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HomeMy WebLinkAbout0973 . UN~FORM Coveh..Nrs. Borrower and l.ender r~~venant ~nJ agree as follows: ~ l. Payment ot P~iacipal aod late~est. Born~wer shall pmmptly pay v?•hen due the principal of and interest un thc indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the pri~cipal of and interest on any Future Advances secured by lhis Mortgage. 2. Fuads [o~ Tua and losuraace. Subject to applicable law or to a written waiver by l.ender, Borrower shall pa~• to Lender on the day monthly installments of principal an~ inte~est are paysble under the Note, until the Note is paid in lull, a sum (herein "Fu~ds") equal to o~e-twelfth of the yea~ly taxes and assessments w~hich may attain priurity over this Mortgage, anJ ground rents on the Property, if any. plus ane-twelt~h o[ yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reaso~ably estimated initially and trom time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or aecounts of which are insured or guaranteed by a Federal or state agency (including Lender if 1_ender is such an institution). l.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and g~ou~d rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assesaments and bills, unless Lender pa~-s Borrower interest 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 ihis Mortgage that interest on the Funds shall t~e paid to Bormwer, and unless such agreement is made or applicable law requires sucti interest to be paid. Lender shall not be reyuireci to pap Borrower any interest or earnings on the Funds. I_ender shall give to Borrower, without charge, an annual acrnunting 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 pleciged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payablc prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, ~ 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 or~ momhly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up ~he deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. - Upon payment in full of all sums secured by this Mongage. I_endcr shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Propcrt}~ is s~ld or thc Propcrtp is othen~ise acquired by Le~der, Lender shall apply, oo later than immediately prior to the sale of the Properiy or its acquisition by I.ender, any Fund~ held by Lender at the time ot application as a credit against the sums secured by this Mortgage. 3. AppUcation of Payments. Unless applicable law proviJes otherwise, all payments received by Lender under the Notc and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to thc principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lkns. Borcower shal) pay all t~xec, assessments and other charges, fines and impositions attributable to - the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided 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 furnish to Lender all_notices of amounts due under this paragraph, aad in the event ~ Borrower shall make payment directly, Borrower shall promptly furnish to l.ender 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 Borrower shall agree in writing 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. 5. Hazard Iasurance. Borrower shall keep the improvcments 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 and for such periods as Lender may require; provided, that Lender shall not require that the amount of i such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by- Bonower subject to approval by Lender. provided, that such approval shalt 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, direcUy to the insurance carrier. I 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 the policies and renewals thereof, and Borrower shall proroptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, , Borrawer ~hall 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 agree in writing, insurance proceeds shall be applied to resroration or repair of ~ the Property damaged, provided such restoration or repair is economically feasible and the security of ihis Mortgage is ~ not ~hereby impaired. If such restoration or repair is not economically fcasible 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 Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by L.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender ~ is authorized to collect and apply the insurance procxeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. ~ Unless Lender 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 I and 2 hereof or change the amount of , such installments. If under paragraph 18 hereof the Property is acquired by I.ender, 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 Leader to the extent of the sums secured by this Mortgage immediately prior to such sale or ! acquisition. • ~ 6. Preservation and Mainteaance of Propedy; Leaseholds; Condominiums; Planned Uuit Developments. Borrower e 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 provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a onit in a . condominium or a planned unit development, Borrower shaU 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 cievelopment rider is executed by Borrower 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 as if the rider were a part hereof. 7. Protectioa of I.eoder's Security. If Borrower fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ banlcrupt or decedent, then Lender 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 ~ reawnable attorney's fees and entry upon the Property to make repairs. If [.ender required mortgage insurance as a ~ condition of making the loan secured by this Mortgage, Barrower shall pay the premiums requiral to maintain such insurance in eftect until such time as the requirement for such insurance terminates in accordance with Borrower's and 3 4 6 's i7 P.,.F 91'l;~ ~ .y: . ~ . a - ~ _ r~r:~ - - ~