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HomeMy WebLinkAbout0862 U~situx~?t CoveN.~NTS. Bormwer and Len~et covenant anJ ~grce as tollows: 1. Yaymenf of Principwl and loteresl. l3orrower shali promptly p~y when due the principai o( ar.d i~terest on tho indebtrdorss evidenced by the Nota, prepayment a~d late charget as provided in tho Note. and tha principai of anJ intarest on any }~uture Advances secured by this Mortgaga. Fun~ls io~ T~uces and Insurance. Subject to applicable la~v or to a writtan waiver by Lender, I3orrowe~ sh~ll pay to I.rnda~ on the d~y moMhty instalims~ts of p~incipai and intertst are payable undz~ the Notc. until the Isotc is paiJ in tull. a sum (hercin "Funds") equa! to one-twelfth of the Ycarly taxcs anJ acussmants which may attain priority ove~ this Mortgace. pnJ ground rtnts on the P~operty, if any. plus o~e•twrlfth of ~tarly ptemium installments fo~ hazard insurance. ~ plus onc-t~velfth of yearly premium installments for mongage insurartcc. it any, all aa reasonably estimated initially A~d fram time to time by Lendtr on the t~.ui~ of assessments and bills and re~sonable cstimata thereof. 'Ilu Funds shall be held in an institution Ihe deposits or accounts of which are insuccd o~ gua~anteed by a Faleral o~.- ~ E state agancy (including Leoder if Le~der is such ao institutio~). l.endar shall apply the Funds to pay said taxes. assessroents. s insurance premiums a~d g~ound rents. I.ende~ may not charge to~ sa holdiog and applying the Funds. aoalyzing said,account. or ~cerif)ing and compiling said assessmrnts and bills. unless Lender pays Borrower interat on t6e Funds and applicable law permits Lender to make such a chargo. E~ormwe~ and I.ender may agree in writing ai th~ time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. aod unless such agrcement is made or applicable law i rcqui~s such i~tcrest to be paid. Lender shall not be requir~l to pay B~rrower any interest o~ earnings on the Funds. Lcnder ! shall giv~e to Bortowe~. without cha~ge, an annual accounting of the Funds showi~g credits and debits to the Funds and tha purpose for which cach debit to the Funds was made. The Funds are ~+fedged as additional security for the sums securcd by this l~tortgage. If the amount of the Funds held by Leader, together with the tuture month[y installments of Funds payabk prior to , the due datcs of taxa. uxumeats. insurance premiums and ground rents. shal! exceed the amou4t requi~ed to pay said taxa. t assessenents. insurance premiums and g[ound nnts as they fall due. such excass shall bt. at Borrower's option, eithec ~ promptly repaid to Bormw~er or credited to Borrowec on momhly installments of Funds. If the art~ount of tha Funds ~ held by Lender shall not be suf6cieat to pay taxes. assessments. insurance premiums and ground nnts as they fall due. ~ Borrower shatl pay to Lender any amouat naessary to make up the deficiency within 30 days from the date notice is mailal ~ by I.eader to Borrowtr nquesting payment thec+eof. ~ Upon payment in full of all sums secured by this Mongage. Leader shall promptly refund to Borrower a~y Funds held by I.ender. If under parsgraph 18 hereof the P[operty is sold o~ the Property is othenv'ise acquired by Lende~, Le~der shaU apply. rw late~ than immediately prior to the sale of the Property or its acquisition by Leade~, aay Funds 6tld by I~eade.r at tha time of application ss a credit against the sums secured by this Mortgage. 3. Applicstiow oE Psymeots. Unlas applicable law provides othenvise. all payments receivod by Lender under the Note and paragraphs 1 and 2 hereof shatl be spplied by Lender 8rst in payment of amounts payable to Lender by Borcower under paragraph 2 hereof. t6en to interest payable on the Note, then to the princ+pal of the Note. and theo to interest and principal on any Future Advances. 4. Charges; Lkns. Borrower shall pay all taxes. assessments and other charges, 6nes aad impositions attributable to the Pmperty which may attain a priority over this Mortgage. and leasehold payments or gmund rents, if any, in the manaer pmvided under paragtaph 2 hereof or, if not paid in such manner, by Borrower making paymeot. wheo due, ditecQy to the payee thereof. Borrower shall pmmptly furnish to Leader all notices oE smounts due under this paragcaph~ and ia th~ event . Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall pmmpdy dischacge any lien wh'~ch has priority over this Mortgage; pmvided. that Borrower shall not be required to discharge aay such lien so long u Bormwcr shall agree in writing to the paymtnt of the obligation secu~d by such lien in a manner acceptable to Lender. or s6a11 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 I~ranca Bocrower shall keep the impmvements now existing or hereafter erected on the Property insured against loss by fir~e. hazards included within the tcrm "extended coverage". and such other 6azards as I.ender may require - and ia such amounts and for such periods as I.cuder may requice; provided, that Leeder shall not require that the amount of such coverage excad that imount of coverage required to pay the sums socured br this Mortgage. ~ 'Il~e inwrance carrier providing tbe insurance shall be chosen by Borrower subject to approval by Lender, provided. that such approval shall not be unreasonably withheld. Atl premiums on insurance policies shall be paid in th~ manner Ij provided uoder paragraph 2 hereof or, if not paid in such manner. by Bonower making payment, when due, diroctly to the ~ insurance car'rier. ' . AU insurance pdicies and renewals inerevl ~i~aii ix iu f~iui ac...cN.ab:e ic :.z: ~sr aad s':'u! i^~~•s~' ~ st3nda:~! m~~+~~ao!? clause in favor of and in form acceptable to Lender. I.~nder shall have the rig6t to hold the policies and reaewals thereof, ~ and Borrower shalf prompdy furnish to Lender all nnewal notices aod all reeeipts of paid premiums. Ia the event of loss, ~ Borrowe~ shalt give prompt notice to the iosurance carrier and Lender. Lender may make proof of toss if not made promptly by Borrower. ~ ' Unless Lender and Borrower otherwiu agree in writing. insurance proceods shall be applied to ratoration or npair of ~ the Property damaged. provided such restoration or reQair is economicatly 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 proceeds shall be applicd to the sums secured by this Moctgage, with the excess, if any. paid ; ;o Borrower. lf the Property is abandoned by Borrowet~ or if Borrower fails to respond to Leoder within 30 days from the ~ date notice is mailed by Lendtr to Borrower that the insurance carrier offers to xttle a claim for insurance benefits. Lender ~ is authorized to collect and apply the insuranca prooeeds at Lender's option either to restoration or repair of the Propecty ~ or to the sums secured by this Mortgage. ~ Unless Lender aad Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend ' or postpone the due date of the monthly instaliments referred to in paragrdphs 1 and 2 hzrcof or change the amount'of ~ such insiallments. If under parag~aph 18 hereof t6e Property is acquired by Lender, all right. tide and interest of Borrower in and to any insu~ance policies and in and to the procceds thereof resulting from damage.to the Property prior W the sale t Lender to the extent of the sums secur~d b this Mortgage immediateiy prior to such sale or ~ or acqu~sition shall pazs o Y z acquisition. , ~ 6. Preservation aod Afaintenance of Property; Leaseholds; Coodominiums; Planned Unit Derelopmeats. Borrower shall keep the Property in good repair and shalt not commit waste or permit impairment or deterioration of the Ptoperty and shatl 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. 8orrower shall perfor~ all.nf Borrower s obligations under the declaration or cove~ants creating or guverning the condominium or planned unit development, the by-laws and ngutations of the ~ condominium or planoed unit development, and constituent documents. If a condominium or planned unit development ~ rider is executed by Borcowrr and recorded tocether with this Nortgage, the covenants and agreerncnts of such rider ~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Morigage as if the riJer were a part hercof. ~ 7. Protcetion of Lender's Security. If Borrower fails to perform the covenants and agceements contained in this ~ Mortgage, or if any action or procading is commenced whicfi materially aBects Lender s interest in the Property, y including. but not limited to, eminent domain. insolvtncy, code enforcemen~ or arrangements or proceedings involving a ; bankrupt or d.cedent, then Lender at Lende~'s option. upn~ notice to Borrower,.may make such appea~anca, disburse such ~ sums and take such action as is necessary to protect Lender's interest, including, but not limited to. disbursement ot ~ reasonable attomey's fus and entry upon the Property to make rrpairs. If I.ender required mortgage iosurance as a condition of malcing the loan securod by this Mortgage. Borrower shall pay the premiums required to maintain such ~ insucanca in ef:ect until such time as the ~equirement for such in$urance terminates in accordance with Borrower's and ~ ~ . ~ ~ ~ ~ ~ ~ y J ~ , _ , ~ :