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HomeMy WebLinkAbout2594 .~~i~ UNirotts+ OovattaNts. Dotmwer and Lender covenant and agree as follows: >ti. 1T~twstN et >rsielNl ttttM 1nNtreM. Borrows shall promptly pay when dots the principal of and inter+gt on the indebtedrtps evidersoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest as any Fwure Advaaas secured by this Motrtgage. ~ s 1 lair hr Tomes tsrtti lrtstrraoa~e. Subject to appiwatak law ~x to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest arc. payabk under the Note. until the Note is p3h! in full, • sum (herein "Funds'? egwl to onto-twelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage, and ground tents on the Property. if any. plus otro-twelflh of yearly premium installments for hazard insurance. ` plus one-twelfth of yearly premium installments for mortgage inurrattcc, if any, all as reasonably estimated initially and from time to tints by Lender on the basis of assessments and hills and reasonaby estimates thereof. 'Ibe Fund: shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal or ` state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay uid taxes. assessments, ~ ~ iastnranee premiums and ground rents. Lender may not charge for :n holding and applying the Funds. analyzing said account, or vtrifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicabk law permit: Lender to make such s 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 applicabk law t rogtnira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to lorrower, 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 as additional security for the sums. secured by tba Mortgage. i If the amount of tbe~ Funds held by Lender, together with the future monthly installments o[ Funds payabk prior to the due dates of taxes, assessments, ittsurartce premiums and ground rents, shall exceed the amount required to pay said taxes, assattments, insurantx 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 held by Lender shall not be stntficiient 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 is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Fonda held by Lender. If under paragraph 18 hereof the Property is sold or the Pao ~{I~rwise acquired by Lender, Lender shall apply, rto later than immediately prior to the sak of the Prolfetty"or ~c~~l `isitfon by Lender, any Funds held by Lender at the time of application a: a credit against the sums sectued~y.thk.:image. 3. Applicatieo of Payttae~ts. Unless applicable law provides otherwise, all pa~eDls, tldt2ived by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount: ggaa~Ip.to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the principal of theTlote, and then to interest and principal on any Future Advances. ' t. Cbargts; Lfeas. Borrower shall pay all razes, 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 theneo[. 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 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 in, kgal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard larwrarnee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by Ere, 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. i 'ilte ituurance 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 surfer. 'j 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, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss, ~ Borcower 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 restoratron or repair is economically feasible and the security of this Mortgage is ~ not thereby impaired. If such restoration or repair is lot 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 I to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authoriud 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 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by i-ender, 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. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Ikvebpments. Borrower shalt keep the Property in good repair and shall not commit y?•aste or permit impairment or deterioration of the Property and shall comply 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 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. 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 were a part hereof. ' 7. Protection of Lender's Security. If Borrower fade to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. I including, but not limited to, eminent domain. insolvency. wde enforcement, or arrangements or proceedings invoh•ing a bankrupt or decedent. then lender at Lender i option, upon notice to Borrower, may make such appearances, disburse such sums and lake such action as is necessary to protect I_endrr's mtrrest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. 1f Lender rryuired mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ~ ~ iruurance in effect until such time as the requirement for wch insurance terminates m accordance wish Borrower's and ' r f 80~Kc~z PAGEze~ / ' . , ,