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HomeMy WebLinkAbout0948 . _ , r_ _ - - . - - - _ . UHU~ww Covstv~rrts. Bormwer and l.ende~ covenant and agree as fQl~p~~~ i' ~ l. lyrweat ot ldeclMl ad iNenst. Borrower sliall promptly pay when due the ptin c i p~ a o f and interest on the iqdebtednea evideacxd by tbe Note, prepayanept and late charges as provided in the Note, and the principal of s~d interest on any Future Advsnces secured by this Mortgages. - - 2. Fr~ds toe Tue~ aai Lwua~ce. Stibject to applicable law or to a written waiver by Lender. Borrowe~ sh#11 pay to Leader oe the day taonthly installments of principal and interest are payabk under the Note. until the Note is paid in iuU. a sum (herein "Fun~") equal to one-twelfth of the yes~ly t~uces and assessmeots which may attaia priority over this Mortgage. and ground rents o~ the Property. if aay. plus oae-twelfth of yearly premium inatallments for hazard insurance, plus one-twelfth of yeady premium installments for mortgage insura~e, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessmc~ts and bills and reasonabk estimates theroof. The Funds sha11 be held ia an institution the depoaits or accoants of which are insured or guarantud by a Federal or atate agency (including Leader if I.ender is such an iastitution). Lender shall apply the ~nds to pay said taxes. assessments. iasuranoe premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account, , or verifying a~d compiling said asscssme~ta a~d bills. unless I,ender pays Borrower interest on the Funds and applicable law permits I.ender to make such a charge. Borrowtr aad Lender may agree in writing at the time of execution of this Mortgage that interest on the Fuods shall be paid to Borrower. and unless such agrament is made or applicable law requira auch interest to be paid, I.e~der shalt not be rcquired to pay Borrower any intenst or earaings on the Fuads. I.ender s6a11 give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds aad the purpose for which each debit to the Fuads was made. The Funds are pledged as additional sa:urity for the sums securcd by this Mortgage. If the atnount of We Funds held by Lender. together with ~he future monthly installmeats of Funds payable prior to the due dates of taxes. asxasmeats, insurance premiums and ground rcnts, shall exceed the amount required to pay said taxes. aase~ments, insuranoe premiums and ground rents as tbey fall due. such excess~ shall be, at Bonower's option. either promptly repaid to Bormwer or credited to Borrower on monthly installments of Funds. If the amount of the Funds hdd by I.ender shall aot be suf6cicnt to pay tanes. assessments. insurance premiums and gr+ound nnts 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 I.ender W Borrower ~equestiag payment thereof. Upon paymeat in fuU of all sums secured by thi; Mongage, Leoder shall promptly refund to Borrower any Funds held by I.ender. If under paragraph 18 hereof the Pmpeny is sold 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 I.ender, any Funds held by Lender at the time of application as a credit against the sums socured by this Mortgage. 3. Application of P~ymeats. U~less applicable law provides otherwise. all payments received by Lender under the Note aad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Bonower under paragraph 2 heroof, thea to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 1. Char6es; Lieas. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to t6e Propetty which may attain a priority over this Mortgage, and leasehold payments or gmund 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 _ payce thereof. Bornower shall promptly furnish to Lender all notices of amounts due uncier this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly fumish to I.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 secured by suc6 lien in a manner acceptable to Leoder, 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 thertof. S. Hszard lasarance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by Sre. 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 t6e amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. T6e insurance carrier providing the iasurance shall be chosen by Bonower subject to approval by Lender, provided. t6at such appmval 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 maaner, by Borrower making paymeat, when due, dirxtly to the insurance carrier. ~ AU insurance policies and renewals thereof shall be in form acceptable to I.ender and shall include a standard mortgage clause in favor of and in form acceptable to I,ender. Lender shall have the rig6t to hold the policies and renewals thereof, j and Borrower shall proroptly 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 earrier and Lender. Lender may make proof of loss if not made promptly ~ by Borrower. Unless Lender and Borrower otherwise agree in writing. insurance procceds shall be applied to restoration or repair of the Property damaged. provided such restoration or repair is economicaUy feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economicaUy 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 excess. if any. paid to Borcower. If the Propeny is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by I,ender to Borrower that the insurance carrier oflers to settle a claim for insurance benefits, Lender is authoriud to cotlect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Morigage. Unless Lender and Borrower otherwise agree in writing, any such application of proceed.s to principal shall not extend . or poatpone 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 ic acquired by I.ender, all right, tiUe and interest of Borrower ~ in and to any insuraace policies aad in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Leader to tl~e extent of the sums secured by this Mortgage immediately prior to such sak or s acquisition. ~ 6. Preservs~tion sud Maintenaoce of Property; I.easebold~ Condominiums; Planned Unit Devdopmeats. Borrower shall keep the Property in good repair and shall not commit waste or pemnit impairmeat or deterioration of the Property and shall comply with the provisioat of any lease if this Mortgage is on a leasehold. If this Mortgage is on a uait in a 4 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 regulalions of the ~ condominium or planaed unit development, and constituent dceuments. 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 g shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider ; were a part htreof. ~ 7. Protectioo of Lender's Secnrity. If Borrower fails to perform the covenants and agreements contained in this ' Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, ~ induding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a ~ banlcrupt or decedent, then I.ender at Lender's option, upon notice to Borrower, may make such appearances, disburse such ~ sumc and take such action as ia necessary to protect Lender's interest, including. but not limited to, disbursement of reasonable attomey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance u a ~ condition of making the loan secured by this Mortgage, Botrower ahall pay the premiums required to maintain such ~ insurance in e~foct until such time as the requirement for such insurance~ terminates in accOrdance with Borrower's and ~ ~ ~ c . EOC1(~b~ PACE 9~ ~ , ~ _ . . , _ ~ ~ ~ _ _