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HomeMy WebLinkAbout0044 . i i f Utvt~ostss Oovar+~rm. Borrower and lender covenant and agroe u follows: - 1ti. TigtwetN of hYetw aM IrrMresl. eorroMror shall promptly pay when due the principal of .and interest on the utdebtedaea evideaoed by the Note. ptepaymeat and late charges ac provided in the Note, and the principal of sad interest oa any Future Advsatxs sectrted by this Mortgage. , lrtwi for llszas rtrai Irrstrfret. S~rbject to applicable law or to a written waiver by Lender. Borrower shall pay to Leads on the day monthly installments of principal and intcrect are. payable under the Note. until the Note is paid in full. a sum (herein "Fuads'q equal to one-twelfth of the yearly taz~~ anti assasrnents which may attain priority over this Mortgage, and gmtrrrd teats oa the Property. if any, plus one-twelfth of yearly premium installments for hazard inwrarrce, plus one-twelfth of yeuly premium installment: for mortgage insurance, if any, all u reasonably estimated initially and from dnre to time by Lender on the basis of assessments and hills and reasonable estimates thereof. 'I11re Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of state agency (inchding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessrrrertts. iraurarroe premiums and ground rents. Lender may not charge for sc~ holding sad applying the Frrrtds. analyzing uid account, or vtrifying_and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law pemrib 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 shall give to Borrower, without charge, an annual accounting of the.l=unds 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 Mortprge. U the amount of tot 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 extend the amount requited to pay said taxes. ast+aanents, insurance premiums and ground rents u they fall due, such excess shalt 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 htdd by Leader shall not be w!&cieat to pay taxes, assessments, insurance premiums and ground rents u they [all 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 is full of aU :urns secured by this Mortgage, Lender shall promptly refund to Borrower any Fund: held by Lender. If under paragraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lender. Lender shall apply. no 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 u a credit against the sums secured by this Mortgage. ' 3. A~iicadorr of >rrgeseds. Unless applicable law provides otherwise, all payments received by Lender under the Note sad paragraphs 1 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 principal of the Note. and then to interest and principal on any Future Advances. 4. Crarges; 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 theteeof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, serf 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 hu 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 ia, 1 legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ' S. Harare Iraraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured I against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may require sad 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 secrrrcd by this Mortgage. { The 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 ~ iratrraace curler. - 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 Leader all renewal notices and all receipts of paid premiums. In the event of loss, f Borrower shall give prompt notice to the insurance carrier and Lender. Leader 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 i 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 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 t 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 or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Pro ferty is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceuis thereof resulting from damage to the Property prior to thr. 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. Preservatba sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit IDevelopmeots. Borrower shall keep the Property in good repair and shall not comrpit yvaste 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 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 documents. (f. a condominium or planned unit develo,~rent rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such`=~ider shall be incorporated into and shall amend and supplement the cotenants and agreements of this Mortgage u if the rider _ ' were a part hereof. 7, Protection of Leader's Security. If Borrower fads to perform the covenants and agreements contained in this ' Mortgage, or if any action or proceeding rs commenced which materially affects Lender's interest in the Property, . f including. but not limited to, eminent domain. insolvenc)•. code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then lender at Lender's 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 attorney's tees and entry upon the Property to make repairs. If I_cnder rcyttircd mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ' insurance in effect until such ume as. the requirement for such insurance terminates in accordance with Borrower's and anoK~3 P~cE 44