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HomeMy WebLinkAbout2271 i ~~...,t s ; Ur+uotur Covtt:rtst~rra. Borrower snd Leader covenant and agree u follow:: 3. 1<sp~etit e>t rebeetpal atitl IMeresl. Borrower :hall promptly psy when due the principal of and interest on the iefdebtednat evidertoed by fife Nate. prepayrnertt and late charges as provided in the Note, and the principal of sari interest oa any Future Advances stxttned by this Mortgage. ltstt+i ftK Tttaas atstl lttaranc'e. Sbbject to applicable law .x to a written waiver by Lender, Borrower shall pay to Leader on fife day monthly installments of principal and interest ~rc payable under the Note. until the Note is paid in full. a sum (herein •'Fuads'q equal to one-twelfth of the yearly taz~~ and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearlli premium installments for haurd insurance. plus ooe-twel[th of yearly premium installments for mortgage insurance. if any. all u reasonably estimated initially and ir+om tune to tithe by Leader on the hula of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insttrod or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). 1_ender shall apply the Funds to pay said toes, assessments. imunnoe premiums and ground rents. lender may not charge for :n holding and applying the Fonds. analyzing said account, or veritying.artd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Leader to make such a charge. Borrower sari Lender may agree in writing at the tune 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 annwl accounting of the Funds showing credits and debits to the Funds and the purpose fot which each debit to the Funds was made. The Funds arc pledged u 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, assessmenu, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. atseuroents, insurance premiums and ground rents u they fall due, such exceu shall be, at Borrowers option, either promptly repaid to Borrower or crodited to Borrower on monthly installments of Funds. If the amount of the Funds held by Leader shall not be wtficieat to pay taxes. assessments. insurance premiums and ground rents u they fall due, Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Deader to Borrower requesting payment thereof. Upoa payment in full of all sutras secured by this Mortgage, lender shall promptly refund to Borcower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Propeny 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 tithe of application as a credit against the sums secured by this Mortgage. 3. Application of Paymetsls. Unless applicable law provides otherwise, alt 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. Charges; iieas. Borrower shall pay all (axes, 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 as Borrower shall agree in writing to the payment of the obligation secured by such litn 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 Iasrrratuce. Borrower shall keep the improvements now' existing or hereafter erected on the Property insured agairut loss by fire, hazards included within the term "extended coverage", and such other hazards u 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 tbe sums secured by this Mortgage. 'Ihe 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 ~ 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 3 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 rmt economically 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 to Borrower. I( 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 (o 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 Propertv 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 1 and 2 hereof or change the amount of such installments. I( under paragraph 1 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 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. Preser.ation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall kcep the Property in good repair and shall not commit yvaste 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 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 1 condominium or planned unit development, and constituent documents. I(a condominium or planned unit 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. I( Borrower fails tc? perform the covenants and agreements contained in this ~ Mortgage, or if any action ur proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to. eminent domain. insc.lvency. code enforcement, orerrangements or proceedings involving a ~ bankrupt or decedent, the: 1_ender at Lender's option, upon notice to Borrower; ma}' make such appearances, disburse such sums and take such action ac is necessary to protect Lender's interest. including. but not limited to, disbursement of reasonable attorney's ices and entry upon the Propert}' to make repairs. It Lender. required mortgage insurance as a condition of making the loan secured by this hlartgage. Borrower shell pay the premiums required to maintain such insurance in effect until such time as the reyuircment for such insurance terminates in accordance with Borrower's and ' g~~. `31 ~a~E~?68 -