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HomeMy WebLinkAbout0297 i r UNtre~tut GOVENANTa. Borrowu and Lender covenant and agrex ss follows: 1.. t~gtweat of hiaclpa! ttni IahreN. Borrower shall promptly pay when due the principal of and irtterat oa the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on say Future Advances sescured by this Mortgage. 2. )ltltntfls teK Tara alai iasaraace. Subject to applicable law ur to a written waiver by Lender. 8otmwer shall pay to Linder on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full, a stun (herein "Funds") equal to one-twelfth of the yearl~~ faze. and assessments which may attain priority over this Mortgage, and ground recta on the Properly, if any, plus one-twelfth of yearly premium inuallments for hazard insurance. plus one-twelfth of yearly premium installments for mortgsge insurance, if any, all as reasonably estimated initially and from i time to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds abaft be held in an institution the deposits or accounts of which are insured or guarantexd by a Federal otr ' estate agency (including Lender if Lender is such an institutionl. Lender shall apply the Funds to pay said taxes. assessments. insurance premiums and ground rents. lender may not charge for st? 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 Mortgages that interest on the Funds shall be paid to Borrower. and unless such agreement is made or applicabk law regturss 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 wch debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Mortgage, r If the amount of the- Funds held by Lender, together with the future monthly installments of Funds payabk prior to the due data 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 htdd by Leader shall not be sutficieat 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 noticx is mailed by Leader to Borrowu requesting payment thereof. ; Upon payment lice full of all sums secured by this Mortgage, lender shall promptly ~'e[udi~to Borrower any Fund: heW by Lender. If under paragraph I8 hereof the Property is sold or the Property es'athetMlle acquired by Lender, Lender shall apply. rte later than immediately prior to the sale of the Properly or its acquisition ~rr,~yQder. arty Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. +i?Tt_ 3. Application off Payttaeats. Unless applicable law provides otherwise, all payments reclti~etl~~K:lttder under the Note and puagraphs I and Z hereof shall be applied by fender first in payment of amounts payabler7tp;~~er by Borrower under paragraph 2 hereof. then to interest piyable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. tihages; Lktss. 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 payex thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad 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 goad faith contest such lien by, or defend enforcement of sueh.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 noes existing or hereafter erected on the Property insured against loss by Err, 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. The insurance carrier providing the insurance shat! 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 shall be in form acceptable to Lender and shall include a standard mortgage stator in favor of and in form acceptable to Lender. I_rnder 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 [_ender. 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 nut economically feasible or if the security bf 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, ur it Borrower fails to respond to Lender within 30 days from the date notice is mailed by Le:rdtr to Borrower that the snsurancr Terrier 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 venting, 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 I8 hereof the Property is acquired by Lender, all right, title and interest of Borrower in sad 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. Preservation and :~taio[enance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shalt keep the Property in good repair and shall not commit y~~aste or permit impairment or deterioration of the Property and shall comply with nc~ provisions of any lease it this Mortgage iv un a leasehold. !f this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obhgatrons under the declaration or covenants creating or governing ihr cundommium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documems. 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 shalt 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 bender's Security. 1! Bnrruwer frills tip perform the covenants and agreements contained in this Mortgage. or if any action ur proceeding commen;:eJ which materially affects Lender's interest in the Property, including, but nut limited tu, eminent domain. inu~{venr}. axle enforcement, or arrangements or proceedings invoh•ing a bankrupt or decedent, then lender at Lender's option, ulxm notice to Borrower, mess make such appearances, disburse such sums and take such action as is necetivar}• ui protect 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 niekmg the loan seuired by this Mungage. Hurrrwer shill pay the premiums required to maintain such iruiurance in effect until such time as the requirement for wch msurance terminates in accordance with Borrower's and • ~ ~~K 327 Pa~E 2t~6 r _w._ _ _ - - .