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HomeMy WebLinkAbout0170 • ~ . + ~ ` • i • ~ ~ ~ UNt>faw COVENANT:. Borrower and lender covenant and agroe as follows: 1r ItiOsnent ed hinelpai and INeral. 8orrowu shall promptly pay when due the principal of and interest on the indebtedness evideuoed by the Note. Prepayment and late charges as provided in the Note, and the principal of and interest txt any Futuro Advances :vetoed by this Mortgsge. L Igtesis tot Teas ni Irrsorarrce. Subject to applicable law ~.r to a written waiver by Lender. Borrower shall WY to Lender on the day monthly installments of principal and interest arc. payable under the Note, until the Note is paid in full, a sum (herein "Ftutds'~ equal to orte-twelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage, and ground rent: on the Property. if any. plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium inuallments for mortgage insurance, it any. all as reasonably estimated initially and from time to time by Lender 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 are insured or gwranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. imurance premiums and ground rents. 1_ender may not charge for so holding and applying the Frrndx. analyzing said account, or verifying and compiling aid assessments and bills, unless Lender pays BotTOVtrer interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Under 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 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 tha Mortgage. If the amount of 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, ass~ments, insurance premiums and ground rcnu 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 hdd by Lender shall 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 requesting payment thereof. Upoo 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 held by Lender at the time of application as a credit against the. sums secured by this Mortgage. 3. Arplicatiorr of Psyttnetnts. 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. Crarges; Liens. 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, it 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 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. IHazsrd Incurargee. 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 rod in such amounts and for such periods as Lender may require; provided, 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 rtot paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance p.~licies 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 carrier 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 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 Mortgsge, with the eECess, 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 rs 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 Niue date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. It 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;, Plsnned Unit IIkvebpments. Borrower shall keep the Property in good repair and shall not comtpit Waste or permit impairment or deterioration of the Property and shall amply with the provisions of any lease rt this Mortgage rs on a leasehold. If this Mortgage is on a unit in a condominium or a planned amt development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condomrnum or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent dcxumentc. 1f a condominium or planned unit development rider is executed by Borrower and recorded together v.ith thie 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 Lenders Blearily. If BorroWCr fair to perform the covenants and agreements contained in this 6 Mortgage, or if any action ur proceeding rc commenced which materially affects Lender's interest in the Property, including. but not limned to. eminent domain. in«.Ivency, code enforcement. or arrangements or proceedings involving a bankrupt or decedent, then lender at Lender's option, upon notice to Borrower, may make such appearances, dishurse such sums and take such action ac is necessary to protect Lender's interest, including. but not limned to, disbursement of reasonable attorney's fees and entry upon .the Property to make repairs. If Lender rcyuired mortgage insurance as a . condition of making the loan ~ccured by this Mortgage. Bormv?rr shall pay the premiums required to maintain such insurance in effect until such time as the reyuiranent for ,uch insurance terminates in accordance with Borrower's and aaou 328 PeGE ~ . .