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HomeMy WebLinkAbout1406 . . i - UNtlOaM COYlNANT3. Borrower and Lendef COVenanl and agree as follows: lk ltt~t of FrinelMl ttttrr[ ltNenst. Borrower shall promptly pay when due the principal of and interest on the indebtednesx evidetvoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances sceured by this Mortgage. - 2. 1BrNis for Tuna arts Irtasrtnce. Subject to applicabk law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inuallments of principal and interest are payabk under the Note. until the Note is paid in full, a sum (herein "Fttnds'~ egwl to one-twelfth of the yearly taxc. and assessments which may attain priority over this Mortgage, arid ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus oae-twelfth of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from time to time by Lender on the buts of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal of state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes. assessments. irtsurataoe premiums and ground rents. 1_ender may not charge for so holding and applying the Fonds. analyzing said account, or vrrifying.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 be paid to Borrower. and unless such agreement a 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 arc pledged as additional security for the sums secured by this Mortgage. If the amount o[ the Funds held 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 said taxes. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's 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 as they fall due. Borrwrer shall 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 payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by bender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. ra 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 as a credit against the sums secured by this Mortgage. 3. Applkatiort of Payneats. 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. 4. Charges; Lkas. 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 payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directl}•, 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. Hazard Insurance. 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 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 Eby 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 shat) 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 I'~ 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 nonce to the insurance carrier and Lender. Lender map make proof of loss if not made promptly by Borrower. j Unless Lender and Borrower otherwrse agree in w•ritrng, insurance proceeds shall be applied to restoration or repair of `r the Property damaged, provided such restoration or reparr 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 I be impaired, the insurance pra:eeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. !f the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the date notice is marled by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender t is authorized to collect and apply the msurarice 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 rn w•rrting, 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 Property is acyurred by Fender, 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 Properly 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 1laintenance of Property; I,easehulds; Condominiums; Planned Unit 1Developments. Borrower shall keep the Property in good repair and shall not commit y?•aste or permit impairment or deterioration of the Property • and shall comply with the provisions of any lease if this 4ortgage rs on a leasehold. If this Mortgage is on a snit in a condominium or a planned umt development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or guvernrng the condomimum or planned unit development, the by-laws and regulations of the q condominium or planned unit development. and constituent documents. If a condominium or planned unit development rider rs executed by Borrower and recorded together ..ith this Mortgage, the covenants and agreements of such rider a shall be incorporated rote and shall amend and wpplement the covenants and agreements of this Mortgage as if the rider t were a part hereof. 7. Protection of f.ender'; Security. If Born~wer fa~l~ to perform the covenants and agreements contained in this ' Mortgage. or if any action or proceeding rti commenced which materially affects Lender's interest in the Property. mdudmg, but n~H Gmged to. emrncnt domain. rm~~hcncy. c~xfc enforcement, or arrangements or proceedings invoh-ing a bankrupt or decedent, then Lender at Lender's option, ulx~n notice to Borrower, may make such appearances, disburse such sums and take such action as rs,nece~sary to protect Lender's interest, includrng. but not limned to,~disbursement of reasonable auomey's fees and entry up~ar the Property to make repairs. If I_cnder required mortgage insurance as a condrt+on of making the loan secured by thrs Mortgage. Borra~cr shill pay the premiums required to maintain such insurance in effect until wch trine as the rcyurrement for arch rnsurancc terminates rn accordance with Borrower's and ~~~~7 P~~~.4t15 axe. _