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HomeMy WebLinkAbout0164 _ , UNtroRw COVeNANTS. Borrower and Lender covenant and agree u follows: 1. Pttt~weat of Pr1ocIN1 aoi Irttteted. Borrower shall promptly pay when due the principal of and interest on the indebtedneu evidetxxd by the Note. prcpsyment and late charges as provided in the Note, and the principal of and interest oe any Future Advances secured by this Mortgage: 2. lhui for Tuea ttoi iwrtoa~e. Subject to applicabk law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and intcrest arc payabk under the Note. until the Note is paid in full, a sum (herein "Funds") egwl to one•twelfth of the yearl~~ tars and assessments which may attain priority over this Mortgage. snd ground rents on the Property, if any. plus one-twelfth of yearly premium installments for hazard insurance. plus otx-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and tram time to time by Lender on the basis of assessments and hills and reasonable estimates thereof: 'ilte Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal olr state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. inuurance premiums and ground rents. (-ender may not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interat 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 interat on .the hunds shall be paid to Borrower, and uaiaa aw:h igreerncnt is made or applicabk law requires such interat to be paid. Lender shall not be required to pay Borrower any interat 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 thri Mortgage. If the amount o[ the Fut>ds held by Lender, togelhtr with the future monthly installments of Funds payabk prior to the due data of taxes, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. asseas<nents, 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 shag not be sufficient 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 notice is mailed by Lender to Borrower regtrating payment thereof. Upon payment in 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 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 hei3 by Lender at the time of application as a credit against the sums secured by this Mortgage. ' 3. A~plicatioe of Payweals. Unless applicable law provide 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. 1. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and in?positions 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 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 tong 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 Inwrawee. Borrower shall kcep 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 ryray require and in such amounts and for such periods as Lender may require; provideJ, that Lender shall not require that the amount o[ 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 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 E 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 !.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 not economically feasible or it the security of this Mortgage would - be impaired,-the insurance proceeds shali be applied to the stuns secured by this Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or it 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 far insurance benefits,-Lender is authorized to collect and apply the insurance proceeds at tender'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 riot 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 I S 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 Properly prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this I?lortgage immediately prior to such sale or acquisition. • 6. Preservation and ~taiotenance of Property; leaseholds; Condominiums; Planned Unit Developments. Borrower shall kcep the Property in good repair and shall not commit Kaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease ~f this Mortgage is on a leasehold. If this Mortgage is on a unit in a s 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 rernrded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall emend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Born,wer fads to perform the covenants and agreements contained in this Mortgage, or if any action ur pra:eeding ~s u~mmcnced which materially affects Lender's interest in the Property, includmg. but not limited to. eminent domain. inu.lvenc}•, code enforcement. or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lender's option, up~m notice to Borrower, may make such appearances, dishurse such sums and take such action as is necessary w protect Lender's intcrest, including. but not limited to, disbursement of reasonable attorney's fees and entry up~m the Property to make repairs. If Lender reyuired mortgage insurance as a condgion of making the loan secured by this Mortgage. &~rmwcr shall pay the premiums required to maintain such inuurance in effect until such time as the reyuircrnent (or wch msurance terminates ~n :recordance with Borrower's and ELYA~(eJ~ PMCE 164