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HomeMy WebLinkAbout0218 , ; ~ • ~ i i Untpotu+t Covenawrs. Borrower and Lender covenant and agree u follows: 1. )ntytneN of hinclMl anti lttttereM. Borrower shall promptly pay when due the principal of and interest on the indebtedtxa evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fruit for Tana ttirti Irtttrra~ce. Subject to applicable law ar to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes 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 hazard insurance. plus one-twelfth of yearly premium installments for mortgage ittstirartcc, if any, all as reasonably estimated initially and from time to time by Lender on the buffs of assessntcnts and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits 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. irisuranoe premiums and ground rents. lender may not charge for so holding and applying the Funds. analyzing said account, or veri[ying 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 interest 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 shaA give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which sash 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 payable prior to the due dates of taxes, assessments, 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 promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 1f the amount of the Funds held by Lender shall not be strffi;cieot to pay taxes, assessments, insurance premiums and ground rents as 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 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 Lender at the time of application as a credit against the sums secured by this Mortgage: 3. Applicatim of Payrateots. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by 1_ender 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; Liens. 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 theroof. 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 Borrower sha!I 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 hy, 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 rmproi•ements 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 reyuire and in such amounts and for such periods as lender may reyuire; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage regwred to pay the sums secured Eby this Mortgage. ~I 'Ihe 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. j All insurance puhcies anJ renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. tender 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 nonce to the insurance career and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat! 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 h~• &~rrower, or it Borrower fails w respond to Lender within 30 days from the date notice rs mailed by Lender to Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, Lender is authorized to collect and apply the irourance proceeds at Lender's option either [o restoration or repair of the Propert~• or to the sums secured by this Mortgage. Unless Ixnder and Burrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone the due date of the monthl~• installments referred to in paragraphs 1 and 2 hereof or change the amount of such installment. If under paragraph 18 hereof the Proferty rs acywred h} 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. t 6. Presen~ation and Maintenance of Property: I.easehulds: ('ondominiums; Planned Unit Developments. Borrow•cr shall keep the Property in good repair and sha)I not comrpit y+aste or permit impairment or deterioration of the Property and shall comply with the proviswns of any (ease i( thi, Mortgage n un a leasehold. If this Mortgage is on a unit in a- s condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaradun - or covenants creating or governing the condominium i~r planned unit development, the by-laws and regulations of the condominium or planned unit development..+nd rnnstituent documenrs. If a condominium or planned unit development rider is executed by Borrower and recorded t++gether 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 part hereof. 7. Protection of Lenders Securfty. If B+vrmwer fails to perform the covenants and agreements contained in this Mortgage, or if any acUOn :rr pnxeeding is ~++mntcnced which materially selects Lender's interest in the Propert}•. ~ including. but n+H limited to. eminent domain. ins~~hency. code enforcement. or arrangements or proceedings invoking a hankriipr or decedent, thrn Lender at I ender', option. up+at nonce to Borrower. nisi make such appearances, dishune such sums and take such action as rs necessar} to protect Lender's interest. including. but not limned to, disbursement of reasonable aUOmey's tees and entry upon the Pmpertc to make repairs. If Lender reyuired mortgage insurance as a cundiUon u( making the loan secured h} th+s ~I~~rtc.+ec. B~+rr+:wer shill pay the premiums required to maintain Stich ~ insurance iu ettect until such ume as the reyuucnient for .uch insurance terminates m .ic.ordance with Borrowers and s • ~ . j ~ ~ ~ . setoff ~2 P,:GE 218 - - - _