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HomeMy WebLinkAbout1378 . , , . ? UHttwtw CoverteHrs. Borroarer and Lender covenant and agree u follows: 1. ~gytwetN of hlae~l ttrtt ltilerat. Borrower shall promptly pay when due flee principal of and interest on the indebtedttes: evidenced by the Note. prepayment sod late charges as provided in the Note, and the principal of attd interat oft any Future Advances secured by this Mortgage. 2. iihttads feet 'i'ota atti Ittees>,ttee. Subject to applicable law ..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 year(} taxes and assessments which may attain priority over this Mortgage, and ground rents on flee Property, if any. plus one•tweltth of yearly premium installments for hazard insurance. plus otx-twelfth of yearly premium installments for mortgage insurance. it any, all as reasonably estimated initially and trout tune to time by Lender on the basis of assessments and hills and reasonable estimates thereof. 'IUe Funds shall be held in an institution the deposits orrccounts of which arc insured or guarantsed 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, 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 exaulion 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 wu made. The Funds are pledged u additional security for the sums secured by this Mortgage. If the amount of the Funds heW 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, itt:urance premiums and ground renu 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 held by Lender shall not be wfFicient 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 in full of all sums soured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Leader. If under pusgraph I8 hereof the Property is sold or the Progeny rs otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Propetiy or its acquisition by Lender. any Funds held br Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Appiicatiwt et ]htyttaetots. 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 Nde, and then to interest and principal on any Future Advances. 1. Charles; Litos. 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 tender 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 hu priority over this Mortgage; provided, that Borrower shall not be requited 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 I~en or forfeiture of the Property or any part thereof. S. Hazard insurance. Borrower shall kesp fix improvement, now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage"• and such other hazards as lender may reyuire wd in such amounts and for such periods as Lender may reyuire: provided, that Lender shall not require that the amount of 'I~ such coverage exceed that amount of coverage required to pay the sums secured ~by this Mortgage. •Ilte insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Linder, 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 l insurance carrier. 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 Lender. (.ender 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 shad grve prompt notice to the insurance earner and Lender. Lender may make proof of loss if not made promptly by Borrower. I Unless Lender and Borrower. otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of i the Property damaged: provided such restoratwn or repair ~s economically feasible and the security of this Mortgage is ~ not thereby impaired. /f such restoration or repair is not economically feasible or if the security of this Mortgage would Ix 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 1_ender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier often 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 Propene or to the sums secured by this Mortgage. Unless Lender and Borrower others~ise 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 18 hereof the Property is acywred 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 b}• this Aortgage immediately prior to such sale or acquisition. 6. Preservation and 1lsrintenance of Property; I.eaxhulds; Condominiums; Planned Udt Developments. Borrower shall keep the Property in good repair and shall not commit yvaste or permit impairment or deterioration of the Property g and shall comply with the provisions o[ any (case if this Mortgage ~s un a leasehold. !f this Mortgage is on a unit in a condominium or a planned unit des•clopmcnt. Borrower shall perform all of Borrower's obligations under the declaration or covenants crta_ ling or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent dixuments. I(a condominium or planned unit development ~ rider is executed by Borrower and recorded together s?ith this Mortgage, the covenants and agreements of such rider ~ shall be incorporated into anJ shall amend and supplement the cusenants and agreements of this Mortgage as if the rider w-ere a part hereof. 7. Protection of Lenders Security. If Bc?rrower fad. rn perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced schich material(} affects Lender's Interco in the Propert}'. including, but not limited to. eminent domain. insolvency. c.x1e enforcement. or arrangements or proceedings invoh~ing a bankrupt or decedent, then I_egder at Lender's ophun, upiin nonce to Borrower. may make such appearances, disburse such ~ sums and Take such action as is necessary to protect Lender's interest. including. but not limned to, disbursement of reasonable attorney's tees and entry up~~n the Property to ma{~e repam. I( Lender reyuircd mortgage insurance as a conditwn of making the loan secured by this Mortgage. Burnsser shall pay the premiums required to maintain such l insurance in effect umjl such dine as the requirement for wch muiran:e terminates in accordance with Borrower's and B~~X 3~3 P~~E i3'7"7