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HomeMy WebLinkAbout1418 1 ~ 4' Urttt=ottta COYEN.~NTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Burrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and Ia1e charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Z. Funds for Taxes and tnsuraace. Subject to applicable law or to a written waiver by i.ender, Borrower shall pay to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in toll, a sttm (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which ma}• attain priority over this Mortgage, and ground rents on the Property,'if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insttrancc, if any, all as reasonably estimated ittitiall}• and from time to time by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or 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. Lender may nut charge for so holding and applying the Funds, analysing said account, or verifying and compiling said assessments and bills, unless lender pa}•s Borrower interest on the Fttnds 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 interest ott 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 intermit or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fttnds 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 Fttnds held by Lender, together with the future monthly installments of Fttnds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, sha!I exceed the amount reyuired to p:ty said taxes. assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's 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 prer.tiums anal ground rents as `they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 Jays from the date notice is mailed by Lender to Burrower rcyucsting payment thereof. Upon payment in full of all sums secured by this Mortgage. 1-ender shall promptly refund to Bormw•er any Funds held by Lender. If under paragraph 1K hereof the Property is sold or the Property is otherwise acquired by Lender, lender shall apply, nu later than immediately prior to the sale of the Property or its acquisition b)' Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payahlc to Lender by Bcvrower ~::d~r p:aagrapFi 2 hereof, then to interest payable on the Note. then to the principal of the Mute. and then to interest and principal on any Fuurre Advances. _ 4. .Charges; Liens. Borrower shall pay a!1 taxes, assessments and other charges. fines and imp+~sitions attrihutahle 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 Burrower 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, Burrower shill promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided. that Burrower shall not be required to discharge an.• ,uch lien u~ long as Burrower shall agree in writing to the payment ul the obligation secured by such hen in a manner acceptable to Lender, or shall in ga+xl faith contest such lien by, or defend enforcement of such lien in, legal pnrceeding, which operate to prevent the cnfurccmcnt of the Iron or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the rmprcn•ements now misting ur hereafter erected on the Prupert}• insured against loss by fire. hazards include) w•ithm the term "extended coverage", and such other hazards ac Lender map reyuire • and in such amounts and for such peritxls as )_cndcr may reyuire: provided, that Lender shall nut reyuire that the amount ~uf such coverage exceed that amount of coverage reyuired-to pay Uri sums secured M- this lllortgage- The insurance carrier providink the imurance shall be chosen by Borrower suhject to appros•al by 1_ender. provided. that such approsal shall nut he unrcasonabl}• withheld. All premiums on insurance policies shall h+r paid in the manner provided ynder p :ragraph 2 hereof ur. if not paid in such manner, by Burrower making payment, when due, directl}• to the ~ insurance carrier. I All insurance p.aicies and reiew,us thereof shall tx~ in fume acceptable to Lender and chats include a standard mortgage clause in favor ..f and in form acceptable to Lender. Lender ;hall have the right txr hold the polities and renewals thereof, and Burr~nver shalt promptly furnish to Lender all renewal notices and all receipts of paid premium,- In the event of loss. .Borrower shall give prompt notice to the insurance carrier and I-ender. 1-ender ma} make proof of loss if nut made promptly b+• Borro+ver- Unless 1_enda:r 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 thi; Mortgage is not thereby imparted. If such resturaUOn or repair s not ernnomiwlly feasible ur 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 Burrower. If the Pmpcrt~ is abandoned by Borrower. or if Borrower fails t~ respond to 1_ender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier utters to settle a claim fur insurance benefits, Lender is :wthorized to collect an+l appl}• the insurance proceeds at I.cnder's option either to restoration or repair of the Property or to the sums secured b}• this Mortgage. Unless Lender and Burrower uther~+isr agree in writing. an} such ap,~lication of pmcceds to principal shall nut extend or postpone the due date of the manthh• installments referred tr. in paragraphs i and 2 hereof or change the amount of such installments. It under paragraph 18 hereof the Properq is acquired h}- Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the prcv_•eeds thereof resulting from damage to the Property prior to the sale or acquisttion shall pass to Lender to the eaten[ of the cams secured h} this Mortgage immediately prior, to such sale or acquisition. 6. Preservation and Maiatenancr of Proper[}; Leaseholds: Condominiums; Planned L'nit De~•elopments. Borrower shall keep the Property in gaud repair and shall not commit waste or permit impairment or deterioration of the Property and shalt comply with the provisions of any lease if this Mortgage a tin a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development. Borrower shall .perform all of Borrower's obligations under the declaration ur covenants creating or governing the condominium or planned unit development, the b}•-laws and regulations of the condominium ur planned unit development, and constituent ducuments_ If a condominium or planned unit development rider is mecuted by Borrower and recorded together with this Mortgage, the covenants end agreements of such rider shall be ntcorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider I were a part hereof. - 7. Protection of Lenders Security. If Burrower faih to perform the covenants and agreements contained in this Mortgage. or if any action ur proceeding is commenced which material)}• affects lender's interest in the Property, including. but not limited tu. eminent domain, insolvency, curie cnfurccmcnt. or arrangements or proceedings involving a bant:rupt ur decedent. then Lender at Lender's option, upon notice ro Borrower, msy make such appearances, disburse such sums and take such actin as is necessary to protect Lender's interest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender reyuired mortgage imurance as a condition of making the loan secured h} this Mortgage. Borrower shall pay the premiums required to maintain such insurance in cries[ until such time ac the reyuirernent for such insurance terminates in accordance with Borrower's and zn~K 321 PaGE 1417 - -