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HomeMy WebLinkAbout0188 J , / U`1IFO1tM COVENANTS. Borrowe~ and Leade~ covenant-and ~grea as follows: 1. Paymeet ot PriacipN sod lnttrad. Bo~rower shall promptly puy when due the principal oI and interest on the indebtrdness evidenca! by tha Note, prepaymeat and late charges as provided in the Note, and the principal of and intenst : on aay Futuee Advances secured by this Mongage. 2. Fuads tor Taxa aad Iawnnce. Subject to applicable law or to a w~tte~ waivar by Le~der. Borrower shall Pay . [o l.enclar on the day monthly installments of principat aod intcrcst arc payable unde~ the Not0. uatil the Nate is paid i~ full. a sum (hetcin "Funds") equaf to one-twelfth oE the yea~ly taxes and asuuments which may ~ttain priority over this ~fortgagt. and gcound re~ts on the Pmpe~ty. If any. plus one•twelfth ot ywuly premium instaliments for hazard insurance. plus one-twelfth of yearly premium installme~ts to~ moctgage insurance. if a~y. all as reuonably estimated i~itially and from time to time by Lender on the basis o[ assessments apd bills and rcasonable atimata thereof. The Funds shall be held in an institution the deposits ot accou~ts oi which are insured o~ guarantad by a Federal or siate agenc) (including Leadet if Lendet is such an institution). Lender sbaU apply the Funds to pay said ta~ces. assessments. . insurance pnmiums aad ground ret?ts. Lender may not charge [or so holding and applying the Furn1s, analyziag said account, or Yerifying aod o~mpiling said assessme~ts and billa, unkss Lender pays Borrowec interat o~ lhe Funds aad applicable lsw permits Lende~ to make such a charge. Bor~owe~ and I.encier may agrce in writing at the time of execution of this Mortgage chat interest on the Funds shall be paid to Borrower. and unless s~6 agroement is made or applicable law requira such intarest to b~ paid. Lende~ shall not be roquired tc? pay Borrower any interest or earnings on the Fuuds. Lender sball gi~e to Borrower. without charge. an annual accounting ot the Funds showieg craiib and debits to the Funds aad the ~ purpose for which eac6 Jebit to the Funds was made. The ,Funds are plalged at additioeal security for the aums secured ~ by this ~iortgage. ~ f If the amount of the Fuads held by Leader, together with the fuwre monthly installmeab of Funds payabk prior W the da: dates of taxes. assessments. insuranca premiums and ground rents, shaq exaed the amount coquired to pay aaid taxa, ' usessments. insuranoe premiuau snd ground nnts as they fall due, suc6 excacs shall be, at Borrowe~'s option. eithet prompdy repaid to Bornower oc cr~dited to Bon+ower on monthly iostallments of Funds. If the amount of the Funds ; held by Lender shaU aot be su~cieat to pay taxa. asse.ssments. insurac~ce premiums and g~+ound rents ~ they fall due. ~ i Borrowe~ shall pay to Lender any amouat necasary to make up the deRciency within 30 days Irom tl+e date notice is mailed ' by Lender to Borrower requesting payment thereof. Upon payment in fu11 af all :ums securod by this Mortgage, Lender shall promptly nfund to Bormwer any Funds heW by Lender. If uader puagraph 18 hercof the Prope~ty is sold or the Property is othen~vise acquired by Leader. Lendar ahall apply. no later than immadiatdy prior to the sak of the Property or iu acquisition by Leader. any Funds held by ~ 1.ende~ at che tinu of applicatioa as a ee~edit agaiost the sums secured by_ this Moctgage. 3. Applkstjow ot Pa~neab. Unless applicabk law provides otherwise. all payaneats roceived by Lender under. the Note and paragrapb~s 1 aad 2 hereof shall be applied by Lender fint i~ payment of amouab payable W I.cader by Borrowar under paragraph 2 he[~eof. thea to iataest payabk on the Note. then to the priocipal of the Note. and thea to intet4st and priocipal on any Futuc~a Advanoes. L. 4. Charge~ Lkes. Horrower shall pay all tauas, as~ssments and other charges. fines aad impoaitioas attributable to the Prope~ty w6ich msy attaia a priority over this I?iortgage. and leasehold paymeats or gmund nnta. if any, ia the manaer p~vided uader paragraph 2 hereof or. if not paid in such manner, by Borrower making payment. when due. directly to the PsYee thereof. Borrower shall proraptly fur,aish to Leader all noGces of amounts due w~der this ParagraPh. and in the a~?ent Borrower shall make payment diroctly. Borrower shall prompdy furnish to _Lender receipts evidencing such paymeab. Borrower shall prompttx dischargo any lien which ~as priority over this Mortgage; provi~d, that Bomowu shall not be j required to discharge any sueh lien so bng a~ Borrower shall agree in writing to the payment of the obligation secuccd by such Gen in a raanner aoceptabk to Lender. or shall in good faith contest such liea by. or defead enforcement of such liea iq legal proceedings wi~ich operate to prevent