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HomeMy WebLinkAbout2353 - .~l ~ 1 UNtt~aut Covatvatrts. Borrower and Leader covenant and agree as follows: I 1. )<spnaesrt of lr4tclN1 susel latesest. Borrower shall promptly pay when due the principal of -and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on nay Futuro Advances secured by this Mortgage. Ft+srds GK Trtteesa sai laauanea. Subject to applicable law or 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 rcnb on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus oats-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from Nme to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a Federal or state agency (including Lender if Leader is such an institution). Leader shall apply the ~rnds to pay said taxes. assessments, insurarroe premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or vedtying and compiling said assessments and bills, unless Lender pays Borrower interat 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. 1_ender shall give to Borrower, without charges. 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 arc pledged. as additional sexurity for the sums secured by this Mortgage. If the amount of the Fund:-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 ezcced the amount required to pay said taxex. assessments, insurance 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 Funds held by Leader shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower re:que~ting payment thereof. Upon payment in full of all surlns 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 sbalt apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. 3. ApplkaHoa of Pa~meab. Unless applicable law provides otherwise, all payments re.-tivesd 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. CMrgex; I.krts. 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 then manner provided under paragraph 2 hereof or. if not paid in such manner. by Borrower making payment, when due, directly to the pays thereof. Borrower shall promptly furnish to Leader 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 agrce in writing to the payment of the obligation secured by such Gen in a manner acceptable 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 Ioauraace. Borrower shall kcep 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 resluire and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage excexd that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, III 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 tc the insurance carrier. - All insurancx policies aced 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, sad Borrower shall promptly furnish to Leader 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. Leader may make proof of loos if not made promptly f 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 sexurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or. if the sexurity 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 1 to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within•30 days from the date Mice 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 ratoration or repair of the Property or to the sums secured by this Mortgage. Udess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend ex 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 l8 hereof the Property is acquired by Leader, all rrght, trtk and rnterest of Borrower in and to any insurance policies and is 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. 5. Praervatbn and Maioteaaace of Property; Leaseholds; Condornlalumr, Planned Unit Devedopments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the-provisions of any lease if this Mortgage is oa 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 exescute~ 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 wen a part hereof. 7. Protesctloa erf Header's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interat 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 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 fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shalt pay the premiums required to maintain such instsrartce in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and 11~ i Pspe 2 of 1 - 4 ...-rte -