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HomeMy WebLinkAbout2768 - 5 • ~ . I Uttttattnt Covat+anns. Borrower and Lender covenant and agree as follow:~ 1• ><M>~t et lhiac+al ttM 1ttNenst. Borrower shall promptly pay when due the principal of and interest on the indebtednea evidettoed by the Note, prepayment and late charges as provided in the Note, and the principal of and iatett;:t . oa nay Futtu+a Advances securod by this Mortgsge. >Errtnit ter T1a~a ati lattrraoca. Subject to applicable law or to a written waiver by L.ettder, Borrower :hall pay to Leader on the day monthly installments of principal and intcr~-st arc. payable under the Note. until the Note is paid in full, a ttum (herein "Fuads'q equal to oro-twelfth of the yearl~• tax~y and assessments which may attain priority over this Mortgage, and ground creels oa the Property. if any. plus one-twelfth of yearly premium installmenb for hszard insurance. plus oae•twelfth of yearly premium installments for mortgage inutrance, if any. all as reasonably estimated initially and from rites to tints by Leader oa the basis of assessments and hills and reasonable estimates thereof. ~ 'Ills Ftutds shall be held in an institution the deposiu or accounts of which are insttr~ed or guaranteed by a Federal otr state agency tincltrding Lender if Lender is such an institution). !.ender shall apply the Funds to pay said taxes. assessments, iasurtutee premiums and grated rents. lender may not charge for :n holding and applying the Rands, analyzing uid account, or verifying.artd 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 a 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 Borrv~ver, without charge, an annual accounting of the Funds showing-credits and debits to the Fut>d; and the ! purpose for which each debit to the Funds wu made, The Funds are pledged u additional security for the sums secured by the 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, irtturattce prcmiutns and ground rents, shall exoeod the amount required to pay said taxes. assesstrrents, atsuraaoe pttuniutrts 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 Meld by Leadershall not be sttl6cieat to pay taxes, assessments, assurance premiums and grated rents as they fall due. Borrowec shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. Qpon payment is full of all sutras aecurod 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 Propeny 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 br Lender at the time of application a: 'a credit against the sums secured by this Mortgage. 3. of ltgrwetsts, Unless applicable law provides otherwise, all payments received by Lender under the ~ Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 het+eof. then to interest payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advaaoes. 1. Charles; [.ierss. 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 thetwf. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad is the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall ptnmptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall rsot 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 ice, - legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. 1HauN Isswrawee. 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 u 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. 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, wd 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 kiss 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 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 i( Borrower tails 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 to in paragraphs I and 2 hereof or change the amount of such ittstallmeots. If under paragraph f8 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 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. Prt~ervatlon and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shalt keep the Property in good repair and shall not commit Waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease i[ this Mortgage is on a leasehold. if this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's 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, )f a condominium or planned unit development _ rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements 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. Protection of Leader's Securfry: If Borrower fails to perform the covenants and agrcements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then 1_ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect lenders interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If [.ender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in eBect until such time as the requiremem for such insurance terminates in accordance with Borrowers and gpnplR(J~ PAGE