the enforoement of the liea or forfdture of tha Property or any part thereof. S. Haz~rd inwrsnca Borrower shall ka:p the improvements now existing or hereafter erected on the Property iasured ' againu loss by Sce, hazards includod within the term "extended coveragd.. and suc6 other hazards is Leader may require j and in wch amounts aad foi such periods ~ Lender may require; provided. that Lendec shall not roquire t6at the amount of such coverage exoad that amount of coveraga required to pay the sums secured by this Mortgage. _ 'Ibe insurance canier provlding t6e icuurana shall be chosen by Bomnwer subject w appraval by I.ender, provided, ~ that such appmval sha11 aot be unc+easonably wtthbeld All prcmiums oa insuranoe policia shall be paid in the mannec provided under paraacaph 2 hereof or. if not paid in auch maaner. by Borrowa makin8 paymmt, when due. dic+ectlY to tba inwrance carrier. . . . ! All insunooa policies aad r~enewals theroof s6aU be ia form acoeptabk to Lender and shaU include a standard mortgage ~ clause in favor of and in form acceptabk to Lender. I.aader s6a11 have the right W hold ti~ policies and renewals thereof. ~ and Borrower shall promptly furnish to Lender all nnewal notioes and all rxeipts of paid praniums. In the eveat of 1oss. ~ Borrower shall give ~ompt noticx to thd insurance carrier and Lender. Lender may make proof of loss if aot inade promptly by Borrower. ~ Unless Lrnder and Borrower otherwise agree in writing. insurance proceeds shatl be applied to nstoration or npair of the PropertY ~aS~ P~ided sucl~ restoration or npair is oconomicaUy fessible and the security of this Mortgage is not thenby impaired. If such ratoration or repair is not economically feuibk. or if the security of this Mortgage would be impaired. the insurance pmceeds shall be applied to the swra sxured by this Mortgage. with the eaccess, if any. paid to Borrower. If the P[operty is abaodoned by.Borrower, or iE Borrower fails to respond to Lender within 30 days from t6e date nodce is mailed by I~ender to Bormwer that the insurance curier of[en to settte a claim for insurance beae6ts, Lender is authorized w oolkd and apply the iasurance proceeds at Ltnder's option either to nstoration or npair of tbe Pmperty - or w the swns secured by this Moctgage. ~ Unlas Lender and Borrower otherwise agree in writing. any such application of procoeds to principal shall not extead or postpone the due date of the montlily iastallmenu referred to in paragraphs 1 aad 2 heroof or change the amount'of sucb instaUmenu. If uackr puagraph 18 hereof the Pmperty is acquired by I.ender, al[ right. tide and interat of Bocrower in aqd to any insurance poJicies and in and to the prococds theroof resulting from damage to the Property prior to the sak or acquisition shall pass to I.eader W the eutent of the sums socured by this Mo[tgage immediately prior to such sa{e or acquisition. 6. Preserratio~ nod l~talntenanee oE Property; Leue6old~ Condominiems; Planned Ua[t De~dopmeets. Borrower shall keep the Property in good repair and sball not commit waste or permit impairmeat or deterioradon of the Propecty and shall comptjr with the provisioos of any tease iE this Mortgage is on a leasehold. If t6is Mortgage is on a unit in a condominium or a planned unit developrt~ent, Bonower shall perform all of Borrower's obligatioas under the declaration or covenwts creating or gov~erniag the condomiaium or planned unit devebpment, the by-laws and regulations of the condominium or planned unit darrdopment. and constituent documents. 1f a condaninium or planaed unit development rider is executod by Borr~nwer and rococ~ded together with ihis Mortgage, the covenants a~d agreements of such rider shall be incorporated into and shall amwd aad wpp]eaneot ti~e covenants and agreements of this Mortgage as if tt~e rider ~ were a part hereof. - - - 7. Protectio~ of Lenders Sceurity. If Borrower fails to perform the covenants and agreements contained in this Mortgage. or it any action pr procxeding is commenoed which materially aHocts Lender's interest in the Property, inclu~ing. but not limited to, emiaent domain, insolvency, code enfoe+cement, or urangements or procee~ing~ invo{ving a bankrupt or d~t, then L.ender ~t I~endec's option, upon notioe to Borrower.-may make such appeuanoa. disbarse such sums'and take such action as is necessary w protect Lende~s ioterest. including. but not limited W. disburaemeet of ~ . reasonable attorney's fas ared eatry upon the Property to make rcpairs. If Lender required mortgage insurance as a ~ condition of making t6e loan secured by this Mortgage. Borrower shall pay the pnmiums roquirod W maintain such ~ insurance in eflect until such time as the rcquiremeot far such insurance terminates in aocordanoe with Bomowet's and i ~ ~ ' 3 • / ~262 P~ 187 ~ _ _ . . : . . . - . - _ _ - .