Loading...
HomeMy WebLinkAbout2079 • Unt~otut CoveNertrs. Borrower and Lender covenant and agree as follows: 4 lgmeot o/ hiaclMl aai Irttersp. Borrower shall promptl)~ pay when due the principal of and interest on the ittdebtedttas evidenced by the Note, prepayment and late charges ac provided in the Note. and the principal o[ and interest oa any Future Advances secured by this Mortgage. 2. l4ai ter Testis asi Itntrrttnce. Subject to applicable law ar to a written waiver by Lender, 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 titan (herein "Funds") egwl to one-twelfth of the yearly taxc. 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 ottr-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessmcr?ts and hills and reasonable estimates thereof. 'R?e Funds shall be held in an institution the depos,ta or accounts of which arc insut~ed or guaranteed by a Federal ott 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 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 execution of this 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 nat be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without chargt, an annual accounting of the Funds showing credits and debits to tlx 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 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 attwunt required to pay said taxes. assessments. insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers 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 sutficieat 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 frorti the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment is full of all sums secured by this Mortgage, Lender shaft 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. rte later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time ot.application as a credit against the sums secured by this Mortgage." 3. Application of Paytaoeats. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs !sad 2 hereof shall be applied by 1_ender first in payment of amounts payable to Lender by Borrower tinder 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. 4. Charles; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Properly 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 thertmf. 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 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 hen or forfeiture of the Property or any part thereof. S. Hazard Insiirawee. 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 Lender may reyuire ' sad in such amounu and for such periods as Lender may reyuire; 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 b}ortgage. 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, Borrower shall gwe prompt notice to the insurance carrier and lender. Lender may make proof of loss if not made promptly by $orrowcr. - Unless Lender and Borrower otherwru~ agree in w•ntrng, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security o~ this Mortgage is not thereby imparted. If such restoration or repair is n~~t earnomically feasible or i( 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 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 insurarce proceeds at Lender's option either to restoration or repair of the Propen~• or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree m writing, any such application of proceeds to principal shall no[ extend or postpone the due date of the monthly installments referred to in paragraphs f and 2 hereof or change the amount of such installments- If under paragraph !t{ hereof the Proferty is acywred by Lender, all right, title and interest of Borrower in and to any fnsurance policies and in and to the proceeds thereot resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by thu Mortgage immediately prior to such sale or acquisition. 6. Presers•ation sad lfaintenaace of Properly; l.easehulds; ('ondominiums; Planned Unit Developments. Borrower shall keep the Property in guod repair and shall not comrpit K•aste or permit impairment or deterioration of the Property sad shall comply with the provisions of any lease it stir, 1lurtgage i` tin a leasehold. If this Mortgage is on a unit in a coidominium or a planned amt development, BorroMCr shalt fxrform ail of Borrower's obGgauons under the declaration or covenants creatrng yr guvernmg the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and cunstituent dcxument~. It a condominium or planned unit Development rider is executed by Borrower and recorded together Huh thn Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and tiupplement the covenants and agreements of this Mortgage as if the rider wrre a part hereof 7, Protection of Lenders Security. If Borrower fart. to perform the covenants and agreements contained in this Mortgage, or if any acnun +~r proceeding comnience.l which materially .+fiects Lender's interest in the Property, including. but not limned to. eminent dumam. im~+lycn:~. u+de enforcement. or arrangements or proxeedings invoking a bankrupt or decedent, then Lender at ! ender's option, a fx,n notice to Borrower. may make such appearances, disburse such sums and take such action as is nece~.ar} to protect Lender's interest. including. but not limned to, disbursement of reasonable attorney's teeti and entry ufNm the Property to make re_pa+r`. If Lender reyuired mortgage insurance as a condition of rt+ak+ng the loan ucured by thi. M~~rtg.+e. B~~rruwer shalt pay the premiums reyuire) to maintain such mxurancr ui sliest until uich time ay the reymrenicnt for wch insurance terminates +n accordance with Borrower's and •g~3z7 P«~E~o~ ~.r