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HomeMy WebLinkAbout0262 • Ut+tronw Covtu+~ans. Borro~rer and Lender covenant and agree si follows: 11, twtwtntt N lsiac~al tttM ItMenel. Borrower shall promptly pay when due the principal of and interest on the iadebtedrtp~ evidenced by the Note, prepayment and late charges as provided in the Note, and the principsl o[ and interest as soy Futuro Advattoa secured by this Mottgsge. - lls~tls ter'1laatea ttnl IasanaaY. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay to Leader oa flee day monthly itstallments o[ principal and intercq arc payable under the Note. until the Note is paid in full, a west (herein "Funds'q equal to orratwel[th of the yearly tax~~ and assessments which may attain priority over this Mortgage, and grotrrtd rsnts oa the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Leader oa the bass of assessments and hills and reasonable estimates thereof. The Fttrrds shall be held in an instituticut the deposits or accounts of which are insured or guarantax! by a Federal of state agency (including Lender it Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. lender may not charge for s~+ 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 inter+at 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 Somower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which au:h debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by this Motgage. >if the amount o! 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 amount required to pay said taxes. assestaneats, insurartoe premiums snd ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds bdd by Leader shall not be wf6cieat to pay taxes. assessments, insurance premiums and ground rents ss they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. ` Upon payment in Cull of all sums securtxl by this Mortgage, Lender shall promptly refund to Borrower any Fund: held by Leader. If under paragraph 18 hereof the Property is sold or the Property a otherwise acquired by Lender. Lender shall apply, rte later Wan immediately prior to the sale of the_ Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Applieatlon of Prtyoeafs. 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 paragaph 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. Charges; i.iees. 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 puagraph 2 hereof or, if not paid in such manner, by Borrower making payment, what due, directly to the payee thereof. Borrower shall promptly furnish to Lender all rwtices 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 r+egtrired to discharge any such lien so long as Borrower shall agree in writing to the .payment of the obligation secured by j such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, j legal proceedings which operate to prevent the enforcement of the lien or forfature of the Property or any part thereof. I S. Hazard lawrarrce. 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. r 'ILe 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 shsll be paid in the manner ~ provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making paymwt. when due, directly to the irrstrrarrce 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. I and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, j 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 such restoration or repair is not economically feasible or if the security of this Mortgagt 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 Lender within 30 days from the t ' 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 E or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of f such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any R?surance 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. Yrcservatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Uait Devebptnents. 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 Chu Mortgage is on a leasehold. 1f this Mortgage is on a unit in a ' condominium or a planned unit development, Borrower shall perform all of Borrowers 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 da:uments. 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 1 were a part hereof. 7. Protection of ieoder's Security. If Borrower fads to perform the covenants and agreements contained in this + Mortgage, or if any action or proceeding is commence;) which materially affects lender's interest in the Property, including, but not limited to, eminent domain. insolvency. c~xle enforcement, or arrangements or proceedings involving a bankrupt or decedent, then lender at Lender i option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of ' ~ reasonable auomey's fees and entry upon the Property to make repairs.. If Lender required mortgage insurance as a ` condgion 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 such insurance terminates in accordance with Borrowers and i fIR . -