HomeMy WebLinkAbout0248 insured or guaranteed by a Federt~l or siatc agency IinclucliuK I.ender it i.ender is sucl~ an institution). i.cnder '
shell apply the Funda to pay said taxes, assessn~ents, inst~rance premiums and gto~tnd ~rnts. I.ender shall mako no
chatge for so holding and applyi~g the Fuacis or veri(ying und compiling saici nssessments and bills. Bormwer and
I.ender n~~y agree in writing at the timc of execution of this \IortgaRe tl~at interest on the Funds shall bc paid to
Borrower, and unlees such aqreement is made, I.endcr sl~nll not he requirect to pay Borrowcr any.interest on thc
Ftinds. I.ender shall give to Borrower, witl~out chnrge, an anm~al accounting of the Funcls shon inR creditg and
debits ta the Funds and the puR~ose for which each debit to the Ftinda was raade, The ~nds are pleciged as addi-
tional seourity for the sums secured by this ~tortgage.
If the amount ot the ~nds held by I.ender, togetl~er witl~ tl~e future u~ontlil~• instaliments oi Funds payable
prior to the due dates of taxes, assessments, insurance premiums nnd geound rents, shult exceed the amount re-
quired to pay said taxes~ assessmenta, insurance premiums and qround rents as they fall due, sueh excesa ahall be. !
at Bottower's option, either pmmptly repaid to Borrower or creditecl to Borrower on monthly installments o~ ~
~nds. If the amount of the Funds held I~y Lender shall not i,e sufficient to pay taxes, asce~sments. insurance pre- i
~niuu~ $ntt ~rv~ir~~ r~nt,s as Lh~y fal! duc, $ar~R~s sha!! tzuti to I.ander any sn~Q~~nt neeessary to *nAke the ~
defiaiency within thirty days nfter notice from 1.ender to Borro~ver requesting payment thereof. ~
IIpon payment in full of all sums secured by this \iortgage, T.ender shall promptly refund to Borrower any
I~nds held by Lender. ~
If under paragrnph 18 I~ereof the Property is sold or the Property is other~ise acquired by I.ender, Lender
shall apply, no later than immediately prior to the sale of tl~e Propert~y or its acryuisition by I.ender, any Funds
held by I.ender at the time of application as a credit against the sums sccurect bv this vtortgage.
3. Application o1 Paymenta Unless applicable la~~ provides othernrise, all payments received by Lender
under the Note and paragrnpl~s 1 and 2 hereot sl~~ll be npplicd hy I.ender fi~at in ~~ayment of Amounts payable to
Lender by Bormwer under paragraph 2 hereof, then to intemst payable on the ?~Tote and on Future Advances, if
any, and then to the principal of the Note and to tl~e ~~rincipal of ~itam Advances, if any.
4, Charq~: I.iens. Botrower sl~all pay all taxes, ns.cess~nents nnd other charges, fines and impositions attrib-
,utable to the Property ~vhich may attain n priority over this \iortgage, and ground rents, if any, at Lender's
option in the manner ~~rovided under paragrapl~ 2 l~ereot or I~~ Borronrer making pAyment, when due, directiy to
the payee thereof. Borrower shull ~~romptly furnisl~ to I.ender all notices of amounts due under this paragraph,
_ and in the event Borrower shall makc payment directly, Borm~vcr sl~all promptiv furnisli to I.ender receipts evi-
dencing suah payments. Borrower shall promptly discl~arge anp lien ~vhich has priority over this vtortgage; pro-
vided~ that Borrower shall not be requireci to disehargc anv ~ucli lien so long as Botrower shall agree in writing to
the payment of the obligation securoci by such lien in n manner acceptaUle to I.ender, or shull _ic~ good faith contest
such lien by, or defend enforcement of sucl~ lien in, legal proceedings ~vhich opernte to prevent ~he enforcement of ~
the lien or forfeiture of the Property or nny part t.henwf.
5. Hasard Insuramce. Borrowe~ shaU kee~i the improti ements no~~= existing or hereafter erected on the Prop-
crty insureci against los.s by fire, i~azards included within the term "extended coverage", and such otl~er l~aaards as
I.ender may require and in ~such amounts and for such periocls z?s I.ender may require; pmvided, that I.ender s~all
not requite that the amount of suc.h coverage exceed t.l?at a~nount o[ coverage required to pay the sums secured by
this Mortgage. ~
The insurance carrier pmviding the insurance shall bc chosen by Borrower• suhjeet to approval by Lender;
~~rovided, that such t?pproyttl shall not be unreasonably withheld. All premiwns on insurance policies shall be paid
at Lender's option in the manner provided under ~~aragrn~~l? 2 hereof or l~jr Borrower ~nnking payment, when due,
directly to the insurance carrier.
