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HomeMy WebLinkAbout0842 ~ !~j P UNIFQRM COVENANTS, Borrower aril Lender covenant and agree as follows: 1. Faynltnt of Principal and laterest. Borrower shall promptly pay when due the principal of and interest or. the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taiea and lasurance. Subject to applicabk law or 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 full.. a sum (herein "Funds") equal to one•twelfth at the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus orre-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts o[ which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said.account, or verifying and 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 time 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 annual accounting of the Funds showing credits and debits to the Funds and the purpose fur 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 of 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 amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be. at Berrowei 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 sufficient to pay taxes, assessments, insurance prertit+ms and ground rents as they fall 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 payment in full of all sutras secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property 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 time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law• provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall bi: applied by Lender first in payment of amounts payable to I_cndc~ by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note. and then to interr~st and principal on any Future Advances. - 4. Charger, Liens. Borrower shall pay all taxes assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this l~fortgage, and leasehold payments or ground rents. if any, in the manner provided un~kr paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dur, directly to the payee thereof. Borrower stall 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 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 Propertj• or any part thereof. 5. Hazard insurance. 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 ac !.ender may require and in such amounts and for ;uch periods ac Lender may require: provided, that Lender shall not require that the amount of such ~overagc exceed that amount of coverage required to pay the u+mc secured by this Mortgage. The insurance .:artier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreawnably withheld-All premiums on insurance•policies shall t?e paid in the manner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, din~ctly to the insurance carrier. All insurance policies and renewals thereof shall fk 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 renew•ah thereof, . and S.~rrow•er shall promptly furrish to Lender all renewal notices and all receipts of paid premi++mc- In the event of loss, f 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 grid Borrower othen+ise agree in writing, insurance proceeds shall be applied to restoration or repair of { the Property damaged, providkd such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not ea?nomirally~ 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 Born?w•er. If the Property is abandoned h}' Borrower, or if Borrower fails to respond to [.ender within 30 days from the date notice is mailed by Lender to Borrower that. the insurance carrier otters to settle a claim for insurance benefits, Lender t is authorized collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property ur *,o th~• sums secured by this Mortgage. - Unless [.ender and Born?w•cr otherwise agree in writin¢. any such application of proxeeds to principal ,hall 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. It under paragraph 18 hereof the Property is acquired b.• Lender, all right, title and interest of Borrower m 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. Presen•ation and ~laiatenance of Property; ixaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shat) comply with the provisions of arty lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a i condominium or a planned unit devclopmcnt, 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 the I conuominium or planned unit development, and constituent documents. !t a condominium or planned unit development 9 rider is executed by Borrower and recorded together w+th this Mortgage, the covenants anti agrcements of such rider shall be incorporated into and shall amend and supplement the co~~enants and agceements of this Mortgage as if the rider f were a Hart hereof. - ~ 7. Protection of Lender's Security. If Borrower faits to perform the covenants and agreements contained in this t Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including. but not limited to, eminent domain, insolvency, code entorcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Leader's option, upon notion to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lenders interest, including, but not limited to. disbursement of reasonable attorney's tees and entry upon the Property to make repairs. if Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums acquired to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and t, ~ ~ * X341 P~~ 842 r- _ ~ -