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HomeMy WebLinkAbout2258 112,troaat COVe:vwtvts. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pa}• where due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and inter- est on arty Future Advances secured by this ,Mortgage. Q. Funds [or Taxes and Insurance. Subject to applicable law or to a written wais•er by Lender, Borrower shall pay to Lender on the day monthly installments o[ principal and interest are payable under the (Vote, until the Note is paid in cull, a sum (herein "Funds") equal to one•twelfth o[ the yearly taxes and aasessmcuts which may attain priority over this ~(ortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for harard insurance, plus one-twel[th of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from 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 accounts of which arc insured or guaranteed by a Federal or state agency (including Lender i[ Lender is such an irtstitutiort). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applyiaq the Funds, analyzing said ac- count, or ve;ifying and compiling said assessmenu seed bills, unless Lender pays Borrower interest on the Furtds and ap- plicable law permiu Lender to make such a charge.. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, seed unless such agreement is made or applicable law requires such interest to be paid, Lender shall trot be required to pa}• Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fwtds showing credits and debits to the Funds and the purpose [or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Aortgage. if the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates o[ taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, asscssmenu, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funcls. If the amount of the Funds held by Lender shall not be su[ficient 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 days from the date notice is mailed by Lender to Borrower requesting payment thereo[. Upon payment in [ull of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any Funds held by Leader. If under paragraph 18 hereof the Property is sold or the Propert}• is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale o[ 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 Payments. Unless applicable law provides otherwise, all payments received by Lender tender the Note and paragraphs 1 and 2 hereo[ shall be applied by Lender first in pa}•ment o[ amowtts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable ore the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lieru. 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, if arty, in the man- ner prosided under paragraph 2 hereo[ or. if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, acrd in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this \(ortgage: pros•iciecl, 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 g~Hid faith contest such lien by, or de[end enforcement of such lien in, le- gal proceedings which operate to present the enforcement o[ the lien or forfeiture of the Property or any part thereof. 5. Harard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- sured against loss by fire, hazards included within the term "extended coverage'", and such ocher hazards as Lender may re- quire and in such amounts and [or 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 b}' this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to appmcal by Lender, provided, that such approval shall not be unreasonably withheld. :\ll 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, directly to the insurance carrier. j Atl insurance policies and renewals thereof shall be in form acceptable to Lender artcl shall include a standard more- ; gage clause is favor o[ and in form acceptable to Lender. Lender shall hale 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 went of loss. Borrower shall gise prompt notice to the insurance carrier and Lender. Lender mac make proof of loss if not made E promptly by Borrower. • ! Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not r thereby impaired. If such restoration or repair is noe economically feasible or if the security of this Mortgage would be im- s paired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, i[ any, paid to Bor- € rower. If the Property is abandoned by Borrower, 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 settle 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 b}• this Mortgage. ~ Unle;s 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 I 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 Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this \[ortgaRe immediately prior to such sale or acquisition. • ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property f and shall comply with the prosisions of any lease if this Mortgage is on a leasehold. 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 i or covenants creating or governing the condominium or planned unit development, the bylaws 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 together with this Mortgage. the covenants and agreements of 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. s 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this ~(ortgage, or if any action or proceeding is commenced which materially attests Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoking a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower. may make such appearances. disburse such sums • 3 and take such action as is necessary to protect Ixnder's interest, including, but not limited to. disbursement of reasonable ~ attorne}''s tees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition o[ making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in ef- i feet until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written s gOG!( t)lR) ~a~r2~ ,eJV r - - ~ZL -