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HomeMy WebLinkAbout0921 i 1~ 1 ! •,•1.;. tiil~ lJNtl'otiM COVBNAti11. Borrower and Lender covenant and agra as follows: 1~ hySatN V lsiactttl tttatl Ialesssl. Borrower :ftall promptly pay when due the pritcipal of sad interest on the iadeb~tetlnms evidenced by the Note. prepayment and bee clwrges ac provided in the Note, and the principal o[ and interest an any Futtu+e Advances strcured by this Mortgage. ltsri hr Tatra tt~ Irtsttrtttaee. Subject to ttpplicat+k law or to a written waiver by [.ender. Borrower shall pay to Leader on the day monthly irstallments of principal and intcrcct ~re payable under the Note. until the Note is paid in full. a stns (Itereire "Futtds'7 equal to one-twelfth of t~lte yearly ta>,~~ and assessttteots which may attain priority over this Mortgase, and ground rates on the Property, it any, plus one•tweltth of yearly premium ittstallmenq for hasard insurance. plus one-twelfth of yearly premium installments for mortgsge insurance, if any. art as reasonably estimated initially and thorn time to tune by Leader oa the basis of assacmcnts and hills and rcasonabk estimates thereof. The Funds shall be held in an institution the depostu or accounts of which are irtsured or guaranteed by a Federal of state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assesstrtenb. iwtrratnoe pemiums and ground rents. lender may not charge for sn holding and applying the Fttndc. analyzing said account, or verifyin=sad compiling said assessments and bills, 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 tune of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and wales: such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interat or earnings on the Funds. Lender shaA give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds std the purpose for which each debit to the Funds was made. The Funds arc pledged as additional security !or 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, assasmeau. insurance premiums and ground rents, shall exceed the atrtount required to pay said taxes. aaettsmeats, insurance premiums end ground rents as they tall 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 htdd blr Leader shag not be wfilcieat to pay taxes. assessrt?ents, insurance premiums and ground rents ss they [all due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. Upon paymeat is full of all stuaa secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Leader. If under paragraph 18 hereof the Property is sold or the Proptny is otherwise acquired by Lender, Lender :ball apply. rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. 3. AHtlieatioa of layreatr. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 sad 2 hereof shall bt applied by Lender first in payment of amounts payable to tender by Borrower wader 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. Ctsarses; Lkas. 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 pt+ovidod under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the payer: thereof. Borrower shall promptly furnish to Lender all erotica: of amounts due under this paragraph, and in the event Borrower shall make payment drrectly, Borrower shah promptly funrislc to l.i;ndcr receipts e:idtncing 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 lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia, legal ptoceMings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Harsrd lawrartce. 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 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 iviongage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shay! not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided wader paragraph 2 hereof or, if not paid in such manner. by Borrower malting payment, when due, directly to the iruuraace carrier. All insurance policies anJ renewals thereof shall be in form acceptable to Lender and shad 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 tarnish to Lender all renewal notices and all receipts of paid premiums. In the event of toss, Borrower shall give prompt notice to the insurance career and lxnder. 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 Property damaged, provrded such restoratron 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- It the Property rs abandorsed by Borrower, or it Borrower fails to respond to Lender within 30 days from the date notice rs mailed by Lender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance •proceeds at Lender's uption 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 Property is acquired by Lender, all right, title and interest of Borrower in sad to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to tlx; 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. hesenatioa and I?faioterranct of Properly; Leaseholds; Condominiums; Planned Unit Devebprneats. Borrower shall keep the Property in good repair and shall not comtoit Waste or permit impairment or deterioration of the Properly and shall comply with the provisions of any lease if this Mortgage rs on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall pcrfc?rm all of Borrowers obligations under the dcdaratiun or covenants creating or governing the condominrum or planned unit development, the by-laws and regulations of the condominium or planned unit develoi,nrent, and constituent documents. If a condominium or planned unit development rider is executed by Borrower anJ Secorded 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 F~ereof. ' 7. Protection of Lerde~s Security. If Borrower earls a• 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, including, but n.?t limped to. eminent domain. insolvency. axle enforcement. or arrangements or pro~etdiRge jtivolvtng a bankrupt or decedent. then lender at Lender's option, upon notice to Borrower, may make such app~~rances, 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 uprm the Property M make repairs. If Lender required mortgage inwrance as a condition of making the loan securcci by this Mongagc. Born:wer sh_dl pay the premiums required to maintain such insurance in effect until such time as the requirement for ,uch insurance terminates in accordance with Borrower's and ~ . 6noK~~ PdCE C~