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HomeMy WebLinkAbout0996 ! i ~ ~ Ut+rFptM Covetv~Nrs. gorrower and l.ende~ covenant and agree ss toltows: 1. Ta~nae~t ot tri~clpi a~i !w~er~at. Borrower shall promntly pay when due the principal o[ and interest on thc iadebtednas evidenced by the Note, prepayment and I~te char~es u provided in the Nae. and the principal of and iaterat on any Futuro Advances secured by thi: Mortga:e. ~ Z. Fw~ tor 7'ua s~d l~n~e.~e. Subject to applicabk Isw or to : written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest are payable ~nder thc Note. until the Note is psid in full. s tum ;'herein "Funds'~ oqua! to one-twelfth of the yearly t~xes and asscssments which may atta~n priority over this Mon~age. and ground renu on the Property, if a~y, ptus ooe-twclfth o[ yearly prcmium instailmen~ for har~id insurince. plus one-twelfth af yearly premium installmonts for mortgage in:uranc~., if any, ~II aa reasonably estimated initially and from ti:ne to time by i.ender on the bues of asses~ments and bills and reasonabk estimates thereof. 'Ibe Funds sF.:.ll be held in an institution the dep~oaits ar accounla of which are insurcd or guaranteed by a Federal or state a~ency (including L.eoder if Lender is such an institution). Lender shall apply the Funds to pay said tues, assaaments, insurance premiurtu and ground rents. Lender may not charge for so holding and applying the Funds, analyzing aid sccount, or verifying and c~mpling said asscssments and bilts, unl~ss Lender pays Borrower intersst on the Funds ~nd applicable Iaw ` permits Lender to make such a charge. Borrower and Lender may agree in writing at the timt of execution of thia Mortgage tl~at interest on the Funds shall be paid to Borrower, and unless such agroement is made or applicabk law ; requires su:,h interest to be Raid, Lender shall not bc required to pay Borrower any intereat or earnings on the Funds. L.cnder shell give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpoae for which each dabit to the Funds wu mada The Funds are Qiedged u additional security for the sums socur~d oy this I~iort~age. If the amount of the Fundt held by Lender, together with the future monthly installmeats of Funds payable prior to the due data of taxat, asstssments~ insurance pnmiums and ground rentt, shall exceed the amount required to psy said taxes, atsesaments, insurance prcmiums and ground rents as they fall due, such excess shall be, at Borrower s option, either promptly rcpaid to Bormwer or crediteci to B~rrower on monthly installments of Funds. If the amount of the Funda held by Leadcr shall aot be su~cient to pay taues, aaa~ssments. insurance premiums and ground rents as they fall dut. Aorrower shall pay to Lender any amount necessary to make up the de6ciency within 30 days from the date notice ia mailed 4 by L.ender to Borrower rtquesting payment thereof. Upon payment in full of all sums aecured by this Mortgage, Lender shall prompdy refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquircd by L.ender. I.ender sha~l apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fundt held by . L.ender at the time of application as a credit against the sums secured by this Mortgage. 3• Application ot Pa~a~e~b. Unless applicable law provid~s otherwi~e, aU payments received by Lender under the • Note and pangraphs 1 and 2 hereof shall be applied by Lender 6rst in payment of amounts payable to L.ender by Borrower under pangraph 2 hereof, thon to interest payable on the N~te, then to the principal of the Note, and then to interest and principal on any Future Advances. 4• C6ar`a; Lkm. Borrower shall pay all tazes, assessments and ather charges, fines and impositions attributab{e to the Property which may attain a priority over this Mortgage, and leasehold payments or ground teots, if any, in the manner provided under paragaph 2 hercof or, if not paid in such manner, by Borrower making paytnent. when doe, dirxdy to the payee theroof. Bonower ahall pmmptly furnish to Lender all notices of amounts due under this paragraph, and in the eveat Borrower shall make payment directly, Borrower shall promptly furnish to L.ender nctipts evidencing auch payments. ~ Bonower shall promptly discharge any lien which has priocity over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree io writing to the payment of the obligation securod by at~c6 lien in a manner acceptable to Lender, or shall in good faith coc~test such lien by, or deftnd 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. Hmrd Iaanrance. Borrower shall koep ths improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included with~n the term "extended coverage", and such other hazards as Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender shall not rcquire that the amount of such coverage exceed that amount of coverage required to pay the sums securcd by this Mortgage. T6e inaurance carri~r providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that wch approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mannar provided under paragraph 2 hercof or, if not paid in such manner, by Borrower making payment, when due, directty to the insuranct carricr. All insurance policies and renewals ttfereof shall be in form acceptable to Lender and shall inc[ude a standatd mortgage clauu in favor of a~id in form acceptable :o Lender. L.ender shall have the right to hold the policies and renewals thereof, ' and Borrowtr shall promptly furnish to I.eoder all renewal natices and all recsipts of paid pr~emiums. In the event af loss, ' Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy ~ by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be appliad to restoration or repair of the Propeny damaged, provickd such restoration or repair i3 economically feasible and the security of this Mortgage is ' not thereby impaired. If such restoration or repair is not economically feasible or if the se:,urity of this Mortgage would ! be impaired, the insurance proceeds shall ~e 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 i date notice is mailed by L.ender to Borrower that the insurance carrier offess to settle a claim for insuranse benefits, Lender ! is authoriud to coltect and apply the insurance proceeds at Lender's option either to restorati~n or repair of the Propert~ ~ or to the sums secured by tt~is Mortgage. i Unless I.ender and Borr~wer otherwise agree in writing, any such application of proceeds to principai shall not extend ; 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 puagraph 18 hereof the Property is acquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to ttie Property prior to the sale or acquisition shall pass to i.end~r to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservatbo and ~Iaintc4ance of Property; Leasrholds; Condomiaiums; Planacd Uait Devebpments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply ~rith the provisions of any lease if chis Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium ar a planned unit development, Borrower shall perform all of Borrower's obligatiuns under ti~e declaration or covenants creating or governing the condominium or planoed unit development, the by-laws and regulati~ns of the condominium or pla~ned unit development, and constituent documents. If a condominium or planned unit development rider is exccuted by Borrower and ruor~!ed together with this Mortgage, the covenants and agrcements of such rider shall be incorporated into and shall amend and supplement the cor•enants and agreements ef this Mo:tgage as if the rider were a part hertof. ~ ~ Protectioo of LeQde~'s Security. If Borrower fails to perform the covenants and agrer.me~ts contained in this Mortgage, or if any action or proceeding is commence~ which materiaily affects Lender's interest in th-. Property, including, but not limited to, eminent dosnain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrow~r, may maks such appearances, dis5urse such sums and :ake such action as is ntcessary 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 [xnder required mortgage insurance ac a condition of makirg the loan secured by this Mortgage, Borrow~r shall pay the premiums required to maintain such insurance in effect until such time as tne requirement for such insunncs terminates in accordance with Borrower s and f ~ ~ BO~1K 4~ PAGE e~iJV ~ 3 . ~ -'i:~" _ _ _ ' ~