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HomeMy WebLinkAbout0972 ~:•..~c.P~+ C:~'.~~•~~r~ Qorro~~ar and Lrnd~r covenant and 3gr~~e as foilo~~s 1. Payment of Principal and lnteres~ Borrower shall promptly pay ~ hen due the pnnc~pal and :nte: rst ~ndzb- c2dness ev?denced by the tiote and fate charges as provided in the Note. 2. Funds for Taxes and lnsurance. Subject to applicable law or a wntten waiver by Lender, Borrou~er shall pay to LendQr on the day monthly payments of principal and interest are payabte under the Note. until the Note is paid in full a sum ~herein "Funds") equal to one•twelfth of the yearly taxes and assessments (including condominium and planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any, plus one•tw•elith of yearly premium installments for hazard insurance, plus one•twelfth of yearly pre• - mium installments for mortgage insurance, if any, all as reasonabty estimated initiaNy and from time to time by Lender on the basis of assessments and bills and reasonabl¢ estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. !f Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall appiy the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for so hulding and applying the Funds, anatyzing said account or verifying and compiling said assessments and bi!ls, ~nless Lender pays Borrower interest on the ~unds and applicable law permits Lender to make such a charge. Borrower and ~.ender may agree in writing at the time of execution oE this Mortgage that interest on the Funds shall be paid to S~rro~ver, and unless such agreement is made or applicable law requir2s such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrowe~, 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 the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and grouhd rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Bonower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient 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 in one or more payments as ~ender may require. Upon payment in fult of all sums secured by th~s Mortgage, Lender shall promptly refund to Bonower any Funds heid by Lender. If under paragraph l 7 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Prope;ty 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. Applicatlon of Payments. Unless applicable law provides otherwise, ali payments received by Lender under the Note and paragraphs 1 and 2 hereof shali be applied by Lend¢r first in payment of amounis payable to Lender by Borrou~er under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note. 4. Prior Mortgages and D~eds of Trus~ Charges; Liens. Borrower shall perform all of Borrower s obligations under any mortgage, deed of trust orother securiry agreement with a lien which has priority over this Mortgage, includ- ing Borrower s covenants to make payments when due. Bonower shall pay or cause to be paid all taxes. assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage and leaseho!d payments or ground rents, if any. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Properry insured 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 Lender may require. The insurance carrier providing the insurance shall be chosen by Bonower subject to approval by Lender, pro- vided, that such approval shall not be unreasonabty withheld. All insurance policies and renewals thereof shall be in a form acceptable to Lender and shall include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other security agreement with a lien which has priority over this Mortgage. (n the event of loss. Borrowershall give prompt notice to the insurance carrier and Lender. Lender may make proof oi loss if not made promptly by Borrower. If the Properry is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date ~ natice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender is authorized to collect and apply the insurance proceeds at Lender s option either to ~estoration or repairof the Pra ~ perty or to the sums secured by this Mortgage. ~ 6. Preservadon nnd Maintenance of Prop¢rty, Leaseholds; Condominiums•, Pianned Unit Develop- ments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairmer,t or ~ deterioration of the Property and shap comply with the provisions oi any lease if this Mortgage is on a leasehold. (f this ' Mortgage is on a unit in a condominium or a planned unit developement, Borrower shall perform all of Sorrower s ` obligations under the dedaration or covenants creating or goveming the condominium or planned unit devetopmen~ the by-laws and regulations of the ~ondominium or planned unit devetopment, and constituent documents. ~ 7. Protectlon of Lende~s Securlty. (f Borrower fails to perform the covenants and agreements contained in this ~ h1ortgage, or if any action or proteeding is comm¢nced which materially a(fects Lende~s int¢rest in the Property. then i Lender, at Lender's option, upon notice ta Borrower, may make such appearances, disburse such sums, including reasonable attorneys' fees, and take such action as is necessary to protect Lender s interest. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shal! pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accor- dance with Borrower s and Lende~'s written agreement or apptitable law. Any amounts disbursed by Lender pursuant to this paragraph 7. with interest thereon, at the Note rate, shall become additional indebtedness of Borrower se~ured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shal) be payable upon notice from Lender to Borrower requesting payment thereof. \othing contained in this paragraph 7 shall requ:re Lender to incur any expense or take any action hereunder. ' 8. Insp~ctlon. l.ender may make or cause to be made reasonable entries upon and inspections of the Property. previded that Lender shall give Borrower notice prior to any such inspection spetify~ing reasonable cause therefor related to L.ender s interest in the Property. 9. Condemnatlon. The proceeds of any award orclaim fordamages, direct orconsequential, in connection with any condemnation or other taking of the Property, ot part thereof, or for conveyance in lieu of condemnation, are herebyassignod and shallbe paid toLender, subjecttothetermsof anymortgage, deed oftrustorothersecurityagree- ment with a lien which has priority over this Mortgage. 600~t v~~ }'AG~ page Two of Four ~ ~