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HomeMy WebLinkAbout1071UNtt=ottrt CovFN+cvrs. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest un the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intrrc~st on any Future Advances secured by this Mortgage. 2. Rends for Taxes and Insurance. Subject to applicable law or to a written waiver by tender, Borrower shall pa}• 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 '1 equal to one-twelfth of the yearly eaves and assessmente which may attain pr-oriry ove: this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments far hat:ud imurancc, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'ihe Funds shall be heW in an institution the deposits or accounts of which arc insured or guar,+nired by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said tare., assessments, insurance premiums and ground rents. 1-ender may not charge for so holding and applying the Funds.analyr.ing said account, or verifying and compiling said assessments and hills, unless Lender p:+ys Borrower interest on the Funds and applicable law permits 1_ender to make such a charge. Borrower and lender may agree in writing a1 the time of execution of this 1ortgage 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 rcyuircd to pa}• 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 plc~lgc~l as additional security for the sums secured by this 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 fall der, 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall der. 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 sec:urcd by this Mbrtgagr. 1_rnder shall promptly refund to Borrower any Funds held by lender. If under paragraph I8 hereof the Propcny is sold or the Property is otherwise acquired by Lcndcr, Lcndcr 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 ;-lortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lcndcr under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to I_rndcr by Borrower under paragraph 2 hereof, then to interest payable on the Nore. then to the principal of the Notc, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fasts, assessments and other charges. fines and imlxxitions attributable to the Property which may attain a priority over this Alortgagc, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or. if not paid in such manner, b}• 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 writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contra such lien hy, 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. Hazard Insurance. Borrower shall keep the improvements 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 !.ender ma}• require and in such amounts and for such periods as I_rnder may require; provided, that Lcndcr shall not require that the amount of such coverage exceed that amount of rn+•erage required to pay the sumti secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by tender; provided, that such approval shall not be unreasonabl}• withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall hr in form acceptable to !.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lcndcr. Linder shall have the right to hold the policies and renewals thereof. and $orrower shall promptl}• furnish to Lcndcr all renewal notices and all receipts of paid premium,. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcx•f of loss if not made promptly by Borrower. Unless 1_cnder and Borrower otherwise agree in writing, imurance 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 not thereb}- impaired. If such restoration or repair is not economically feasible or i( the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured h} this Mortgage. with the excess. if an}•. paid to Borrower. If the Property is abandoned by Borrower. or it Borrower f:+ils to respond to Lcndcr within 3l) days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to senle a claim for insurance benefits, 1_ender is authorized to collect and apply the insurance proceeds at Lender's option Tither to restoration or repair of the Propert} or to the sums secured by this Mortgage. Unless Linder and Borrower otherwise agree in writing, an} such application of proceeds to pnncipal 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 I8 hereof the Property is acquired by Lcndcr• aN right, title and interest of Borrower in and to an}• 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 h}' this Mortgage immediately prior to such sale or acquisition. 6. Preservation aad Maintenance of Properf}: Ixaceholds; Condorniniums; Planned Unil Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a Iraxhoid_ 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 condominium or planned unit development, and constituent dcx-umrnts. 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 hereof. 7. Profession of Lenders Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action ar proceeding rs commenced which materialh• affects Lender's interest in the Property. including, but not limited to, eminent domain. insolvency. code enforcement. or arrangements or proceedings in+•oh•ing a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances. disburse such sums and take such action as is necessary to protect tenders interest. including. but not limited to, disbursement of reasonable attorney's fees and emry up+m the Propcr~:• ro make repairs. If Lcndcr required mortgage insurance as a condition of making the loan secured by this Mortgage. Bomn+rr shall pay the premiums required to maintain such insurance in effect until such time as the reyuirrment fur such insurance tcrminatrs in accordance with Borrower's and 8~~344 P~107~.