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HomeMy WebLinkAbout1556 UNtraw COVHNAPITS, Borrower and Lender covenant and agree u follows: 1. IraVoeM at hiaelMl staff 1Mera~1. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest oa say Future Advances secured by this Mortgage. Z. Ftttttti ter Tazea tutu Irtwn^ee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and intcrcct arc payable under the Note. until the Note is paid in Lull, a sum (herein "Fttnds'y equal to one-twelfth of the yearl~• taz~~ 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 one-twelfth of yearly premium installments for mortgage insurance, it any, all u reasonably estimated initially and from time to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution thr: depasita or accounts of which are insured or gwranteed by a Federal of state agency (including Lender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments. insurance prcmiutns 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 lime of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law roquires 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 attd the purpose fot which each debit to the Funds wu made. The Funds are plodged u additional security for the sums secured by this Mortgage. Tf the amount of the Funds heW 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, usaeraents. insuratwe premiums and ground rents u they tall due, such excess shall be, at Borrowers 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 wi5citat to pay taxes. assessments, insurance premiums and ground rents u they fall due, Bormarer shall pay to Lender any amount necessary to make up the deficiency within 30 days [tom the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment is full of all sums 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 rs otherwise acquired by Lender, Lender shall apply. rro 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. A~ticatiorr of Payments. Unless applicable law provides otherwise, all payments received by Lender 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. 4. Charges; 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 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 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 prrority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in w•ritrng t~ 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. Hazed Irrsnrawee. 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", ar~d 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. 'Ilre 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 policiei 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, and Borrower 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 carrier and (.ender. 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, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If s~.rch restoration or repair is not economically feasible or rf the security of this Mortgage would oe 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 proceeds at Lender's option rather 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 1 and 2 hereof or change the amount o[ such installments. If under paragraph Ig hereof the Property is acquired h}• 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 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. Yresenation sad Maintenance of Property; Leaseholds; Condominiums; Planned Uall llkvebpments. Borrow•cr shall keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property sad shall comply with the provisions of any lease if this Mortgage is on 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-laws and regulations of the condominium or planned unit development, and constituent documents. 1f a condominium or planned unit development rider is executed by Borrower and recorded together whh 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 Lender's Security. If Borrower fails tip 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 Propert}'. including. but not limned to, eminent domain. inu~kency. cx~de enfr.rrement. or arrangements or proceedings invoking a bankrupt or decedent, then Lender at I ender's option, upon nonce to Borrower, ma} make such appearances, disburse such sums and Take such action ac is necessary to protect Lender's interest. including. but not limited to, disbursement of reasonable attorney's fees aqd entry upon the Property to make repairs. It I_rnder required m.~rtgage insurance as a condition of making the loan secure) by this Mortgage. Barn:wcr sh_rll pay the premiums required to maintain such insurance in effect until such time as the reyoirement for such in,uran.e terminates in accordance with Borrower's and s~344 pd~Ei5~~6~ . - _ _~ ~_ ...