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HomeMy WebLinkAbout0082 UN~FORnt CoveN~NTS. Borrower and 1_en~er covcnant and ag~ee as toUows: 1. Payment ot Priacipal and Inferesl. Borrower shall pramptly pay when due thc principal of and interest on the indebtedneu evidenced by the Note, p~epayment and late charges as pruvided in the Note, and the principal of a~d intercst on any Future Advances secured by this Mortgaga ' 2. i~ads for Tases a~d lawrance. Subjcct to applicable law or to a written waiver by ~ender, Borrower shall pay to I.ender on the day monthly installments of principal and intcrest are payable under the Note, until the Note is paid in (ull, a sum (herein "Funds") equal to onc-twelfth of thc yearly taxes and assessments which may attain priority over this Mortgage, and ground renta on the Ptnperty, if any, plus one-tweltth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Le~der on the basis of assessments and bills and ~easonable estimates thereot. ~ The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federa! or state agency (including Lender if Lender is such an inslitution). I.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. l.ender may not charge for so holding and applying the Funds, analyzing said account, or verifvinR and c~mpilina caid acce.ccments and billc, unless Lender pavs Borrower. interest on the Funds and applicabk law permits LenJer to make such a charge. Borrower and l.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 agreement is made or applicable law requires such interest to be paid, 1_ender shall not be reyuired to pay Borrawer any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose tor which each debit to the Funds was made. The Funds are pledged as additional security for the sums secuced by this Mortgage. ]f the amount of the Funds held by Lender, together w•ith the (uture monthly installments of F~nds 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 [all due, such excess shall be, at Borrower s option, either ` promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficieat to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lende~ any amount ~ecessary tu make up the defi~iency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums sccured by this Mortgage. l.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or thc Propert~• is othenvise acquired by I_cnder, Lender shall apply, no later than immediately prior to the sale of thc Pruperty or its acquisition by I~nder, any Funds held by Leader at the time of application as a credit agamst the sums secured by this Mortgage. 3. AppUcatioa of Payments. Unless applicable law provides otherH~i~e. all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by I.cndcr first in pa~•ment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on thc Note, then to the principal of the Note, and then to interest and principal on any FuWre Advances. 4. C6arges; Lkas. Borrower shall pay all taxes, assessments and other chargcs, fines and impositiuns attributahle to the Property which may attain a priority over this Mortgagc, and leasehold payments or ground rents, if any, in ihe manner pruvided 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 Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidcncing such payments. Borrower shall promptly discharge any lien which has priority over this Mongage: provided, that Borrower shal) 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 I.ender. or shall in good faith contest ~uch lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propeny or any part thereof. • S. H~rd insuranct. Borrower shall keep the improvements noW existing ar hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", anJ sach other hazards as~l.ender ma}~ require and in such amounts and for such periods as Lender may reyuirc; provided, that Lender shall not requirc that the amount of such coverage exceed that amount uf caverage required to pay the sums secured by this Mortgage. ~ The insarance 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 provided under paragraph 2 hereof or, if not paid in such manner, by Borrow~er making payment, when due, directly to the ; insurance carrier. All insurance policies and renewals thereof shall be in form 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 shall promptly furnish to Lender atl renewal notices and all receipts of paid premiums. In the event of loss, i Borrower shall give prompt notice to the insurance carricr and Lender. Lender may make proof of loss if not made promptly , by Borrower. . ! Unless Lender and Borrower othervvise agree in writing, insurance proceeds shall be appl~ed to restoration or repair of ~ the Property damaged, provided such restoration or repair is ec~nomically feasible and the security of this Mortgage is P not thereby impaired. If such restoration or repait is not economically (easible or if the security of this Mortgage would ~ be impaired, the insurance proceeds shall be applied to the sums secured b~~ this Mortgage. with the excess, if any, paid ~ to Borrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days (rom the ~ date notice is mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender ~ is authorized to collect 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 otherwise agree in writing. any such appliration of proceeds to principal shall not extend ~ or poatpone the due date of the monthly installments referred to in paragraphs 1 and 2 he:cof or change the amount of ~ such installments. If under paragraph I8 hereof the Property is acyuired 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 Propeny 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. Presenation and Maiatenance of Properly; I.easeholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in g'ood repair and shall not commit w~aste 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 uait development, Borrower shall perform all of Borrower's obligations 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 ckvelopment rider is executed by Botrower and recorded together with this Mortgage, the covenants and agreements oi such rider ~ shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ' wcre a part hereof. : 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this ` Mortgage, or if any action or Proceeding is commenceJ which materially af(ects 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, upc~n notice to Borrower, may make such appearances, disburse such ~ sums and take such action as is necessary ta protect l.ender's interest, including, but not limited to, disbursement of ~ reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a ~ condition of making the 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 • i l~ ~ . o ~ a 29~ r;,~ 4 . 60G~ ~ ~ . - - _ , ~ ~ ~ ~ , -