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HomeMy WebLinkAbout0073 UN~FOai?t CoveN~NTS. Borrower and LrnJer covenant and agrce as follows: l. P~ymeat of P~inclp~l oad laferest. Borrower shall promptly pay when due the principal of and in~erest on ~he indebtedness evidenced by thc Note, prepayment and late charges as proviJed in the Note, and the principal of,and interest ~ on any Future Advances secured by this Mortgage. 2. Fnads for Taues a~d laauraace. Subject to applicable law o~ to a written vyaiver by l.ender, Borrower shall pay to Lender on the day monthly installments of principal and interect are payable undcr the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-tvvelfth of the yearly taxes and auessments which may attain pnarity over this Mortgage, and ground rents on the Property, if any, plus one-twelfth ot yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments (or mortgage insurancc, if any, all as reasonably estimated initially and from time to time by Le~der on the basis of assexsmen~s and bills and reasonable estimates thereof. "Il~e 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). I_ender shall apply the Funds to pay~ said taxes, assessments, insurance premiums and ground rents. lender may not charge for so holding and applying the Fu~ds, analyzing said account, or verifvina and comailin¢ said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrawer and l.ender may agree in writing at the time ot execut~on ot inis Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, l.e~dcr shaU not be required to pay Borrower any interest or earnings on the Funds. Lender shall gi~~e to Borrower, without charge, an annual accounting of the Funds showing c~edits 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 riortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of ~axes, assessments, insurance premiums and ground rents, sha(1 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 installmcnts 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 the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aums secured by this Mor~gage. l.ender shall promptly refund to Borrower any Funds held by l.ender. if under paragraph 18 hereof the Property is sold or thc Property is otherwisc acquired by I_ender, l.enckr shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this 1?{origagc. 3. Application of Paymeats. Unless applicable law provides otherwise. all payments recei~•ed by Lender under the Note and paragraphs 1 and 2 hereof shall be applicd by I.cnJer first in payment of amounts papable to l.cnder by Borrower under paragraph 2 hereof, then to interest payable on the Notc, theri to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chnrges; Lkns. Borrower shall pay all taxes, assrccments and other charges, fines and impositions attri6utable to the Property which may attain a priority over this Mongage, 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 LenJer all notices of amounts due under this paragraph, and in the event Borrower shall make .payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall prompdy discharge any lien which has priority over this Mortgage: provided, that Borrower sha}1 not be required to discharge any such lien so long as Borrower shall agree in w•riting to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forteiture of the Property or any part thereof. • S. Ha~rd Insurann. Borrower shall keep the improvements no~• cxisting or hereafter rrected on the Property insured against loss by fire, hazards included within the term "extcnde~ coverage", anJ such other hazards as I_ender may reyuire and in such amounts and for such periods as ~ender may reyuire; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sum+ secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by ~ender, provided. that such approval shall not be unreasonably withheld. All premium~ 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, directly to the - j insurance carrier. ~ Alt insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a siandard mortgage i clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. I and Borrower shall promptly furnish to Lender all renewal notices and all ~receipts of paid premiums. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptl~• ~ by BorroW er. ' ~ Unless Lender and Borrower otherv?-ise agree in writing; insurance procecds shall be applied to restoration or repair of the Property Jamaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. if such restoration or repair is not rconomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secureJ 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 Lender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits, I.ender is authorized to collect and apply the insurance proceeds at I_ender's option either to restoration or repair of the Property or to the sums secured by this Mongage. Unless Lender and Borrower otherwice agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments rcferred to in paragraphs I and 2 hereof or change the amount of ~ such installments. If under paragraph 18 hereof the Property is acyuired by Lender, 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 Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. ~ 6. Preservat~oa aad 141aintenance of Property~: I.easeholds; Condominiums; Planned Unit Developments. Borrower ~ 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 provis~ons of any lease it this Mortgage is on a leaschold. If this Mortgage is on a unit in a ; condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declarat~on ~ _ 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 development ~ riJer 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. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this R = Mortgage, or if any action or proceeding is commenced w•hich mattrially afiects Lender's interest in the Property, ~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ ; bankrupt 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 necessa~' to protect Lender's interest. including, but not limited to, disbursement of ~ reasonable attorney's (ees and entry upon the Property to make repairs. If Lender required mortgage insurance as a _ ~ condition of making t6e loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement [or such insurance terminates in accordance with Borrower's and s' . ~ ' BOk~ 2~8 ~ ~L` , [ J ~ ~ ' - - - - _ - ~ ~ ~ . : ~ p~ ~ , , w - ~.t~ ~ ~ -=~.e.- _ '"~~s,'~ v~''--.. _ .