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HomeMy WebLinkAbout1809 ~ .I ~ ~ ~ , ~ 'til ~ ` ~ UNtrorw COVENANTS. Borrower anti Lender rnvenant and agree ss follows: 1. 1Mjtwent of hinclNl atati IMereM. Borrower shall promptly pay when due the principal of and interest on the indeMedrtas evidenced by the Note. prepayment and late charges a~ provided in the Note, and the principal of and interest ores .ray Future Advances secured by this Mortgage. )Etsttti for Tae ani Irinranee. Subject to applicable law ~.r to a written waiver by Lender. Borrower shall pay to Lender oit the day monthly iristallrnents of principal anJ intcrcxt .ire payable under the Note. until the Note is paid in full, a stmn (herein "Funds") equa! to one-twelfth of the year)}~ taxc. and assessments which may attain prioriry over this Mortgage. and ground rents oft 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 as reasonably estimated initially and tram 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 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. Lender may na charge torso holding and applying the Frinds. analyzing said account. or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Leger to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the F~rnds she!! be paid to &srrower: and unless such agreement is madx or applicable law r+egtrir+es such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lcndtr 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 are pledged as additional security for the sutras 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 dates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. assesanents, 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 suf6cieat to pay taxes. assessments, insurance premiums and ground rents as they fall due, 'Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days trom the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, t_ertder shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Propeny Is 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 Lander at the time of application as a credit against the sums secured by this Mongage. 3. Applkatioa of Pslyweals. Unless applicable law provides otherwise. all payments received by Lender under the Note and paragraphs l and 2 hereof shall be applied by i_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interesi payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. t. 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 itte 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 fumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mongage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writrng 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 Progeny or any .pan thereof. S. IHalrard Irisarsutlce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by Ere, hazards included within the term "extended coverage", and such other hazards as Lender may require wd 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. 'Ilse insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, j 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 E insurance carrier. All insurance policies and renewals thereof shall he 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 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 lass if not made promptly by Borrower. Unless Lender and Borrower otherwlse 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 not economically feasible or if the security of this Alongage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mongage, 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 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 monthly installments referred t~ in paragraphs I 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 Insurance policies and in and to the proceeds thereof resulting from damage to the Progeny 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. Presenation and Maintenance of Propen?•; l.easthulds; Condominiums; Planned Unit Developments. Borrower _ shall keep the Progeny in good repair and shall not commit yvaste or permit impairment or deterioration of the Progeny 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 condominium or a planned unit development, Borrower shall perform all of Borrowers 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, and constituent documents. If 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 rnto and shell amend -rand supplement the cos~enants and agreements of this Mortgage as if the rider were a pan hereof. 7. Protection of Lender's Security. If Borrower fade m perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding IS commence.f which materially affects Lender's interest in the Pmpeny, including. but not limited to. eminent domain, insrlsency, code enforcement, or arrangements or proceedings invoh•Ing a bankrupt or decedent, then 1_ender at Lender ~ option, upon notrce 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 entry upon the Property to make repairs. If Lender required mortgage insurance as a condrtion of making the loan secured by this Mongage. Born:wcr sh.,ll pay the premiwns required to maintain such _ insurance in elfect until xich time as the requirement fc~r wch Insurance terminates in accordance with Borrower's and ' ~ - • ~~32~ P~~1807