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HomeMy WebLinkAbout0908 i li(~11 Ut+ttrotut Covanaatrsi, Bort+oarsr and Leader covenant and agree a: follows: >ti. taywetM et hiadMl atni lalssret. Borrower shall promptly pay when due the principal of attd interest on the iadebtedttat evidertad by the Kota, pnepayeneat and latt: charges as provided in the Note. and ttte principal of attd interest oa sop Futtae Advsaoes oecttred by the Mortgage. B. >EttNe ltar'llso<00 tttstt Iststti>t¦te. Subject to appficabk law or to a written waiver by Lettdet, Borrower :best! pay W Lesdar oa the day ttzoathly ittstdlr~nis of principal and int~rest are payable under the Note, until the Note a paid in full. a aura (heteirt "Funds" ? egwl to ottatwdith of the yearl~• tax~~ and assessntertts which may attain priority over this Mortgage, sad ground tents on the Property. it any. plus one-twelfth or yearly ptwaittm irWalltnenq for hazard insurance, plus oae~twelfth of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from time to lima by [.ender oa the basis of assessments and hills and reasonable estimates thereof. '1Zte Funds shall be hold in an institution the deposiu or accounts of which arc insured or gwranteed by a Federal ~ stale asency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay uid taxes, assessments, itrwrattee premiutrts and ground rents. lender may not charge for sn holding and applyinS the Funds. analyzing said account, or trotifying.aad compiling said assessmt~ts and bills, unless Lender pays Borrower interest on the Funds and applicable law • permits Leader 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 bt: paid to Borrower. and unless such agreement is made or applicable law tequit+as tutdt 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 Funds showing credits and debits to the Funds and the purpose~or which each dt~it to the Funds was .made. The Funds arc pledged as additional security far the sums secured ortgage. TE the atrtount of the 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 exceed the amount required to pay uid taxes. astesstatn~, iasuratttx premiums attd gtnund 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 bead by Deader shill sot 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 Deader to Borrows requesting payment thereof. Upon payuseot is full of cell sums 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 Progeny rs otherwise acquired 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 Letxkr at the time of application as a credit against the sums secured by this Mortgage. 3. A~licatlart at tigraestts. Unless applicable law provides otherwise, al! payments received by Lender under the Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, rhea to interest payable on the Note, then to the principal of the Note, and then to interest and ptiacipat on any Future Advances. e. Crargefi Lkas. Borrower shall pay all taxes. assessments and other charges. fines and impositions attributable to the Property which rosy 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 thet~eof. Borrower shall promptly runtish to Lender ail 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. Borro~rer shall promptly discharge any lien which has priority over this Mongage; 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 4 such lien in a manner atxeptabk 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 Progeny or any pan thereof. S. Hasard laeasawee. Borrower shall keep the improvements now existing or hereafter erected oil the Progeny 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 rnverage exceed that amount of coverage required to pay the sums secured by this Mongage. 71te 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 iasuraace ~.arrier. t Aq 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 tight to hoW 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 loss, Borrower shall give prompt notice to the insurance carrier and lxnder. Lender may make proof o[ 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 wins secured by this Mortgage. t 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 1 and 2 hereof or change the amount of wch installments. if under paragraph !8 hereof the Property is acquired by Lender, all right, title and interest of Borrower in sad to any huurance policies and in and to the proceeds thereof resulting from damage to the Progeny prior to the sale or acquisition shall pass to !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. rrraerratioa sad Maintenance of Progeny; LeascM,lds; Condominiums; Planned Unit Developments. Borrower shall keep the Property is good repair and shall not commit yvaste or~pennit impairment or deterioration of the Property and shall comply with the provisions of any kale 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 shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider i were a part hereof. 7. Protection of Leader'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 interest in the Property, including, but nol limited to, eminent domain, insolvency. cudr 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 Lenders interest, including, but not limited to., disbursement of reasonable attorney's fees.and entry upon the Property to make repairs. If Lender reyuircd pwrtgagt:'insurance as a condrtion of making the loan xcured by this Mortgage. Born:wcr sh-:N pay the premiums required to mabttain such insurance in effect until such time as the reyuirement for wch insurame terminates in accordance with Borrowers and s t ' - an'r'~K~7 PACE ~7 .