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HomeMy WebLinkAbout1290 • ' ~ ~ 'i . i •yl'~~ UntroRw Oovanar+TS. Borrower and Leader covenant and agree a follows: 1 >ngmstN M fhire~al tttai IaNtresf. Borrower shall promptly pay when due the principal of and interest on the utdebtedntxs evidgtoed by the Note. prepayment and late charges as provided in the Nde. and the principal d and interest as say Futtrro Advattces strcw+ed by thh Morgage. ltiais fret Taans trs>i irtwra~et. Sbbject to applicable law •x to a written waiver by Lender. Bono~wer shall pay to Leader oa the day monthly installments of principal sod interest arc. payable under the Note. until the Note is paid in full. a sum (Mrein "Funds' equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage, and ground rents oa the Property. if any, plus one-twelfth of ygrlli• premium installments for hazard insurance. plus one-twelfth of yearly premium installment: for mortgage instrrartce, i/ any. all as reasonably estimated initially and from drtte to tuna by Leader oa the basis of assessments and hilh and rcssonsbk estimates thereof. 7Le Funds shall be held in an institution the deposits or accounts of which are iraured or guaranteed by a Federal of state agency (incltding Ltrder if Lender is such an institutionl. (..ender shall apply the Funds to pay said taxes. assessments. itutrranoe premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account. or varifying.ttnd compiling said assessments and bilk, unless Lender pays Borrower interest 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 interest on the Fut~ shall be paid to Borrower, and unless wch agreement a 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 credit: and debits to the Funds and the purpose for which-each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by the 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. ttssessmeats, insurance premiums and ground rents. shall exceed the amount required to pay said taxes, asswments, iasurantx premiums and ground rents as they fall due.. such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrows on monthly installments oI Funds. If the amount of the Funds bead by Letstfier shall not be strfScieat to pay taxes. assessments. insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up thrdeficiency within 30 days from the date notice is mailed by Leader 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. It under paragraph 18 hereof the Property is sold or the Propeny rs dherwise acquired by Lender. Lender shall sppty. rte later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held br Leader at the time of application as a credit against the sums secured by this Mortgage. 3. ApNkatitt~ of 11'tpaseMs. 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 amount: payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Nde. then to the principal of the Note. and then to interest and principal on any Future Advinoes. 4. Ctiarge~ 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 prvvidod under paragraph 2 hereof or, if nd 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 is 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 bt requited 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 iq legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. IAarard laaraaee. 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 is such amounts and for such periods as Lender may require; provided, that Lender shall nd require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 1be 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. ~ sad 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 Ions 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 Mortgage, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or i( Borrower fails to respond to Leader 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 procceds 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 nd extend or postpone the due date of the monthly installments referred to in paragraphs t and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower s 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. f. treservatioe and Maiaterwnce of Property; Leasehdds; Condomiait+ms; Planned Unit Devdopmeats. Borrower shall keep the Property is good repair and s6:ll not comrpit yvaste or permit impairment or deterioration of the Property F 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 ( condominium or planned unit development, and constituent documents. If a condominium or planned unit development ~ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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 Leader's Secrrrtty. If Borrower tads to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commence) which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or pcroeeediiigs involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. 1f Lender required mortgage insurance as a cond~Uon of making the loan secured by this Mortgage. Barrov?cr shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such msurance terminates m accordance with Borrower's and BooK~`t Pd~E1287