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HomeMy WebLinkAbout2545~: Untrqw CoveN~rrrs. Bomower and Lender covenaat and a~~oe u folbws: ~. ~t of Pri~ciMi a~i I~ferart. 8orrowsr ~hail prwnptly paY when due the ptincips! ot and interest on the a~-deMedneu eviaenced by the Note. ptepaymeot and late charges ac ~xovided in the Note, and the principal of and intercsl on any Futurc Advances secured by this Mortp~e. 2. Fr~i tor T~a aoi Iwqrwce. Subjat to applicabk law ~r to a written waiver by I.ender. Borrowe~ shall pay to Lender ot~ the day mot~thly instaNme~is of principal and intcrecl rrc ~yable undsr the Note. until the Note is paid in tull. • sum (heroin "Funds'~ equal to o~e-tweltth ot Ihe yearly usr. and assasments which may attaie priority over this Mottsaje. and ground nets on the Property, if aoy, Flus one-twelhh of yearly premium instaltments foc hazard insurance. plus one-tweltth of yearly premium installmems (or mortgage insurancc, if aoy, all as reasonably estimated initially and irom Nme to time by LeRder on the buis of auaxmcros and hills and rcasonabk atimates thercof. The Fu~ds shall be held in an insti~utioo the depos~u or accounts of ~rhich are insurcd o~ guaranteed by a Federat ot slate aget~cy (including L.ender if Lender is such an institution). I.ender ahall apply the Funds to pay said taxa. assessments. iesuranee premiums and ground rents. l.ender may nat charae for u+ holding and applyina the Fnndc. analy2ing caid account, or verifying and compiling said assessmeots and bills, unless Lender pays Borrower interat on the Funds and applicable law penniis Lender to make such a charge, Borrowe~ and I,ender may agrce in writing at 1he time o' ezecution ot this Mortgage that interest on the Funds shall !~e paid to Borrower, and unlas such agreement is made or applicable law requira such interat to be paid, Lender shall not be rcquircd to pay Borrower any interat or tarnings 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 wu made. The Funds arc ptodged u additio~al ucurity for ~be sums secured by this Mortgage. If tt~e amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to t6e due data of taxes~ uussments. imutance prcmiums and ground rcnts, shall exceed ~he amount required to pay said taxes, au~mants. insunnce premiums and ground reats as they tall due, such excess shall be. at Borrower s optian, either pmmptly repaid to Borrower or ctodited to Borrower on monthly installments of Funds. If the amouot ot the Fu~ds held by l.eode~ shall not be suf6cient to pay taxa. assessments, insurance premiums and gmund rents as they fall due, Bormwer shall pay to L.ender any amount ~ecessary to make up the deficiency within 30 days from the date notice is mailcd by Lender to Borrower requesting payment thereof. Upon paymeat. in full of all sums tocuned by this Mortgage, l.ender shall p~omptly refund to Borrowtr any Funds held by Lender. i[ under paragraph 18 hereo( the Property i~ sold or ~he Property ~s aherwise acquircd by I_ender, Lcnder s6att appiy. no later than immediately prior to the sale of the Property or its acquisition by [.ender. any Funds held bv L,eader at the time of application as a credit against the sums secured by this Mortgage. 3- A~tau at Paym=als. !!nltss applica~le !aw pmvicks o~herwise. all payments received by Lender under the Note and paragraphs 1 and 2 hereo( shall be applied by [_ender 6rst in payment oi amounts payabk to Lender by 8orrower under paragraph 2 hercof. then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. ~. Char~es; Lieos. Borrower shall pay all laxes, assessmcnts and othcr charges. fines and impositions auribu~abk to the Property which may attain a priority over this Mortgagt, and leuehold payments or grounai rents, if any, in the manner provided under paragraph 2 hertof or, if not paid in such maneer, by Borrower making paymenl, when due, directly to the payee thereof. Borrowe~ shall promptly furnish to LenJer all notices of amounts due under this paragraph, and in the event Borrower shall make payment d~rectly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall prompdy dixharge any Iien which has pnority over th~c Mortgage; provided, that Borrower shall not be requered to descharge any such lien so long as Borrower shall agree in wrUing to the payment o( the obligatiun secured by such lien ~n a manner acceptable to Lender: or shall m gcx~d tailh contes~ such lien by, or defend enforcement of such lien in, legal proceed~ngs which operate to prevent ~he enforcement of the lien or forfeiture of Ihe Propeny or any part thereof. S. Hazard Insurance. Borrower shall keep the ~mprovementti now eaisting or herea(ter erected on !he Property insurecl against loss by fire, hazards included with~n Ihe term "extended coverage", ar-d such other hazards as l.ender may require aad m such amounts and for such periods as Lender m~y requirr, provided, that Lende~ shall not require that the amount of such coverage e~ceed that amount ~f coverage required to pay the sums secured ~by this MonaaEe. 