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HomeMy WebLinkAbout0577 ~ , UNnroar~t WvHNANTS. Borrower and Lender covenant and agree u follows: I<tgnetN e[ lrielpal aai Ideresl. Borrower shall promptly pay when due the principal of and interat on the ittdebtetirtess evidenced by the Not0. prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances secured by this Mortgage. • 2. l+Wi ter Taut tmi Iaaraaee. Subject to applicabk law ur to a written waiver by Lender. Bomosver shall pay to Lender on the day monthly installments of principal and intrrcs( are payabk under the Note, until the Note is paid in full, a stns (berein "Ftmds'ti equal to one-twelfth of the year!}• tax~~ and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus Otte-twelfth of yearly premium installments [or hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, it any. all u ressonably estimated initially and from time to time by Lender on the buffs of asses~mcnts and hills and reasonabk estimates thereof. 'Ibe Funds shall be held in sn institution the deposits or accounts of which are insured or gwranteed by a Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. itrsuraace premiums and ground tents. !.ender may not charge for so holding and applying the Fonds. analyzing said account, or verifying-and compiling uid assessments and bills, unless Lender pays Borrower interat on the Funds and applicable law permiq Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interat on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requira such interest to be paid. Lender shall not be required to pay Bortmver any interat 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 was made. The Funds are pledged u 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 payabk prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. atsraments, 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 bdd by Lender shall not be wfficieat to pay taxes, assessments, insurance premiums and ground rents u they fall due, Horr+o~rer shall pay to Lender any amount rtocessary to make up the de-ficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payraaeat in full of all :ums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Properly is 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 Leader at the time of application u a credit against the sums secured by this Mortgage. 3. ArpUeatiw of Pr~yeeats. Unless applicable law provides otherwise, all payments received by Lender under the Note sad paragraphs 1 artd 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. 4. Charges; Lints. 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, sad 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 Borroirver 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 in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Iwwrawce. Borrower shall keep the improvements now• existing or hereafter erected on the Property insured agaitut 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. 7lte 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 Ii 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 C clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, ~ and Borrower shaft 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 o[ loss if not made promptly i 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 restoratrun 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..lf the Propert}• is abandoned by Borrower, or if 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 Properly 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 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. Presenatioo sad 1lrtiatenance of Properly; Ixasehulds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit y?•aste or permit impairment or deterioration of the Properly { and shall compl}• with the provisions of any lease if 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 Borrowers obligations under the declaration r 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 doeumentt. If a condominium or planned unit development rider is executed by Borrower and recorded together wrth 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 I,eoder's Security. If Borrower fail. to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding rs commenced whrch materially affects Lender's interest in the Property. including, but nut 6mrted to. eminent domain. insolvent}. code enforcement. or arrangements or proceedings invoh•ing a bankrupt or decedent, then i.ender at Lender's option, upon notice to Borrower, ma~• make such appearances, disburse such sums and take such ~ttion ac is necessary to protect tender's interest, including. but not limned to. disbursement of reasonable attorney's fees and entry upon the Propert}• to make repairs.- If Lender required mortgage insurance as a - condrtion of making the loan secured by this Mortgage. Burn:wer shall pay the premiums required to maintain such inuurance in effect until such time as the requirement for ,uth insurance terminates in accordance with Borrower's and ! ~ • ellor~~ P~cE 57~