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HomeMy WebLinkAbout0171 ~ • ~i ~ t UN~e~n'~?t CovEN+Nrs. Borrower aad Lender covenant and agree u follows: , 1. Paymeuf ot Princl~t aad laterat. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepaymeM and late charges as provided i~ the Note, and the principal of and interest on aay Future Advances secured by this Mortgaae. 2. Fuads fo~ Tua and Insunoce. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly instalime~ts of principal and intcrest arc pay~ble under the Note, until the Note is paid in tull. a sum (hercin "FuncL") equal to onetwelfth ot the yearly taxes and assessments which may attain priority over this Mortgage. and gmund rents on the Pmperty. if any. plus ono-tweltth of yearly pnmium installments for hazard insurance, plus one-twelfth of yearly. prcmium installmcnts for mortgage insurance, if any, all as ressonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates th~reof. The Funds shall be held in an institution the depoaits or accounts of which are insured or guaranteed by a Fedenl or state agency (including Lender if Lender is such an institution). t_ender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessme~ts anci bills, unless Lender pays Borrower interest oa the Funds and applicable Iaw permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that inte~est on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law rcquires such interest to be paid. I.cnder 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 are pledged as additional security for the sums secured by this Mortgage. v lf the amount of the Funds held by Lender, together with the future monthly enstallments of Funds payable prior to the due dates of taxa, 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 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 Le~er shall not b~ suPficient to pay taxes, assessments, insurance prcmiums 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 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 other.vise 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 biongage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by l.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intere~t payable on the No~e, then to the principal of the Note. and then to interest and principal on any Future Advances. 4. Ctwr~es; Lkas. ~iorrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the.Property which may attain a priority over this Mongage, and leasehold payments or ground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in such manner, bp Borrower making payment, when due, dirocUy to the ' payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrow~er shall make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this M4rtgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing ta the payment of the obligation secured by such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by. or defend enforcement of such lien in, . legal proceedings w~hich operate to prerent the enforcement ot the lien or forfeiture of the Property or any part thereof. 5. Has~rd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cuverage", and such other hazards as Lender may require and in such amounu and for such periods as Lender may reyuire; 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. 'Ihe ins?~rance carrier providing the insurance shall be chosen by Borrower subject to apRro~al by Lender, provided, j that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner j provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the ' insurance carrier. j 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, 'E and Borrower shall promptly furnish to Lender all renewal notices and alt 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. ~ Untess Lender and Borrower otherwise agree in wnting, insurance proceeds shal! be applied to restoration or repair of ~ the Property damaged, provieied 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 ezcess, if any. paid ~ to Borrower_ If the Property is abandoned b}• Borrower, or if Borrower fails to respond to Lender within 30 days from the ~ date nodce is mailed b~• L.ender to Borrower that the insurance carrier offers to setNe 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. p Unless Lender 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 referred to in paragraphs 1 and 2 hereof or change the amount of r such installmenu. If under paragraph 18 hereof the Propert}•-is acquired by l.ender, 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 Propert~• prior to the sale ~ or acquisition shall pass to Lender to the extent of the sums secured by th:s Mortgage immediately prior to such saie or H acquisition. ~ 6. Presen•ation aod ~tstintenance of Property; Leaseholds; Condominiums; Planned Unit Developmenfs. Borrower ~ shall keep the Property in good repair and shall not commit waste or permit impa~rment or deterioration of the Property and shall comply with the provisions of any leasc if this Mortgage is on a leasehold. If this Mortgage is on a unit in a i~ 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-iaws and cegulations of the condominium or planoed unit development, and constituent documents. If a condominium or planned u~it development rider is executed by Borrower 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. Protection ot Lende~'s Security. If Borroaer fails to perform the covenants and agreem~nts contained in this ~ Mortgage, or if any act~on or procceding is commenced v?•hich materially afiects Lender's interest in the Property, including, but not limited to, eminent domain. insolvenc~•, code enforcement. or arrangements or proceedings involving a a~ bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower; map make such appearances, disburse such ~ sums and iake such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of ~ reasonabte attomey's fecs and entry upon the Propert}• to make repairs. If I_ender required mortgage insurance as a ~ condition of making the loan secured b~• this Mongage. Borrower shall pay the premiums required to maintain such ~ insurance in eftect until such time as the reyuirement for such insurance terminates in accordance with Borrower s and - _ g~~.r 3U5 171 . . ~ ~ ~ -