the sums secured by this Mortgage. 3. Application of Paysttetsla. 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. rhea to interest payable on the Note, then to the principal of the Note, and then to interat and principal on any Futtrre Advances. Granges; 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 provide( under puagraph 2 hereof or, ii not paid in such manner, by Borrower making payment, whee due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragrsph, 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 enforrement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof. S. Harard Insttraace. Borrower shall keep the 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 rod 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- Mortgafe. i 'Ibe 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 f 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, I and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, E Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of toss it 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 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 Properly ; 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 t8 hereof the Property is acquired by Lender, all right, title and interat of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to th.: 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 rod Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower shall keep the Property in good repair and shall not comrpit waste or permit impairment or deterioration of the Properly and shall comply with the provis,ons of any lease ,f the Mortgage rc 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. 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 amend and supplement the covenants and agreements of this Mortgage as if the rider E were a part hereof. 7. Protection of Lender's 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 c interest in the Property, including, but not limned to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then Lender at (.ender': option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary iu priitect 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 condition of making the loan secured b}•-this Mortgage. Borrower shall pay the premiums required to maintain such ,nsurance in effect until such urns as the requirement for such insurance terminates ,n accordance with Borrowers and ' S . : ~ - ~ P g~326 PA~E~'68 .