Loading...
HomeMy WebLinkAbout1544r UNttraw COVBNANT>l. Borrower and Lender covenant and agree as tollow:: 1. tgoetN ai lrMrc1M1 ttsttti I~Ieswf. Borrower shall promptly pay when due the principal of and interest on the utdtsbtedntns evidenced by the Note. prepayment and Isle charges ac provided in the Note, and the principal of and intereu on any Future Advances sttcueed by this Mortgage. _. l4nis tot Tattas tad lrtarttrctt. Subject to applicable law ar to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inuallments of principal and interest arc payable under the Note. until the Note is paid in full, a sum (herein "Fttnds'~ equal to otte-twelfth of the yearl~~ taxc. and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one-twelfth of yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgage instrrancc, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc insurt:d or gwranteed by a Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments. insurttnoe premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account. or vt:rifying 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 Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement a 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 arc pledged 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 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 Lender shall not be sttt5ciwt 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 requiting payment thereof. Upon paytneat in [till of all soma secured by this Mortgage, (.ender 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 shall apply. no later than immediately prior to the sale o[ the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums scoured by this Mortgage. 3. A~IlcMloa of P~ymeats. Unless applicable law provide otherwise, all payments received by Lender under the Note and paragnphs 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 Advance. 1. Charges; Liens. 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 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 Iron or forfeiture of the Property or any part thereof. S. Harard lasuraan. 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 az Lender may require wd 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. 71te insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreazonahly 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 iawrance 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. 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 carrier and lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwrse agree in writrng, 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 not thereby 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 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 (.ender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier otTers to settle a claim for insurance benefits, lender is authorized to collect and apply the insurance proceeds ~t 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 proxeeds 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 acquired by Lender, all right, title and interest of Borrower in and to any k-surance policiu 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 l4fortgage immediately prior to such sale or acquisition. 6. Preservation and lfaintenance of Property: Leaseholds; Condominiums; Planned Unlt Devebpments. Borrower shall keep the Property in good repair and shall not comrpit yraste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease i( this Mortgage rc tin 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 o[ the condominium or planned unit development. and constituent documenrs. 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 fads to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is cummence.l which materially affects Lender's interest in the Property, including, but not limited to. eminent domain. inW~lvencp. a-de enforcement. or arrangements or proceedings invoking a bankrupt or decedem. then Lender at Lender's option, upon notice to Borrower, ma} make such appearances, disburse such sums and take such action as is necessary to pn-tect Lender's interest. including, but not limited to, disbursement of reasonable attorney ~ fees and entry up:m the Property to make rcparn. If Lender require) mortgage insurance as a condition of making the loan secured h}• this Mortgage. Born:wer sh dl pep the premiums require) to maintain such insurance in effect until such time as the requirement for such insuran;e terminates in accordance with Borrower's and 8344 P~i544 :~ ; _•, IE ~_ ~_ ..v -_- _ -- ~