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HomeMy WebLinkAbout0274 UNtFau.t CoveN~N~rs. Borrower and Lender covenaot a~d agrre as follows: 1. Pa~nmeat ot Pdacipai aud laterest. Borrower shall promptly pay wi?en due the principal o[ and interest on the indebtedness cvidenced by the Note. prepayment a~d late charges as provided in thc Notc, and the principal of and intercst on any Future Advances secured by this Mortgage. . 2. Fuads tor Tua aad Insuraace. Subject to applicable law or to a written waiver by 4ender. Borrower shall pay to I.ender on the day monthly i~stallmcnts of principal and interest are payable under the Note, ~ntil the Note is paid in full, a aum (herein "Funds") equal to ono-twelfth of the yearly taxcs and assessments which may attai~ priority over this Mortgage, a~d ground rents on the Property, if a~y, plus one-twclfth of yearly premium installments for hazard insurance, plus one-twel[th of yearly premium installme~ts for mongage insurancc, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the depcuits or accounts of which are iruured 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, insurance prcmiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bills, unlcss Le~der pays Borrower intercst on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest o~ the Funds shall be paid to Borrower, and unless such agreement 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. Lender shall give to Borrower~ without charge, an annual accou~ting of ~he Funds showing credits and debits to the Funds and the purposb for wtiich each debit to the Funds was made. The i=unds are pledged as additional security fot the sums secured by this Mortgage. - lf the amount of the Funds held by Lender, together with the future 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 eacess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly instalfinents of Funds. lf 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 l.ender any amount nocessary 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 Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Leader, Lender shall apply, no later than immediately prior to the sale o[ the Propeny or its acquisition by Lender, any Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. 3. AppficAtba of Paymeats. Unless applicable law provides othervvise, all payments received by Lender under the Note and paragraphs I aad 2 hereof shall be applied by I_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to ihe principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lkas. Borrower shall pay all taxes, assessmcnts and other 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 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 io Lender receipts evidencing such payments. Borrower shall promptly 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, ~ lagal proceedings-which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazud I~urance. Borrower shall keep the improve.nents now existing or hereafter erected on the Property insured against loss by fire, hazards include~ within the term "extended coverage", and such other hazards as Lender may require • and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. "Il~e insurance 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 Dn 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 ihe insurance carrier. All insurance policies and renewals thereof shall be in f~rm 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 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 promptly ~ by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance pruceeds shall be applied to restoration or repair of ~ the Property damaged, provided such restoration'or repair is economicaUy 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 applied to the sums secured by this Mortgage, with the excess, if any, paid ~ to Borrower_ If the Properry is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the ~ Jate notice is mailed by I.ender to Borrower that the insurance carrier oRers to settle a claim for insurance benefits, Lender ~ is aut6orized to collect and apply the insurance proceeeis at Lender's option either to restoration or repair of the Property ~ or to the sums secured by this Mortgage. - { Unless l.ender and Borrower otherwise 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 hercof or change the amount of ~ such installments. If under paragrap6 18 hereof the Property is acyuired by L.ender, all right, title and interest o[ 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 g acquisition. } 6. Presen•ation and Maintenance of Property; Leaseholds; Condominiums; PI'nned Unit De~elopments. Borrowcr ; 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 provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a anit in a condominium or a planned unit 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 tbe condominium or planned unit development, and constituent documents. If a condominium or planned onit 8evelopment - rider is executed by Bonower 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. Protecl~on of Leodsr's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest in the Property, _ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangemants 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 necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attomey'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 requireJ to maintain such ~ insurance in effect until such time as the requirement for such insurance [erminates in accordance with Borrower s and ; - , g~~K 301 FACE 274 ~ ~ ~ - ~ ~ : ~ ~ , ~ ~ ~ ~ . ~ ~ :~d