Loading...
HomeMy WebLinkAbout1304 UN~FOat~t Covex~Nrs. Borrower ar?d Lende~ covenant and agret as foUows: l. Paymeat ot Priacipal aud Iaterat. Borrower shall p~omptly pay when due the principal of and interest on the indebtedneu evidenced by the Note, prepayment and late charges as providod i~ the Note. and the principal of and intercst on any Future Advances secuted by this Mortgage. 2. Fbads for Tua ~ad lusuraace. Stibject to applicable law or to a written waiver by l.ender. Borrower shall pay to l.ender on ~he day monthly installments of principal a~d interest are payable under the Note, until the Note is paid in full, a aum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Mort~age. and ground rcnts on the Property, if any. plus one-twelfth of yearly pre~nium installments for hazard insurance, plus one-twelfth of yearly premium installments for morigage insurance, if any. all as reuonably estimated initially and fmm time to time by Lender on the basis of assessments and bills and reasonable estimata thereof. The Funds sball be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or state agency (including l.ender if Lender is such an institution). t_ender shall apply the Funds to pay said tanes. 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 Borrower interest an the Funds and applicable law permits Lender to make such a charge. Borrower aad Lender may ag~ee in writing at the time of execution of this Mortgage that interest on the Funds shall Fx paid to Borrower. and unless such agreement is made or applicable law requircs such interest to be paid, Lender shall not be requireci 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 pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together wilh the: future monthly insta0ments af 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, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrow•er or credited to Borrower on monthly installments of Funds. I[ the amount of the Funds held by Lender shall not be s~t~'icient to pay taKes, assessments, insurancc premiums and ground rents as they fall due, Borrower shall pay to Lender an~~ amount necessary to make up the deficiency within 30 days from the date notice is mailed U)' LCUIICI lV bVliVii~Cl Pcyiii:iiiu~ Yn~~Tia;i~i ii~a.Ta,vi. j - Upon payment in full of all sums secured by this Mortgage, I_end~~ shalti,~, ly refund to Borrower any Funds held by LenJer. If under paragraph 18 hercof the Property is sold or the"Prorerry i~ ~rwisc acq}~ired by Lender, Lender = shall apply, no later than immediately prior to the sale of the Property' bY its' at~{ifisiti~n by Lbhtier, any Funds held by Lender at the time of application as a credit against the sums secured by th~s Mortgage. 3. Applicalion of Payments. Unlecs. applicable law provides otherwise, all payments receivgd 1~ I_ender under the Note and Qaragraphs 1 and 2 hercof shall be applied 6y !_e~der first in payment of amounts pa~•able to Lender by Borrower under paragraph 2 hereof, then to interest payablc un the Ivo~c, theo to the principal of the Note, and Ihen to interest and principal on any Future Advances. 4. C6uges; Lkns. Bonow•er shall pay aU taxes. assessments and othcr charges. 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 unde~ 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, and in tt~e event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Bor~ow~er shall prompUy discharge any lien ~hich has priority over this Murtgage; pro~•ided, that Borrower shall not be required to discharge any such lien so long as Borrower shalt agree in writing to the payment of the obligation secured by such tien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to pre~~ent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard I~urance. Borrow•er shall keep the improvements now e.risting or hereafter erected on the Property insured against loss by fire, hazards induded withm 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 shal! not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~ 'I1?e insurance carrier providing the insurance shall be chosen by Borrow•er 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 i provided under paragraQh 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the ~ insurance carrier. E All insurance policies anJ renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage ~ clause in favor of and in form acceptable to Lender. Lender shafl have the right to hold the policies and renewals ihereof. ~ and Borrower shall ptomptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, ~ Borrower shall give prompt not:ce to the insurance carrier and Lender. Lender may make proof af loss if not made promptly ~ by Borrower. Unless Lender and Borrower otherv?•ise agree in w riting, insurance proceeds shall be applied to restoration or repair of ~ the Property damaged, provideJ such restoration or repair is economically feasible and the security of this Mortgage is ~ not ~hereby impaired. If such restoration or repair is not ernnomicaliy feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid ~ to Borrc~wer. If the Property is abandoned by Borrow~r, or if Borrower fails ro respond to Lender within 30 days from the ~ ~arP .u,r~~~ ~c m?ilsd hy i endrr t~ Rorrower that the insurance carrier offers to setUe a claim for insurance benefits, L.ender ~ is aut6oriud 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 pnncipal shall not extend ~ or postpone the due Jate 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.encier, 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 Pmperty prior to the sale { or acquisition shall pass to Lender to the extent of the sums secured by this hfortgage immediately prior to such sale or - acquisition. ~ 6. Preservation aod ~laintenaoce of Propert}: Leaseholds; Condominiums; Ptanned Unit Devebpments. Borrower shall keep the Propeny in good repair and shall not comm~t waste or permit impairment or deterioration of the Property ~ and shall comply with the provis~ons of any lease if this Mortgage ~s on a leasehold. If this Mortgage is on a unit in a ~ condominium or a planncd unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creat~ng or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development ~ nder is e;ecuted by Borrow~er and recorded together with this Mortgage, the covenants and agreements of such tider shall be incorporated into and shall amend and supplemeni the covenants and agreements of this Mortgage as if the rider ~ were a part hereof. ~ 7. Protectioo of I.ender's Securitp. If BorroN•er fails to perform the covenants and agreements contained in lhis ~ Mortgage, or if any action or proceeding is commenced w•hich materially~ affects Lender's interest in the Property. ~ including, but not limited to, eminent domain, insol~~enc}~. ccxle enforcement. or arrangements or proceedings.involving a ~ bankrupt or decedent, ~hen t_ender at I.ender'~ option, upnn notice to Borrower, ma~• make such appearances, disburse such ~ sums and take such actio~ as is neces~ary to protect Lender's interest, including, but not limited to, disbursement of reasonable attomey's (ces and eniry upon ehe Propcrty to makc repairc. If Lender required mortgage in~urance as a ~ condition of making the loan ~ecured b} this :Nortgage, Borrawer shall pay the premiums required to maintain such - insurance in efiect umil such time as the reyuirement for wch msurance terminates in aceot~ance with Borrower's and - ~_~.311 ~~~:1303 ~ ~ ~ .