All insurance policies and renewuls tl~ereof sLnll be in forn~ ucccptable to 1.ender and shall include n standard
mortgage clause in favor ot and in forn~ acceptable to I.ender. I.ender shall have tlie right to hoid the policies and
renewals thereof, and Borrower shall proinptly furnisli to I.ender all renewal notices ~nd all -receipts of paid pre-
miums. In the event of loss, Borrower shnll give prom~~t notice to tl~e insurance carrier and Lender, and Lender
, may make proof of loss if not ~nade promptly by Borrower.
, IInless T.ender und Borrower otherwise agrec in ~vriting, insurnuce ~~roceeds shall be applied to restoration or
~ repair of the Property damaged, provided such restorntion or re~~xir is economically feasible und the security of
this ~tortgage is not 'ti~ereby impaired. If such restoration pr repair is not economically feasible or if the security
j of this \Zortgage would be impaired, tl~e insurance proceedF shall i~c applied to the sums secured by tl~is Mortgage,
~ ~vith the exce.s.s, it any, paid to Borro~ver. If the Yro~~erty is abandoneci by Borrower or if Borrower fails to respond
to Lender within 30 days xfter notice by 1.ender to Borrower thAt #he insurance carrier of~ers to settle a claim for
' insutance I~enefits, t.ender is uuthorizecl to collect and api~ly tl~c insurance ~~roceeds at T.ender's option either to
~ restoration or repuir of the Property or to the sums secureci by this \tortguge.
Unless Lender and Borrower otl~envise agree in ~vriting, uny sucl~ application of ~~roceeds to principal shall
not extend or postpone the due dute of the monthly installmenGs reterreci to in paragraphs 1 and 2 hereof or change
the amount of such installments.
If under paragraph 18 hereof the Property is acquireci 1>y I.ender, all ri~ht, title and interest of Borrower in
and to any insurance policies and in aiid to the ~~roceeds thcreoi (to thc extent of the suuis secureci 1~y this Mort-
goge immediately prior to such salc or acquisition) resultin~; from ~lamage to thc Pmperty prior to the sale or
acquisition shall pass to Lender.
6. Preservation mid Mainten~ce of Property: Lea~eholds: Condominiums. Borrowei sl~all keep the Prop-
erty in good repair and shall not l~ermit or comtnit ~~aste. im~~airment, or deterioration ot thc Proj~erty snd shal~
comply with the provisions of any lease, if this ~Iortgnge is on a leasehold. If this ~iortgage is on a condominium
unit~ Borrower shall perform all of Borrower's oUligations uncier ti~e cieclaration of condominiiim or master deed,
the by-laws and regulations of the condominium i~roject and constituent documents.
~ 7. Protectioa of Lendei s Security. If Borro~ver fails to ~~erforni the covenants and agreement~s eontained in
~ this ~tortgage, or if any action or prceecding is commenced which uiuterially afTects I.ender's interest in the Prop-
~ erty, including, but not limitecl to, eminent domain, insolvenc~ , codc enforcement, or urrangewents or proceed-
ings involving a banktvpt or decedent, then Lender nt I.ender'~ option, upon notice to Borrower, may mske such
~ appearances, disburse such sums and teke sucl~ action :u is necessary to protect. I.ender's interest. including, but
not limite~ to, disbursement of reasonable attorney's fees an~1 entrv upon the Property to makc repairs. Any
amount8 disbu~~ed by Lendcr nutsuant to this paragraph 7. «ith intcrest thereon, shall become additional indebt-
edness oi Borrower secureti I~y this ~iortgagc. Unless Borrower and T.ender agree to other ternis of payment, such
amounts shaD be payable upon notice from I.ender to Borroner requesting payment thereof, nnd sl~all hear inter- .
est irom the date of disbursement at tiic rate statecl in the l~ote unl~ ~~ay~nent of interest :~t. sucli rate would be
contrary to applicable law, in which event sucli amounts sliall I~car interest at thc highest rate permissible by
applicable law. Nothing containecl in this ~~aragrapli 7 sl~:~ll~require T.ender to incur any expense or do any act
hereunder.
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