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HomeMy WebLinkAbout1372 _ . t t. ,..1~?t Unt~otut Covert~rtrs. Borrower and Lender covenant and agree u follows: 1. la~yoest of hYtci'ttal ttt»t1 IMere4. Borrower shall promptly pay when due the principal of and interest on the ildebtedr?Caa evidenced by the Note. prepayment and late charges as provided in the Note, and the principal Of and interest on any Future Advances secured by this Mortgage. 2. Ftsnia for Ttreaa atsti Irtwruce. Subject to applicable law c.r to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest arc payable under the Note, until the Note is paid in full, a sum (herein "Funds") egwl to one-twelfth of the yearl~• taxes and assessments which may attain priority over this Motttate. and;round rents on the Property, if any, plus one-twelfth of yearly premium installments [or hazard insurance. plus otx-twelfth of yearly premium installments for mortgage insurance, it any, all as reasonably estimated initially and from time to tithe by Lender on the basis of assessments and hills and reasonable estimates (hereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender it Lender is such an institution). 1_eader shall apply the Funds to pay said taxes. usessrnents. insurance Premiums and ground rents. (.ender may not charge for so holding and applying the Funds. analyzing said account. or verifying and 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 execution of this Montage 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 hat be required to pay Borrower any interest or earnings on the Funds. Lender shall five 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 wu made. The Funds arc pledged as additional security for the sums secured by this Montage. 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, asseaaoents, inuurance premiums and ground rents u they tall due, such excess shall be, at Borrowers option, either pt'aaptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sut6cieat to pay taxes, assessments, insurance premiums and ground rents as they tall 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 requesting payment thereof. upon payment in full of all sums secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under puagraph 18 herco[ the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. ra later than immediately prior to the sale of the Property or its acquisition by lxnder, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. A~plicatloe o[ Payttoetits. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by 1_ender 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. Cbaga; Lkns. 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 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 priority 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. Haiard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire. hazards included within the tern? "extended coverage", and such other hazards as Lender may reyuire 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 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. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender end shall include a standard mortgage t 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 loss, Borrower shall give prompt notice to the insurance career and 1_ender. 1_ender may make proof of 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 I 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 it Borrower tails to respond to Lender within 30 days from the C date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is autborized to collect and apply the insurance proceeds •rt 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 waling, any such application of proceeds to principal shall not extend i or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount o[ such installments. If under paragraph 18 hereo[ the Property is acquired by Lender, all right, title and interest o[ Borrower in and to any k?surance 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. Preservation and !Maintenance of Property; Leaseholds; Condominiums; Planned Unit taevebpments. Borrower shall keep the Property in good repair and shall not comrpit Waste or permu impairment or deterioration of the Property , and shall comply with the provisions of any lease d this Mortgage i~ un a leasehold. I( 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 t condominium or planned unit develoi,n?ent. and constituent dc>tuments. If a condominium or planned unit development ~ rider is executed by Borrower and recorded together wish the Mortgage. the covenants and agreements of such rider i shall be incorporated iota 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 Bortcower fail. a• perform the covenants and agreements rnntained in this ~ Mortgage, or if any action ar prcxeeding is commenced which materially affects Lender"s interest in the Property. ~ including. but not limited to. eminent domain. insolseccy. u?c!e enforcement, or arranKemcnts or proceedings invoking a i bankrupt or decedent. then Lender at Lender's option, upiin notice to Borrower. may make such appearances. disburse such sums and take such- action as is necessary do protect I_ender'c mteresl. including. but not limited to, d?sbursement of reasonable attorney's tees and en!ry upon the Property to make repairs. If Lender reyuire) mortgage insurance as a condition of making the ban secured by this Mortgage. Born:wer shall pay the premiums required to maintain such insurance in eltect until such ume as the requirement (or wch insurance terminates in accordance whh Borrower's and 8~~343 ~~~E1~7i1 2C~acc - - .