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HomeMy WebLinkAbout0150 1 i s, ~ , ' UN~FORM CoveH.~Nrs. Borrower and Lender coveaant and agree as fotlows: 1. Paymeat of Princlpal and lnfere~t. Borrower shall promptly pay when due the , principal of a~d interest on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on aay Future Advances secured by this Mortgage. 2. Fuads for.Tua ar~d Insuruece. Subject to applicable law or to a written waiver by Lende'r. Borrower shall pay tu l.ender on the day mo~thly installments o! principal and interest are payable under the Note, until the Nate is paid in full, a sum (herein "Funds") equal to one•twelfth of the yearly taxes and assessments which may attai~ priority over this Mortgage. and g~ound rents on the Propeny, if aay, plus ono-tweltth of yearly premium irtstallments fo~ hazard insurance. plus une-twelfth of yearly premium installments for mortgage insurance, if any, all as ressonably estima~ed 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 thc deposits or accounts af which are insured or guaranteed by a Federal or state agency (includi~g Lender if Lender is such a~ itutitution). l.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 assessments and bills, unless Lender pays BoROwer interest on the Funds and applicable law permits Lender to make such a charge. Bor~ower and Lender may agree in writing at the time of execution of this ~iortgage that interest on the Funds shal) be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be ~equired 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 plecigeJ as additional security for the sums secured • by this I?iortgage. 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 required to pay said taxes. assessments, ins_•~ance premiums and ground rents as they fall due, such Cxcess shall be, at Borrowers option, either promptly repaid to dorrower 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 da~~s from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, 1_ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or thc Property is otherwise acquired by Lender, Lender shall appiy, no later ihan immediateiy 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 Paymeats. Unless 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, then to the principal oi the Note, and thcn to interest and principal on any Future Advances. 4. Charges; Lkns. Borrower shall pay all taxes, assessmcnts and other charge~, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to l.ender all notices ot amounts due under this paragraph, aad in the event Borrovr•er shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over ~i~~s Mongage; 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 gaxi faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien ar forfeiture of the Property or any part theteof. S. Hazard Insurance. Borrower shall keep the ~mpro~~ements now cxisting or hereafter erected ~n the Property insured against loss by fire, hazazds included within the term "c~tended coverage", and such other hazards as Lender may require aad 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 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 onder paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the ~ insurance cazrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ; clause in faror of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, f and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. ! Borrower shall gi~•e prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy j by Burrower. ? Unless Lender and Borrow•er otherw•ise agree in w•riting, 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 F not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would ~ ~ , be impaired, the insurance proceeJs ~hall be applied tu 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 notice is mailed by Lender to Borrower that the insurance carrier ofTers~o setde a claim for insurance bene~its, Lender ~ is authorizeci 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. ; Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall noi extend ~ or postpone the duc 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 l.ender, all right. title and interest of Borrower f in and to an~- 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 estent of the sums secured by this :~tortgage immediately prior to such sale or ~ acquisition. _ 6. Presen~ation and ~taintenance of Properly; I,eaceholds; Condominiums; Planned Unit Developments. Borrower ~ shal! keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property - and shall comply with t6e provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a ~ condominium or a planned unit Jevelopment, Borrower shall perform all of Borrower's obligations under the declaration ' or covenants creating or g~verning the condominium or plannrd unit development, the by-laws and regulations of the ~ condominium or planned unit development, and constituent Jocumems. If a condominium or planned ur.it development rider is executed by Borrower and recorded together with this I~1ortgage, lhe covenants and agreements of such tider shall be incorporated inio and shall arnend and supplement the co~enants and agreements of thic Mortgage as if the rider were a part hereof. € 7. Protection of Lenders Seeurity. If Borrow•er fails to perform the covenants and agreements contained in this ~ Morlgage, or if any action or . proceeding is commenced w•hich materially a(iects 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 Lender at Lender's option, upon notice to Borrower, ma}• make such appearances, disburse such ' sums and take such action as is necessar~• to pmtect L.ender s interest, induding, but not limited to, disbursement of ~ reasonable attorney's fccs and entry upon thc Property to make repairs. If Lender required mortgage insurance as a ~ condition of making the loan secured b~ ~his ~tortgage. Borrower shall pa~~ the premiums required to maintain such insurance in effect until such time as the requirement for tiuch insurance terminates in accordance with Borrower s and _ • . " . ~x~ 3O8 ?AC~ 25p . h ~ ~ _ _ _ . _