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HomeMy WebLinkAbout1283 ' 7 L? Untt~oaw Covawanis. Borrower sad Lewder covenant and agree as follow:: itpwts~t eft hiaelral atetil Iwkr~atl. Borrower shall promptly pay when due the principal of and iaterat on the i:tdebtedttas evidewoed by the Note. prepayment and late charges as provided in the Note, and the principal of and intet+at as awy Fttttn+e Advances ttecw+ed by this Mortgage. !level hr 7yaas ttwtl Iwssietwet. Subject to applicabk law ~x to a written waiver by Larder. Bott+oaer shah pay to Lender on the day monthly installments of principal and interest arc. paysbk under the Note. until the Note is paid in full. a sum (herein "Ftrads'~ equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage, and ground revels oa the Property. it any. plus one-twelfth of yearly premium installments for hanrd insurance. plus ooo-twelfth of yearly premium installments for mortgage insurance, it any, atl as rarsonably estimated initially and from time to time by Larder ow the basis of assessments and hilh and rcssonabk estimates thereof. The Funds shall be ht:ld in an institution the deposip or accounts of which arc irrwred or gwranteed by a Federal or state agency (inchuding Leader if Lender is such an institution). 1_ender shall apply the Funds to pay said taxes, assessments. iawrawoe premiums and ground rents. lender may not charge for so holding and applying the Frrndx, analyzing said account, or verifying_and compiling said assessments and bilk, unkss Lender pays Borrower interest on the Funds and applicable law pennies Larder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interat on the Funds shall be paid to Borrower, and uakss such agreement is made or applicabk law r+equira such iataest to be paid. Lender shall not be r~equircd to pay Borrower any interest or earnings on the Funds. Lender tthall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debits to the Funds and the - purpose for which arch debit to the Funds was made. The Funds are pkdged as additional security for the sums secured by the Mortgage. If the amount of the Funds held by [.ender, together with the future monthly installments of Funds payabk prior to the due dates of taxes. a:searrreats. irrsttnntx premiums and ground rents, shall exceed the amount required to pay said taxes. assatuwents, irr:uranoe premiums and ground rents as they tall 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 Funds bdd by Lender-shall not be t to pay taxes. assesstrrents. insurance premiums and ground rents as they fall due. Borrower:hall 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. Upow payment in fuU of all aunt: secured by this Mortgage, Lender shall promptly rc[und to Borrower any Funds held by Leader. If under paragraph 18 hereof the Property is sold or the Property a otherwise acquired by Lender. Lender shall apply. no later than immediately prior to tht sak of the Property or its acquisition by Lender. any Funds held by Lewder at the time of application at a credit against the sums secured by this Mortgage. - 3. A~lit:atlow oft Pap~ewts. Unless applicable 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 principal on any Future Advances. 4. Crsrgesti~Liit~. 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, and is the event Borrower shall make payment directly. Borrower shall promptly furnish to !.ender 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 aceeptabk to Lender, or shall in good 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 Iwwsawee. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended coverage", and such other hazards ss 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 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, I 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 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 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 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 othewise 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 Ig hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any ftrsurance 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. - f. Prttservatioe sod Maiwteaawce of Property; Leasehdds; Condominiums; Planned Uwit Devdopmewts. Borrower shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property g and shall comply with the provisions of any Itase 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 y or rnvenants 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 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. PrWectaa of Lewder's Security. If Borrower fails t~ 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, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invoh•ing a $ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, map make such appe~rdtp~s.+c~ahurse such sums and take such action as is necessar}• to protd_t lender's interest, including. but not IimhLd `to: dsbursement of reasonable attorney's tees and-entry up~~n the Property to'make repairs. 1f Lender reyiiired mortgage insurance as a condition of making the loan secured by this Mortgage, B~rn.wer shall pap the premiums requital to maintain such insurance in effect until such time as the requirement for tiuch insurance terminates in accordance with Borrower's and i ~ gGOK~~ P~6E~~