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HomeMy WebLinkAbout0877 UNtPOttnt COVlt'tAPlTi. BOr(Ower and Lender covenant and agree s: follow:: ~~JJ 1'tq~retN et Mnc}el atN IrrNrset. Borrower shall promptly pay when due the principal of and interest on the itrdebtedt+ea evidertad by the Note. prcpaymeat and late charges as provided in the Note, and the principal of and intetYSt oa any Futw+e Advances sxtrred by this Mortgage. t ltiais tee 7lsatas ttoti Iwtwttce. Subject to applicable law sir to a written waiver by Lender. Borrower shall pay to Linder on the day monthly itstallments of principal and interest are payable under the Note. until the Note is paid in fuU. a turn (Itarsia "Ftrrtds'~ equsl to orte~tweltth of the yeari)• tax~~. and assessments which may attain priority over this , Mortgage. and ground rents on the Property. it any, plus one-twelfth of yearly premium installments [or heard insurantx. plusone-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from lima to tune by Letrder 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 of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments. inwrance premiums and ground rents. lender may not charge for sn holding and applying the Funds, analyzing said account. or verifying.artd compiling said assessments and bills, unless Lender 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 exceution of this Mortgage that interest on the Funds shall be paid to Borrower. and unless such agreement a 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. Lender stall give to Borrower, withtrut 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 arc pledged as additional security for the sums secured by this Mortgage. - lf 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, assessarents. insurance premiums acrd ground rents u they fall due: such excess shall be. at Borrowers option, either- promptly repaid to Borrower of credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be wfBcient to pay taxes, assessments, insurance premiums 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 requesting payment thereof. - Upon payment is full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under puagraph 18 hereof the Property is sold or the Property rs otherwise acquired by Lerrd~r. Lender :hall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. A~plicatioa o[ Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs-1 and 2 hermf 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. Charges; Lktas. 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 providod 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 in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrows 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 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 tor[eiturc of the Property or any part thereof. S. Hazard Irrsuraace. Borrower shall kcep the improvements now existing or hereafter erected on the Property insured against loss by 5re, 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 reyuire; provided, that Lender shall not regturc that the amount o[ such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage. 'Ilre 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 ot, if not paid in such manner, by Burrower making payment. when due, directly to the inuurance curler. All insurance policies and renewals thereof shall be inform acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Ixnder 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 earner and Lender. Lender may make proof of loss if not made promptly by Borrower_ Unless Lender and Borrower otherversl agree in writing, insurance proceeds shall be applied to restoration or repair of j 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 t be impaired, the insurance procceds 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, ur if Borrower tails to respond to Lender within 30 days from the date notice is mailed by Lender to Burrower 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 Burrower 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 I and 2 hereof or change the amount o[ such installments. It under paragraph 18 hereof the Property rs acywred by Lender, all right, title and interest of Borrower in and to any htsurance policies and in and to the pro.:r:ects thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender to the extent of the wins secured by this Mortgage immediately prior to such sale or acquisition. . • ' 6. Presenatioa and Maintenance of Property; Leaseholds; Condominiums; Planned Uett Devrrlopments. Borrower shall kcep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease rf this•Murtgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit desclupmcnt, Borrower shall perform all of Borrowers obligations under the declaration or covenants creating ur governing tlx: condomrmum or planned unit development, the by-laws acrd regulations of the condominium or planned unit development, and constituent documents. It a condominium or planned unit development f rider is executed by Borrower and recorded together wrth this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the cotenants and agreements of This Mortgage as if the rifer were a part hereof. 7. Proration of Lender's Security. If Borrower L,~Is to perform the covenants and agreements contained in this Mortgage, ur it any action ur proceeding ~s cummcnccd which materially affects Lender's interest in the Property, including, but n~•t limned to. rmment domain. iusolvcncy. c~x1e enforcement, or arrangements or proceedings invoking a bankrupt or deceJent. then lender at Lender's option, upon notice to Borrower, may make wch appearances, disburse such sums and take such acuun as rs necessarq to protect Lender's interest, including. but not limned' to, disbursement of ( reasonable auomey's t2•es and entry upon the Property .to make repairs. It Louder required mortgage insurance as a condnron of making the loan secured by thu Mortgage. Born:NCr shill pay the premiums required to maintain such insurance in effect until such time as the requirement for such msuran:e terminates m accordance with Borrowers and ' ~ ~ ~ ~ % ~ , OOK JJty PAGE j • t