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HomeMy WebLinkAbout1663 t t i~1lroRSt CovE~Axts. Borrower and Lender covenant and agra as follows: 1. Payment o[ Prlndpal and Interest. Borrower shall promptly pay when due the principal o[ and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal o[ and inter- est on any Future Advances secured by this Mortgage. Y. Fttads for Taxes and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in 3 full, a sum (herein "Funds') equal car one-twelfth o[ the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property, i[ any, plus one-twelfth of yearly premium installments for hazard insurance, plus onatwelfth of yearly premium installments [or mortgage insurance, i[ any, all as reasonably estitnated initially and trom ; time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounu o[ which art insured or guaranteed by a Federal or state agency (including Lender i[ Lender is such an institution). Lender shall apply the Funds to pay saicf taxes, assessments, insurance premiums and ground renu. Lender may not charge for so holding and applying the Funds, analyzing said ac- count. or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and ap• plicable law permits Lender to make such a charge. Borrower and Lender inay agree in writing at the time of execution of i this Mortgage that interest on the Funds shall be paid to Borrower, and unless wch agreement is made or applicable hw 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 acrounting o[ 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 I by this Mortgage. If the amount of the Funds held by Lender, together with the tutwe monthly installments of Funds payable prior to the due data of taxes, 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 amouni of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lendtr any amount necessary to make up the de[iciency within 30 days [rom the date notice is mailed by Lender i to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. IE under paragraph IS hereof the Property is sold or the Property is 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. Application of Paytnents. Unless applicable law provides otherwise, all payments received by Lender under the Kote and paragraphs l and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal o[ the Note. and then to interest and principal on any Future Advances. 4. Cbaeges; Liens. 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, i[ any. in the man- ner provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bonower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bonower shall promptly furnish to Lender receipts evidencing such payments. Bonower shall prompth• discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be re- quired to discharge any such lien so long as Borrower shall agree in writing to the pa}ment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by. or defend en[orcement of such lien in, le- ` gal pr«eedings which operate to prevent the enforcemenc of the lien or forfeiture of the Property or any pate thereof. 5. Hazard Insurance. Bonower shall keep the improvements now existing or hereafter erected on the Property in- i cured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may re- t quire 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 secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Bonower 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, i[ 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 wort- . gage clause in favor of and in corm 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 Lender. Lender may make proof o[ loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance pr«eeds shall be applied to restoration or repair of j the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not i thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be im- paired, the insurance pr«eeds shall be applied to the sutras secured by this Mortgage, with the excess, i[ any, paid to Bor- rower. If the Property is abandoned by Borrower, or it Bonower fails to respond to Lender within 30 da}•s from the date notice is mailed by Lender to Bonower that the insurance carrier offer to settle a claim for insurance benefits, Lender is authorized to collect and appl}• the insurance pr«eeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pr«eeds 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 installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Bonower in a and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acyuisition shall pass to Lender to the extent of the sums secured by this . 3ortgage immediately prior to such sale or acquisition. , 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Bonower 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 Mortgage is on a leasehold. If this ~[ortgage is on a unit in a • condominium or a planned unit development. Bonower 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 condo- ; minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded eogether with this Mortgage, the covenants and agreements o[ such rider shall be in- - corporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Searrity. If Bonower tails to perform the covenants and agretments contained in this - Mortgage, or if any action or pr«eeding is commenced which materially affects Lenders interest in the Property. including, but not limited to, eminent domain, insoh~ency, code enforcement, or arrangements or pr«eedings im-olving a bankrupt I 's or decedent, then Lender at Lender's option, upon notice to Borrower, may 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 Fees and entry upon the Property to make regain. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Bonower shall pay the premiums required to maintain such insurance in ef- r feat until such time as the requirement for such insurance terminates in accordance with $orrower's and Lenders written i ~ z - _ - - r.:.-_.: _ - ~