71~e insuranre carrier providing the insurance shall be choseR by Borrower subject to approval by Lendtr; provided, t6at such approval shall not be unreasonahly 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 insurance carrier. All insuranre pol~creti and renewals therrof shall he in form acceptable to Lender and shall include a standard mortgage clause ~n favor of and ~n form acceptable to L.ender. Lender shall have Ihe right to hold the policia and renewals thereof. and Borro~•er sh:+ll promptly Eurmsh to Lender all renewal notices and all receipts of paid prcmiumc_ In the event of loss, Borrower sAa1t g~~~e prompt nouce ro the insurance carrier and l.ender. I.ertder may make proof o[ loss if not made prompUy by Borrower. Unless I.ender and BorroK~er otherw~x agree in w~nting, insurance proceeds shall be applied to restoration or repai~ of the Property damaged, provided such re.torahon or repa~r ~s economicatty feasi5le and the security c-f this Mortgage is not thereby imparred. lf sexh restorateon or repair is no~ economically feasible or if the security of this Mortgage would be impaired, the mwrance proceeds shall be applied to the sums secured by th-s Mortgage. with the ezcess, if any, paid to Borrower. li the Prope~ty ~s abandoned by Borrower, or ~t Borrower fails to respond to Lender within 30 days trom the Jate notice ~s mailed b} Lendgr to Borrower that the insurance ~arrier offers ~o settle a claim for insurance benefits. Lender is authorized tu cullect and apply~ the insurance proceeds at l.endcr's option either ta restoration or repa~r of ihe Pmpem~ or to ~he sums xcurtd by this Mortgagc. ' Uuless i.rnder and Borrower othervr~se agree in wnting, any such applica~ion vf pra:eeds to pnncipal shall not e;tend or postpane the due date of the monthh~ irntallmems rrferred tu in paragraphti 1 and 2 hereof or change the amount af suc6 installmenGi. It unJer paragraph 18 hereof the Prof,erty ii acywred hy l.ender, all right. title and interest of Borrower in and to any insursnce policies and in and to the pr~x:eeds thereof resulhng from damage to the Proper~y prior to th~ a~le or acquis~tion shat! pass to Lender w the e~fent of the wms secured by th~s Mortgage immediately prior to such sale or acquisiteon. 6. Pnservation and ~itintenancc of Prope~ty; Leasehulds; (ondominiums; Planned Unit Developments. Borrowcr shall keep the Propert~~ in goud repair and shall not comrpi~ y-aste or permit impairment or deterioration of the Property aQd shall comply~ wfth the provisions of any leax ~f thu Mortgage n on a teaschoid. If this Mortgage is on a unit in a condominwm or a planned un+t development. Borrower shall perform all of Borrower's obligations under the declaratwn or covenants creahng or governing 1he condom~nium or planned unit development, the by-laws and regulations of the condvminium or planned unit develupment, and constituent document~. If a condominium or planned umt development nder ~s execu~ed by Borrow~er and recorded together Kith th~~ Mortgage, the covenants and agrrements of ~uch nder- shall be ~ncorporated ~nto and shall amend and supplcment thc covenants anJ agreements of this Mortgagc as ~F the n.!cr v-ere a part Fereof. 7. Proteition of Lenders Securfty. I( Horrav-er failti t~~, ~rlurm ~he covenantc anJ agreements contained in this Mortgage, ur if any act~on ur proceedmg ~~ cummenced which materiall}• atirctc I ender's mterest in the Propert}-, including. but nu~ lim-~ed u~, eminent domam. ins~lcency. c~xle enf~~rcement, ar arrangemenss or pnkeedings invoh~ng a bankrupt or decedent. then LenJer at I.ender's op~ion, upon nonce to Borrower, ma~ make such appearances, dishur~e such sums and take such ac~ion ac ~s nece~tiary tu pmtect Lende~ s interest, including. but not limited to, d~sbursemeM of reasonable auorney's (ces and en~ry n~xm the Proper~y to make repe~r~. I( I.cnder reyuireJ mortgage incurance as a condition uf making Ihe loan SecureJ by this :11or~gage. Born:.~cr sh.~U pay the premwms requireJ to mai~ita~n such insurancc in ~tfect unts! tiuch tsm~; at the rey~~iremem for ~ueh msuran;e term~nate~ ~n :~ecordance w~~th Borre~HCr'ti and g~1~x350 P~~~543 , ;