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HomeMy WebLinkAbout0103UNtFORnt CoveNANTS. &-rrowe~ and Len~er co~•enan~ •rnd agree as tollaws: 1. hymeat ot Prlnclpal aad Intenst. Barniw~e~ shall pramptiy pa~r when due ~he principal of and inl~rest on the irtdebtedness evidenced by the Note. prcpayment and late chargcs as provided in the Notc, and the principal ot aod interrst on any Future Advaoces secured by this Mortgagc. 2. ithud~ io~ Tipces ~od I4wr~sce, Subject to applicable law or to a written waive~ by Lender. Borrower shall pay to I.eoder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in tull, a aum (herein "Fu~ds") equal to one-twelfth of the yea~ty taxes and assessments which may attain priority over this Mortgage, and grounc} renta on the Preperty, if ao~, plus one-twelfth of yearly premium installmcnts for hazard insurance. plus one-twelfth of yearly premium installments for martgage insurance, if any, all as rcasonat,ly estimated initially and trom time to time by I.e~der on the basis of assessments and bills and reasonable estimates thereof. "I1~e Funds shall be heid in an institution the depasits or accounts of which are insured or guaranteod by a Federal or state agenoy (including Lender if Lender is snch an institution). I_ender shall apply the Funds to pay said taxa. assessments, insuranoe premiums and ground rents. l.ender may not charge (ar so holding and applying the Fu~ds, analyzing said account, or verifyi~g and compiling said assessments and bills, unkss Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a cha~ge. Borrower and Ixnder may agree in writing at the timo of execution of this Mortgage that interest on the Funds shall be paid to Borr~wer. and unless such agrcement is made or applicabk Iaw requires suc:~ interat to be paid, l.ender shall not be rcquired to pay Borrower any interest or carnings on the Funds. [.ender shall give to Borrowor. without charge, an annual accounting of the Funds showing credits artd d~bits to the Funds and the purpo6e for which each debit to tbe Funds was made. The Funds are plodged as additional socurity for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the futuro monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shal! exceed the amount required to pay said taues. atsessments. insuranex premiums and ground rents as they fall due, such excess shall be,. at Borrower s option. either pranptly repaid to Borrower or crodited to Bormwer on monthly installments of Funds. If the amou~t of the Funds held by Lender shali not be su~cieat to pay taxes. assessments, insurance premiums and gr~nund rents as they fal! due, Borrower shal) pay to l.tnder any amount neceuary to make up .Ihe deficiency within 30 days from the date notice is mailed by I,ender to Borrower requesting payment thereof_ Upon payment in full of aU sums aecured by this Mongage, I_ender shall promptly refund to Borrower any Funds hetd by i.ende~. It unde~ paragraph 18 her+eof the Property is sold or the Propeny is otherwise acquired by Lender, Lender shal) apply. no later than immediately ptior to the sale of the PropeRy 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• Applicatloa ot PqoeNs. Unless applicable law providat otherwise, all payments received by I:ender under ihe Note and paragraphs 1 and 2 hereof shall be applied by t_ender first in payment of amounts payable io Lender by Borrower under paragraph 2 hcroof, tben to interest payable on the Note, then to the principal of thc Note. and then to interest and principal on any Future Advances. 4• C1~a; I~eas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to t6e Property which may attain a ptiority over this Mortgage, and teasehoid payments or ground rents, if any, in the manner providod under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, direcdy to the payee the~eof. Borrower shall pranptly furnish to Lender all_notices of amounts due under this paragraph, and in the eyeat Borrower shall make payment directly, Botrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shail prrnnptly discharge any lien which has priority over this Mortgage: provided, ihat $orrower shall not be requircd to discharge any such lien so long as Borrower shall agree in w•riting to the payment of the obligation secured by soch lien in a manner acceptable to I.ender, or shall in good faith contest such lien by. or defend enfor~cement of such lien in, legal proceedings which operate to prevent the enforcement of. the iien or forfeiture of the Property or any part thereof. s• darard Iusorance. Botrower shall keep the improvements now• existing or hereafter erected on the Propeny insured against loss by 8re, hazards included witbin the term "extended coverage", and such other nazards as Lender may require and in such amounu and for such periods as Lender may require; provided, that Lender shail not require that the amount of such toverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 'Ibe insurance carrier providing the insurance shall be chosen by Borrower subject to approval ,~y Lender, providod, that such approval shall not bc unreas~nably withheld. All premiums on insura~ce policies shall be paid in ihe manner provided undec paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcUy to the insurance carrier. All insurance policies and reoewals thereof shall be in form acceptable to Lender and shall include a standard rnongage clause in favor of and in form acceptable to l.ender. L.ender shall have the right to hold the policies and renewals thereof. and Borrower shall ptomptly 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 Lender_ Lender may rr~ake proof of loss if not made promptly by Borrower. . Unless Lender and $orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Properiy damaged, provided such cestoration or repair is~economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or ~epair is n~t 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. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier of[ets to settle a claim for insurance benefiu, I.ender is aut6orized to collect and appty t6e insurance proceeds at Lender's option either to restoration or repair of the Property V or to tl~e sums secured by this Mortgage. Unless L.ender and Borrower otherwise agree in writing, any such applicatior, of proceeds to principat shall not extend or poatpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of suc6 installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, titk and interest of Borrower in and to any insurance policies and in aud to the proceeds thereof resulting from damage to the Property prior to the sale or ar.quisition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sak or acquisition. 6. Pnservation and Mnintenance of Property; Leaseholds; Condominiums; Planoed Unlt Derebpmeats. Borrower shall keep the Property in good repair and shall not commit waste or percnit impairment or deterioration of the Property and shall comply with the provisiona of any lease i[ this Mortgage is on a leasehoid. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the declaratian or covenants creating or governing ihe condominium or planned unit development. the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or plarned unit development rider is executed by Botrower and recorded together with this Mortgage, the covenants and agreements of such rider shaU be incorQorated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hercof. 7. Protection of Lender's Security. If Borrower fails to pcrform the covenants and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially aRects Lender's interest in the Property. including, but not timited to, emioent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower. may make such appearances, disburse such sums and take auch action as is necessary to protect Lender s interest, including, but not limited to. disbursement of rtasonable attomey's fees and entry upon the Propeny to make repairs. If Lender required mongage insurartce as a condition of making the loan securec3 by this Mortgage, Borrower shall pay the premiums required to maintain such insucanee in eBat until such time as the requirement for such insurance terminates in accotdance with Borrnwer's and a~ ~;34~7 P~Cf 10`.3 ~ _~~ h ._. - :