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HomeMy WebLinkAbout2606.:f ~ f 'V ~ UN/rOR1~t COVaNANIfs. Borrower and Lender covenant and agree u follows: 1. 1T~weN a< Prlnelpul ttnl INereN. Borrower shall promptly pay when due the principal of and interest on the indebtedneatl evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest an any Future Advances secured by this Mortgage. 2. Ihsttii loft Tug ttiM lawrastce. 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 are payable under the Note. until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments [or hazard insurance. plus one•twelfth of yearly premium installments for mortgage instinncc, if any, all as reasonably estimated initially and from time to tithe by Lender on the buffs of assessments and hills and reasonable estimates thereof. 71te Funds shall be held in an institution the deposits or •rccounts of which arc insured or gwranteed by a Federal of state agency (including Lender if Lender is such an inslitutionl. 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 Fiinds. 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 rcquira 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 [or which each debit to the Funds wu made. The Funds are pledged as additional xecunty 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 u they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. !f the amount of the funds held by Lender shall not be sutficieat to pay taxes, assessments, insurance premiums and ground rents u 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 Leoder to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, l.eAder"ti)~'alt promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof 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 I~nder, any Funds held by Lender at the time of application u a credit against the :cams secured by this Mortgage. 3. Applicatios of Payoteats. 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 Note, and then to interest and principal on any Future Advances. 1. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attnbutahle to the Property which may attain a priority over this I-lortgage, and leasehold payments or grouna 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 venting to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in gaud faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfenure of the Property or any part thereof. S. Hazaird Insurance. Borrower shall keep the improvements noK existing or hereaher erected on the Property insured against loss by fire, hazards included within the term "extended coverage", and such other hazards as Lender may reyuire and in such amounts and for such periods as 1_ender may reyuire; 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 such approval shall hat be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not pard in such manner, b}• Burrower making payment, when due, directly to the insurance canner. All insurance policies and renewals thereof shall tx in form acceptable to Lender anJ 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 nonce to the insurance earner and Lender. 1_ender may make proof of loss if not made prompt!}• by Borrower. Unless Lender and Borrower otherwrsr agree in venting, insurance prcxeeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair rs economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is nut ernnomicall}• feasible or it the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, it any, paid to Borrower. If the Property is abandoned by Borrower. or it Burrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to cattle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at 1_ender"s option either ro restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherveiu agree m writing. an}• such applie;+tion of pn•ceeds to principal shall not c!itend or postpone the due date of the monthly installments referred a. in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the ProE,erty n acquired h} Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds :hereof 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 acquisition. 6. Presen•ation and Maintenance of Property: Leaseholds; ('undominiums; Planned Unit !Developments. Borrower shall keep the Property in good repair and shall not comrpit yeasts or permit impairment or deterioration of the Property and shall comply with the provisions of any lease it this Mortgage n tin a leasehold. If this Mortgage is on a unit in a condominium or a planned amt devclopmcnt, Borrower shall perform all tit Borrower's obbgations under the declarati++n or covenants creating or governing the condominium or planned unit devclopmcnt, the by-laws and regulations of the condominium or planned unit devclopmcnt. and constituent dikuments. It a condominium or planned amt development rider -s executed by Borrower and recorded together Kith this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the cusenants and agreements of this Mortgage as if the rider were a part t-,ereof. 7. Protection of Lenders Security. If Bom,KCr (ails a. perform the covenants and agreements contained in this Mortgage, or if any acti~m car proceeding is cummrrne.l Khieh materially affects Lender's interest in the Property, including. but nut bmited to, eminent domain. inW.lvenc}. code entur.emcnt. car arrangements or proxeedings involving a bankrupt or'decedent. then Lender at Lender's option, upon notice to Borrower. mas make such appearances. dnhurse such sums and take such action as is necessary to protect 1_endei's interest, including. but not limited to. disbursement tit reasonable atu+rneq's lees and entry upon the Pmpern to make repairs. If Lender required mortgage insurance as a condition u( making the loan secured M this Mortgage. Borf+:KCr s?+.ill pa}• the premiums required to maintain wch inuurance in effect until such time as the reynirrment for such m,uran:e terminates in acrnrdance Kith Borr~~Ker's and X344 P~E~I~ . .