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HomeMy WebLinkAbout0319 f ~ 1 ' • 1~ Ut+uour~t Oovttwanns. Borrower sad Lender covenant and agree s: follows: L Inq~etN et lrloeiNl ttN bletreM. Borrower shall promptly psy when due the principal of and interest on the irtdebtednea evideaood by the Note, prepayment and late charges as provided in the Note, and the principal of and interest as say Pallas Advattoes secutrod by this Mortgage. ltrtiis ter Taaua atsi lttentace. Subject to applicabk law ~x to a written waiver by Lender. Bort~?er shall pay to Leader oa the day monthly installments of principal and interest arc payabk under the Note. until the Note a paid in full. a stun (heroin "Fuads'~ equal to one-twelfth of the yearly- tax~~ and assessrttents which may attain priority over this Mortgage. sad ground teats oa the Property, it any, plus one-twelfth of yearly premium installments for haurd insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from tune to tints by Leader on the basis of assessments and hills and rcasonabk estimates thereof. 11te Ponds:hall be held in an institution the deposits or accounts of ~rhich are insured or guaranteed by a Federal of state agency (including Linder if Lender is such an institution). 1_ender shall apply the Funds to pay uid lazes, assesstrtertts. insurance premiutrts and ground rents. Lender may not charge for so holding and applying the Funds, analyzing uid account. or verifying.aad compiling:sid assessments and bilk, unku Lender pays Borrower interest on the Funds and appligbk law permits Lender to make such a charge. Borrower sad Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. attd unless such agreement a made or applicabk law requites such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shag give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the ' purpose for which each titbit to the Funds was made. The Funds arc pledged as additional security for the sums secured by chi Mortgage. . TE the amount o[ the Funds held by Lender. together with the future monthly installments of Funds payabk prior to the due dates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes. sssattmeats, insuranee premiums and 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 Fund: 6dd by Lender shall not be strt6cieat to pay taxes, assessments. insurance premiums and ground rents ss they fall due. Boeroarer:ball pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requiting payment thereof. Upon payment is fup of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds ! held by Leader. If under paragraph 18 hereof the Property is sold or the Property a otherwise scquir+ed 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. f 3. A~ikatlaa of )rgaseNs. Unless appliabk 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 paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and printapal on any Future Advances. 4. Crarges; ijerrs. 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 thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad 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 its, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. IFlassrd lasaraas~e. 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. '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 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 j insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage j 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 Ions, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lobs if not made promptly i by Borrower. - t ~ 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. I[ 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 tails to respond to Leader 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 procceds at Lender's option either to restoration or repair of the Property s 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 o[ such installments. If under paragraph 18 hereof the Property is acquired by 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 prioi 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. Praervatioa sad Maintenance of Property; Leaseholds; Condominiums; Planned Unit lJevelopments. 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 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 x 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 agrcements of such rider t 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 Leader's Secnrlty. If Borrower fails to perform the covenants and agreements contained in this f 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, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Leader'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 fees and entry upon the Property to make repairs. If 1_ender .required mortgage insurance as a .condition of making the loan secure) by this Mortgage. Borrower shall pay the premiums require) to maintain such insurance in effee•t until such time as the requirement for such insurance terminates in accordance with Borrowers and f • ~ ecox PaGE 319