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HomeMy WebLinkAbout1706 i U11F UKM COVFNAti;, BoROwer anu Lencier c~v~nant and ayreE as tollows 1. Payment of Prinelpal and Interest. Borrower shall promptly pay when due the pnnc~pai and ~nterest ~n- ,.~ehtedness ev~denced by the Note and late charges as prov~ded in the Note 2. Funds for Taxe~ and Ir~rurance. 5ub~ect to appiicabie law or a wnnen wa~ver by ~ender, Borrower shall pay to Len3er on the day monthly payments of pnncipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelhh of the yearly taxes and assessments (including condominium and planned un~t development assessments, if any) which may attain prionry over this Mortga~e and ground rents on the Property, if any. plus one•iweffth of yeariy premium installments for hazard insurance, plus one-twelfth oi yearly premium in- staliments for mortgage insurance, if any, all as reasonably estimated in~tially and from time to t~me by Lender on the basis oi assessments and bills and reasonable estimates thereof . Borrower shail 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 is s:,ch holder is an institutiona! lender. If Borrower pays Funds to Lender, the Funds shall be heid in an institution the deposits or accounts of which are in- ~ured or guaranteed by a Federal or state agency (including Lender if Lender is such an institution). Lender shall apply , ~ne Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account or verifying and compiling said assessments and bills, unless Lender pays ; Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree ~n writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless ' :uch agre~ment is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any~ interest or earnings on the Funds. Lender shall give to Borrower, without cnarge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose far which e~ch debit to the Funds was madQ The Funds are piedged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, iogether with the future monthly installments of Funds payable prior to ~ne due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay sa~d taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's op- ~,on. erther promptiy repaid to Borrower or credited to Borrower on monthly instaUments of Funds. lf the amount of the :=unds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shail pay to Lender any amount necessary to make up the deficiency in one or more payments as Lender may require. Upon payment in full of all sums secured by this Mongage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender. ~ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held o~ Lender at the time of application as a credit against the sums secured by this Mortgage. 3. AppticaNon of Payments. Unless applica'ble !aw provides otherwise, all payments received by Lender under rr.e Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, and then to the principal of the Note. 4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien which has pnoriry over this Mortgage. in- riuding Borrower's covenants to make payments when due. Borrower 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 ~ver this ~lortgage and leasehold payments or ground rents, if any. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ~sured against loss by fire, hazards induding within the term "extended coveTage", and such other hazards as Lender ! ~~ay require and in such amounts and for such periods as Lender may require. , The insurance camer providing the insurance shall be chosen by Borrower subject to approval by Lender, provided. ~ ~hat such approval shali not be unreasonabiy withheld. AQ insurance policies and renewals thereof shall be in a form ac- ~ ceptabie to Lenoer and shaU include a standard mortgage clause in favor of and in a form acceptable to Lender. Lender ; ~7ali have the right to hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other f se~ur~ty~ agreement with a lien which has priority over this Mortgage. ~ Ir the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof i o; ioss if not made promptly by Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date e ~,otice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender ~s ' authonzed to collec! and apply the i~surance proceeds at Lender's option either to restoration or repair of the Property or ~ ?o the sums secured by this Mortgage. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Un~t ~ Uevelopment~. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or ~ ~eterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. lf this ~ ~longage is on a unit in a ccndominium or a planned unit development, Borrower shall perform all of Borrower's obliga- ~ :ions under the declaration or covenants creating or goveming the condominium or planned unit development, the by- ~ aws and regUlations of the condominium or planned unit development, and constituent documents. a 7. Protection of Lender's Security. lf Borrower fails to perform the covenants and agreements contained in this ~ "~tortgage, or i~ any action or proceeding is commenced which matenapy affects Lender's interest in the Property, ther. ~ ~ender. at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums. including ~ ~easonable attorneys' fees. and take such action as is necessary to protect Lender's interest. !f Lender required mortgage r ,nsurance as a conditian of making the loan secured by this Mortgage, Borrower shall pay the premiums required to ~naintain such ins~rance in effect until such time as the requi~ement for such insurance terminates in accordance with 3orrower's and Lender's written agreement or applicable law. Any amounts disbursed by Lender pursuant to this paragraph i, with interest thereon, at the Note rate, shall become additional indebtedness of Borrower secured'by this Mortgage. Uniess Borrower and Lender agree to other terms of pay- nent, such amounts shall be payable upon notice from Lender to Borrower requestins payment thereof. Noth~ng con- ;a~red in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. Ihapection. Lender may make or cause to be made reasonable entries upon and ~nspections of the Property. aro~dtr~gtt~t~Lender shall give Borrower notice prior to any such ~nspechon speci~ying reasonable cause therefore ~ reiated to Lender's interest in the Property. 9. Condemnation. The proceeds of any award or claim for damages, direct or consec~uential, in connection with ~ any condemnation or other taking of the Property. or part thereof, or for conveyance in lieu of condemnation, are ~ ~~ereby ass~gned and shall be paid to Lender, sub~ect to the terms of any mortgage, deed of trust or other security agr~e- ~ rnent with a lien which has priority over this Mortgage. ~ Page Two ef Four ° ~ 675 r~~~~~.706 - S~'u~ ~'4 ~ ' _..~:i ~.Y,'"=~' ~-~',ws r~ ~w~r..~~~~~ -`b~ t