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HomeMy WebLinkAbout0984 UtctFOaat COVENANTS. Borrower and Lender covenant and agree as follows: I. 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 o[ and inter- est on any Future Advances secured by this Mortgage. 2. I•hnds [or Taxes and Insurance. Subject to applicable law or to a written waiver by Leader, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in ~ full, a sum (herein "Funds') equal to one=twelfth o[ the yearly taxes and assessments which may attain priority oa•er this i \(ortgage, and ground rents on the Property, if any, plus one•twel[th of yearly premium installments for harard irrsurar?ce, plus one-twelfth of yearly premium installments for mortgage insurance, it any, all as rrasorrabl}• estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in aft institution the deposits or accounts o[ which are iitstrred or guaranteed by a Federal or state agency (including Lender if Lender is such art institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground routs. Lender may not charge for so holding and applying the Funds, analysing said ac- count, or a•eri[ying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap- I,liwble law permits Lender to make such a charge. Borrower and Lender may agree ir, writing at the time o[ execution of l this Mortgage that interest on [he Funds shall be paid to Borrower, and unless such agreement is made or applicable law f requires such interest to be paid, Lencter shall not be required to pay Borrower any interest or earnings on the Funds. Lender ~ shall give to Borrower, without charge, an aru~ual attounting of the Funds showing credits and debits to the Funds and the , purpose for which each debit to the Furtds was made. The Funds are pledged as additional security for the sums secured f 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 tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Furtds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower ! shall pay to Lender any amount necessary to make up the deficiency within 30 da}s from the date notice is mailed by Lender to Borrower requesting payment thereof. • Upon payment in full of all sums secured by this 1lfortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or thr~Property is otherwise acquired by Lender, Lender i shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, arty Funds held by Lender at the time of application as a credit against the sums secured b}• this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments receia•ed by Lender under the Note and paragraphs 1 and 2 hereof shall be appliccl by Lender first in pa}moot of amounts pa}able to !.ender h}• Borrower under paragraph 2 hereof, then to interest payable ort the lhote, then to the principal of the tote, 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 Property which may attain a priority oa•er this Mortgage, and leasehold payments or ground rents, if an}•. in the man- ner provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making payment, whet, due. directly to the payee thereof. Borrower shall prompth• furnish io Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directh, Borrower shall promptly furnish to Lender receipts ea•idenring such paaments. Borrower shall promptly discharge any lien which has priority over this Mortgage: proaided. that Borrower shall not be re- quired 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 by, or defend enforcement of such lien in, le- gal proceedings which operate to prea•ent 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- sured against loss by [ire, hazards included within the term "extended coaerage", and such other hazards as Lender may re- # I'i quire 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, I~ that such approval shall not be unreasonabh• withheld. .-ill premiums on insurance policies shall be paid in the manner i proaided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when clue, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender anti shall include a standard wort- gage clause in favor of and in form acceptable to Lender. Lender shall haa•e the right to hold the policies and renewals thereof, and Borrower shall pmmpth• 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 Ixnder. Lender may make proof of loss it not made - promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance pr«eeds shall be applied to restoration or repair of # the Property damaged, provided'such restoration or repair is economically feasible and the securita• of this ~fortgage 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 pr«eeds shall be applied to the sums secured by this Mortgage, with ~ the excess, i[ any, paid to Bor- rower. It 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 pr«eeds 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 pr«eeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or cl,arrge the amount of such installments. It under paragraph 18 hereof the Property is acquired ba• Lender, all right. title and interest of Borrower in _ and to any insurance policies and in and to the pr«eeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sutras secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance o[ Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall 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 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 goa•erning the condominium or planned unit deaelopment, the by-laws and regulations o[ the condo- minium or planned unit development. and constituent d«umeuts. if a condominium or planned unit development rider is executed b~• Bonower and recorded together with this Mortgage. the cocertants and agreements of such rider shall be in- corporated into and shall amend and supplement the coa•enants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection o[ Lender's Security. If Borrower fails to perform the cm•enants and agreements contained in this Mortgage, or if any action or pr«eeding is commenced which materially affects Lender's interest in the Property, including. bui not limited to, eminent domain, insolvent}'. 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 l.c•nder's interest, including. but not limited to. disbursement of reasonable attorney's tees and entr}' upon the Property to make repairs. I( Lender regeired mortgage insurance as a condition of making the •loau secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in ef- fect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written