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HomeMy WebLinkAbout0921 . - - ,i . _ 1.' ~ UNIPORM COVENAN7's. Borrower and Lende~ cove~ant and agree as foliow:: l. l~ymeot of Prioc~l and lnterat. Borrower shall p~omptly pay when due the principal ot and interest on the indebtedness evidenced by the Note. prepaym~ot and late charges as provided in the Note, and the principal ot and interest on aay Futuro Advances secured by this Mortgage. Z. Fbads tor Tua aod Iu~uraece. Subject to applicable law or to a written waiver by l.ender. Bocrower shall pay to Lende~ oo the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full, a:um (herein "Funds") equal to one-twelfth ot the ycady taxes and assessments which may attain priority over this Mongage, and ground rents on the Pc~operty, i~ any. plus one-tweltth of yearly premium installments fot hazard insurance. pl~s one-twelfth of yearly premium instaliments for mortgage insura~ce, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'Ibe Funds shall be held in a~ institution the deposits or accounts of which are insured or guara~tced by a Federal or state agency (including Lender if Lender is such an institution). t_ender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing uid account, or verifying and compili~g said asxuments and bills. unless Lender pays Borrower interat o~ the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at ~he time of execution o[ this Mortgage that interat on the Funds shall be paid to Borrower. and unless such agreement is made or applicable law requires such interest to be paid. I.ender shall not be rcquired 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 a~d tt~e purpose for which each debit to the Funds was made. The Funds arc pledged as additional sa:urity for the sums saured by this Mortgage. If the amount of the Funds held by Lender, together with the (uture monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance pnmiums and ground rents. shall excoed the amount required to pay said taxes, assessments, insurance prcmiums and ground rents as 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. If the amount of the Funds held by Lender shall not be sutticient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days lrom the date notice is mailed by Lender to Borrower requesting payment thereof_ Upon payment in full of all sums securcd by this Mortgage, I_ender shall promptly re[und to Borrower any Funds held by l.ender. If under paragraph 18 hereof the Property is sold or tfie Property is otherwise acquircd by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by Ixnder, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Applie~aa ot Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and parag~aphs 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 ot the Note, and then to interest and principal on any Future Advances. 4. C6arges; Lkns. Borrower shall pay all taxes, assessmcnu and other charges, fines and impositions attributable to the Propeny which may attain a prio~ity over this Mortgage, and leasehold payments or ground rents, if any, in the manoer pmvided under patagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diroctly to tbe 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 fumish to l.ender receipts evidencing such paymenu. 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 writing to the payment of the obligation securcd by , such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien iq legal proceedings which operate to prevent the enforcement o( the lien or forfeiture of the Property or any part thereof. S. Hazard lnsurance. Borrower shall i:eep the improvements now existing or hereafter erected on the Property insurod against loss by fire, hazards included within the term "extended coverage", and such other hazards as L.ender 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 exceed that amount of coverage required to pay the sums secured by this Mortgage. "It~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such. approval shaU not be unreasonably 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. i All insurance policies and renewals thereof shall be in (orm acceptable to Lender and shall include a standard mortgag~ clause in favor of and in form acceptable to Lender. I.ender 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, BorroweF shall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made promptly ~ by Borrower. Unless Lender and Barrower otherwise agree in wriUng, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restora~ion or repair is economically feasible and the security of this Mortgage is not thereby impaired. It such restoration or repair is not economically feasible or if the security o[ this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If thc Properry is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that ~he insurance carrier otiers to uttle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at I_ender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless l.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of ihe monthly installmcnts referred to in paragraphs 1 and 2 hereof or change the amount of such installments. It onder paragraph 18 hereof the Property i~ acqu~red by [.ender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeJs thereof resulting from damage to the Property prior to the sale or acquisition_shall pass to L.ender to the extcnt of the sums secured by this Mortgage immediately prior to such sak or acquisition. 6. Preservalion aad Mtintenance of Property; Leascholds; Condominiums; Planned Unit Devebpmeats. Borrower i ~ shall keep the Property in good repair and shall not commit wastc or permit impairment or deterioration of the Property ~ and shall comply with the ptovisions of any lease if this Mortgage is on a leaschold. If this Mortgage is on a unit in a ~ condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned imit development, the by-laws and regulations of the ~ condominium or planned unit development, and constituent documen~s. If a condominium or planned unit development riJer is executed by Borrower and recorded together 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 i( the tider were a part hereof. ~ 7. Protection of I.ender's Security. If Borrower fails to perforrn the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced w~hich materially aRects Lender'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 [.ender at Lender's option, upon notice ~o Borrower, may make such appearances, disburse such sums and take sueh action as is necessary to protect l~nder's interest, including, but not limited to, disbursement of ~ reasonable attomey's fees and entry upon the Property to make repairs. If Ixnder required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such ~ insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrower s and ~ , anoK ~~.7~ Pa~E ~1 ~ ~ ~ ~ - _ _ - _ _ - ~~..,s r~; - _