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HomeMy WebLinkAbout0964 , . ~ . - _ - . UrrtroRi?t CovaN~rs. Borrovvw and Lende~ covenant aad agree u foUowa: 1. l~wert ot P~hctNl a~i LMerat. Borrower ahall promptly pay when due the priacipal of and interest on the indebt~s evideaad by the Note. pnpaymeat aad late charges as providod in the Note, and tho principal of and intef+est on my Future Advances secured by this Mortgage. ~ Z. I~~ds tor'I~es soi Lwes~ca Stibject to applicabb law or to a written aaiver by Lender, Borrow~r sball pay to Lender on tbe day moathly installmeats of principal and interest an payabk under the Note, until the Note is paid in full. a sum (herein "Fuads'~ equal to oac~twelfth of the yeady taxes and asssesssments which may attai~ priority over this Mortgage. aad grouad reats on the Propetty. if any. plus oae-twelfth of yearly premium instaUments for hazard insurana, plus one-twelfth of yearly pre~nium iastaliments for mortgage insuraace, if aay, all as reasonably estimated initiatijr and from time to time by Leader on the basis of assessments and bills and reasonabk estimates thereof. 'Ibe Funds shall be held in an institution the depoaits or accounta of which are insund or guaranteed by a Federal or atate agoency (including Leader if Lender is such an institution). Lender shatl apply the Funds to pay said taxes. asussments. insurance premiums aad ground rents: Lender may not charge for so holding and applying the Funds, analyzing aaid acoonnt, or verifying and oompiling said assessme~ts and bitk, unless Lender pays Borrower interest on the Funds aad applicable Iaw permits Lender to make such a charge. Borrowe~ and Leader may agree in writi~g at ihe time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unless such age~eement is made or applicable law requira such interat to be paid. Lender shall not be required to pay Borrower any interest or earnings on We Fuads. Lender shall give W Borrower, witLout charge, an annual aocounting of the Funds showing crodits and debits to the Funds and the purp~se for which each debit to the Funds was made. The Funds are plodged as additional security for the sums secured by this Mortgage. If the amount of the Funds heW, by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes. assessmeuts, insurance premiums and ground rents, shall exceod the amount required to pay said taxes, assesaments, insurance premiums and ground rents as they fall due. such ezcess shall be, at Bonower's option. ~ither prompdy repaid to Bormwer or credited to Borrower oa monthly installme~ts of Funds. If the amount of the Funds held by Lender shall aot be suf6cient to pay taxes. assessments. insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount nece.ssary to make up the deficiency within 30 days from the date notice is mailal by I.ender to Borwwer reque.sting payment thereof. Upoa payment ia full of all sums secured by this Mortgage, 1_ender shall promptly refund to Bonower any Funda held by L.cnder. If under paragraph 18 her~of the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the. Property or its acquisition by Lender, aay Funds held by I.ender at the time of applicatioa as a credit against the sums secured by this Mortgage. 3. Application of Paymeets. Unless applicable !aw 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 I.ender by Borcower under paragraph 2 hereof, 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. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold "payments or grnund rents, if any, io the manaer provided ander paragraph 2 hereof or. if not paid in such manner, by Borrower making payinent, when due, dicectly to the payce thereof. Borrower shalt prompdy furnish to Lender all notices of amounts due under this paragraph, and in tbe evwt Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mo;tgage; 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 enforeement 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. Ha~ard I~urance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured agaiatt loss by Sre. hazards included within the term "extended coverage". and such other hazards as I.ender 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. ~ 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 'i provided under paragraph 2 hereof or, if not paid in.such maaner, by Bonower making payment, when due, dirxtly to the . ~ insuraace carrier. E All insurance policies and renewals thereof shall be in form acceptable to L.ender 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 promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. R 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 agree in writing. insurance_ proceeds shall be applied to restoration or repair of t the Propeny datnaged. provided such restoration or repair is economicaUy feasible and the security of this Mortgage is not thereby iropaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance procceds 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 34 days from the date notice is maited by Lender to Borrower that the insurance carrier offers to settle a claim for insurance beaefits, Lender is authorized to collect and apply the insurance proceeds at l.ender's option either to restoration or repair of the Property or to the sums secured by this Mortgige. Unless L.ender and Bonower otherwise agree in writing, any such application of proce~ds 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 such installments. If under paragrap6 l8 bereof the Property is acquired by Lender, all right, tide and interest of Borrower f in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the.sale ~ or :+cquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or a~ .;aisiti~n. ~ 6. Prescr.ation and 111ainteaance of Property; Leaseholds; Condominiums; Planned Unit Devebpraeata. Borrower shall keep th~ 'roperty in good repair and s6aq 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 unit in a ~ condominium or a planned unit development, Borrower shall perform all of Borrower s obligationa 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 developmeat 5 rider is exocuted by Borrowec and recorded together with this Mortgage, the covenanLs and agreements of such rider , shall be incorporated into and shall amend and supplement tt~e covenants and agreements of this Mortgage as if the rider ! wero a part hereof. ` 7, Protectfoa of Lender's Secarity. If Borrower fails to perform the covenants and agrcements cootained in this ~ Mongage, or if any action or proceeding is commenced which materially aHects Leader's interest in the Property, including, but noi limited to, eminent domain, insolvency, code enforcement, or arrangements or proccedinga involving a banlcrupt or decedent. then Lender at L.ender's option, upon notice to Bonower, may make such appearances, disburse auch stuns and take such action as is noctssary to protect Lender s intereat, including, but not limited to, disbursement of reasoaable attomey's fee.s and entry upon the Property to make repairs. If Lender required mortgage imurance as a ~ condition of making the loan secured by this Mortgage, Borrower sh~ll pay the premiums roquired to maintain such insurance in effect uotil such time az the requiroment for such insurance terminates in accordance wit6 Borrower's and FORM-318 12 ot tl UIJV1~~ (iW[ ~ 6 ~-s. • a<. d ~~~~~'~:~r'~~~..~~