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HomeMy WebLinkAbout0255 r • - ~ a UNtrosw COVeNAtVTtI. Aotrower and bender covenant and agree as follows: )1. TsprmeM of hi~~l ttrai lttlerest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepaytttent arttt late charges as provided in the Note, and the principal of and interest an any Future Advattees secured by this Mortgage. 2. 1lhtsis for Truss aai Iwraoce. Subject to applicable law ~sr to a written waiver by Lender, Borrower shall pay to Lender on the day tttonthly installments of principal and interest arc. payabk under the Note. until the Note is paid in full, a sum (herein "Fttnds'~ equal to one-twelfth of the yearl)• teas. and assessments which ttuty attain priority over this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installttxnts: for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to tithe by Leader on the basis of assessments and hills and reasonable estimates thereof. The Funds dull be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of :tats agency (including Lender if Lender is such an institution). I-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 verifyingind 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 tune of execution of .this Mortgsge 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 purpose 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 payabk prior to the due dates of taxes, assessments, insurance premiums and ground tents, 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 held by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents u they fall due, Borrower shad pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. Upon payttxnt in full of all sums secured by this Mortgage, I_lnder shall promptly refund to Borrower any Funds held by Lender. If under paragraph lg 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 Leodelr at-the time of application as a credit against the sums secured by thistMort~,ge. - 3. Application of psdrmeaLs. Unless applicable law provides otherwise, all,paynkntrteceived by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment 'of artfounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payabk on the Note, then to the principa4 of t1~e Note. and then to interest and principal on any Future Advances. - - • , - . 4. Charges; Liens. Borrower shall pay ail 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, what 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 snap 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 enfotrement 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. Haurd h~trance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against ions 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 shalt riot be unreasonably withheld. All premiums on insurance policies snail 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 renew, !s 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 (oss if not made promptly by Borrower. Unless Lender and Borrower otherw»e 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 fur insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propern• or to the sums secured by this Aortgage. 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 instaiimcnts. If under paragraph i8 hereof the ProFcrty is acquired by Lender, ai! right, title and interest of Borrower in and to any Rtsurance policies and in and to the procceds thereof resulting from damage to the Property prior to the sale or acgtusition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. - 6. Preaenation and Maintenance of Property: Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and snail not comrpit ri•aste or permit impairment or deterioration of the Property and shall comply with the ptovis?ons of any lease if thu Mortgage i, 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 ~~nit development. and constituent documents- it 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 were a part hereof. 7. Protection of Lender's Security. If Borrewer fa+tc to perform the covenants and agreements contained in this Mortgage. or if any acbbn or prcr.•eeding commenced which materially affects lender's interest in the Property, including. but not hm+ted to, em+nent domain. inadvcnc). code enforcement. or arrangements or proceedings invoh-ing a bankrupt or decedent, then I-ender at Lender's option, ulx,n notice to Borrower, may make such appearances, disburse such sums and tame such action as ~s necessary to protect Lender's interest, including. but not limited to. disbursement of reasonable auomey't Ices and entry ulx~n the Property to make repairs. if Lender required mortgage insurance as a condition of making the loan secured by- this Mortgage. B~rmwer shall pay the premiums required to maintain such insurance in effect until such time as the requirement for .uch insuianee terminates in accordance with Borrower's and . nk 327 P~~E 254 = - ~ ~ • - ~ _ .