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HomeMy WebLinkAbout1333 1 ' 1 . UNtFOtewt CoveNew'rs. Borrower and Lender covenant and agree as follows: 1. Payraettt o1 Priaclpal ant bterest. 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 Advsnces secured by this Mortgage. ~ 2. Inds tar'lhvla srti lrtara~~e. 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 are 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 Lender om 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 Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bills, untess La~~der pays Borrower interest 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 agrcement is made or applicable law requires suer 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 for which each debit to the Funds waz made. The Funds arc pledged az additional security [or the sums secured by this Mortgage. ' If the amount 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 said taxes. assessments, insurance premiums and ground rents az they fall due, such excess shall be, at Borrowers option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by lender shall not be wf6eiemt to pir~ ia3ces. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lsmder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment im full of aU 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 tbe Property is otherwise acquired by Lender. Lender shall apply, no later than imtmodiately prior to the sale of tbe Property or its acquisition by Lender, any Funds held by Lemder at the time of application at a credit against the sums secured by this Mortgage. 3. A~iicatioa d Pgweals. 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. Cr>.rges; Lieas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority orer this Mortgage, and leasehold payments or ground rents, if any, in the manoer provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, w d:re. dircetly io the payee thereof. Borrower shall promptly furnish to Lender all-notices of amounts due under this paragraph, and in the event Borrower shall make payment directty. Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall pranptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so brag az Borrower shall agree in writing to the payment of the obligation secured by 1 such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien im, p legal proceedings which operate to prerent the enforcement of the lien or forfeiture of the Property or any part thereof. 1 S. Hazard hrasca Borrower shall keep the improvements now existing or hereafter erected on the Property insured againu loss by fire, hazards included within the term "extended coverage". and such other hazards az Lender may require and in such amounts and for such periods az Lender may require; provided, that Lender shall not require that the amount of . such rnrerage execed 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, j 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. f All 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 Lemder. 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 loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of kus if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to ratoration or repair of the Property damaged, provided such restoration or repair is economically feazible and the security of this Mortgage is i not thereby impaired. If such ratoration 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 otherwise agrct in writing, any such application of proceeds to principal shall. not extend i 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 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 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. Preservatioe aid Maiiafesarce d Property; Leaseholds Condomimium~ Plaaaed Unit Devdopareats. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property t and shall comply with the provisioms of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned omit development, Borrower shall perform all of Borrowers obligations under the declaration ~ or covenamts creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documrents. If a conderttrnium or plaanred ar:it develc~t+mtat rider is executed by Borrower and recorded together with this Mortgage, the coremants and agreements of such rider ' shall be incorporated imto and shall amend and supplement the covenants and agrcements of this Mortgage az if the rider were a part hereof. 7. Pr+otectio~ d Leader's Secority. IF Borrower fails to perform the covenants and agreements contained in this ` Mortgage, or if amy action or proceeding is commenoecf which materially affects Lenders interest in the Property, f including, but nwt 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 sumts and take such action as is mecessary to protect Lenders interest. including, but cwt limited to, disbursement of ~ reasonable attorney's fees and entry upon the Property to make repairs. It Lender required mortgage insurance as a _ ~ condition of makimg the loan secured by this Mortgage, Borower shall pay the premiums required to maintain such imsurance in effect until such time az the requirement for such insurance terminates in accordance with Borrower's and ~ X337 ~~i~24 - _ _ -