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HomeMy WebLinkAbout2157 l1rIFORM COVe\Ah'7•s. BOirOwer and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when 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 any Future Advances secured by this Mortgage. 2 Funds 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 o[ principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearl}• taxes and assessments which ma}• attain priority over this Mortgage, and ground rents on the Property, i[ any, plus one-twelfth of },early premium installments for hazard insurance, plus one-twelfth o[ yearly premium installments (or mortgage insurance, if any, all as reasonabl}• estimated initially and tram 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 are insured or guaranteed b}• a Federal or state agency (including Lender it Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and apph•inq 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 may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law 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 accounting o[ the Furrds showing credits and debits to the Funds and the purpose for which each debit to the Futtds was made. The Funds are pleelged as additional securit}• for the sums secured by this :Mortgage. • If the amount of the Funds held by Lender, together with the future monthly installments of Funds pa},able prior to the due dates 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 tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Furrcls. I[ the amount of the Funds held by Lender shall not be sufficient to pa}• 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 co Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptl}• refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Propert}• is otherwise acquired b}• Lender, Lender shall appl}•, no later than immediately prior to the sale of the Propert}• or its acquisition b?• Lender, any Funds held by Lender at the time of appliption as a credit against the sums secured by this Mortgage. 3. Appliation of Payments. Unless applicable law provides otherwise, all pa}ments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in pa}•ment o[ amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest pa}•able on the Note, then to the principal o[ the \ote, and then to interest and principal on any Future Advances. 4. Charges; Liens Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Propert}• which may attain a priority over this Mortgage, and leasehold pa}ments or ground rents, it art},, in the man- ner provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making pa}•ment, when due, directly to flee pa}•ee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make pa}Tttent directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge an}' lien which has priority over this Mortgage: provided, that Borrower shall not be re- quited 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 gcxxl faith contest such lien b}'. or defend enforcement of such lien in, le- gal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- cured against loss by [ire, hazards included within the term "extended coverage", and wch other hazards as Lender may re- quire and in such amounts and for such periods as Lender ma}• 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 bs• Lender: provided, that such approval shall not be unreasonabh• withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or. if not paid in such manner, b}• Borrower making pa}ment, when due, directly to the insurance carrier. I; 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 form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptl}• furnish to Lender all renewal notices and all receipts of paid premiums. In the event j of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender mas• make proof of loss i[ not made promptly by Borrower. • ! Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of I the Property damaged, provided such restoration or repair is economicalh• 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 im- paired, the insurance proceeds shall be applied to the sums secured b}• 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 da}•s from the date ~ notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is j authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or F to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, an}• 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 F installments. It under paragraph 18 hereof the Propert~• is acquired b}• bender, 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 Propert}• prior to the sale or ~ acquisition shall past to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and :1laintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower strall 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 am• 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 or covenants seating or governing the condominium or planned unit development, the b}•-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 together with this Mortgage, the cos•enarrts 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 pan ` hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Propert}•, including, - 3 but not limited to, eminent domain, insoh•ency, code enforcement, or arrangements or proceedings involving a bankrupt 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 necessar}• to protect Lender's interest, including, but not limited to. disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in ef- feet until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written X09 Ja~:~2154