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HomeMy WebLinkAbout2830 f. r • ,a Uwttrtutrr Covertatrra. Borrower and Linder covenant and agree u follows: 1~. 1tiyueM eit lsinclNl tttM IMeriM. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidettiDed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest err any Future Advances sectu~ed by this Mortgage. 2. Fttai ter Tatrea nwi Iawraaee. Subject to applicable law or to a written waiver by Lender. Borrower shill pay to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full. a sum (herein "Fturds'~ equal to orte•twelfth of the yearl)~ tax~~ 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 hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any, all u reasonably estimated initially and trolrt time to tithe by Leader on the basis of assessments and hills and reasonable estimates thereof. 7be Funds shall be held in an institution the deposits or accounts of which are insured or gwranteed by a Federal or state agency (including Lender if Linder is such an institution). 1_ender shall apply the Funds to pay uid taxes. assessments. insuraoce premiums and ground rents. 1_ender may not charge for so holding and applying the Funds. analyzing said account, or verifying.and compiling uid asseuments and bills, unku Leader 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 the Mortgage that interest 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 shaA 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 u additional security for the sums secured by this Mortgage. If the amount o[ the Funds heW by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessment:. insurance premiums and ground rents, shall exceed the amount required to pay uid taxes, assessments, insurance premiums and ground rents u they fall due, such excess shall be, at Borrower's option, either prauptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds held by Lender shall not be strl6cierr,[ to pay taxes, assessments, insurance premiums and ground rents u 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 Leader to Borrower requesting payment thereof. Upon payment in full of all sums sceured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. tto 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 :ums secured by this Mortgage. 3. A~iicatioe of Pr4yeeatr. 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 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. Borrower 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, if not paid in such manner, by Borrower making payment, whtat due, directly to the payee ther~tof. 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 tiro 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 part thereof. S. Hazard Ias>rrarree. Borrower shall kcep 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 Mortgages 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 k clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, 't 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 Lender. Lender may make proof of loss if not made 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 not thereby impaired. If such restoration or repair is nut 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 Borrower, or if Borrower faits to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier o(Ters 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 Property 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 monthl}' 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 h?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 stcurtd by this Mortgage immediately prior to such sale or acquisition. 6. Presen•ation and Maintenance of Property: I.easehulds; Condominiums; Planned Unit Devebpments. Borrower y shall keep the Property in good repair and shall not comtpit yi•aste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. !f this Mortgage is on a unit in a condomimum or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration t or coveaanls creating- or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development. and constituent documents. If a condominium or planned unit development f 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 wire a part hereof. 7. Protection of Lender's Security. If Borrower fails rc~ perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is cummence.l which materially affects lender's interest in the Property, including, but nut limited to. eminent domain, invi.lvenc}•. code enforcement. or arrangements or proceedings invoh•ing a bankrupt or dtcedent. 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 fees and emry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secure) by this Murtfiage. Bi,rruwer shall pay the premiums required to maintain such insurance in etiect until such timt at the requirement fur wch insurance terminates in accordance with Borrower's and i e~~ 322 P~~E2822 ~ .