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HomeMy WebLinkAbout0988 ' - - - ---J UN1FOIlM COVBlsAN7'S. Bon~ower and Lender covenant and agra as foliowa: 1. P~mcat ot Principal ~d I~t~reat. Borrower shall promptly pay when due the principal of and interest on the iadebtedneu evidenad by the Note. prepayment and late charges as provided in the Note. and the principal ot and interes~ o~ any Futuro Advances secured by this Mortgage. F~n~ tor 'I'uas and G~wnnce. Subjoct to applicabk law or to s written waiver by I.eader. Borrower shall pay to L.e~de~ on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full. a:um (herein "Funda") equal to one-twclfth of the yearly taxes and as.sessments which may attain priority over this Mo~age, and ground nnts on the Propeny. if any. plus onatwelfth of ywrly premium installments fot hazard inwrance. plus onc-twel[th of yearly premium installments for mortgage insurance. if any. all aa ressonably estimated initially and from time to time by Leader on the basis of assessments and bills and rcasonabk es~imates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured ar guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxa. suessments. insurance premiums aad grouad rents. Lender may not charge fo~ so holding and applying the Fundt, analyziag uid aeoount, ' or verifying and compiling said assessments and bills, unless Leader pays Borrower i~terest on the Funds and applicabk law permits Lender to make such a charge. Borrower aad L.ender may agrce in writing at the time of eacecution ot this Mortgage that interest on the Funds shall be paid to Borrower. and unless such agrament is made or applicable law requires ~uch interat to be paid, Lender shall ~ot be rcquirod to pay Borrower any interest or earaings on the Funds. Lender shall give to Borrower~ without charge, an annual accounting of the Funds showing crtdits and debits to the Funds and the purpose for which each debit to the Fuads was made. The Funds arc pledged as additional sa:urity for the sums secured by this Mortgage. If the amount of the Funds held by Lender. together with the future monthly installments of Funds payabk prior to the due dates of taxes. assessments, insurance premiums and ground rents, shall eacceod the amount required to pay said taxes. assessments, ioaurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option. e+ther promptly repaid to Borrower or credited to Borrower on monthly i~stallments of Funds. If the amount of the Funds held by Lender shall not be suificieat to pay taxes. a~se.ssments, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 dsys from the date riotice is mailcd by Lender to Borrower reque.stiag psyme~t theroof. Upon payment in full of all swns secured by this Mortgage, I_ender s~all promptly refund to Borrower any Funds held by L.ender. If under puagraph 18 heroof the Property is sold or the Property is othen~vise pcquined by Lender. Lender shall apply. no later than immediately prior to the sale of the Property or it: acquisition by L.ender. any Funds held by Lender at the time of application as a c~+edit agai~st the sums socured by this Mortgage. 3. Appikalba ot P~r~~~, Unless applicabk law provides otherwise. all payments received by Lender under the Note and 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 Not~. then to the principal of the Note. and then to interest and principal on any Future Advu~oes. - 1• C6sr~es; Lkos. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to ~ the Property which may attain a priority over this Mongage. and leasehold payments or gmund rents. if any. in the manaer provided under paragraph 2 heroof or, if not paid in such manner, by Borrower making payment, when due. dirocdy to the PaYa ~~~f• ~~WU shall promptly furnish to Lendcr all notioa of amounts due uoder this paragraph, and in the event Borrower shall make payment diroctly, Borrower shall promptly 'furnish to Lender receipts evidencing such payments. Bonower shall promptly discharge any lien which has priority over this Mortgage; providod. that Borrower shall not be roquired to dixharge any such lien so lon$ as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to i.ender, or shall .in good faith contest such lien by, or defend enforcement of :uch lien in, legal proccedings which operate to provent the enforcement of the lien or [orfeiture of the Property or any part therwf. S. Huud lasurance. Borrower shall kcep the improvements now existing or hereafter erected on ihe Property insured ' against loss by fire, hazards included within the term "eztended coverage", and such other hazards as I.ender may require and in such amounts and for such periods as Lender may requic~e; provided. that L.ender shall not require that tbe amount of such coverage excced that amount of coverage required to pay the sums securcd by this Mongage. T6e insuranoe carrier providing the iasurance shall be chosen by Borrower subject to approval by Lender, providod, ' i that such approval shall not be unreasonably withhdd. All premiums on insurance policia shall be paid in the manner ` provided under paragraph 2 hereof or, if nM paid in such manner, by Borrower making paymsnt. when due. dit+ectty to the ~ ~ insurance carrier. i All insurance policies and renewals thereof shall be in form acceptable to L.ender and shall include a standard mortgage f clause in favor of and in form acceptable to [.ender. Lender shall have the right- to hold the policies and renewals thereof. ~ and Borrower shall prompdy furniah to Lender all renewal notica and.all receipts of paid premiums. In the event of loss. Borrower shall 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 agrce in writing, insurance procceds shall be applied to rcstoration or rcpair of the Propeny damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance procoods 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 Borrowtr fails to respond to Lender within 30 days from the I date notice is mailed by Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, I.ender is authoriud to collcet and apply the insurance proooeds at Lgnder's option either to restoration or repair of tlie Propetty ~ or w the sums securod by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceods to principal shall not extend or postpone the due date of the monthly iastallments referred to in parigraphs 1 and 2 hereof or change the amount of ~ such installments. If under patagraph 18 hereof the Property ic acquired by L.ender. all right. tide and interest of Borrower in and 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 immodiately prior to such sak or acquisition. I 6. Preaervation and Maintenance of Pro rt Leasedolds; Condominiu ~ pe y, ms; Plaaned Unit Devdoptaeats. Borrower ~ ~ shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisiooa of any leate if this Mortgage is on a leasehold. lf this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration ' or coveaants creating or governing the condominium or planoed unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Bonower 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 az if the rider were a part heroof. 7. Protect~on of Ledle~'s Secudty. If Borrower fails to perform ihe covenants and agreements contained in this • Mortgage, or if any action or proceeding is commenced which materially aHects Lender's interest in the Property, including, but not limited to. eminent domain, insolvency, code enforcement, or arrangements or proceodings involving a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such ~ sums and take :uch action as is ~sary to protect l.ender s interest, including, but not limited to. disbu~sement of + reasonable attomey's fees and entry upon the Property to make repairs. If Lender roquired mortgage insurance ac a c,ondition of makiag the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insuranet in effect until such. time as the requirement for such insurance terminates ia accordance with Borrower's and . ~ eo~ 393 pacE 988 ~ . . ~ , - - ~