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HomeMy WebLinkAbout0764 • } c ~ - ;c Urritottt?t COV~N.xNTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and lalerest. 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 any Future Advances secured by this Mortgage. 2. Funds for Tares and Itrsunace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and intcrest 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 rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by I.endcr on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or • state agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. Lender ma}• not charge for sa holding and applying the Funds, analyzing said account. ur verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits I_endrr to make such a charge. Borrower and Lender may ague 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, 1_ender 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 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 this Mortgage. 1f the amount of the Funds held by l.cnder, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, 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 Burrower on monthly installments of Funds If the amount of the Funds held by Lender Shall not be sufficient to pay taxes, assessments, insurance prer.tit+ms 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 reyttcsting payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrowerrny Funds held by lender. If under paragraph IK hereof the Property is sold of the,~rppptt • t~• ~herwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property or ifs a~~~l~lti'oR ~=1.cnder, any Funds held by Lender at the time of application as a credit against the sums secured by~thi's MoUgaga 3. Application of Payments. Unless applicable law provides otherwise, all payments. received by Lender under the Note and paragraph. I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intcrest payable nn the Note, then to the principal of the Note, arsd'then to intcrest and principal on any Future Advances. 4. Charges; Lieac. Borrower sh:dl pay all t:+xcs, asu;ssments and other charges. fines and imlx+sitions attributable to the Propertp 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 nut paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment direetlp, Bormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower 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 gocxl faith contest such lien hy, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement o[ the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss hp fire, hazards included within the term "extended coverage", and such other hazards as Lcndcr may require and ~n such amounts and fur such periods as l_cnder may require; provided, that Lcndcr shall not require that the amount of such coverage exceed that amount of coverage required to pap the sums secured by th+s Mortgage. The insurance carrier providing the insurance shall he chosen by Burrower subject to approx•al hy. Lcndcr. provided, that such approval shall not be unreasunahly 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 earner. All insurance policies and rencs~als ihercoi shall )x; in form acceptable to Lcndcr and shall include a standard mortgage clause in favor of and in form acceptable to !.ender. Lender shall have the right to hold the I:ulicies and renewals thereof, i and Borrower shall promptly furnish to Lcndcr all renewal notices and all receipts of paid premiums. In the event of loss, I Borrower shall give prompt notice to the insurance earner and Lender. Lender may make proof of loss if not made promptly bx' Borrower. . Unless 1_ender and Borrower othen+~ise 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 nut 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 Properly is ahandoned M• Bormwer, or if Borrower fails to respond to Lender within 30 days from the j date notice i, mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender e is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property ur to the sums secured b}• this Mortgage. - Unless Under and Borrower othenxi~e agree in writing. any such application of pra:eeds 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 Property is acquired b}• I~nder, all right, title and interest of Borrower in and to an}• 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 ~faiatenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or di:terioration of the Property and shall comp!}° 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 'r` shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ' were a part hereof. _ t 7. Protection of Lender's Security. If Burrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affect; Lender's interest in the Property, ' including, but nut limited to. eminent domain. insoh~ency, code enforcement, or arrangements or proceedings involving a ) bankrupt ur 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, Bormwer shall pay the premiums required to maintain such ~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and i j ' f ec~~ec~~ t EUOK JJU PAGE ~2 . - ; . - • ~ F I }J .i ~v