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HomeMy WebLinkAbout0927 / • .3 ' ~~~~J 1' UN[FOi1M COVHN!1NTS. Bortower and Lender covenant and sgree as fotlows: l. Paya~eot ot Principal aod lnterest, Fforrower shali promptly pay when due the Qrincipal of and interest on thc indebtedn~s evidenced by the Note, prepayment and lat~ charges as providW in the Note, and the principal of and interest on any Fvture Advances secund by this Morigage. Z. Frods tor T~ca aai Iwwr~sce. Stibjtct to applicable !aw or to a written wsiver by L.ender. Borrower ahall pay to Lender on the day mopthly ;nstallments of principal and interest are payable under the Note, until the Note is paid in full; a:um (herein "Funds") equal to ono-twelfth of the yearly taxes and asstssments which may attain prioriry over this . ~ Mottgage, and ground nntt on the Propeny. if any, plus one-twelfth of yearly premium installments for hazard insurance, plua one-twelfth of yearly premium installments for mongage insurance, if any. all as reasonably estimated initially and fmm time to time by L.ender on the basis of assessments and bilts and reasonable estimatcs theteof. The Funds shalt b~ heid in an institution the depasits or accounts of which are insurod or guaranteod by a Federal ot state agency (including I.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insuranct premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying aod compiling said assessments and bilis, unless Lender pays Borrower interest on the Funds and applicable law permits Lendtr to make such a charge. Borrowtr and L.ender may agree 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 such interest to be paid, Lender shall not be req~ired to pay Borrower any interest or earaings on tha Funds. I.ender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds aad the c~urpose for which each debit to tl~t Funds was made. 'i~e Funds are pledged as additional security for the sums socured by this Mortgage. If tht amount of the Funds held by I.ender, together with the future monthly instaliments of Fuads payable prior to the due dates of taxes, assessmeats, 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthiy instaliments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and gmund rents as they fall due, Botrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requestiag payment thereof. Upon payment ia full of all aums secured by this Mortgage, 1_endcr shall promptly refund to Borrower any Funds held by L.endor. If under pazagraph 18 hereof the Property is sold or the Propeny is otherwise acquired by Lender, Lender shall apply, na later than immediately prior to the sale of thh Property or its acquisition by Lender, any Funds held by I.ender at th~ time of application as a credit against the sums secured by this Mortgage. 3. Applk~ion of Payments. Unless applicable law provides otherwise, all payments received by Ler.der under the Note and paragraphs 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 iaterest payable on the Note, thcn to the principal of the Note, and then to interest and ~rincipal on any Future Advances. 4. C6atges; Lieas. 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 gmund rents, if any, in the manner provided undec Qaragraph 2 hereof or, if not paid in such manner, by Borrower making paytnent, when due, directly to the payee thereof. Borrower shal! promptly furnish to I.ender all notices of amounts due under lhis paragraph, and ia the eveat • Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shalt promptly discharge any lien which has priority over this Martgage; provided, that Borrower shall not be requiaed to discharge any such lien so long as Borrower shall agree in w: iting to the payment of the obligation secuced by sucb lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enfonement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ia~vranee. Borrower shall keep 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 hazards as L.ender may require and in sach 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 caverage required to pay the sums secured by this Mortgage. 1be iasurance catrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premioms 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. 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 form acceptable to Lender. Ixnder 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, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prom~tly by Borrower. Untess 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 shall be applied to the sums secured by this Mortgage, with the ezcess, if any, paid to Borrower. :f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Leader to Borrower that the insurance carrier oHers to settle a claim for insurance benefits, L.ender is authorized to collect and apply the insurance proceeds at Lender's optior. either to restoration or repair of the Property or to the sums secured by this Martgage. Uniess L.ender and Borrower oiherwise 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 paragraph 18 hereof the Property is acquired by L.ender, all right, tide and interest of Borrower in and 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 Lendsr to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservatbo and Maintenaace of PropeKy; Leaseholds; Condominiums; Ptanned Uait Devclopmenks. Borrower shall keep the Property in good repair and s6all ooi c~mmit waste or permit impairmeni or deterioration of the Property and shall comply with the provisions of any ltase if th~s Mortgage is on a leasehold. If this Mortgage is on a unit in a candominium 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 development, the by-laws and regulations of ihe 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 shall amend and supptement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commertced which materially affects Lender's interest in the Property, including, but not limited to, eroinent domain, insolvency, code enforcement, or arrangements or procecdings involving a bankrupt or decedent, then I.ender at L.ender's option, upon noti~e to Borrower, may make sueh appearances, disburse such sums and take such action as is necessary to protect Lenier's interest, inctuding, but nnt limited to, disbursemept 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 secuted 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 in accardance with Borrower's aad BO~K `~O~ PAGE ~5 , a'f:.: ~.t • - • nv.s~~,::ti., ~.~c~ ` z~.~:'}.ti^?r~r-~,'„~ri'-~k r.,s.~.;~.`_`~`'..,.""