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HomeMy WebLinkAbout0978 UNiFOR~?t Cov~H.~Nrs. Bor~ower and l.ender a~venant anJ agree as fallows: 1, Payment of Pitacipal aad laterest. Bor~uw•er shall promptly pay w•hen due thc principal ot and interrst un the indebecdness evid~need by ihe Note, prepayment and late charges ac provided in the Note, aod the principal of and in~erest qn any Futurc Advnncos secured by this Mortgage. 2. ~ads for Tues and lnsursoce. Subject to applicable law• or to a written waive~ by l.ender, Bocrowe~ shaU pay to I.ende~ on the day mon~hly installments of principal an~ interest are payable under the Note, unti! the Note is paid in full, a sum (herein "Funcls") equal to one-twclfth of the yearly taxes and assessme~ts which may attain priority over this Mortgage. and ground rents on the Property, if a~y, plus one-twelfth ot yearly premium installments for hazard insurance. plus one-twelfth of yearly premium installments for mortgagc insura~ce, if any, atl as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable atimates theceof. The Funds shall t?e held in an instiwtion the deposits or accounts of which are insured or guaranteed b~ a Federal or state agency (including Lender if Leade~ is such an institution). l_ender shal! apply tfie Funds to pay said taxes, assessmcnts, insurance premiums and ground rents. l.ender may nat charge for sa holding and applying the Funds, aoalyzing said account, or verifying and compiling said assessments a~d bills, unless Lender pays Borrower interest on the Funds and applicable law permits l.ender ta make such a charge. Borrowe: and Lender may agree in writing at the time of execution of this Mortgage that interest o~ the Funds shall be paid to Borrowe~, a~d unless such agreement is made or applicable law requires sucl~ interest to be paid. Lender shall not he required to pa)' Borrowcr any interest or earnings on the Funds. ~ender sfiall give to Borrower, without charge, an an~ual 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 LenJer, together with the tuture monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceeci the amount required to pay said taxes. assessments, insurance premiums and gcound rents as they fall due, such excess shalf be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of ihe Funds held by Lender shall not be sufficient to pay taxes, assessments, insurancc premium~ 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 thereof. Upon payment in full of ali sums secured by this Mortgage. l.ender shall prompdy refund to Borrower any Funds i held by l.ender. If under paragraph 18 hereof the Property is sold or thc Property is otherwisc acquircd by Lender, Lender sha!! apply, no later than imtnediately prior to the sa{e 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. Applic~tion of Payments. Unless applicable law provides otherwise, all payments reccived by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lendcr by Borrower under paragrapfi 2 hereof, then to interest payablc on the Note, then to thc principal of the I~ote, and then to interest and principal on aoy Future Advances. Charges; Lkns. Borrower shall pay all ~axes, assessmcnts and othcr 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 paragrapfi 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the - payee thereof. Borrowec shall promQtly furnish to Lencie~ at!_notiees oE amounts due under this paragrap6, and in the evtnt Borrower shall make payment directly, Borrow~er 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 reqoired to discharge any such lien so iong as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ~hall in good faith contest such {ien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propeny or any part thereof. • 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards inciuded 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. 'Il~e insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. that such approvat shall 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 'i insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage 4 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 promptly furnish to Lender all renewal notices and all receipts of paid prem+ums. 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 promptly ` by Borrower. : ~ ~ Unless Lender and Borirower othemise agree in writing, insurance proceeds shall be applied to restoration or repair of ~ the Properiy damaged, provided such restoration or repair is economically leasible and the security of this Mortgage is ~ not thereby impaired. If such restoration or repair is not ecunomically feasible or if the security of this Mortgage would be impaired, the insurance proceeJs shall be applied to the sums secured by this Mortgage, with the excess, if any, paid ( to Borrower. IE the Property is abandoned by Sorrower, ar if Barr~wer fails to respond to Lender within 30 days from ihe date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apQly the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principai sha11 not eatend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under patagraph IS hereof the Property is acyuired 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 shatl pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and 1liaintenance of Property; Leaseholds; Condominiums; Planned Uajt DevelopmeQts. Borrower shall keep the PropeRy in good repair and shall not commit waste or permit impairment or deteriocation of the Property ~ and shall comply with the provisions of any lease if this Mortgage is on a leasefiotd. 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 development, the by-laws and regalations 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 shall atnend and supplement the covenants and agreements of lhis Mongage as if the rider were a part hereof. 7. Protectioa of I.ender's Security. If Borrower fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced whicfi materially afiects Lender s interest in the Property. including. but not limited to, eminent domain, insolvency, code enEorcement, or arrangements or proceedings involving a ~ bankrupt or decedent, then Lender at Leuder's option, upon notice to Borrowet, may make such appearances, disburse such ~ sums and take such action as is necessary to protect Lender s interest, including, but not limited to. disbursement of ~ reasonable attomey's tees and entry upon the Propeny to make repairs. If L.ender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums requ+red to maintai~ such ~ insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and ~ ~~7 P~~E 9?7 R ~ ~ _ _ W~ - -~~.ay-~ :r~. ~ . ~