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HomeMy WebLinkAbout0928 ' ~ ~ ~ .w~~~ UN[F01tAI COVENANTS. Borrower and L.e~de~ covcnant and a~ra as follaws: l. Payaeat ot Prtacl~pal ~ loterest. Bo~mwer shall prumptly pay when due the pri~cipal of and intereat on the iadebtedne:s evide~ced by the Nota. pceps~yment aad late charges as Provided irt the Note. aod the principa! of ~nd interest on any Futuro Advances secured by this Mortgage. . F~nd~ tor'i'~uca aod laarance. Subject to applicabie law or to a written waiver by I.eoder, Borrower shaQ pay to i.ender on the day month{y installments o[ principal and interest are payabk under the Note. until the Note is paid in fuil. ; s sum (herein "Fun~'q oqual to onatwetfth o[ the yea~ly taxes and assessments which may attain priority over this Mortgage, atid ground reats on the Pmperty, if Any. plus one-twelfth of yearly pttmium installmeots for hazard insurancc. ~ plus ono-twelfth of yeariy premium instaliments [or mortgage insurance, if aay. all as reasonably estimated initially and trom ~ timo to time by I,ender on the basis of assessments and bills and reasonable estimatea thereof. ~ The Funds shall be held in an i~stitution the depoaits or accounts ot which are insured or guaraoteed by a Federal or j state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments. insurance premiums and grouad rents. Lender may not charge for so holding and applying the Funds, analyzing said account, ' or verifying aad compiling said asscssme~ts and bills, unless l.ender pays Borrower interest on the Funds and applicable law permits Lende~ to make such a charge. Borrower and Ixnder may agree in writing at the time of execution of this ~ Mongage that interest o~ the Fuads shall be paid to Borruwer, and unless such agreement is made or applicable law requires such intecest to be paid, l.ender shall not be required to pay Bor~ower any interest or earnings on the Funds. Cender ' shall give to Bo~rower, without charge, an annual accountiog of the Funds showing credits and debits to the Funds and the ~ purpose for which each debit to ~he Funds was madc. The Funds are pledged as additional sa:urity for the sums securcd 1 by this Mortgage. 1 If the amount of the Fuads held by Le~der. together with thc future monthly installments of Funds payable prior to ~ the due dates of taxes, assessments, insurance premiums and ground rents, sha11 excood the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bonower s option, either promptly repaid to Borrower or ctedited to Borrower on monthly installments of Funds. If the amount of the Funds ~ held by Lender shall aot be suR'icient to pay taxes, assessments, insurance premiums and ground rents as they fa11 due, ! Borrower shall pay to I.ende~ aoy amount aocessary to make up the deficieney within 30 days from the date notice is mailtd ~ by Lender to Bonower requesting payment thereof. ' Upon •payment in full of all sums secured by this Mortgage, l.ender shall promptly c~efund to Borrower any Funds j held by l.eader. If under paragraph 18 hcrcof the Property is sold or the Property is otherwise acquired by Lender. I.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. ~ 3. Applicatba ot Psqmeots. Unless applicable law proviJes otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by I_cnder first in payment of amounts payable ta Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the priRCipal of the NWe, and then to interat and principal on any Future Advances. 4. Char~es; Lieus, Borrower shal) pay all ta~tes, assessments and othcr charges, fines and impositions attributable to tl~e Property which may attain a priorily over this Mortgage, and leasehold payments or ground rents, if any. in the manner provided under patagraph 2 hereot or, if not paid in such manner, by Borrower making payment, when due, dinxtly to the ' payee thereof. Borrower shall promptly fumish to Lender all notices of amounts due under this paragraph. and in the event Borrower shall make payment direcUy. Borrower shall prampUy fumish to L.ender receipts evidencing such payments. ~ Borrower shall promptly discharge any lien which has. priority over this Mortgage: provided, that Borrower shap not be ~ required to discharge any such lien so long as Borrowe~ shall agree in writing to the payment of the obligation secured by such lien in a manmr acceptabk to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in. legal proceedings which operate to preveat the enforcement of the lien or fodeiture of the Property or any part thereof. S• Nazard Iasvrance. Bo~rower shall kcep the improvements now existing or hereafter erected on the Property insured against loss by fire. hazards included within the term "extended coverage", and such other ~azards as L.eRder may rcquire and in such amounts and for such periods as Lender may roquire; provided, that Lender shail not require that the amount of such coverage eaceed that amount of coverage required to pay the sums secured by this Mortgage. 'ILe iasurano~ catrier ptoviding tbe insurance shall be chosen by Bor~ower subject to approval by Lender, provided. t6at wch approval shall not be unreasonably withheld. All premiums on insuranc:e policies shal) be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrowa making payment. when due, dirocdy to the insurance carrier. A!1 insurance policies ahd rcnewals thereof shall be in form acceptable to Lender and shatl 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 prompdy furnish to Lender all renewal notices and all receipts of paid prtimiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender, l,ender may make proof of loss if not made promptly " by Borrower. ~ Unfess ~ender and Borrower otherwise agree io writing, insurance proceeds shall be applied to restoration or repair of the Prope:ty damaged, ptovided such restoration or repair is economically feasible and Ihe security of this Mortgage is not thertby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impairod. the insurance proc~eds shall be applied to the sums secured by this Morigage, 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 noGce is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits~ Lendor ~ is authorized to collect and apply the insurance proceeds at Lender's option eit6er to ratoration or repair of tbe Property or to the sums xcurod by t6is Mortgage. ~ Unless Ixnder 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 undcr paragraph 18 heroof the Property i~ acquired by I.cnder, ali right. tide and interest of Borrower in and to any.insurance policies and in and to the praceods thereaf 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 sak or acquisition. 6. Puservatfon awd Maiatenaace of Pmperty; Lease6olds; Condominiums; Planned Udt Devebpments. Borrower shall keep the Property in good repair and shail not commit waste or permit impairment or deterioration of the Property and shali comply with ihe 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 developmcnt, Borrower shall perform all of $orrower s obligations under the deelaration or coveaants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned imit development rider is executed by Bonower and recorded together with this Morigage. the covenants and agreements of such rider shall be incorporated into and sball amend and supplement the covenants and agreements of this Mortgage as if the rider were a part heroof. 7. Protcetioa of Leade~s Security. If Borrower fails to perform the covenants and agreemenu contained in this Mortgage, or if any action or proceeding is commenced which materially af~ects l.ender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Leoder's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to Qrotect Lender's interest, including, but not iimited to. disbuesement of reasonabte attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan xcured by this Mortgage, Borrower shall pay the prcmiums required to maintain such insurance in eHect until such time as the requirement for such insurance terminates in aecocda:~ce with Borrower's and PASE s~ : , - - _ - ~ .