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HomeMy WebLinkAbout0196 ~2 ~ 1 ti'',. !'_~.i . UN~FCUttK CoveN~Nts. Borrower and Leader covenant and agra as follows: ~ ~~o~ ot Princ~l aad iNerq~t. Bormwe~ ahall prompdy pay when due the principal of and interest on the indeb~ad~s avidenced by tho Nota prepaYme~t ~ad late charges as provided in the Note. and the principd of and interest t; on any Future Advances securod by thia Mort~a~e. j; 2, pr~ds tor Tua a~i Iaw~ee. Subject to applicabk law or to a written waieer by I.ander. Borrowe~ ~a11 pay to Lender on Ihe day monthly iintsllments of principal and interat arc paya b k un d er t h e N o te, until the Note is p aid in full. i! i s:um (herein "Funds'7 equal to on~twelfth of the yearlY taxes and assessments which may attain priority over this Mort~age. and ground nnb on the Prnpeny. it any. plus onc-tweltth o f yea~ ly premium ins t a l l m e n t s f o r h u a r d i n s u r a n c e, ~i plus one-tweifth oi yearly pnmium installmenta for mortgage insurance. if any. all as reasonably estimated initially and from ~ time to time by Leuder on tl~a baais of assessmeNa and bills and reasooable estimates tlrereof. + y 'iLe Ftindi shall be held in an ieutitution the deposits or accounts of w6ich are insured ~r gwrantad by a Federal or y state agency (including I.tnder if Lender i: auch an institution). Le~der shall apply the Fun d s to pay ssud tua. asaeume~ts. insurance premiuma aad ground reats. I.ender may not charge for so holding and applying the Funds. analyzing said accoun~ , or verifyin~ aad compiling said assasmenb and bitls. unless i.ender pays Borrower interest on the Funds and applicabk law :t permits Lender to make such a charge. Bomowe~ and Lender may agree in writing at the time of eacecution of this Mo~tgage that interest on the Fuads shall be paid to BoROwer, and unless such agrcement is made or applicabk law F requires such intercst to be paid, l.ender shall not be rcquired to pay Borrower any interat or earaings on the Funds. Lender sha11 give to Borrower, without charga, an annual accou~ting ot the Fuods showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are plodged as additional sccurity for the sums secured by this Mort~age. If the aawunt of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments, inauranc~ premiums and ground reats. shall exceed the amount required to pay said taxa. assessments. insurance premiums and ground rcnts as they fall due, sucfi eacess sfiall be, at Sarrower s option, either promptly repaid to Horrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shdl ~t be suf6cieat to pay taxes. assessments. insurance premiums and grouod rents as they fall due, Borrower shall pay to Lender any amount nocassary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thercof. Upon payment in full of all sums secured by this Mongage, l.ender shall promptly rcfend to Borrower any Funds held by i.tnder. If under paragraph 18 hereof the PropeKy is sold or the Property is othen~vix acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by l.ender, any Funds held by [.ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application oE Payweats. Unless applicable law provides otherwise. all payments received by Lender under the Note aad paragraphs 1 aad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under pangraph 2 hereof. t6en to interest payable on the Note, theb t0'the principal of the Note, and then to interat and principal on any Future Advances. 4. C6arta; Lieos. Bonovrer shall pay all taxes, assessments and~other charges, fines and impositions attributable to t6e Properry which may attain a priority over this Mortgage, and leasebold payments or ground rents, if any. io the manner provided uc~der paragraph 2 hereof or, if not paid in such manner. by Bonower making payment, when due, direcdy to t6e oayeG thereof. Borrower shall promptly furnish to Lender all notices of acna~nts due under this paragraph. sad in the eveat Borrower shall malce payment directty. Borrower shail prompciy iurnish tu I.en~r rt~ipts eYidsnring se~h pa}~nents- Borrovrer shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be res~uirtd to disc!largs any such lien so long as Borrower shall agree in writing to t6e 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 enionement o[ such lien in, kgal proceedings whieh operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hsiard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by firs, 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 require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums securcd by this Mortgage. T6e ituurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, providod. that such approval s6a11 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, direcdy to the j insurance carrier. ~ AU insurance policies and renewals thereof shall be in forn? 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 prompdy furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give Qrompt notice to the insurance canier and Lender. Lender may make proof of loss if not made promptly ~ by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rcpair of ~ the Property dama4$ed, provided such restoration or repair is economically feasible and the security of this Mortgage is 9 not thenby unpaired• If such restoration or repair is not economically feasible or if the security of this Mortgsge would ~ be impaired, the inaurance proceeds shall be applied to the sums secured by this Mortgage. with the eacess. if any. paid ~ to Bonower. If the Property is abandoned by Borrower. or if Borrower fails to respond to Leoder within 30 days from the g date notice is mailed by l.ender to Borrower that the insurance carrier ofters to settle a claim for insurance benefits. Lender ~ is authorizod to collect and apply the insurance proceeds at Lender's option eit6er 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 referred to in paragraphs 1 and 2 hereof or change the amount of such installmepts. If under puagraph 18 heroof the Property is acquired by Lender, all right, tiQe and interest of Borrower ~ in and to any iasurance policies and in and to the proceeds thereof resulting from damage to t6e Property prior to the sale ~ or acquisition shall pass to L.eader to the extent of the sums secured by this Mortgage immediately pnor to such sak or acqnisition. ~ 6. Preservatbo and Maintenance of Property; Le~olds; Condominiums; Planned Uait Devebpmenls. 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 provisioas of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a coadominium 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 planoed unit development, and constituent documents. If a condominium or planned unit development ~ rider is executed by Borrower and recorded together with this Mortgage. the coveaants and agreements of such rider shall be incorporated into and s6a11 amend and supplement the covenants and agreements of this Mortgage as if the rider F were a part beroof. ~ 7. Protection of Lendec's Security. lf Borrower fails to perform the covenants and agreements contained in this E Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. ~ including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ bankrupt or decedent, then L.ender at Leader's option, upon notice tp Borrower, may make such appearances, disburse ~uch sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursem'ttrt of ~ reasonable attomey's fees and entry upon the Property to make repairs. If Lender reqoired mortgage insurance u a ~ condition of mal:ing the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain wch ~ iasurance in eHect unti! such time as the requirement for such insurance terminates in aceordance wiih Borrowet's and ~ ~ ~ . ~nRt 3U6 196 ~ . - - ~ . ~ ' : ~ ~ ~ . ~ , _ . . _ . .