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HomeMy WebLinkAbout2599 • ~ ~ UNBORN COVlNANTi. Borrower and Lender covenant and agree as follows: 1.. l~ymetN of tAociM1 atsd Itslerttst. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidettoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances secured by this Mortgage. 2. !wi ter Taus and IRwrt>•ce. Subject to applicable law ur to a written waiver by Lender. Borrower shall pay to Linder on the day monthly installments of principal and i:rtr•rest arc payahk under the Note, until the Note is paid in full. a :icon (herein "Futrds'~ equal to one-twelfth of the year)} cases anJ assessments which may attain priority over this Mortgage. and ground rents on the Property, it any. plus one-twelfth of yearly premium installments [or hazard insurance. plus one-twelfth of yearly pr~ittium installments for mortgage insurance. if any, all as reasonably estimated initially and tram „~ time to time by Lender on the basis of assescntcnts and hills and reawnable estimates thereof. The Funds shall be held in an institution the deports or accounts of which are insured or guaranteed by a Federal of state agency (including Lender i[ Lender is such an institution). 1_ender 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 compling said assessments and bills, unless !.ender 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 lime of execution of this Mortgage that interest on the Funds shall be paid to Brrrower, 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 was made. The Funds arc pledged as additional security for the sums secured by this Mortgage. It the amount o[ the Futtds 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, assesssents. insurance premiums and ground rents as They fall 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 heW by Lender shall not be sut[icient to pay taxes, asstssments, insurance premiums and ground rents as they tall due, Bortro~-er sball 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 Leader. If under paragraph 18 hercot the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Leader at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payatents. Unless applicable law provides otherwise, ail payments received by Lender under the Note sad paragraphs I 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 Advances. 4. Crarges; 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. 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 thrs Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Burrower 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 lien or forfeiture o[ the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the ~mprovemenrs 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 requite sad 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 wch approval shall not be unreasonably withheld. Ali premiums on insurance policres' shall be paid in the manner provided under paragraph 2 hereof or, ~f 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 anD shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to tint) the policies and renewals thereof, and Borrower shall promptly furnrsh to Lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall grve prompt mace to the insurance carnet and 1_ender. Lender roes}' make proof of loss if not made promptly by Borrower. Unless Lender anD Borrower otherwise agree in wntmg, inwrance proceeds shall be applietl to restoration or repair of the Property Damaged, provideD such restoration or repair a economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically teasihle or if the security of this Mortgage would be impaired, the insurance proceeds shall be applieJ to the sums secrrreD by this Mortgage, wrth the excess, if an}•, paid to Borrower. If the Property is abandoneD by Burrower, or it Borrower fails to respond to 1_ender within 30 Jays 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 imurance proceeds at Lender's option either to resturaaon or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in wrHing. any such application of proceeds to principal shall not extend or postpone the due Date of the monthly installments referred to in paragraphs 1 anJ 2 hereof or change the amount of such installments. It under paragraph IS hereof the Property is acywreJ h} Ixnder, all right, title and interest of Borrower in and to any insurance policies anJ 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 wins secured by this Aortgage immediately prior to such sale or acquisition. 6. Presen•ation and Maintenance of Property; l.easehulds; ('ondominiums; Planned Unit IDe~•elopments. Borrower shall keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease rf this Mortgage n ones leasehold. If this Mortgage is on a unit in a condominium or a planned unit devclupment, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or guvernmg the condominium or planned unit Development, the by-laws and regulations of the condominium or planned unit Development, anD constituent Jucuments. If a cunJominium or planned unit Development rider is executed by Borrower and recordeD together with thn 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 rf the rider were a part hereof. 7. Protection of Lender's Security. It Bomnscr f:uls to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced wh~cb materially attrcts Lenders interest in the Propert}•, mclud~ng, but not Lmrted tu, euunent domain, nnolvenc}. axle enforcement. or arrangements or proceedings invoking a bankrupt or decedent. then Lender at Lender's option, ulx.n notice to Borrower, ma} make such appearances, dishurse such sums and take such action as is necessary to pruteut Lender', interest, including. but not IimiteJ to, Disbursement of reasopahle auomey's fees anJ entry up~~n the Property to make repairs. I( Lender reyuireD mortgage insurance as a condition of making the loan secure.! by this Mortgage. Bornsscr sh.rll pap the premiums require) to maintain such insurance in ettect until such tune as the rcywrrmem for such m~uran;c terminates m accordance wqh Borrower's anJ 80~cl~~ P!f'fi ~_~~~