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HomeMy WebLinkAbout0922 UN~FOR?.t CoveN.~~TS. Borrower and 1_enJer ~ovenant and agree as follows: 1. Ps~~ment of Princips! aod lnterest. Borrower shall promptly pay when due the principal oi and interest on the inJebtedness evidenced by the Note, prepayment a~d late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fuads for Tua ani lesuraace. Subject to applicable law or to a writton waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principai an~ interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus o~e-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reuonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lendzr is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insuranca premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that i~terest on the Funds shall be paid to Borrower. and unless such agreement is madt or applicable law requires suc;~ interest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds. Lender yhall give to Borrower, without charge, an annuai accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured 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 datu of taxes, assessments, insurance premiums and ground rents, shall exceed 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 credited to Borrower Qn monthly installmenta of Funds. If the amount of the Funds held by Lender shall not be sufficieut to pay taxes, assessments, insurance premiums and ground rents as they fall dua, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower nquesting payment thereof. Upon payment in full of alf sums secur~d by this Mortgage, t_ender shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 18 hereof the Property is soid 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 Leader at the time of application as a credit against the sum's secured by this Mortgage. 3. AMlication af Payeee~. Unless applicabk Iaw provides otfierwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shali be applied by Lender first in payraent of amounts payable to ~ender by $orrower under paragraph 2 hereof, thea to interest payable on the Note, then to the principal of the Note, and then to i~terest and principal on any Future Advances. 4. Char`es; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when duc. directly to the payte theteof. Borrower shatl promptly fumish to Lender all.notices of amounts due under ihis paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to L,ender receipts evidencing such payments. 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 securod by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enfotcement 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 Iasnrance. Botrower shall keep the improvements now existing or hereafter erected on the Properly insured against loss by fire, hazards included within the 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 require that the amount of ~ such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, i that such approval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the maaner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directty to the ~ insurance carrier. ~ All insurance policies and renewals thereof shal~be in form acceptable to [.ender and shall inctude a standard mortgage ~ clause in favor of and in form acceptable to Lender. l.ender shall have the riaht to hold the policies and renewals thereof, ~ and Borrower shall promptly furnish to Leader all renewal notices and all receipta of paid promiums. In the eveat of loss; E Borrower shall give p~ompt notice to the insurance carrier and Lenuer. Lender may make proof of loss if not made promptly ~ by Borrower. - ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds .shaU 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 Bflrrower fa~ls to respond to Lender within 30 days from the date notice is mailed by L.ender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless I,ender anti Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of suc6 installments. If under paragraph l8 hereof the Property is acquired by I.eader, all right, tide and intoreat of Borrower in aod to any insurance policies and in and to the proceeds thereof 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 sale or acquisition. 6. Preaervatioo aad Maiotenaece of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower shall keep the Property in good repair and shall not commit waste or perrnit 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's obligations under the declaration ~ or covenants creating or governing the condominium or planned unit deveiopment, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development ~ rider is executed by Bonower and recorded together with this Mortgage, the covenants and agreements of such rider ~ shall be incorporated into and shal! amend and suppleinent the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender'a Secuaity. If Borrower fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced which materially af~ects Lender's interest in the Property, including, but not limit~d to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then L.ender at C.ender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interut, including, but not limited to, disbursement of reasonable attomey's fees and entry upon the Property to make repairs. If Lender 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 dme as the requirement For such insurance terminates in accordance with Borrower s and 3 ~ ~ ~~1`f PAGf ~ ~ vf.is~qr $,„;-.x~,~"~.a-~ ~r. 'N`~~~.~..~.a; '.~a~4.n ~,xp- ~ _ "