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HomeMy WebLinkAbout0950 . F ~ , • . UrrtFORM CovEN~Hrs. Borrower and l.ender cuvena+~~ .~r~~l ;~~r~c a. follows: i. Payment of Prir~cipal and lafercst. Barri~wer ~h:,.. ;~r~~m~~ti} pay whcn duc thc principal of and interest un the indebtedness evidenced by the Note, prepayment and lale ch;.rgr. :,c provided in the Nate, and the principal of and intenst on any Future Advancex secured by thic MortRage. 2. Fuads for Tues and Iasur~ace, Subject to applirablc laH• or ta a written waivcr by l.ender, Borrower shal! pay to I.e~der on the d~+y monthly installments o! principa! an.i i~aecre~t :~rr payable under the Note, until the Note is paid in tull, a sum (hercin "Funcls") cqual to one-tv?•elfth of ~hc ycarly ta~rs and assessments which may attain priority over this Mortgage, and ground rents on the Properry, if any, plus un~-twclith of }•earlp premium installmenls for hazard insurance, plus one-twelfth of yearly premium i~stallments [or mortgagc ~nsurancr, if any, all as rcasanably estimated initially and from timc ta time by l.ender on ihc basis of assessntents and h;ll. and rea~un~blc es~imates thereof. The Funds shall be held in an institution the de~sitc or accuunts of which are insured or guaranteed ~y a~ederal or statc agency (including Lender if 1_ender is such an institutian). ! ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. I_ender may not rhargc li~r ,o halding and applying the Funds, analyzing said acco~nt, or verifying and compiling said a~sessrnents and bills, unlcss I_ender pa}~. Bormwer interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lcndrr ntay agrce in writing at the timc of execution of ihis `lartgage that interest on the Funds shall he paid to Borr.?wer, and unless such agreement is made or applicable law requires suc:~ interest to be paid, 1_ender shaH not be requirecf t~? ~?:iy BorrUwer an}' imerest or earnings nn the Funds. [_ender shall give to Borrower, without charge, an annual accounting of the Funds .howing credits and debits to the Fundc and the ; purpose for which each debit to the Funds was made. The Funds arc pledgeci as additional security for the sums secured by this Mortgagc. If the amount of the Fimds hela by Leniler, together K•ith the futurc monlhly installments of Funds payable prior to the due dates of taxes, assessments, insuranee premiums and g~ound rents, shall eaceeci thc amount required to pa}• said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either prompl{y repaid to Borrower or credited to Borrower on monthly installmcnts of Funds. If the amount of the Funds held by Lender shall not be sufficient io pay taxes, assessments, insurancc premiums anJ ground rents as Ihey fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within ~0 da~•s irom the date notice is mailed by Lender to Borrower requesting payment ~hereof. Upon payment in fult of alt sums secared by this Mongage. l.ender shall promptly refund to Borro~ti~er any Funds held by I.ender. If under paragraph 18 hereof thc Propcrty is sold or the Property is otherwise acyuired by Lender, Lcnder shall apply, no later than immediatcly prior to thc sale of the Prap~rty or its acquisition hy Lender, any Funds held by Lender at the time of application as a credit against ihe sumc secured by this Mongage. 3. Application of Payments. Unless applicahie law proviJes othen~•ise, aN payments received by I_ender under the Note and paragraphs 1 a.~d 2 hereof shall be applicd by l.ender firat in payment af amounts payable to I_cnder by Borrov?er under paragraph 2 hereof, then to interest payablc on the I~ote, thcn to thc principal af the Note, and then to intcrest and principal on any Futur., Advances. 4, Charges; Lienc, Borrower shaU pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Morlgage, and leasehold payments or ground rents, if any, in the manuer provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee theteof. Borrower shall promptly furnish to Lender all.notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrowe~ shall promptty furnish to l.encler receipts evidenciag such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Barrower 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 lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Haznrd Insuradce. Borrower shall keep the improvemenis naw• cxisting or hereafter erected on the Property insurer! against loss by fire. hazards included within the term "extended coverage", and such other hazards as Lender may require and in such amounts and for such periods as Len~ler 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. ~ "The insurance cartier 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 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the insurance carrier. , A1l insurance policies and renewals thereof shal! be in form acce~stable to Lender and shall include a standard mortgage ~ clause in favor of and in form acceptable to L.ender. 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 carrier 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 seeurity 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 Borrower. If the Property 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 Borrowet that the insurance carrier offers to settte a claim for insurance benefits, L.ender is authorized to collect and appiy the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of ihe monthly installments referred to in paragraphs I and 2 hereof or change ihe amouni of such instaltments. If under paragraph 18 hereof the Property is acquired by Le~der, aU 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 Lender to the extent of the sums secured by this Mortgage immediately prior to such sate or acquisition. 6. Preservatton and Maintenaace of Property; lxaseholds; Condominiums; Planned Unit Devtlopments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this 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 declaratioo or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the rondominium ot 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 sha11 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. - 7. Prottction of LeDder's Security. Jf Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materiafly affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings invotving a . bankrupt or decedent, then Lender at Lender's optian, upon notice to Borro:~ver, may make such appearances, disburse such sums and take such action as is necessary to protect L.ender's interest, including, but not limited to, disburaement of reasonable attoroey's fees and entry upon the Property to make repairs. If I.ender 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 unti! such time as the requirement for such insucance terminates in accordance with Borrower's and ~ 8t1~ fd6E ~ ~ ' "n` .