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HomeMy WebLinkAbout1895UN~tatt-t Cov~N,-rvrs. Borrower and l.cnJer cuveiian~ and aKrre a~ toUows: 1. ~1y111tA~ OE P~IICI~I ~Ild IAIlftS~. Borr~~wer shall pmmptly pay when due the principal of and interest on the indeMedncu evidcnced by thc Notc, prepayment and late cha~gcs as provi~kd in the Nale, and Ihe principal ot and interest o~ any Future Advancec securcd by this Mongage. 2. Ftind~ tor Tues aai lnw~sace. Subject to applicablc law or to a wrilten waive~ by I.cnder, Borrower shall pay to Lcnde~ on ~he day monthly inctallments of principal ao~ inte~ext are payable unde~ the Note, until the hote is paid in tull, a sum (hcrein "Funcis") equal to onc-twelfth of thc yearly taxes and assessmcnts which may attain priority ovcr this Mortgage, anJ ground rents on the P~+operty. if a~y. plus one-twcl(th of yearly premium installments tor hazard insurance. plus one-twelfth of yearly prcmium installments tor mortgage insurance. if any, all as reASOnably estimated initially and from time to time by I_ender on the basis of asseumen~s nnd bills and reasanable estimates thercof. 'llee Funds shall be held in an institwion the deposits or accounts o( which are insured o~ guaranteed by a Federal or state ageocy (including Lender if I.ender is such an ins~itution). I.ender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. I.ende~ may oot charge for so holding and applying thc Funds, a~alyzing said accou~t, or verifying aud compiling said assessments and bills, unless l.ender. pays Borrower interest on the FunJs and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at Ihe time ot execution of this Morigage that interest on the FunJs shall be paid to Borrower. and unless such agreement is made or applicable law requircs sue:~ interest to be paid. !_ender shall not he reyuircd to pay Barrower a~y interest or carnings on ihe 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 pleJged as additional security for the sums socured by this Mortgage. _ lf the amounl of the Funds held by I.ender, togc~her with ~he future monthly installments of FunJs payablc prior to the due data of taxes. susessments. insurance prcmiums aod graund rents, shall excetd the amount required to pay said taaes. assessments, 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 mon~hly installmcnts of Funds. lf the amount ot thc Funds held by Lender shall not be sufi'icient to pay taxes, assessmcnts, insurance prcmiums and ground rents as they fall due. Borrower shall pay to I.ender any amount necessary to make up~ ~he deficiency within 30 days Irom the date notice is mailed by Lendcr to Borrower requesting payment thereof. Upw~ payment in full of al) sums secured by this Mor~gage, I.ender shall promptly refund to Borrower any Funds held by l.ender. If under paragraph 18 hereof the Propcrty is uwld or thc Property is otherwisc acquired by Lender. Le~der shall apply. no later than immediately prior to the sale of the Property or its acquisition by l.ender, a~y Funds held by Lender at the time ot application as a credit against the sumx sccured by this I-tortgage. 3. Applicatlon of Paymeats. Unless applicable law provides otherwise, all payments rece+ved by Lender unJer the Note and paragraphs I and 2 hereof shall be applied by I.cnder, first i~ payment of amounts payable to Lcnder by Borrower under paragraph 2 hereof, then to interest payablc on the Notc, then to thc principal of thc Note, and then to interest and principal on any Future Advances. ~ ~. Char~es; Lkas. Borrower shall pay all taxec, auessments and othcr chargcs, fines and impositions attributable to the Property which may attain a ptiority ovcr this Mortgage, and lessehold payments or ground rents. if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to the payce ther+eof. Borrower shall promptly fumish to LenJer all,notices of amounts due under this paragraph. aad in the event Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall promQtly discharge any lien which has priority over this Mortgage; proviJed, that Borrower shall not be required to dixharge any such lien so long as Borrower shall agree in writing to the payment of ihe 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 provent the enforcement of the lien or forteiture of the Property or any part thereof. S. Hanrd lasuraece. Borrower shall kcep. the improvements now• existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "e!ctended 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~e insurance carrier providing the insurance shall be chosen by Borrower s~bject to approval by Lender, ptovided, that such approval shall not be unreaconably withheld_ All premiums on insurance polieies 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 policies and renewals thereot shall be in form accep~able to Lender and shall include a stanJard 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 renewa! notices and all receipts of paid premiums. In the e~ent of loss, Borrower shall give prompt notice to the insurance carrier and Lender. (_ender 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 restorat~on or repair is economically (easible and the ucurity of this Mortgage is not thereby impaired. If such restoration or repair is not ~canomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to ihe sums secured by this Mortgage, with the excess. if any. paid to Borrower. If the Properry is abandoned by Borrower, or if Borrower fails to respond to l~nder within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier otiers to settle a claim for insurance benefits. l.ender is authorized to collect and apply the insurance proceeds at Lender's oQtion either to restoration or repair of the Property or to the sums sccured by this Mortgage. Unless Lender and Borrower otherwise agree in wri~ing, any such application ef proceeds to principal shall not extend or postpone the due date of the monthly installmcnts referred to in paragraphs I and 2 hereof or change ~he amount of such installments. If under paragraph 18 herwf the Property_is acquired by l.ender, all right, title and interest of Borrower in aad to any insurance policies and in and to the~ proceeds thereof resulting from damage to the Property' pror to the sale or acyuisiaon shaSl pass to Lender to the extent of the sums secureci by this Mortgage immediately prior to such sak or acquisition. 6. Preservatioa and Maintenance of Property; Leaaholds; !'o~dominiums; Planned Uait Developments. Borrower shall keep the Property in good repair and shall aot commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mongage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planoed unit development, and constituent da:uments. If a condominium or planned unit development rickr is executed by Borrower and recorded together wi~h this Mertgage, the covenants and agreements ot such rider shall 6e incorpocated into and shall amend anJ supplement the covenants anJ agreements of this Mortgage as if the rider were a part hereof. 7. Prolectioa of Leader's Security. If Borrower fails to per(orm the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then 1_ender at Lender's 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 (ees and entry upon the Property to make repairs. I( l~nder reyuired mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in efTect until such time as the rcquirement for such insurance terminates in accordance with Borrower s and i T- ~..~ ~,- ~ ~~ :rn .~ . _ . s~~r ~4~ Par,E ~.889 :~ - :~= ~ _ .