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HomeMy WebLinkAbout1146 ~ ; ~ ~ I Untt~ Covenatm. Borrower and Lender covenant and agra ss follows: 1~. laytwetN W hineipel ttttti lnterat. 8orrowu shall promptly pay when due the principal of and interest on the indebtednat evidet?oed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any Futons Advances secured by this Mortgage. - 3. >FtrMs ter Tssee snti lawraea~e. Subject to applicable law tr 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. until the Note is paid in toll, a sum (herein "Fturdt`~ equal to one-twelfth of the yearly taa~~ and assessments which may attain priority over this Mortgage. and ground rents on the Property. it any. plus orte-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yeuly premium installments for mortgage insurance. if any, all ss reasonably estimated initially and from time to tiros by Larder on the basis of assessmems and hills and reasonable estimates thereof. The Futtds shall be betd in an institution the deposits or accounts of which arc insured or gwranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asseutnents. insurance praniutns and ground rents. lender may not charge for sn holding and applying the Fonds. analysing said account, or verifying and compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and applicable law permits Larder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unku 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 annual accounting of the Funds showing credits 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 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, assessments. insurance premiums and ground rents, shall exceed the amcwnt required to pay said taxes, asspttnents, insurance 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 serf6cieat to pay taxes, assessments, insurance premiums and ground rents as they tall due. Borrower drat) 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 [ull of all sums :acuttd by this Mortgage, !.ender shall promptly rctund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lentkr, 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 application as a credit against the sums secured by this Mortgage. 3. AppBcaRion of Prr<ymeafs. Unless applicable law provides otherwise, aU payments received by )..ender under the Note and paragraphs I 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. I. Ciarga; Lkas. Borrower shall pay all taxer. 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 hertof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee ther+cof. 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 lien in a manner acceptable to Lender, or shall in goad faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enfi?rcement of the hen or forfeiture of the Property or any part thereof. S. Haaari Inwraiice. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "tatended coverage", and such other hazards as Lender may reyuire 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 rfie sums secured by this Mortgage. The 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 prcmiumc.an 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 curler. 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 shaA have the right to hold the policies and renewals thereof, and Borrov?•er 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 career and Lender. Lender may make proof of loss if not made promptly by Borrower. IJolus Lender and Borrower othtrwne agree in writing, insurance proceeds shall bt 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 shelf be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Burrower, or it Borrower tails to respond to Lender within 30 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is autboriud to collect and apply the insurance proceeds at I_enJer'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 not extend or postpone the due date of the monthly installments referred to in paragraphs !and 2 hereof or change the amount of such installments. If under paragraph 1 S hereof the Property is acyuued 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 1,'ait 1Devefiopments. Borrower shall kcep 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 un a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obhgadons 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 dixumems. If a condominium or planned unit development rider is executed by Borrower and recordtd together with the Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend anJ Supplement the coccnams and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If B~rruwer fails to perform the covenants and agreements contained in this Mortgage, or if any action i.r proceeding is a?mmenced which materially affects Lender's interest in the Property, including, but nut limited to, eminent domain. inu•lvency. c~x1e enforcement, or arrangements or proceedings mvohing a bankrupt or decedent, then Lender at Lender i 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 oat limited to. disbursement of reasonable attorney's feet and entry upon the Property to make repairs. I( 1_endcr reyuired mortgage insurance aces condiUun elf making the loan sewrcd by this Mortgage, Burrrwer shill pay the premuum required to maintain wch insurance in efltct until such Gmcrc the: reyuirrnient fur wch insuran.e termuiates in accordance with Borrower's and • aoox340 PlGE1.146 • a