Loading...
HomeMy WebLinkAbout0961 ~ w UNtFOAM COVENANTS. BOfTOVVe~ and Gender covenant and agrce u follows: 1. h~nneat of Priocipal asd lateral. l3orrower shall promp~ly psy vvhen due the principal ot a~d interest on the indebtedness evidenced by the Note, prepayment a~d late charges as provi~kd in the Note, and the prinripal of and ~ntercst on any Futuro Advances securcd by this Mortgage. 2. Fnads for Tues aad lu~urasce. Subject to applicable law or to a written waiver by Lender, Bo~~.?er shall pay to l.endcr on the day monthly installments of principal and interest are payable undcr the Note, until the Note is paid in full, a sum (herei~ "Funds") equal to one-twelfth o[ the yearly taxes and assessme~ts which may attain priority over this Mortgage, and ground rents on the Pmperty, if any, plus one•tweiitn uf yearly premium installments for hazard insurance, plus one-twelfth of yearly premium instaTlments for mortgage insurance, it any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills a~d reasonable estimates thereof. The Funds shall be held in an inslitution the deposits or accou~ts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institutiun). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. ~ender may not charge for so holdi~g and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pa)~s Borcower 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 interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires sueti inttrest to he paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender :,hall 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 pledged as additional security for the sums secured by this Mortgage. If the amount of thc Funds held 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 talces, assessments, insurance premiums and ground rents as they (all 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 sufFcieat 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 from the date notice is mailed ~ by Lender to Borrower requesting payment thereot. ~ Upon payment in full of all sums secured by this Mortgage, l.ender Shall promptly refund to Borrower any Funds held by l.ender. If under paragraph 18 hereof the Property is sold or thc Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held b} Lender at the time of application as a crcdit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender imder the Note and paragraphs 1 and 2 hereof shall be applied by I_ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payablc on the Nate, then to the principal of the Note, and then to interest and principal on any Future Advances. d. C6arges; Liens. Borrower shall pay all taxes, asscssmcnts and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or grou~d rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lendcr all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to dixharge any such lien so long as Borrower shall agrec in N riting 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 lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. I~azard Insurance. Borrower shall keep the improvements now• cxisting or hereafter erected on the Property insured against loss by fire, hazards included within the terni "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 reqaire that the arnount 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, ' that such approval shall not be unreasonably withheld. All premiums on insurance policies shali be paid in the manner ' provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcdy to the i insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage :lause in favor of and in form acceptable to Lender. Lender 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 canier and Lender. 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 shall be applied to the sums secured by this Mortgage, w~ith the excess, if any, paid F to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the r date notice is mailed by Lender to Borrower that the insurance carrier ofiers to settle a claim for insurance benefits, Lender t is authorized to collecf and apply the insurance proceeds at Lender's option either to restoration or repair of the Properiy ~ or to the sums secured by this Mortgage. 3 Unless Lender and Borrower 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 under paragraph 18 hereof the Property is acyuired by l.ender, all right, tide and interest of Borrower in and to an~~ 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 - ~ acyuisition. ; r 6. Presenation and Maintenance of Property; Les~seholds; Condominiums; Planned Unit Developments. Borrower ' ' shall keep thc Property in good repair and shall not commit wastc or permit impairment or deterioration of the Property and shall comply w~ith the provis~ons of any lease if this Mortgage is on a leasehold. If this Mortgage is on a onit 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 development, the by-laws and regulations of the ' condominium or pla~ned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Bonower and recorded together with this Morigage, 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. 7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any acti~n or proceeding is comrnenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a _ bankrupt or dreedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such r sums and take such action as is necessary to protect l.ender's interest, inclading, 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 time as the requirement for such insurance terminates ia accordance with Borrower's and k FOFM 3~6 i7 0~ t~ ~ ~ . ~ ~ ~ _ _ _ . _ . °5=~.~..