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HomeMy WebLinkAbout0539 j, . Ut+Craw Covet+,?nTS. Borrower and Larder covenant and agroe ss [ollows: 1. 1Mywe~t et hMe+al ant IsNereN. 8orroMter shall promptly pay when due the principal of and intaest on the indebtedness evidenced by the Note. prepayment and late charges >G~ provided in the Note, and the principal of and interest oa any Fwuro Advances sectrrod by this Mortgage. 2. llttttti ter Tttsea ttttttl Irtwneee. Subject to applicable law sx to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and intcrcct ~re payable under the Note. until the Note is paid in full, a sum (herein •'Funds'q equal to one-twelfth of the yearl)• tas~~. and assessments which may attain priority over this Mortgage, and `round rend oa the Property. it any. plus one-twelfth of yearly- premium insWlmenb 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 Leader on the buffs of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insured or gwranteed by a Federal otr 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 Frtnds. analyzing said account, or verifying acrd t:ompiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permit: IRnder 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 agreement is 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 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 thh 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 as they tall 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 bt:ld by Lender shall not be wl6cient to pay taxes, assessments. insurance premiums and ground rents u 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 roquestin8 payment thereof. Upon payment in full of all :ums secured by this Mortgage, tender shall promptly refund to Borrower any Funds heW by lender. If under pusgraph 18 hereof the Property is sold or the Property 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 Lender at the time of application as a credit against the sums secured by this 1V(ortgage. 3. Applicatloa of Pttytaenb. Unless applicable law provides otherwix, 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 Advaaoes. d. Charger, I.ietss. 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 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 prompily 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 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 hen or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured agairut 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 o[ 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 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 inwracee carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage claux in favor of and in form acceptable to (xnder. 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 gtve prompt notice to the tnsurance carrier and (xnder. Lender may make proof of loss if not made promptly by Borrower. Unless [.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair- of the Property damaged, provided such restoratton or repair is economicaliy 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 impacted, 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, or it Borrower fails to respond to Lender within 30 days from the date notice is marled by Lender to Borrower that the insurance carrier offers to xttle a claim for insurance benefits, Lender is authorized to collect and apply the insurance procceds 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 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 such installments. If under paragraph IS hereof the Property is acyucred 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. _ 6. Preser.ation and Maiotenaace of Properiy; Leaschulds; Condominiums; Planned Udt Developments. Borrower shall keep the Property in good repair and shall not comtoit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease it then 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 I condominium or planned unit development. and constituent documents. If a condominium or planned unit development rider cs extcuted by Borrower and rernrded together with this Mortgage, the covenants and agrcements of such rider shall be cncorporatul into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fads to perform the covenants and agreements contained in this - Mortgage, or if any action or proceeding cs cummcnced which materially affects l-ender's interest in the Property, including, but not Icmcted to, eminent domain. imolvenc~. ccxle enforcement, or arrangements or proceedings involving a f - bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may- make such appearances, dishurse such sums and take such action as is necessary to protect tender's interest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the I'ropert}• to make repair;. I( Lender required mortgage insurance as a j condition of making the loan secured by this Mortgage. Bc.rmwer shall pay the premiums required to maintain such insurance in effect until ucch time as the reyuirenrent for such insurance termcnates cn accordance with Borrower's and f?t(~~ a ~ - ~ j . 8~ P~ _ ~ Y ~ .3 _ . _ ~ ~ '