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HomeMy WebLinkAbout1357 • - s>? [INQOItltt COVENANTti. Borrower and Lender covenant and agree ss follows: 1. ~ )lrptweat erf 1[aiaclMl >tri INered. 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 of and interest em any Future Advances secured by this Mortgage. 2. )hernia for Trtntaa tam lawraaree. Subject to applicable law ~~r to a written waiver by Lender. Borrower shall wr to Lender on the day monthly installments of principal and intcrest arc payable under the Note. until the Note is paid in full. t? rum (herein "Funds' equal to one-twelfth of the yearly 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 otx-twelfth o[ yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from Etna to tithe by Lender on the basis of assessments and hills and reasonable estimates thereof. . 11re Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal of } state agency (including Lender if Lender is such an institution). 1_ender shall apply the F~rnds to pay said taxes. assessments, insurance premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and bills, 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 exexution of this Mortgages 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 shaD give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which eacb 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 Funds held by Lender, together with the suture monthly installments of Funds payable prior to the due dates of taxes. assessments. insurancx premiums and ground rents, shall exceed the amount required to pay said taxes. suesaments, irt:uranex premiums and ground rents as they tall due, such excess shall be, at Borrowers option, either pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sttJticieat to pay taxes, assessments, insurance premiums and ground rents ss they fall due, Bosmo~rer 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 fuU of all sums secured by this Mortgage, 1_ertder shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs 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 Mortgage. 3. A~piicatioe of Paytaaeots. 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. 1. Charges; Liero. 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, 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 shalt 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 Iasurawce. Borrower shall keep 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 under may reyuire and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of 5 such coverage exceed that amount of coverage required to pay the sums secured Eby this Mortgage. L 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 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, f 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 td 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 Mortgage would f be impaired, the insurance proceeds shall be applied to the sums sec~~red by this Mortgage. with the excess, it any. paid to Borrower. If the Property is abandoned by Borrower, or it 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 m writing. any such application of proceeds to principal shall not extend or postpone the due date of the monthh• installments referred to 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 Rrsurance 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 Devebpmenes. Borrower shall keep the Property in good repair and shall not commis yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease rt th~~ 17ongage rc on a leasehold. 1[ this Mortgage is on a unit in a a condominium or a planned unrt development, Borrower shall perform all of Borrower's obGgadons under she 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 da:umentc. 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 rnic~ and shall amend and supplement the covenants and agreements of this Mortgage as if the rider N were a part hereof. 7. Protection of Lenders Security. If Borrower faih to perform the covenants and agreements contained in this " Mortgage, or if any action ur proceedrng rti commence.) which materially affects Lender's interest in the Property. including. but nut limited to, eminent domain. urcul~enc~. axle enforcement. or arrangements ur proceedings invoking a bankrupt or decedent, then Lender at Lender's epoch, upon notice to Borrower. mad make such appearances, dishurse such sums and take such action as rs necessary to protect Lender's interest, including. but not limited to. disbursement of reasonable attorney's fees end entry u;?un the Property Io make repairs. if Lender required mortgage insurance as a condition of making the loan secured h}• this Mortgage. Burn:wer shall pay the premiums required to maintain such , inuurance in eBect until such time as the reyuuement for such insurance terminates to accordance with Borrower's and ! ~CIOK ~7 PdGE~ - - _