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HomeMy WebLinkAbout0188 , Utrtt<t>tw CoveNxNrs. Borrower and Lender covenant and agree u follows: 1l. tiU'~ d Priae!!al lull lMereal. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidertoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest oa .ay Future Advances axtrred by this Mortgage. 2. tihnNa tar 'tlatw arts 1>,wrtnce. 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 payabk under the Note. until the Note is paid in full, s stmt (herein "Fonda") equal to one-twelfth of the yearly' tax~~ and assessments which may attain priority over this Mortgage. and ground rcnta on the Property, if any. plus one-twelfth of yearly premium installments [or hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, it any, all u reasonably estimated initially and from time to tune by Lender on the basis of assessments and hilts and reasonable estimates thereof. 71re Funds shall be held in an institution the deposia orrccounts of which arc insured or guaranteed by a Federal of state agency (including Lender if Lender is such an irtstitutionl. Lender shall apply the Funds to pay said taxes. assessments. ir~uraace 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 not be required to pay Borrower any interest or earnings on the Funds. Lender 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 wu made. The Funds are pledged u additional security for the sums secured by this Mortgage. If the amount o[ thts Funds heW 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, aasaanents. insurance premiums and ground rents as they tall 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 Leakr shall not be sutficieat to pay taxes. assessments, insurance premiums and ground rents as they fall due. . Borrower shall pay to leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed t-'Y l:.~dlr tc+ Anrrower requesting payment thereof. Upon payment is full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Leader. 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 o[ the Property or its acquisition by Lender, any Funds held "bv Leader at the time of application as a credit against the sums secured by this Mortgage. 3. Appllctttios of Payttsests. 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 parsgraph 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. Charges; Lkas. 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 is 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 lien or forfeiture of the Property or any pan thereof. S. Hazard Insurance. 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 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 Mortgage. 'Itte 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 therrof 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 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 stx-h restoration or repair is not 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 fails to respond- to. Ixnder 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 of repair of the Propert~• 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 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 insurance policies and in and to the proceeds thereof rcaulting from damage to the Properly prior to the sale or acquisition shall pass to Lender to the extent of the sums se.-ured by this tifortgage immediately prior to such sale or acquisition. 6. Preservation and ~taiatenance of Property; I.easehulds; Condominiums; Planned Unit Ikvelopments. Borrower shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage „ tin a leasehold. If this Mortgage is on a unit in a ' condominium or a planned unit development, Borrower ,hall perform all of Borrower's obligations under the declaration or covenants creating or guvermng 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 into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced which materially affects lender's interest in the Property, including. but not limited tu. eminent dumam. incoke~cp. c~xle enforcement. or arrangements or proceedings invoh•ing a bankrupt or decedent, then Lender at Lender's option. "upon notice to Burrower, may make such appearances, disburse such sums" and take such action as is necessary to protect Lender's rnlerest, including, but not limited to, disbursement of reasonable attorney's fees and entry ulxm the Propert~• to make repairs. 1f f_ender required mortgage insurance as a condition of making the loan secured by~ this Mortgagr. Born:wer shall pay the premiutm required to maintain such insurance in ellect until such time as the requirement for wch msuran.e terminates m ac.ordanee with Borrower's and • Bot~ 328 P~~E 18B