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HomeMy WebLinkAbout0896 t i• - ? Uxtt~ortnt Oovaxax». 8orrowar and Lender covenant and agree ss follows: 1. rq?asartt N Mnelpttl tttsi hhnet. Borrower shall promptly pay when due tba principal of and interest on the indebtednps evidenced by tba Note. prepayment and late charts as provided i~t the Note. and tha principal of and interest as any Future Advantxs stxttrod by this Mortgttga. tttYrsti tl4r Tinras creed Ittetrrtrke. Subjtxt to applicable law ar to a written waiver by Lender. Bon+ower shall trey to Lender on tlla day monthly installments of principal and interest arc. payable under the Note. until the Note is paid in full. a tram (Itetein "Fttnds'h equal to ortatwelfth of the yearl)• taa~~ and assessments which tray attain priority over this Mortgage. turd pound rend on tba Property, if any. plus one-twelfth of year!)? premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, it any. all ss reuonably estimated initially and tram lima to time by Leader oa the basis of assessments and hills and roasonabk estimates thereof. '11te Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of state agertcy (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes. assessments. 'ittwranoa prerrtiuttu and grouted roots. Lender may na charge for sn holding and applying the Fonds. analyzing said account, or verifying.std compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law petmtia Leader to make such a cMrge. Borrower std Lender may agree in writing at the tithe of execution of this Mortgages that interest on the Funds dull be paid to Borrower, and unless such agreement is made or applipbk law ' requires such interest to be paid. Lender shall tat be roquired to pay Borrower any interest or earnings on the Funds. Lender shall give to Bo?rotwer, without charge, an annual accounting of the Funds showing credits and debits to the Funds geed the purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Mottpge. If tba amount of the Futs~ held by Lendt:, together with the future monthly installments of Funds payable prior to the dues data of taxes, assessmatu, irsurance premiums and ground rents, shall exceed the amount required to pay said taxes. ataeatnents, iruurttnce 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 funds held by Lender shall not be wfTicieat to pay taxes, assessments, irtsurartce premiums and ground rents u they fall due, Borrov?er shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lander to Borrower requesting payment thereof. Upon paytatent in fuB of all soma secured by this Mortgage, tender shall promptly refund to Borrower any Funds heW by Lender. If under paragraph 18 hereof the Property is sold or the Properly as otherwise acquired by Lender. Lender shall apply. no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Lender at the time: of application a,: a credit against the sums secured by this Mortgage. 3. Att>llkatlort of ltgrtite~b. Unless appliabt law provides otherwise, all payrents rtceived 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. 1L'harges; )[.teas. 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, whin due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notitts 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. Borr~owtr shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be requited to discharge any such lien so bog 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. Hasard Inarawet. $orrower shall keep the improvements now• existing or hereafter erected on the Property insurod against leas by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require gad in such amounts and for such periods as Lender may require: provided, that Lender shall rent require that the amount of such rnverage exceed that arnount of coverage required to pay the sums secured by this Mortgage. 'Ibe 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 [.ender. Lender shall have the right to hold the policies and renewals thereof. and $orrower shalt promptly furnish to Lender al! renewal notices and all receipts of paid promiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not madt promptly by Borrower. - - Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat) 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 rat 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 if Borrower fails to, respond to Lender within 30 days from the date notice is mailed by Linder 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 wms 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 hereo[ or change the amount of wc6 irtstallmeats. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in std 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. heaervatbn and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Devebprrreats. Borrower shall kelp 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 it this Mortgage is on a leasehold. li 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 regulations of tht condominium or planned unit development. and constituent documents. It 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 Lenders Security. !f Borrower fade a+ perf+~rm the covenants and agreements contained in this Mortgage, or if any action or proceeding is cx+mmenced which materially affects Lender's interest in the Property, including, but n•u limited to, eminent domain. in~olvenc}•. c+xie enforcement, or arrangements or proceedings -involving a bankrupt or decedent. then [.ender at 1-ender s option, upon notice to Borrower, may make such aptlearances; disburse such 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 Property to make repairs. If Lender required mortgage insurance as a condition of making the loan ucured by this Mortgage. Born:wcr sh-ell tray the premiums required to maintain such insurance in effect until such time as the reyuiremem for .uch msuran:e termtriates in accordance with Borrowers and • - - BC1K JJ7 PAGE tees » ,