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HomeMy WebLinkAbout2732UN~Fatt-~ CoveN~HTS. Borrower and I_ende~ covenan~ and •rgrce as fallows: 1. l~a~e~f ot lriacipl ~od laterest. Bcirmwqr ~halt promptly pay when due the principal of and intercu on the indebtedneu evidenced by the Nota, prepayment and late charges •rs provided ~n ~he hote, and the principal of and intercst o~ any Futur~e Advances secured by this Mortgage. 2. Ptiwds tor Tasa sei lawn~ce. Subject to applicable law or to a written waive~ by Lender. Borrowe~ shall pay to I.ender on ~he day monthly installments of principal and interest are payable under the Note. until the Note is paid in full. a:um (herein "Fun~") equal to onatwelfth of ~he yearly taxes and assessments which may attain priority over this Mortgage, and ground renu on the Propeny, if any, plus ooe-twelfth of yearly premium installments for hazard insurance. plus one-tweltth of yearly premium inslallments for mortgage insurance, it any, all as reuonably estimated initially and fr+nm time to time by Lender on the basis of assessmcnts and bills aod reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guara~teed by a Foderal or state ageocy (including Lender if Lender is such an institution). I_ender shall apply tht Funds to pay said taxes. as.ussments, insurance premiums and ground rcnts. Lender may not charge for so holding and applying the Funds, analyzi~g said account~ or verifying and compili~g uid assessments and bills, unless Lender pays Borrower interest on the Funds and applicable !aw permits Lender to make such a charge. Borrower and Lender may ag~ee 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 requires suc:~ interest to be paid. l.ender shall not be rcquired to pay Borrower any interat or earnings on the Funds. Lender shall ~ive to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpos~ for which each debit to the Funds was made. The Funds arc plcdged u additional security for the sums socured 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 taues. assessmeats. insurance premiums and ground rents, shall exceed the amount required to pay said taxa. asses~nents. insuranoe premiums and ground rents as they fall due, such excas shall be, at Borrowe~ s option. either pranpdy repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender st~all aot be sut6cieat to pay taxes. assessments, insurarsce prcmiums and groutid rents as they fall due. Borrower shall pay to i.ender any amount aecessary to make up the deficiency within 30 days from the date notice is mailcd by Lender to Borrower requesting payment thereof. Upon payment in full of all swns sec~red by this Mortgage, l.ender shall promptly refund to Borrower a~y Funds held by I~eader. If under puagnph 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 L.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. A~cat{on of pqme~ts. Unless applicable law provides othervvise, all payments receivod by Lender under the Note and paragraphs 1 and 2 hereof shall be applied 6y 1_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 heroof, then to iaterest payable on the Note, then to the principa! of the Nwe, and then to interat and principal on any Future Advanoes. 4. Crarte~ Lie~s. Borrower shall pay all taxes, assessments and othe~ charges, fines and impositions attributabk to the Propetty which may attain a prioriry over this Mortgage, and leasehold payments or gr~nund nnts, if any. in the manper provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dirocdy to the payee the~+oof. Bonower yhall promptly furnish to Lender all_notices of amounu due under this paragraph, aad in the event Borrower shall make payment directly. Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall pr~omptly discharge any iien which has priority over this Mortgage; provided, that Borrower shall not be requirod to dischuge any such lien so long as Borrower shall agree in writing to the paytnent of the obligation secured by such liea in a manner acceptabk to Lender, or shall in good faith co~test such lien by. or defend enforcement of such lien in. legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof. S. Hazard towraeca Botrower shall koep the improvements now existing or hereafter erected oa the Property insure~ against l~s by Sre, hazards included within ihe term "extended coverage ', and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not tequire that the amount of such coverage eaeced that amount of coverage required to pay the sums secured by this Mortgage. 'Ibe i~uranee carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. that such approval shall not be unroasonably withheld. All premiums an insurance policies shall be paid in the manner providod undet paragraph 2 hereof or, if nc~t paid in such manner, by Borrower making payment. when due. dirxtly to the insurance carrier. . AU insurance policies and renewals thereof shall be in form accep~able to Lender and shall include a standard mortgage clause in favor of and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof. and Borrower shall prompdy furnish to L.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt aotice to the insurance carrier and Lender. l.ender may make proof of loss if not made prompily by Borrower. Unless Lender ~nd Borrower otherv-~ise agree in writing, insurance proceeds shall be applied to ratoration or repair of the Property damaged. provideci such restoration or repair is economically feasible and ihe security of ihis Mortgage is not thereby itnpaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurancx procoeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailod by Leader to Borrower that the insurance carrier ofters to settle a claim for insurance benefits. Lender is authoriud to collect and apply the insurance proceeds at Lender's'oplion either to restoration or repair o~ the Property or to the sums securod by this Mortgage. Udess Lender and Bonower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragrap6 l8 heroof the Property is acquired by Lender, all right, tide and interest of Borrower in and to aay insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sak or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sak or acquisition. . 6. Yreaervatbo aod Maiotenaoce of Properly; Leasebolds; Coadominiums; Planoed Uail Devebpmenis. 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 this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower'a obligations under the declaration or covenants crcating or governing ihe condominium or planned unit development, the by-Iaws and regulations of the condominium or planued unit development, and constituent documents. If a condominium or planned anit development rider is eaecuted by Borrower and recorded togethcr" 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. Protecdon ~ oE Ltoder's Security. If Borrower fails to perform the covenants and agrcements contained in this Mortgage. or if any action or proceeding is commenced which materially aHects Lender's interest in the Property. including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proccedings involving a banlcrupt or dceedent, then Lender at Lender's option. upon notice to Borrower, may make such appearances, disburse such swns and take :uch action as ia necessary to protect l.ender s interest. including, but not limited to. disbursement of reasonable attorney's feex and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured bq this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such titne as the requirement for such insurance terminates in accordance with Borrower's aod ~ ~ _` ~-~,.,._~~.~w.~== . - R~~K348 P~~E2730 _ ~~ ~_