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HomeMy WebLinkAbout2678 , ~ i ~ , j Untrotw CovBn~t~trs. Borrower and Lender covenant and atrce ss fellows: igtweet d hi~efMl W itttletrsM. Borrower shall promptly pay when due the principal of and interat on the indtbtednas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal o[ and interat on aay Futuro Advances ttecw~ed by this Montage. !ri ter 'I1aes tttati Ittrteaoee. Subject to applicable law ~.r Io a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and intertst are. payable under the Note. until the Note is paid in full, a strap (herein "Funda'~ equal to one-twelfth of the yearlk• tax~y and assessments which may attain priority over this Motttate, and tround rents on the Property. if any, plus Otte-twelfth of yearly premium installments for haurd irtstrrartce, plus otx-twelfth of yearly premium installments for montage insurance, if any, all u reasonably estimated initially and from time to tune by Leader on the basis of assessments and hilts and reasonable estimates thereof. The Funds shall be Geld in an institution the deposiu or accounts of which are ittstrred or tuaranteed by a Federal or state atertcy (including Lender if Lender is such an institution). 1-ender shall apply the Funds to pay said taxes. assessments. insurance premiums and tround rents. [.ender may not charge for so holding and applyint the Funds, analyzing said account. or verifyint.snd oompilint said assessments and bilk, 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 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 rcgtura such interest to bt: 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 was made. The Funds arc pledged as additional sscurtty 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 data of taxes. assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes. assessments, irt:uranoe premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower ~ credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sutficiieat to pay taxes. assessments, insurance premiums and ground rents ss 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 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 Lender. If under paragraph 18 hereof the Properly is sold or the Property ,s otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Properly or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the sums sceured by this Mortgage. 3. Application of Prpnoewfa. Unless applicable law provide otherwise, all payments receive,3 by Lender under the Note and paragraphs I 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. 4. C>tartes; Liens. Borrower shall pay all lazes, assessments and other charges. fines and impositions attributable to the properly 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 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 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, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pan thereof. S. Huard IuwrarACe. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured agairut loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require and rn 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 riot 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 f 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 promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give prompt notice to the insurance carrier and [_ender. Leader may make proof of loss if not madt promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, 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 r not thereby impaired. If such restoration or repair is not economically feasible or if the stcurity of this Mortgage woo{d 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 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 Proptrt~~ 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 the 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 R,surance 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit lJevebpments. Borrower ~ shall keep the Property in good repair and shall not comr9it yvaste or permit impairment or deterioration of the Property and shall comply with the 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 development, Borrower shall perform all of Borrower's obligations under the declaration ~ or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development.:,nd constituent documents. It a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall 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 Lender's Security. If Borrower fails to perform the covenants anJ agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but nut 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, may make such appearances, disburse such - sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of = reasonable attorney's ices and entry upon the Propert}' to make repairs. If Lender reyuired mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in effect until such Ume as the requirement for' wch insurance terminates in accordance with Borrower's and flrfAAA Aw.r .