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HomeMy WebLinkAbout0992 a ~1+ , ~ UHtFO~t~t Coven~Nn. Borrower and Lwder covenant and agree u folfows: 1. lqae~t o1 lrY~ciMl a~ l~tenst. Borrower shall promptly pay when du~ the principal of and interest on the indebt~dness evidenced by the Note, Prepsyment and late charges as provickd in the Note, and the principal of and intercs~ on any Futurc Advanca secured by this Mortga~e. 2. Ftiad~ tar Tue~ a~i l~wruce. Subject to applicabk !aw or to a written waiver by l.rnder. Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in tull, a a~m (hercin "Fundt'~ eqtul to one-twelfth of the yearly taxa and assessme~ts which may attain priority over this Mongage, and ground rents cn the Pruperty, if any, plus ooe-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of y~arly premium inuallments for mortgage insurance, if any, all as ceuonably atimated initially and from time to time by Lender oa the basis of assessm~nts and bills anJ reasonable estimates theteof. The Funds shall be hold in an institution the deposits or accounts of which are insutod or guaranteed by a Federal or state ag~ncy (including Ltnder if Lender is such an institution). Lender 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 said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interat on the Funds shall be paid to Borrower, and unlcss such agrcement is made or applicable law requira such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shafl give to Borrower, without charge, an annual 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 pledg~d as additianal security for the sums secured by this Mortgage. If the amount of the Funds htld by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance ptemiums and ground rents as they fall due, such excess shall be, at Borrower's option, either pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds heid by Lender shall not be sutt'icient to pay taxes. asussments, insurance premiums and ground rcnts as they fall due, 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 requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, l.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by ~ender, Lender 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. Apptication oE Paymeots. Unless apFlicable law provides otherwise, all payments received by Lender 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 Z hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lkas. Borrower sF~all pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mongage, 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 due, dirxdy to the payce thereof. Borrower shall promptly furnish to Lender all notices of amou~ts due under this pardgraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such paymenb. 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 secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such litn in, legal proceedings which operate to prevent the enforcement of the lien or fotfeiture of tho Property or any part thereof. S. Hazud lasurance. Borrower shall keep 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 Lender may requirc aad in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount oE such coverage excced that amount of coverage required to pay the sums secured by this Mortgage. "Ihe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner ; provided under paragraph 2 here~f or, if nat paid in such manner, by Borrower making payment, when due, direcdy to the insurance carrier. i i All insurance policies and renewals ihereof shall be in form acceptable to Lender and shall include a standard rriortgage i ~ 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 prompily 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 Lender. Lender may make proof of loss if not made promptly C by Borrower. ~ Unless Lender and Borrower oth~rwise 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 sec~red 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 irom the date notice is mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, L.ender ~ is authorize.l 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 Mortgagc. ~ Unless L.ender and Borrower otherrvise agree in writing, any such appiication 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 E such installments. If under paragraph I8 hereof the Property ic acquired by I.ender, alt 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 ~ ~r acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. ; ~ 6. P~'tStrvAtfO~ and Maiaten~nce of Property; Lezseholds; Condominiums; Planned Unit Devdopments. Borrower ~ shail keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisio~s of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit i~ a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants crcating or governing the condominium or planned unit developmeot, the by-laws and regulations of the s condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider 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 if the rider were a part hereof. i 7. Protection of Lende~'s Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially afiects 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 Lender at Le~der's option, upon notice to Borrower, may make such appearances, disburse such ~ sums and take such action as is necessary to protect Lender's interest, inclu.iing. but not limited to, disbursement of reasonable attorney's fees and entry upon the Properry 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 ef[ect until such time as the requirement for such insurance terminates in accordance with Borrower's and 6. trr'~;~• ~ . 8t1~f p~ ~ ~ ~ - - - - ~ _ . ~ ~ ; ~ -