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HomeMy WebLinkAbout1421 . Ut+ttratat Covananis. borrower and Leader covenant and agree u follows: 1. lTt4ss~t K Ihitteiwl tttN IMatrsat. borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note. and the principal o[ and interest ors any Futtirc Advances securod by this Mortgage. IEti¦tis fetr'1'a:es tt+tttl 1rMree. Slibjoct to applicable law or to a written waiver by Leader. Borrowtr shall pay to Lender on the day monthly installments of principal and intere~l arc. payable under the Note, until the Note a paid in full, j • sum (barcin "Funds' equal to one-twelfth of the yearly taxc~ and assessments which may attain priority over this Mo~tige. and grotstd rents on the Property. if any, plus ortatwelfth of yearly premium installmenb for hazard insurance, _ 1 plus one-twelfth of yearly premium installments for mortgage inuirance, it any. all u seasonably estimated initially and from time to tisrte by Lender on the buffs of assessments and hills and reasonable estimates thereof. 'ILe Funds shall be held in an institution the deposiu or accounts of which arc insured or guaranteed by a Federal of state agency (inchtding Lender if Lender is such an institutionl. 1_ender shall apply the Funds to pay said taxes. assessments, ittwraaoe premiums and ground ants. lender may not charge for so holding and applying the Fiirtd~. analysing said account, or verifying.and compiling said assessments and bilk, unless Lender pays Borrower interest .on the Funds and applicable law permit: Leader to make such a charge. Borrower sad Lender may agree in writing at the time of execution of tha Z Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires suds 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 annwl 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 u additional security for the sums secured by this Mortgage. ~ If the amount of the Fuadti held by Lender, together with the future monthly installments of Funds payable prar to the due dates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay uid taxes, assesnnents, insurance premiums sad ground rents u they fall due. such excess shall be. at Borrower's option. either promptly repaid to Borrower a credited to Borrower on monthly installmenu of Funds. If the amount of the Funds htdd by Lender shall not be sufficient to pay taxes. assessments. insurance premiums and ground rents u 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 Letader 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 !+y t..a.~.r, Ir p..t~ Ig wrrof the ProgcsiS sold~or the Propertf u; rriuoiwiaa i<Cyiiiict~ by Lender, Lender - shaU apply. no later than immediately prior to the sale of the Property or ifs acquisition by Lender. any Funds held by Lender at the tithe of application u- a credit against the sums secured by this Mortgage. 3. A~iicatloa of litYmeNs. Unless applicable law provides otherwise. all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lendef 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; Llie~s. 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 puagraph 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 ment direct) Borrower h pay y, s all promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which hu priority over this Mortgage; provided, that Borrower shall not be required to discharge any wch lien so long as Borrower shall agree in writing to the payment of the obligatwn 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 ity legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. t S. Aaaard lasiirawce. 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 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 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 aid in such manner b Bo w p rro er makin t when due direr to the Y 8 PaY~ insurance carrier. ~ ~ j 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, I 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 Properly 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 i 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, or if Borrower tails 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 monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the ProFerty 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 thy: sale or acquisition shall pass to lender to the extent of the sums secured by this Mortgage immediately prior. to such 'sale or acquisition. L. Preservatba sad Maintenance of Properly; Leaseholds; Condominiums; .Planned Unit IDerelopmeats. Borrower shall keep the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Property ` ~ sad shall comply with the provisions of any lease if this Mortgage is on a leasehold. 1f this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaration , ~ or covenants creating or governing the condominium or planned unit development, the by-laws and reg~ilatinng pf the condominium or planned unit development, and 'constituent documents. If a condominium or planned unit development 1 ~ 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. If Borrower fails to perform the covenants and agreements contained in this E Mortgage, or if any action ur proceeding is commenced which materially aBects Lender's interest in the Property, including, but not limited to, eminent domain. incolvency. code enfc?rcement. or arrangements or proceedings invoking a bankrupt or decedent. then 1_ender at lender s option, upon nc?Iice to Borrower. may make such appearances, disburse such sums and take such action as is necessary to protect Lender's inlcrest, including, but not limbed to, disbursement of f reasonable auomey's fees and entry upon the Property Io make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such F insurance in effect until wch time as the requirement fur such insurance terminates in accordance with Borrowers and ~ B(i0K•.~4.0 PAGE~,~,1