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HomeMy WebLinkAbout2840 r , ~ ~ ,I r, UNIPOIW COVENANTS, Botmrru and lender covenant and agra as follows: 4 hftwetN of lciaclMl tt+ni lNere~af. Borrower shall promptly pay when due the principal of and interest on the indebtedrreas evidt:nced by the Note, prepayment and late charges as provided in the Nate, and the principal of and intersst oa any Future Advances secured by this Mortgage. 2. FttttNs ter Tttotaa truri Iawrtrea. Subject to applicable law ar to a written waiver by Leader, Borrower shall pay to Lender on the day monthly installments of principal and interest ire payable under the Note. until the Note is paid in full, a sum (herein "Funds"~ equal to one-twelfth of the yearly tar,c~. and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for haurd insurance. plus one-twelfth 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 asses~mcnts and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposirs orrccounts of which are insured or gwrttnteed by a Federal of state agtncy (including Lejrder if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. i-ender may not charge for sn holding and applying the Funds. analyzing said account. or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing st the time o[ execution o[ this Mortgage that interat 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 Ix required to pay Borrower any interest or earnings on the Funds. lender sbaU give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpou 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 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, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ss they fall due, l3arres~rer shs!! pay to L~~dsr any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting .payment thereof. Upon payrneat in full of all sums secured by this Mortgage, tender shall promptly refund to Borrower any Funds held by Leader. If under paragraph 18 hereof the Property is sold or the Property rs 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 Leader at the time of application as a credit against the sums secured by this Mortgage. 3. Applicstiota of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note aad paragraphs 1 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 of the Note. and then to interest and principal on any Future Advances. Charges; Liens. Harrower 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 any, in the manner provided under paragraph 2 hereof or, i[ nest paid in such manner, by Borrower making payment. whtur due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and 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 Mortgage; provided, that Borrower shall not be rcgwred to discharge any such lien so long as Burrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, ur shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the hen or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within 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 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 under paragraph 2 hereof or, if 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 mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shelf promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower sh:~11 give prompt notice to the insurance carrier and [.ender. lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat! 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 thereby impaired. It such restoration or repair is not economically 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 Borrower. If the Property is abandoned by Burrower, ur it 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 awborized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propet•t~ or to the sums secured by this Mortgage. Unless 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 1 and 2 hereof or change tht 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 shalt pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Presen~ation and M1taiotenance of Property; l.easehalds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall nut commit y:aste ur permit impairment or deterioration of the Property and shall comply with the provisions of any lease ~f this Mortgage is tin a leasehold. If this Mortgage is on a unit in a condominium ar a planned unit development, Borrower ,hall inrform all of Borrower's obligations under the declaration or covenants creating or governing the rnndommium or planned unit development, the by-laws and regulations of the condominium or planned unit development, end constituent dcxuments. !f a condominium or planned unit development rider is executed by Borrower and recorded together wrth this Mortgage, the covenants and agreements of such rider shalt be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of fender's Security. 1( Borrower fads u. 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 Property. inctudmg, but not limited to, eminent domain. imnlvenry. aide enforcement. ur arrangements or proceedings invoh•ing a bankrupt or decedent, then Lender at Lender's option, tips?n notice to Borrower, may mske such appearances, disburse such sums and take such action as is necessary n, protect Lender's interest, including. but not limited to, disbursement of reasonable attorney's ices and entry upon the Property to make repairs. If Lender required mortgage inu~rance as a condrnun ~~f making the loan secured by this Mortgage. Hnrrowrr shall pay the premiums require) to maintain such insurance in effect until such time as the reyuirrmem for .uch msurancc Icrminates ~n accordance with Borrower's and • , s~~x319 P~~E282? f