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HomeMy WebLinkAbout0095 : UH~FORtit Cov~N~NTS. Borruwer a~d l.a~dcr covenant and agr~e as follows: 1. P~ymeat of Principd aod Interat. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, pnpaytnent and late chargec as provickd in the Note, snd the principal of and interest o~ aay Future Advances securod by this Mortgage. 2. Fbads [or Tua sad Inwraoce. Subject to applicable law or to a written waiver by L.ender. Borrower shap pay to Lende~ on the day monthly installments of principol and interest are payable under thc Note. until the Note is paid in fuil, a sum (hercin "Funds") equal to one-twelfth of the yea~ly taxes and assessmcots which may attain priority over this Mortgage, and grou~d rents on the Property, if any, plus ooe-twelfth of yearly premium i~stallments for hazard insurance, plus one-twelfth af yearly premium installments for mongage insurance. if any, all as rcasonably estimated initially and from timc to time by Lender on the basis of assessments and bills and reasonable estimates ihereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guuantoed by a Federal or state agency (including Lender if Lender is such an institution). Lertder 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 verifying and compiling said assessments and bills, unlas Lender pays Borrower interest on the Funds and applicable law permits Lende~ to make such a charge. Borrower and l.ender may agree in writing at ~he 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, Lender shall not be required to pay Borrowet 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 maJe. The Funds are 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, insurance premiums and ground rents, shall exceed the amount rcquired 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 installments of Funds. If the amount of the Funds held by Lender shall not be sufticient 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 day~s from the date notice is mailed by Lender to Borrower requating payment thereof. Upon payment in full of all sums secured by this Mortgage. l.ender shall promptly refund to Borrower any Funds held by Le~der. If under paragraph 18 hereof the Property is sold or the. Properry is otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition b)• Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3. Application of Paymeaks. l3nless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note. theo to the principal of the Notc, and then to interest and principal on any Future Advances. 4. Ctwrges; Lkas. Borrower shall pay all taxes, assessments and other charges, fine~ and impositions attributable to the Property which may attain a priority over this I~lortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, i( not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower sha!! promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment dire.;tl~~, 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 - such lien in a manner acceptable to Lender, or shall in gooei 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 the:eof. S. Huard Insurance. Borrower shall keep the improvements now e~isting 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 ; and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of i such coverage exceed that amount of co~•erage required to pay the sums secured by this Mortgage. , ` 'I~e insurance carrier providing the insurancg 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 makring payment, when due, direcdy 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. Lende~ 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 shal! give prompt notice to the insurance carrier and Lender. Lender ma}• make proof o[ loss if not made promptl}• by Borrower. ~ Unless Lender and Borrower other.~ise agree in writing, insurence proceeds shall be applied to restoralion or repair of the Property damaged, proviJed such restoration or repair is economically 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 Property is abandoned by Borrower, or it 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 settle a claim for insurance benefits, Lender ; is authorized to collect and apply the insurance proceeds at l.ender's option either to restoration or repair of rhe Propetty ' or to the sums secured by this Mortgage. ; Unless Lender and Borrower otherwise agree m writing, an}• such application of proceeds to principal shall not extend - or postpone the due date of the monthly installments rcferred t~ in paragraphs 1 and 2 hereof or change the amnunt of 5 such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereot resulting from damage to the Property prior to the sale x or acquisition shall pass to Lender to the extent of the.sums secured by this Hiortgage immediately prior to such sale or acquisition. 3 6. Preservation and ~taintenance of Property; Leaseholds; Condominiums; Planned Iiait Devebpments. 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 provisions of any lease if this ~lortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unrt development. Borrower shall perform all uf Borrower's obligations under the deciaration ' or covenants creating or governing the condominium or pl•rnned unit development, the by-laws and regulations of the ' condominium or planned unit development, and constituent documents. If a condominium or planned unit development . rider is ezecuted by Bonow•er and recorded together w•ith this Mortgage, the covenants and agreements of such rider shal{ be incorporated into and shall amend and supplement the co~•enants and agreements of this Mongage as if the rider I ; were a paR hereof. ~ I a 7. Protection of Lender's Security. If Borrow•er fails to perform the covenants and agrrements contained in this ~ Mortgage, or if any action or proe:eeding is commenced w•hich materially afiects Lender's interest in the Propen~~, ! ~ including, but not limited to, eminent domain, insolvency, ccxle enforcemem, or arrangements or procredings involving a ~ bankrupt or decedent, then Lender at I_ender's option, upon notice to Borrower, ma~• 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 attorney's fccs and entry upon thc Property to makc rcpairs. If Lender required mortgage insurance as a ~ ; condition of making the loan secured b} this Nortgage. Borrower shall pay the premiums required to maintain such ~ insurance in efiect until such time as the requirement for such msurance terminates in accordance with Borrower's and ~ - . , 3~Rr3U5 '95 ~ 3 - 3 . .