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HomeMy WebLinkAbout0685 • r- • ~ ~ • J, 1~~r UNtrotan[ CovtrrrAt+ts. Borrower and Lender covenant >ind agree as follows: >ti. ~ of hinclpal atsi ltales~ag. Borrower shall • promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. ptepaymertt and late charges as provided in the Note, and the principal of and interest oa any Futuro Advances secured by this Mortgage. >Eri tar 7'aatsa ttrtti Inwrrca Subject to applicat+k law ar to a written waiver by Lender. Botroerer shall Pay to Letrder on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in fuU, a ~u~ (neon i:uixn cquai to one-iweutn of file ycari} ta~?~~ snit assesSUieiiis wni~h i=.iiy i:::ii Pi:w::tjr oar this Mortgage, and ground rents on the Property. if any. plus one-twelfth of yearty~ prendum installment: for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, it any, all u reasonably estimated initially and from time to tithe by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fund: shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal otr :fate agency (including Lender if Lender is such an institution). 1_ertder shall apply the Funds to pay uid taxes. assessments, insurance premiums and ground rents. tender may not charge for zn holding and applying the Frtndt. analyzing uid account. or verifying,aud compiling said assessments and bills, unless Lender pays Borrower interest on IhE 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. attd 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 sbaU give W Borrower, without charge, an annual acrnunting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds wu made. The Funds arc pledged u additional security for the sums secured by this Mortgage. . Tf the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. auessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. astesanents, insurance premiums and ground rents u they fall due, such excess shall be, at Borrower's option. either proaotpQy repaid to Borrower ar credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shaA not be wtficieat to pay taxes. assessments. insurance premiums and ground rents u they fall due, Borrower shall pay to Lender any amount necessary to make up ttte deficiency within 30 days [rom the date notice is mailed by Lander to Borrower r+oquesting payment thereof. Upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Leader. It under paragraph 18 hereo[ the Property is sold or the Property rs otherwise acquired by Lender. Lender :ball apply. no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Leader at the time of application u a credit against tlq: sums secured by this Mortgage. 3. A~iicatierr of PayreNs. 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. ` d. (.'ranges; 1[Jeas. 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, J any. in the mantxr 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 hu 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 enforrement of such lien io, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Irswrarrce. Borrower shall keep the improvements now existing or hereafter crested on the Properly 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. 'Ibe 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 shat! be paid in tfre manner j provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the I 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 give prompt notice to the insurance carrier acid 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 Propcny damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is ~ not thereby unpaired. if such 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 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. I 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 Auurance policies and in and to the proceeds thereof resulting from damage to the Properly 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 Developments. - Borrower ~ shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Properly ` ~ and shall comply with the provisions of any lease it this Mortgage ~s on a leasehold. If this Mortgage is on a unit in a i condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration t 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 into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a pan hereof. ' 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ~s commenced which materially affects Lender's interest in the Property, inciudmg. but not limited to. eminent domain. insolvency. code enforcement. or arrangements or proceedings invoh•ing a bankrupt or decedent. then Lender at lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action ac is necessar}• 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 Mortgage. Borrower shall pay the premiums required to maintain such ~ insurance in effect until such time as the requirement for wch insurance terminates in accordance with Borrowers and • ' e~ 328 P~~E 685