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HomeMy WebLinkAbout1053 t 1 , - , i UNrraw trOVdNAHfTa. Borrower and Lender covenant and agree as follows: 11. >nsprwatN of FeiretMi atstl IrtMresl. Borrower shall promptly pay when due the principal of and interest on the iadsbtedness evidenced by the Note, prepayment and late charges ac provided in the Note, and lira principal of and interest oa nay Future Advatttxs secured by this Mortgage. 2. >Ftirsis ter'fhaas ~ Isrtsrteet. Subject to applicable bw ~x to a written waiver by Lender, Borrower shall pay to Lender on the day monthly irtstallments•ot principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Fuads'7 equal to one-twelfth of the yearly taxs~ and assessments which may attain priority Duet this Mortgage, and ground rents on the Property. if any, plus orte-twelfth of yearly premium installments for hazard insurance. plus oaatwellth of yearly premium inuallments for mortgage insurance, it any, all as reasonably estimated initially and from dme to time by Leader on the basis of asseumcnts and fiills and nasanabk estimates thereof. 'ILe Flrrtds shall be held in an institutirn the deposits or accounts of which arc inwred or guaranteed by a Federal of 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. 1_ender may not charge for so holding and applying the Funds. analyzing said account. of verifyingand compiling said assessments and bilk, unless Lender pays Borrower interest on the Funds and spplicaMe 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 unless such agreement is made or applicable law roquira such interest to be paid, Lender shall not be required to pay Borrawtr any interat 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 wu 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, imurance premiums and ground rents, shall exceed the amount required to pay uid taxes. assessments, iasurantx premiums and ground rents u 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. It the amount of the Funds held try Leader shall not be sufTicieat to pay taxes. aasetsrrteats, insurance premiums and ground rents ss 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 Lender to Borrower t!equesting payment thereof. Upon payment is full of all sums secured by this Mortgage, lender ahs>l promptly refund to Borrower any Funds held by Leader. It under paragraph 18 hereof the Property is sold or the Property rs 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 Paysesrls. Unless applicable law provides otherwise, all payments received by Lender under the Note sad 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. 4. Ciargesy Licas. Borrower shall pay all taxes: assessments and other charges, tines and imposition: 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. when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under- this paragraph. and in ttre 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 en[orcement 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. Hazard Insrrrawce. Borrower shall keep the improvements now existing or hereafter eructed on the Property insured _ against loss by fire, hazuds 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 Mortgage. ',I '[he 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 insuntxe 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, f and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower half give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance prxceds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ecorwmically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or it 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 it Borrower fails to respond to Lender 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 Lenders option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Ixnder and Borrower otherwise agree in writing, any such application of procetds to principal shall not extend ar postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of + such installments. If under paragraph 18 hereof the Property is acquired by Lender, all tight, title and interest of Borrower in and to any Rrsurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pus to lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Mauotenaace of Property; leaseholds; Condominiums; Planned Unit Derebpmeals. Borrower shall keep the Property in good repair and shall not commit yvaste or permit impairmept or deterioration of the Property and shall comply with the provisions of any lease +f this Mortgage rs un a leasehold. If 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-taws and regulations of the l condominium or planned unit development. and constituent documents. If a condominium or planned unit development a 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 Leader's Security. if Borrower fails to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding +s c+immenced which materially attests Lender's interest in the Property. including. but nut limited to. eminent domain. inw~lvency. code enforcement. ar arrangements or proceedings involving 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 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 secured by this Mortgage. Borrower .shaft pay the premiums required to maintain such insurance in cBect until such time as the requirement for such insurance term+nates in accordance with Borrowers and ' ~ BtI~K 341 PsGf ~lJtl t, ~r _ _ . _ _ _ _