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HomeMy WebLinkAbout0952 ~ . ' ~ i UHIPOQM COVENAldT'a. Bomower and Lender covenant aad a~ree as follow:: 1. la~ewt ot le~ecipal a~d latcrat. Bormwer shall promptly pay when due. the principal at and interest on the indebtednest evidenced by the Note, prepayment and late cha~ges as provided in the Note. and the p~incipal of at~d interest o~ ~y Future Advances secuced by this Mortga~e. : ~ ~ 2. F~ads tor Tauea aai lasurasce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay ~ ~ to Lender on the day monthly installments of principal and interest are payable unde~ the Note, until the Note is paid in (ull. ~ a:um (herein "Funds") equal to one-twelfth of the yea~ly taxes and assessments which may attain priority over this MortgaQe. and ground rents on the Prope~ty. if any, plus one-tweltth of yearly premium installmenta for huard insurance, plus one-twel[th 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 a~d reasonablc estimata thercof. ~ 'iT~e Funds shall be held in an institution the deposits or accounts ot which are insurcd or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply 1he 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 veritying and compiling said assessments and bills, unless Lender pays Borrower interat 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 interat on the Funds shalf be paid to Borrower, and unless such agreement is made or applicable law reguira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lende~ ~ shall give to Borrower, without charge, an annual accounting of ~he Funds showing c~adits and debits !o the Funds and the , purpose for 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, togethe~ with the future monthly installmenta of Funds payable prior to the due data of taxa. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. uxssments, insurance premiums and ground rents as thcy fall due, such excess shall be, at Borrower's option, either promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay tazes, assessments, insurance premiums~and ground rents u they fall due. ~ Bortower shall pay to Lender any amount necessary to make up the deficiency within 30 days from ~he date notice is mailed by Lender to Borrower requa~ing payment thereof. Upon payment in full of all sums secured by ~his Mortgage, l.ender shall promptly refund to Borrower any Funds held by l.ender. If under paragraph IR hereof the Property is sold or the Property is otherwise acquired by Lender. [.ender s6a11 apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at Ihe time of application as a credit against the sums secured by this Mort~age. 3. Applkstion of Psymeats. Unless applicable law provida otherwise, all payments received by Lender urtder the Note and paragraphs I and 2 hereof shall bc applied by I_ender first in payment o[ amounts payable to Lender by Borrower ~ under paragraph 2 hercof. 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. C6arges; Lk~. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to ` ~ the Property which may attain a prioriry over this Moftgage, and leauhold payments or ground rents, if any, in the manaer provided under paragraph 2 hereof or, if not paid in such manner, by Borrowcr making payment, when due. diroctly to the payee thereof_ Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and ia the eveot Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority ov~r this Mortgage; provided, that Borrower shall not be required to dischaige any such lien so long as Borrower shall agree in writing to the payment of the obligation securcd by such lien in a manner acceptabie 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 I~en or (orfeiture of the Property or any part thereof. S. Hazard i~unnce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included wi~hin 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 rcquirc that the amount of j such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. Th~ insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, I; that such approval shall not be unreasonabty withheld. All premiums on insurance policia shall be paid in the manner i provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the ' insurance carrier. i All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage j clause in favor of and in form accep~able to Lender. Lender shall have the right to hold the policies and renewals thereof. ; ~ and Borrower sFall promptly furnish to Lender all renewal notices and all rcceipta of paid prcmiums. In the event of loss. ; ~ Borrower shall give prompt notice to the insurance carrier and Lender. Lendcr may make proof of loss if not made promptly j by Borrower. ~ ~ Unless Lender and Bonower otherw•ise agree in writing, insurance procceds shall be applied to rcstoration or tepair of the Property damaged, provided such restoration or repair is economically teasibJe and the security of this Mortgage is not thereby impa~red. If soch restoration or repair is not economically (easible or if the security of this Mortgage would be impaired, the insurance procetds 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 if Borrower fails to respond to Lender within 30 days from the ~ date notice is mailcd by Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, Lender ~ is authoriud to collect and apply the insurance proceeds at Lender's option either to resroration or repair of the Property ~ or to the sums secured by this Mortgage. ~ Unless I.ender 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 of F such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower ~ in and to any insurance policia and in and to the proceeds thereof resulting from damage to the Propeny prior to the sale ~ or acquisition shall pass to Lender to the extent of the sums ucured by this Mortgage immediately prior. to such sale or f acquisition. 6. Prestrvalbo and Maintenaace of Property; Leaseholds; Condominiums; Planned Unff Devebpmenfs. Borrower shall keep the Property ia good repair and shall not 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 Mortgage is o~ 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 documen~s. If a condominium or planned unit development ~ rider is executed by Bonower and recorded rogether with this Mortgage, the covenants and agreements ot such rider shall be incorporated i~Ko and shall amend ~nd supplement the covenants and agreements of this Mortgage u if the rider ' were a part hereof. ~ 7, profection of Leoder's Secnrity. tf Borrower fails to perform the covenants and agreements contained in this - x Mortgage, or if any action or proceeding is commeneed which materially afTects 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 l.ender at Lender's option, upon notict 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 attomey's tees and en~ry upon the Property to make repairs. If Lender requircd mortgage insurance u a condition of making the ioan secured by this Mortgage, Borrower shall pay the premiums required to maintain such j insurance in eftect until such time as the requirement for such insurance terminates in accordance with Borrower s and ~ ~ BOOK~~ PAGE 952 ~ ~