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HomeMy WebLinkAbout2352UNtt=oRM CovEN~NTS. Borrower and lender covenant and agree as follows: 1. Payment of Principal aad lalerest. Borrower shall promptly pay when due the principal of and interest on the indebtedness 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. Z. Funds for Taxes and Insuraace. Subject to applicable law or to a written waiver by lender, Borrower shall pay to lxnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly tares 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 insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessmemi and hills and reasonable estimates thereof. 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 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 execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law reywres such interest to be paid, Lender shall not he reyuired to pay Borrower any interest or earnings +~n the Funds. Lender .hall give to Borrower, without charge, an annual accounting of the Funds showing credits and dehits 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 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 amoum reyuired to pay said taxes, assessments, insurance premiums and ground rents as the} (all due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Burrower on momhly Installments of Funds. It the amount of the. Funds held by lender shall not be sufficient to pay taxes, assessments, imuranrr premiums and ground rents as they fall dot, Borrower shall pay to Lender any amount necessary ti+ make up the defic+ency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. ? Upon payment in full of all sums secured by this Mortgage. I ender shall promptly refund to Bormwer any Funds held by I.cnder. If under paragraph 18 hereof the Pruprrty ~. sold or the Property Is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the salt of the Property or its acgwataon h)' Lcndcr, any Funds held by Lender at the time of application as a credit :+gamst the sums secured by this Mortgage. 3. Application of Payments. Unlrw apphtahlr law pros ides olhrfw lsr, :III payments received by Lcndcr under the tiute and paragraphs 1 and 2 hereof shall be apphrd by Lcndrr first In payment of amounts pay:-ble to Lcndcr by Borrower under paragraph ~ hereof, then to interest payable un the tiutr, thin ti. the principal of the Nole, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all tavrs.:+ssrssments :mt uthrr charges, fines and Impositions attributable to ' the Property which may auxin 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 m such manner, h} Borrower making payment, when due, directly to the payee thrrrof. Borrower shall promptly furnish to Lcndcr all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to l.rndcr receipts rvidrnt+ng such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be regwred to discharge any such lien w long as &+:ruwrr shall agree in writing to the payment of the obligation secured by such hen In a manner acceptable to Lender, or shall in g+x-d faith contest such lien by, or Defend enforcement of such lien in, legal prixcedings which operate to prevent the en(ureement of the lien or forfeiture of the Property or any part thereof. ~ S. Hazard Insurance. Borrower shall Leep the Improvrmrnts now rvisting ur hereafter erected un the Pmprrty insured against loss M• fire. hazards included within the term "rvtendeJ cuveragr". ant such other hazards as Lender may require and In such amounts ant for such periods as Lcndcr may require: provided. that Lcnter shall not require that the amount of ~ I such ruvrragr exceed that amount of coverage reywred to pay the wins secured by this Mortgage. The Insurance rattier providing the insurance shall be chosen h}• Borrower subject to approval by [.enter: provided, that such approval shall not be unreasonably withheld. All premiums un insurance policies shall be paid in the manner r provided under paragraph 2 hereof or, if not paid in arch manner, by Borrower making payment, when due, directly to the j insurance carrier. f? All insurance polities ant renewak thereof shall !x in form acceptable to Lcndcr ant shall mcludr a standard mortgage { clause in favor Lf and in form acceptable to I.rndrr. Lcndrr shall have the right to hold the policies and renewals thereof, ` and Borrower shat! pn-mptly furnish to Lcndrr all renewal notices and all receipts of paid premiums. In the event of loss, Borrower ,hall give prompt notice to the Imurancr carrier :Ind Lender. Lender ma} make pnwt of loss if not made promptly ~ by Burrower. Unless Lender ant Borrower otherw Ise agar in w sting, insurance pn+ceeds shall be applied to restoration or repair of the Property damaged, provided wch restoration or repair is economic:+Ily feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not rconomirally (rasihle 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. It the Property is ahandoned h} Borrower, or It Borrower fail• to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance earner offer to settle a claim for imurance benefits, Lender is authorize) to collect ant apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless I_endcr and Borrower otherv-ise agree m writing, any such application of proceeds to principal shall not extend or postpone the due talc 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 acquired by Ixnde-, all right, title and interest of Borrower in and to an}• Insurance policies and in and to the prix:eeds 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 R acquisition. 6. Preservation and Zlaintenance of Property; Leaseholds; ('ondominiums; Planned Unit Ihvelopments. 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 thn Mortgage n on a leasehold. 1t 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 d l d ~ eve opment unit condominium or planned unit development, and constituent documents. It a condominium or planne i rider a 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. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements rnntained in this , Mortgage, or if any action or proceeding is commenced which materially, affects Lender's interest in the Property, including, but not limited to, eminent domain.:nsolvency. code enforcement, or arrangements or proceedings involving 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 Lender's interest, including. but not limited to, disbursement of 'x reasonable attorney's tees and entry upon the Property to make repairs. If Lender reyuired mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and 8x344 Fa~E2~351 ._ - ---- -