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HomeMy WebLinkAbout1331 LJNIPOaM Covet+~et». Borrower and Lender covenant and agroe as fellows: il'tyytwsat d il'rlnefMl aatl laNreal. Borrower shall promptly pay when due the principal of and iaterep on the iadebtedttess evidenced by the Note. prepayment and late charges as provided in the Note, and tlta principal of and interest art asy Ftxwe Advances securod by this Mortgage. 2. 1!`i Qetr 7lazea ttati tawrttace. Subject to tipplicabk law ar to a written waiver by Lender, Borrower shall pay to Leader on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full. a sum (her'cin "FutrtM'~ equal to one-twelfth of the yeart~~ talcs. and asxssments which may attain priority over this Mortgage. and ground rents on the Property. if any, plus one-twelfth o! yearly prcntium installments for hazard insurance. plusone-twelfth of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from tuna to time by Lender on the basis of assessments and hilh and reasonable estimates thereof. 'I]te Funds shall be held in an institution the deposits or accounts of which are insured a gwranteed by a Federal otr state agency (including Lender if Lender is such an institution). 1_snder shall apply the Funds to pay said taxes. assessments. iawraace premiums and. ground rents. lender may not charge for sn holding and applying the Funds. analyzing said account, or verifyingsnd compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make sui:h a charge. Borrower and Lender may agree in writing at the time of execution of this Morijaga that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law requira such 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 was made. The Funds arc pledged as additional security for the sums secured by this Mortpge. If the amount o[ the Funds heW by Lender, together with the future monthly installments of Funds payable poor to the due data of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes. assessments. ittsuratttx premiums and ground rents ss they tall 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 sul6cieat 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 Leader to Borrower rlpua~ing payment thereof. Upon payment in full of all soma 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 rs otherwise acquired by Lender. Lender abaU apply. no' later than immtdiately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the tithe of application as a credit against the sums secured by this Mortgage. 3. A~licatlott oft rgtreNs. Unless applicable law provides otherwix, all paytr'ents 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 tFren to interest and principal on any Future Advances. 1. Cfyarges; Litres. Borrower shall pay all taxes, assessments and other charges. firxs 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 provided 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. Borrower shall promptly discharge any lien which has prianty over this Mortgage: provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in venting 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 forfeiture of the Property or any part thereof. S. Hasard Iswearrce. Borrower shall keep the improvemenis nave existing or hereafter erected on the Property insured. agairr:t loos 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 coverage exceed 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. that such.approval shall not be unreasonably withheld. All premmms 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. All insurance pdicies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage j clause in favor of and in form acceptable to Lender. 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 Ions, Borrowef shalt give prompt notice to the insurance carrier and tender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower othervvrse agree in writing, insurance proceeds shall bt applied to restoration or repair of the Property damaged, provided such restoration or repair rs economically feasible and the xcurity of this Mortgage is not thereby imppaired. If such restoration or repair is not cconamically 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 it 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 ~l_ender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. 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 I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Pro ferry is acyunred 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 Properly prior to Ih~ 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. lrrierratioo and Mainteaaace of Property; Leaseholds; Condominiums; Planned Udt Developments. Borrower shall keep the Property in good repair and shall nut commit yvaste or permit impairment or.deterioration of the Property € and shall cdmply with the provisions of any leax if this Mortgage is on a leaxhold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers 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 were a part tereof. { 7. Protection of Lender's Security. If Borrower f:ul. a~ perform the covenants and agreements contained in this ft Mortgage, or if any action or proceeding is camm~nccd which materially affects Lender's interest in the Property. including. but not limited to, eminent domain. inW~henc~. axle en(orcement, ar arrangements or proceedings mvoh•ing a bankrupt or decedent. then Lender at Lender i opuan, 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 t reasonable attorney's fees apd entry upon the Property to make' repairs. If Lender reyuired mortgage insurance as a condition of making the loan secure) by this Mortgage. B~•rrrwer sh.rll pay the premiums required to maintain such insurance in effect until such nine as the rcyuirement far such m;uran.e termnnates rn accordance with Borrower's and Zvi ' 8t1~c~ Pl.Gf ~