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HomeMy WebLinkAbout1612 Unt~orw Covet+~rrrs. Borrower and Lender covenant and agree as follows: 1. hynetN W lriocfNl tarts 1Mer~est. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidereoed by the Note. prepayment snd late charges ac provided in the Note, and the principal of and intercu on any Future Advances securod by this Mortgsge. 2. )hear for Tattaa tart) inwn~ea. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly inuallmenta of principal and interest are payable under the Note, until the Note is paid in [till, a sum (herein "Funds' egwl to one-twelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage. and ground rents on the Property, it any. plus one•tweltth of yearly premium installments for hazard insurance, plus oae-twelfth of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and tram time to time by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. insunnoe premiums and ground rents. 1_ender may not charge for sn holding and applying the Frrnds. 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 Lender may agree in writing at the time of execution of this Mortgage that interat on 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 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 arc pledged as additional security for the sums secured by this Mortgage. If 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. inwrance premiums and ground rents, shall exceed the amount required to pay said (axes. a:sestaments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sut8ciwt to pay taxes, sssessntents, 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 regtxsting payment thereof. Upon paytaent in full of all sums acured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. I[ under paragraph 18 hereo[ the Property is sold or the Property rs otherwise acquired by Lender, Lender 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 Mortgage. 3. .Applieatiow of P~yoetsts. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragnphs 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 interat payable on the Notc, then to the principal of the Note, and then to interest and principal on any Future Advances. 1. C`arges; Likes. Borrower shall pay all taxes, assessments 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 dare under this pangraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to 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 strch 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 thet•eof. S. Hazard Inattranee. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require aad 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 Eby this Mortgage. 'Itre 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 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 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 all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and tender. Lender may make proof of loss if not made promptly by Borrower. f Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoratron or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is nut 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 Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from'the date notice is marled by Lender to Borrower that the insurance carrier offers 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 Properly t or to the sums secured by this Mortgage. s Unless Lender and Borrower otherwise agree m wntmg. any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraph) I and 2 hereof or change the amount of such installments. If under paragraph I8 hereof the Property a acyurred by Lender, all right, title and interest of Borrower 3 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. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit y~aste or permit impairment or deterioration of the Property and shall comply- with the provisions of any lease if thrs Mortgage n tin a leasehold. 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 declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the f condominium or planned unit development, and constituent dorumenn. I(a condominium or planned unit development rider is executed by Borrower and recorded together wnh this Mortgage. the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the cosenants and agreements of thrs Mortgage as if the rider were a part hereof. _ - 7. Protection of Lenders Security. If Born,wcr fa~k u~ perform the covenants and agreements contained in this - Mortgage, or if any action ur proceedrng is commenced whtch materially affects Lender's interest in the Property, ircludrng. but not Irmrted to. eminent domain. insolvency. axle cnforrement. or arrangements or proceedings invoking a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower. nta~ make such appearances, disburse such sums and take such action as is necessary to protect Lender's mterest. tncluding. but not limned to, disbursement of reasonable attorney's fees and entry upon the Property to make repaus. 11 Lender rcyuircd mortgage insurance as a x condrtron of makrng the loan secure) by thrs Mortgage. Borrower shall pay the premiums require) to maintain such insurance in rtfect until inch time as the requirement for arch insurance terminates m accordance with Borrower's and i . t, R 301 1607 ~ - aU ~k r'; rr