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HomeMy WebLinkAbout1302UNtponM CoveN~N'rs. Borrower anJ l.enJer covenant anJ agree as tallows: 1. T~IAtpf O~ rfIAC~I Nld IAftfl5l. Barrow~er shall promptiy pay whcn duc thc principal of and interest on the indebtedneu evidcnc~ed by thc Nac. prepaymcot and late charges as provickd in the Note, and thc principal of and interest on my Future Advances socu~ed by this Mortgage. 2. Ihsds ior Tues aad I~~ce. Subjec~ to applicable law or to a written waiver by Lender. Barrower shall pay to Lcnder on ~hc day monlhly installmcots o[ principal an~ i~terest are payable under the Note. until the Note is paid in tutl. a sum (herci~ '•Funds") equal to onc-twel[th of the yearly taxes and assessments which may attain priority over this Mortgagc. a~d ground rents oo the Pt+operty. if any, plus o~e-twelfth of ycarly premium installments for hazird i~surance. plus one-twelfth of ywrty prcmium installments fo~ mortgagc insurance, if any, all as rcasonably estimated initially and trom time to time by l.ender on thc basis of assessmcnts and hills and reasonabk estimates thercof. 'Il~e Funds shall be held in an institution ~hc deposits or accounts ot which arc insured or guaranteai by a Federal or statc agency (including Lender if Ler~der is such an institution). I.ende~ shall apply thc Funds to pay said taxes. assessme~ts, insurance premiums and grou~d rco-s. t_ender may not charge for so holding and applying the Funds, analyzing said account, or verifying a~d compling said assessmenu and bills, unless Lender pays Borrower i~te~at on the Fu~ds and applicable law permits Lendcr to make such a charge. Borrower and I.ender may agrce in writing ai thc timc of execution of this Mongage that intercst on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law requires sucl~ interest to be paid. I.ender shall not be rcquirod to pay Bo~rower 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 purpoae for which each debit to the Funds was made. The Funds are pleJged as additional security for the sums socured by this Mortgage. If the smount ot the Fuads held by l.ender, together with the tuture monthly installments of Funds payable prior to the due data of taxes. assessments. inturance premiums and ground rents, shall exceed the amount reyuired to pay said taxes. assessments. insurance premiums and ground rents as they (all due, such excess shall be, at Borrower s option, either pranptly repaid to Bormwer or credited to Borrower on mo~thly installments of Funds. !f the amount of the Funds held by L.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender aoy amount nocessary to make up the deficieocy within 30 days (rom the date notice is mailed by Lender to Borrower requesti~g payment thercof. Upon paytpe~t ia full of all sums xcured by this Mortgage, i.ender shal! promptly refund to Borrower any Funds held by L.enckr. If under puagraph 18 hereo( the Property is sold or the Property is otherwise acquired by Lender. Lender s1W1 apply. no late~ than immediately prior to the sale of the Property or i~s acquisition by I:ender. any Funds held by Leader at the time of application as a crcdit against the sums secured by ~his Mortgage. 3. A~plicatba of Pa,ra~eNs. Unless applicabte law provida othenvise, all payments reccivod by [.ender unckr the Note and paragraphs 1 and 2 hereof shall be applied by I.cnder first in payment of amounta payable to Lender by Borrower under pusgraph 2 heroof. then to interest payable on the Note, thcn to thc principal of the Note. and then to interest and principal on any Future Advanoes. 1. Char~es; Lieot, Borrower shall pay all taxes, assessments and other charges, fines and impoaitions attributable to the Property which may attain a priority over this Mortgagc. and leasehold payments or ground rents. if any. in the manner providod under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, wheo due. diroctly to the payx the~+eof. Borrower sball promptly furnish to Lenckr all_notices of amounts due uader this paragraph, and in the eveat Borrower shall make payment diroctly. Borrower shall promptly tumish to Lender receipts evidencing such payments. Borrower shall pmmpQy discharge any lien which has priority over this Mortgage; provided, that Borrower shall noi be requirod to dixharge any such lien so long as Borrower shall agrce in writing to the payment of the c~bligation secured by such lien in a manner aooeptabk :o Lender. or shall in good fai~h contest such lien by, or defend e~forcement of such lien in. legal proceedings which operate to prevent the en(orcement of the lien or [orfeiture of the Propeny or any part thereof. S. Hasard Imunu~ce. Borrower shall koep the improvements now existing or hercafter erected on the Property insurod against loss by fire, hazards included within the term "eatended coverage", and such other hazards u Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage excced that amount of coverage required to pay the sums ucurcd by this Mortgage. 