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HomeMy WebLinkAbout0607 . . UN~eoRr~ Cov~N~Nrs. 8orrower and Lender cuvenant and agree as fotlows: ~ l. Paymeat ot Princlpal aad interat. Bormwer shall promptly pay when due the principal of and interest on the indcbtedness cvidenced by the Note, prepayment and late charges as provided in the Notc, and the principal of and intercst on any Future Advanca secured by this Mortgage. ~ 2. Fnnds for Tues aad Iosuraace. Subject to applicable law or to a written waiver by Lender, Borrowe~ shall pay to Lender o~ the day monthly installments of prir~cipal and interest are payable under the Note. until the Note is paid in full, a sum (hcrein "Funds") equal to one-twelfth of the yea~ly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Pmperty, if any, plus onatwelfth of yearly premium installmeots for hazard i~surance, plus one-twelfth of yearly premium installments tor mortgage insurance, if any, all as reasonably ostimated initially and from time to time by Lender on the basis of assessments and bills and reasonable atimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or ~ state agency (including Lender if Lender is such an institution). t_ender shall apply the Funds to pay said taxes, assessments, i~surance premiums and g~ound rents. Ce~der may not charge for so holding and applying the Funds. analyzing said account~ or verifying and comPiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and ~ unless such agrecment is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. l.ender shall gi~~e to Borri~wer, without cha~ge, an annual accounting 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 pledged az additional security for the sums secured by this Mortgage. . ~ If the amount of the Funds held by Lender, together with the futurc monthly installments of Funds payable 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 on monthly installments of ~ Funds. If the amount of the Funds held by Leoder shall not be suf6cieat to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the 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 Mortgage, l.ender. shall promptly refund to Borrower any Funds held by Lende~. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no late~ than immediately prior to the sale of the Property or its aequisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. AppUcation o[ Payments. Unless applicable law provides otherw•ise, all pa~~ments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, thcn to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pa~~ all taxes, assessments and othcr 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 payce thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and ia the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrow~er shall prompQy 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 pan thereof. I' S. Hazard I~urance. Borrower shall keep the improvements now• cxisting or hereafter erected on the Property insured - j against loss by fire, hazards included within the term "extendeJ coverage", and such other hazards as Lender may require ~ and in such amounts and for such periods as Lender may require; provided, that I.ender shall not require that the amount of ~ such coverage eaceed that amount of coverage required to pay the sums secured b} this 14tortgage. ; The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such appro~al 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 dae, directly to the insurance carrier. ' All insurance policies and renewals thereof shall bz in Porm 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 shal! promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of loss, ~ Borrower shall give prompt rtotice to the insurance carrier and Lender. Lender may make proof o( loss if not made promptly - ~ by Borrower. - ~ Unless Lender and Borrower other.~•ise agree in writing, insurance proceeds shall be applied to restoration or repair of ~ the Property~damaged, provided such restoration or repair is economically feasible and the securiry of this Mortgage is ~ not thereby impaired. If such restoration or repair is not economicaUy feasible 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 Propert~~ is abandoned by Borrower, or if Borrower fails to respond to I_ender within 30 days from the ' date notice is mailed by I.ender to Borrower that the insurance carrier of~ers to settle a claim for insurance benefits, Lender ~ is authorized to col}ect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. - Unless Lender and Borrower othervvise agree in writing, any such application of proceeds to principal shall not extend " or postpone the due date of the monthly iastallments referred to in paragraphs 1 and 2 hereof or change the amount of ~ such installments. If under paragraph 18 hereof the Property is acquired by L.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 preor to the sale or acquisition shaU pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. 6. Presen~ation and ~1aintenance of Property; Leaseholds; Condominiums; Planoed Unit Developments. Borrower - shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property - and s1~a11 comply with the provisiens 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 shafl perform all of Borrower s obligations under the declaration or covenants creating or governing the condominium or pianned unit development, the by-laws and regulations of the ~ condominium or planoed unit development, and constituent Jocuments. If a condominium or planned unit development :i rider is executed by Borrow~er and recorded together w~ih 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 he~eof. - 7. Protection of [.ende~'s Security. If Borrower fails t~ perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding ~s commenced K~hich materially~ affects Lender's interest in the Property, _ including, but not limited to. eminent domain, insolvenc}•, code enforcement, or arrangements or proceedings involving a 4` bankrupt or decedent, then Lender at Leader's opt~on, upon notice to Borrower, may make such appearances, disburse such ;~y sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attomey's (ces and entry upon the Property to mal~e repairs. If Lender requircd mortgage insurance as a ' condition of malcing the loan secured b~• this Mortgage. Borrow•er shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and , "~c. ~94 =~~~f 60? _ _ _ - - ~ - ~~:~~~~:.~;.,~_h..~: . ~