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HomeMy WebLinkAbout2318 • ,t UNrrOaw COVBNANTa. Borrower and Lender covenant and agree as follows: . 1. )lrtyraeat e+t hinciMl aai Weteat. Borrower shall promptly pay when due the principal o[ and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest on say Future Advances secured by this Mortgage. llrads for Tara tart ittrp~ee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest arc payable under the Note, unfit the Note is paid in [all, a stun (herein "Funds' equal to one-twelhh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rent on the Property, if say. plus one•twelfth of yearly premium installments for hazard inwrarroe. plus one-twelfth of yearly premium insta0raertts for mortgage insurance. if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and rea:onabb estimates thereof. 77re Fund: shall be bold in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (inchding Leader if Lender is:uch an institution). Lender shall apply the Funds to pay said taxes. astansrnertts, inwrance premiums and ground Hats. Lender may not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessment: and bills, unless Lender pays Borrower interest oa the Funds and appligbk'law permits Leader to make such a charge. Borrower sad 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 earningsba the Funds. Lender shall give to Borrower, without charge. an annual aooounting of the Funds showing credits and debits to the Funds sad 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 of the Funds hdd 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, imuranoe 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 Fund: held by Lender, shall not be wfficieat to pay taxes. assessment:. insurance premiums and ground rents a: 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. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragaph 18 hereof the Property is sold or the Property 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 time of applicat~ as a credit against the sums secured by this Mortgage. 3. A~catiou of pgrasesds. Unless applicable law provides otherwise. all payments received by Lender under the Note and paragraphs 1 sad 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. Ciarge~ 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, 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 long ai 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 Sre. hoards 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 by this Mortgage. . 'Il1e inwrance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall sot be unreasonably withheld.. All premiums on insurance pdicies 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 insurantx carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagt clause in favor of and in form acceptable to Leader. Lender shall have the right to hold the policies and renewals thereof. and Borrower shall promptly furnish to Lender all renewal notices and all cueipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of krss if not made promptly by Borrower. Unless Lender and Borrower otherwise agrce in writing, insurance proceeds shall be applied to ratoration or.rcpair of the Property damaged, provided such restoration or repair is econerr;isally feasible and the security of this Mortgage is ~ not thereby impaired. If such restoration or repair is not economicaily feasible or if the security of this Mortgage would ~ be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid E to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the E date notice is mailed by Lender to Borrower that the insurance carrier of[ers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance prooeods at Lender's option either to restoration or repair of the Property II or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agrce 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 1 and 2 hereof or change the amount of E such irutallments. If under puagraph l8 hereof the Property is acquired by Leader, all right, title and interest of Borrower in and to any insurance policies and in and to the procceds -thereof resulting from damage to the Property prior to the sale or acquisition shall puss to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. _ ~ 6. traervatioa sad Maiatenaoce of Properly; Leaseholds; Coadominiuros: Planned Uuit lkrebpmeats. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a f condominium or a planned unit development, Borrower shall perform all of Borrower a 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 trait 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. Prottctioo of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this .Mortgage. or if any action or proceeding is commenced which materially affects Lender's interest in the Property, ~ 3 including, but not limited to, eminent domain. insolvency. code enforcement. or arrangements or proceedings involving a k bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such E sums and take such action as is necessary to protect Lenders interest, including, but not limited to. disbursement of reasonable attorney's fees and entry upon the Properly to 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 insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowers and • 800Kc~ PAGE~t~? i - v~ ~ _ _ -