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HomeMy WebLinkAbout0205 ~ . t ~1 i Ut+[potut CoveNxnrs. Borrower and Lender covenant and agree u follows: • 4 ~yant of hiaelMl sari itMereN. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges ac provided in the Note, and the principsl of and interest ors any Future Advances secured by this Mortgage. 2. )~ttiis for Tara ttttati lapnace. Subject to applicable law ~~r to a written waiver by Lender. Botmwer shall pay to Lender on the day monthly installments of principal and ir.!~rect arc payable under the Nora. until the Note is paid in full, a sum (herein "Funds") equal to one•twelfth of the yearly ta~~s and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one•twelfth of yearly premium installments for hatted insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from dins to time by Lender on the buffs of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposru or accounts of which are insured or guaranteed by a Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. 1_ender 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 o[ this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law r~cluires such interest to be paid, Lender shall not be required to pay Borrower any interact 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 arc pledged as 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 payable prior to the due dates of taxes, sssessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents u 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 Lender to Borrower requesting payment thereof. Upon payment in full of all sums 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 Property rs otherwise acgwred by Lender, Lender shall apply, no later than immediately prior to the sale of the Property oc its acquisition by Lender, any Funds held by Lender at the time of application u a credit against the sums secured by this Mortgage. 3. Applkatloa of Payttneats. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I 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 Qrincipal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lieas. Borrower shall pay all tales. 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 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 Burrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in gcxxl 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 part 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 "extendeJ coverage", and such other hazards as Lender may reyuire and in such amounts and for such periods as Lender may reyuire; provided, that Lender shall not reyuire 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, ~'i 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 thereat shall Ix 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 arid renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of lots, ~ Borrower shall give prompt notice to the insurance earner and Lender. l_enJer 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 JamageJ, pruvideD such restorauan or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is nut economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums secure) by this Mortgage, with the excess, if any, paid to Borrower. If the Property n abandoned by Burrower, or it Burrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Burrower that the insurance carrier otters 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 xcureD by this Mortgage. Unless lender and Borrower otherwise agree in unUng, any such application of proceeds to principal shall not extend or postpone the Jue 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 ProFerty n acyuireD by Lender, all right, title and interest of Borrower in and to any Risurance 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 eltcnt of the sums secure) by this Mortgage immediately prior to such sale or acquisition. 6. Presenation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit 1De~•elopments. Borrower shall keep the Property in good repair and shall not commit yiaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease it this Mortgage n un a leasehold. If this Mortgage is on a unit in a condominium or a planned amt Jevelupmcnt, Borrower .hall 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 Jixuments. 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 sh,Jl amend and supplement the covenants and agreements of this Mortgage as if the rifer were a part hereof. _7. Protection of benders Security. If Bom,uer tails to perform the covenants and agreements contained in This Mortgage. of if any action or prcxeeding is commrn~eil which materially affects Lender s interest in the Property, including. but not limited to, eminent dam:un. insolsencs, code enforcement, or arrangements or proceedings involving a bankrupt or Decedent. then Lender at I enJer's option, upon notice to Borrower, may make such appearances, dishurte such sums and take such action as is necessary to protc.t I.endcr's interest, including. but not limited to. disbursement of reawnahle attorney's lees anD entry upon the Property to make repairs. I( Lender reynircJ mortgage insurance as a condition of ma;cuig the loan secure) by this llorte.~,r. Brrrrucr sh.,ll pay the premiums required to maintain such insurance ui rlfect until such time as the reyuireniei for wch insurancc termmstcs in .iccordanee with Borrower's and r n~c~ • ~ t;r11X JJ~ PAGE I ~:n_ -