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HomeMy WebLinkAbout2970 Jt ' LINIFOttW CovenaNrs. Borrower and Lender covenant and agree u follow:: 1~. r4r~t offi lTrioclMt ttrti INeeesf. Borrower sh:ll promptly pay when due the principal of and interest on the indebledrtess evidenced by the Note. prepayment and late charges ac provided in the Note, and the principal of and interest an any Future Advances secured by this Mortgage. li+~i for TntM ant Iawrsrree. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest .ter payable under the Note. until the Note is paid in full, a sum (herein "Funds' equal to one-twelfth of the yearly oar. and assessments which may attain priority over this Mottgttge. and ground rents on the Property, if any, plus one•tweltth of yearly premium installments for hazard 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 buffs of assessments and hills 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 of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. fender 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 interat on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of 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 be required 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 wu made. The Funds are pledged as additional security [or 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 data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assetnrnents, insurance premiums and ground rents u they fall due, such excess shall be. at Borrowers option, either pranptty repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sut6cient to pay taxes, assessments, insurance premiums and ground rents u they (all due, $orroaer 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 thereof. ' Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lenckr. 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 Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payotents. 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 of the Note. and then to interest and principal on any Future Advances. 4. Charges; Lkras. Borrower shall pay elf taxes, assessments and other charges. fins 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 furn,sh to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directl}•. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lieq which has priority over this Mortgage; provided, that Borrower shall not lx 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 good faith contest such lien by, or defend enforcement of such lien in, ?egal proceedings which operate to prevent the enforcement of the lien 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, hazazds included within the term "extended coverage", and such other hazards as Lender may reyuire and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured Eby 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 shaft be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when dot, directly to the insurance carrier. Afl insurance policieY 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 shalt promptly [urnish to Lender alt renewal notices and all receipts of paid premiums. In the event of loss, $orrower shall g,ve prompt notice to the insurance carrier and lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherw,se agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such rc~storat+on or repair is economically 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 impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Propert}~ 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 Propert~• 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 eaend or postpone the due date of the monthly installments referred to in paragraph. 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Proferty is acyuired 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 ettent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit l~evebpments. Borrower shall keep the Propert}• in good repair and shall not comrpit K~aste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage ,s 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 creating or governing the condom+nir,m or planned unit development, the by-laws and regulations of the condominium or planned unit development. and constituent dcx:uments. If a condominium or planned unit development rider is executed by Borrower and recorded together with th+s Mortgage, the covenants and agreements of such rider shall be +ncorporated +nto and shall amend and supplement the covenants and agreements of this Mortgage as it the rider were a part hereof. 7. Protection of Lenders Security. If Borrower fails t,~ perform the covenants and agreements contained in this Mortgage. ur if any action ur proceednng c,~mmenced which materially affects Lender's interest in the Property. inctudmg, but n,~t limited to. eminent domain. +m<~l~enc}, code enforcement. or arrangements or proceedings invoh~ing a bankrupt or decedent, then Lender at Lender'. option, upon notice to Borrower. may make such appearances. dishurse such sums end take such action as is necessan to protect Lender's interest. including. but not limned to. disbursement of reasonahle attorney's Iecs and entry ulxm the Property to make repairs. If Lender reyuircd mortgage inwrance at a condition of nc,k+ng the Han secured by th+s 1}urtgagc. B~~rr„wrr shall pay the prcmiwns required to maintain such iruuranee u+ effect until uich lime as the reyuiremem for such inuuancc terminates to accordance with Borrower's :rod • G.»~ 319 PaGE2g~fi: