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HomeMy WebLinkAbout0524 UNtFCMM CoveN~Nn. Borrower and Lende~ covenant and agree as follows: 1. la~weot ot triaciPal sad tnterat. Borrower shall promptly pay when due the principal of a~d interest on the iadebtedness evidenc~d by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Futurc Advaaces secured by this Mortgage. 1 Ftiui for Tues ~ai irun~ee. Subject• to applicable law or to a written waiver by l.endcr, Borrower shall pay to Lender on the day monthly inualiments ot principal and interest arc payable under the Note. until the Note is paid in full, a sum (herei~ "Funds'~ equal to one-twelfth ot the yea~ly taxes and assessments which may attain priority over this Mort~age. and g~ound na~ on tha Pmperty, if a~y. plus ono-twelfth of ycarly premium installmeots [or hazard insurance. plus oae-twel[th of yeuly premium installmenta for mortgage insurance, if any, all as reasonably estimated initially and trom time to time by Lender on the basis of assessments and bills a~d reasonable estimates thereof. The Funds shall be beld in an institution the deposits or accounts of which arc i~sured or guaranteed by a Federal or state ageocy (including L.ender if Lrnder is such an institution). ~ender shall apply the Funds to pay said taxa. assessments. insuranve premiums and ground rcnts. Lender may not charge for so holding and applying the Fu~ds, analyzing said account, or verifyin~ and compilins said assassments and bills, unless Lender pays Borrower interest on the Funds artd applicable law permits [.ender to make such a charge. Horrower and Lender may agrce in writing at the time of execution of this Mortgage that interat on the Funds shall be paid to Borrower, and unless auch agreement is made or applicable law rcquires such interat 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 annua) 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 as additional security for the sums secured by this Mortgage. ' If the amount of tt~e Funds held by Lender, toge~her with the future monthly installments of Funds payable prior to the due dates of taua. asxssments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assesunents, insunnce prcmiums and ground rents as they fall due, such excess shall be, at Sorrower's option, either protnptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sul6cient to pay Iaxes, assessments, insurance premiums and ground rents as they fall due, Borrower s6a11 pay to Lender any amount necessary to make up the deficiency withi~ 30 days from the date notice is mailed by Lender to Borrower requesting payment ~hereof_ Upon payment in full of all sums secured b~ this Mortgage. I_ender shall promptly refund to Borrower any Funds heW by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender s6a11 apply, no later than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of apQlication as a-credit against the sums secured b}• this Mortgage. 3. A~piicatioa of Payments. Unless aQplicable law provicies otherwise. all payments received by Lender under the Note and Qaragraphs 1 and 2 hereof shall be applied by I_ender first in payment of amounts payable to Lender by Borrower under Fuagraph 2 hercof, then to interest payable on the lvote, then to the principal o( the Note, and then to interest and prin~ipal on any Future Advances. 4. C6araes; Lkas. Borrower shall pay all ~axcs, assessments and other charges, fines and impositions attribu~able to tbe Property v?hich may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the manner provided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the payee thetoof. Borrow~er shall promptly furnish to Lencier all notices of amounts due under this paragraph, and in t6e event Borrow~er shall malce payment dire~:tly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Bonovver shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be rcquired to d~scharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by suc6lien 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 part thereof. S. Hazard InSUraoce. Borrow•er shall keep the improvemems now existing or hereafter erected on the Property insured against loss by 5rc, hazards incloded within the term "c~tended coverage", and such other hazards as Lender may require and in wch amounts and for such periods as Lender may require; provided, that Lender shall not require that the amuunt of such coverage ezceed that amount of coverage required ro pay the sums secured by this Mortgage. The i~urance carrier providing the insurance shall be chosen by Borrower subjeet to approval by Lender, provided, that wch approval shall not be unreasonably withheld. All prcmiums 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 s inwrance curier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage g 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 proroptl~ furnish to Lender all renewal noticec and all receipts of paid premiums. In the event of loss. Borrower shall gice prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptlp ~ by Borrower. - ; Unlest Lender and Borrower otherv?~ix agree in w riting, insurance proceeds shall be applied to restoration or repair of ~ the Propeny damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is 4 not the[eby impaired. I[ such restoration or repair is not economically feasible or if the security of this Mortgage would ~ be impaircd, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid s to Bonower. If the Propert~ is abandoned by Borrawer, 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 offers to setde a claim for insurance benefits, Lender ~ is aut6oriud to collect and aQply the insurance proceeds at Lender's option either to restoration or repair of the Property ~ or to the sums xcured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in wriUng, an}~ such application of proceeds to principal shall not extend ~ or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of ~ wch installments. If under paragraph I8 t~ereof the Property is acquired by L.end~r, all right, tide 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 xquisition shall p~ss to Lender to the extent of the sums secured by this Mortgage immediately prior to such sa{e or ~ acquisitioa. w 6. Prrsenatbn aod lfaintenance of Property: I.easeholds; Condominiums; Pl~nned Unlt Developments. Borrower sha11 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 Mortgagc is on a Ieasehold. 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 - condominium or planned unit development, and constituent documems. If a condominium or planned unit development rider is exe~uted 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 v?crc a part hereof. ' - '7. Pratectioa of Letder's Security. If Borrow~er fails to perform the covenants and agreements contained in this ; Mortgage, or if any action or proceeding is commenced which materiatly 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 daedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse cuch - sums ~nd take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of ~ reasonabk attomey's fces and entry upon the Property to make repairs. If Lender required mortgage insurance as a s~ cond~tion of making the loan xcured b}• this Mortgage. Borrower shall pay the premiums required to maiMain such 4~ insurance in eftect until such time as the requirement for such msorance terminates in accordance with Borrower's and ~ ~ ga~r 3U4 524 : - - - ~ ~ a..