'Ibe inwrance carrier providing the insurance shall be chosen by Borrower subjoct to approva) by Lender. provided. that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided uncler paragraph 2 hereof or, if not paid in such manner, by Borrower making paymeat, when due, diroctly 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 fortn acceptable to Lender. l.ender shall. have the right to hold the policies and rcnewals thereof, and Borrower shall ptotnptly furaish to Lender al) renewal notices and all receipta of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Ltnder may make proof of loss if not made promptly by Borrower. Unlps Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of the Property damaged, prov~ded such rcstoration or repair is economicaliy feasible and the security of this Mortgage is not thereby impaired. lf such restoration or repair is not economically feasible or if the security of lhis Mortgage would be impairod. the insurauce proceeds shall be applicd to the sums secureci by this Mortgage, wi~h the excus, if any. paid to Borrower. If the Propeny is abandoned by Borrower, or if Borrawer fails to respond to Lender~within 30 days from the date notice is mailed by l.ender to Borrower that the insurance carrier ofiers to set~le a claim for insurance benefits. Lender is aut6oriud to collect and apply the insurance procoeds at Lender's opti~n eithet to restoration or repair of the Properiy or W the wms secured by this Mortgage. Ualess Lendtr and Borrower otherwise agrce in writing, any such application of proceeds to principal shalt not extend or postpone thc due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of suc6 installments. If under paragrapb 18 hereof the Property is acquired b~~ Lender. all right. tiUe and interest of Borrower in and to any insurance policia and in and to the proceeds thereof raulting from damage to the Property prior to the sale o~ acquisition shall pau to Leoder to the extent of the sums securai by this Mortga~e immediately prior to such sak or acquisition. 6. Pr~aerratioa aod Maiatenaace of Property; Le~selalds; Condominiums; Plaaned Uuit Developmenfs. Borrower shall kcep the Property in good repair and shall not commit waste or permit impairment or deteriotation of the Property and shall cumply with the provisiona of any lease i[ this Mortgage is on a leasehold. !f this Morigage is on a unit in a condominium or a planned unit development, Borrowtr shall perform all of Borrower's obligations under the declaration or covenants creating or govtrning the condominium or planned unit development, the by-lavirs and regulations of the condominium or planned uoit development. and constituent clocumems. It a condominium or planned unit cievelopment rider is executed by Borrower and recorded together with this Mortgage. the covenants and agrcements ot such rider shali be incorporated into and shall arnend and supplement the covenants and agreements of this Mortgage as if the rider were a part heroof. 'f. Protectbs of Leede~'s SecurNy. Tf Borrower fails to perform the covenants and agreements contained in this Mortgage. ~r if any action or procoeciing is commenced which materially affects l.ender's interest in the Property. including. but not limitsd to, eminent domain, insolvency, code enforcement, or arrangements o~ proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disbune such sums and take such action az is noces.cary to protect L.ender s interest, including, but not limited to. disbursement of reasonable attomey's (ees and entry upon Ihe Property to make repairs. If I.ender required mortgage insurance u a condilion of making the loan secured by this Mortgage, Borrower shall pay the premiums requiral to maintain such insuranct in effect until such time as ~he requirement for such insurance terminates in accordance with Bo~rrower's and 60~JK348 PACE1e ~ ~, ~ ' _ r~~:.' ~~~.~ ~~~~v ~'.~., ._ : ~->n . . . . ~ ''s ` f ~a-.~.--.~ .