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HomeMy WebLinkAbout0926 ~ U~tlFatt?~ CoveH~HTS. Botrower and Lender covenant and agrce as tollows: 1. h~eit ot Mncl~l aed Mletat. Bo~rower shall promptly pay when due the priecipal of and interest on the indebtedneu evidenced by the Note, prepaytnent and late charges as proviJed ~n the Note, and the pri~r~pal of art~# intercst o~ my Futurc Advances sccurcd by this Mortgage. 2. Ftiwdt tor Tua a~d losuraace. Subject to applicable !aw ~r to a written waive~ by l.ender, Borrower shall pay :a o^ :he day mon~hly installments o[ principal and in~erect are payable under the Note, until the Note is paid in full. a sum (hercin "Funds") equal to one-twel[th of the yearly taxes and ascessments which may attain pnority over this Mortgage, and ground rents on the Property, if any, plus one-twel(th of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installmenls [or mortgage msurance, if any, all as reasonably ~ctimated initially and from time to time by Lender on the basis of assessments and hills and rea~onabte atimates thereof. 'I?~e Funds shall be held in an ins~itution the deposits or accounts u( which are insured ar guaranteed by a Federal or state agency (including Lender if Lender is such an institutio~). l.ender shall apply the Funds to pay said taxes, assessments, insurance prcmiums and ground rents. t_ender ma}~ not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless l.ender pays Borrower interest on the Funds and applicable law . permits 1_ender to make such a charge. Borm~v~~ a~d I.ender may agree in writing at the time ot execution of this Mortgage that interest on the Funds shall he paid to Borrow•er, and unless such agreement is made or applicable law rcquires such interest to be paid, 1_ender shall not be required to pa~~ Borrower am• interest or carnings on the Funds. t.ender shall give to Sorrower, without charge, an annual accounting of the Funds showing credits and debits ta the F~ods and the purpose [or which each debit to the Funds was made. The Funds are pledged as additional securit}~ for the sums secured by this Mortgage. If the amount of the Funds held b~~ LenJer, together with thc (uture monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pap said taxes, assessments, insurance premiums and ground rents as ~hey fall due, such excess shall be, at Bo~rower's option, either promptly repaid to Borrow•er or credited to Borrower on monthly installmcnts of Funds. If the amount of the Funds held by Lender shall not be sutTicient to pay taxes, assessments, insur:~ncc premiums an~ ~~ound rents as they fall due, Bonower shall pay to Lender any amount necessar~• ta make up the deficienc~• within 30 days trom the date notice is mailed by Lender to Borrower requesting pa}~ment thereof. Upon payment in full of all sums secured by this Mortgage, I.ender shall promptly refund to Borrower any Funds held by LenJer. If under paragraph 18 hereof the Property is sold or thr Properry is othervvise acqo~red by l.ender, Lender sha11 apply, no later than immediatel}• prior to the sale of the Propecty or its acquisition by l.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law• provides otherwise, all payments rereived by t_ender under the Note and paragraphs I and 2 hereof shall be applied by I.ender first in pa~•ment of amounts payable to Lender by Borrower under paragraph 2 hereo(, then to interest payable on the Note, then to the principal of ttie Note, and then to interest and principal on auy Future Advances. 4. C6arges; Liens. Borrower shall pay all taxes, assessmcnts and other charges, fines and impositions auributahle to the Property which may attain a priority over this Mortgage, and leasehold 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, directly to the payee thereof. Borrower shall promptly fprnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly tumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrov?•er shall agree in writmg to 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. Hazard Insurance. 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", and such other hazards as Lender may require and in such amounts anJ 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 pa~ ~he sums secured by this Mortgage. The 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 i insurance carrier. All insurance policies 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 ~he policies and renewals thereof, , and BorraK•er s;;a:: ;,:~mp:lp furnish to Lender all renewal nouces and all receipts of paid prcmiums. In the event of 1oss. 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 otherw~se agree in w•riting, 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 such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the msurance proceeds shall be applied to the sums secureJ by this Mortgage, with the excess, if any, paid 3 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 mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender ~ is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property . r or to the sums secured by this INortgage. ' Unless Lender and Borrower otherwise agree in writing, any such application o( proceeds to principal shall not extend ? or postponc the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph IS hereof the Property is acyuired by Lender, all right, title 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 immediately prior to such sale or ~ acquisition. z ~ 6. Preservalion aud Maintenance of Property; Leaceholds; Cundominiums; Planned Unit Developments. Borrower shall keep the_ Property in good repair and shall not commit waste or peimit 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 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 planned unit development, and constituent documents. If a condominium or planned unit develop~ ent ` rider ~s executed by Borrower and recorded together w•ith this Mortgage, the covenants and agreements of such rider shall be incorporated iMo and shall amend and suPplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of I.eoder'a Security. Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceCding 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 l.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 interut, including, but not limited to, disbursement of reuonable attomey's [ees and eniry upon the Propeny to make repairs. If l.ender required mortgage insurance u a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such - insurance in effect until such time as the requiremeat fpr cuch insurance terminates in accordance with Borrower s and t ' ~n~K 415 PeGE ~ - ~ - , .