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HomeMy WebLinkAbout0140 ' ~ . - UNttroaus COVENANTS. Borrower and Lender covenant and agree as follows: 1. )T~rest o1 hiaelprti ttr>si 1MereM. Borrower shall promptly pay when due the principal of and interest on the indebtednea evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on goy Future Advances secured by this Mortgage. 2. ltsnis for TuM acrd ftraraeee. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay to Lender on the day ttronthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? egwl to one-twelfth of the yearl~• taxc. and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one•twelfth of yearly premium installments for hazard insurance. pros orte-twelfth of yearly premium instailtnents for mortgage insurance, if any, ail ss ressonably estimated initially and from time to tune by Leader on the basis 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 guaranteed by a Federal of state agency (including Lender if Lender is such an irutitutionl. 1-ender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. lender may not charge for so holding snd applying the Funds. analyzing said account, or verifying acrd compiling said assessments and bills, unless Lender pays BorTOwer 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 exceution of this Mortgage 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 are 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 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 strtficieat to pay taxes. assessments, insurance premiums and ground rents as they fall due, BorTatrer 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 is full of all sums 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 Progeny is 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 Lender at the tune of application as a credit against the sums secured by this Mortgage. 3. ApplkMiora of Payttaents. 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 payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. t. Crarges; Liens. Borrower shall pay all taxes, assessments and other• charges,, tines and impositions attributable to . the Property which may attain a priority over this Mortgage, and leasehold pa~rments or ground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrowler making ~itylment, when due, directly to the payer thereof. Borrower shall promptly [urnish 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; proviik~, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payineht of the obligation secured by ss^.h lien iz a :z:3nr>~r acceptable to Lender, or shall in gocxl 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 o[ the Property or any part thereof. . S. Hazard Irtsrrrswce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendeJ.cuverage'", 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 [_ender. 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 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 career 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 ~s 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 of this Mortgage would bt 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 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 monthl}• installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. if under paragraph 18 hereof the Property is acquired 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~ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not comrpit 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 de~•elupment, Borrower shall pertorm all of Borrower's obligations under the declaration or covenants creating ur governing the cundom~mum nr planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned umt 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. 1( Bom,wer faik to perform the covenants and agreements contained in this Mortgage, or if any action or prc?ceeding is a~mmenced which materially affects Lender's interest in the Property, including. but nut limned to, eminent domain. ma.henc~, code enforcement, or arrangements or proceedings involi•ing a . bankrupt or decedent, then Lender at Lender's option, ulx~n notice to Borrower, map make such appearances, disburse such sums and take such action ac ~s necessary to protect Lender's interest, including. but not limited to, disbursement ~f reasonable attorney's fees and entry upon the Property to make repairs. 1( Lender required mortgage inwrance as a c:ondiUon of making the loan secure) by this Mortgage. Bornvwer shall pay the premiums require) to maintain such insurance in etiect until such time as the requirement Jor such msurance terminates in accordance with Borrower's and 328 P>i~E 140 ~ '