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HomeMy WebLinkAbout0006 Borrower and Lender oovenaat and agree w follows: { 1. Payment of Principal sad Interest. Borrower shall promptly pay when due the principal of and interest oa the indebtedness evidenced by the Nots. prepayment sad late charges as provided in the Note, and the principal of sad interest on any Future Advances secured by this Mortgage. Z. Funds forTa:es sad iaauraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lenderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one- tweltih ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plw ono- twelfth of yearly premium installments for harsrd insurance, plw ono-twelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assesamenta and bills and reasonable estimates thereof. The Fends shall be held in an institution the deposits or aocounta of which are insured or gw,nmteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, ana(yziag said sooount, or verifying and compiling said assessments and biW, unless Lender pays Borrower interest on the Funds sad applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shalt not be required to pay Borrower any interest or earnings on We Funds. Leader shall give to Borrower. without charge. an annual aeoounting of the Funds showing credits and debits to the Fonda 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 Fonda held by Lender. together with the futwe monthly installments of Funds payable prior to the due dates of fazes, assessments, insurance premiums and ground rents, shall exoaed 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 Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be auf'ficient b pay taxes. asseeaaaerrts. insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment im full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Itunder paragraph 18 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 Property or its acquisition by Leader, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3. Applicadoa of Payments. Unleaa applicable law provides otherwise, all payments received by Lender Hader the Note and L i 3 ` i ..t 22 2... 2uw 2. T~« r~ ~ err r..: a:srs:.as! ~f ~wrranssssla sa3i'.ZZs~c tii T CT_iZK ~iC Aiii'i[i~i~i lisia3'T 2~"-2 ~~i'~i~2}t 2 ~2RTC~'if jsaiaysiajsaae a ouu uciwa oiaoaa w,".j.j. .rj p«,~«--•-- - r-v---- - - then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges. fines and impositions attributable to the Property which may attair? a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such meaner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that 1orrower shall not be required to discharge any such Hen so long as Borrower ahali agree in writi?rg t~ tl-.e payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such Hen by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part Wereo! 5. Hazard Iasuranoe. Borrower shall keep the improvements now ezisting or hereafter erected on the Property insured against loan by fire, hazards induded within the term "extended coverage; 'and such other hazards as Lender may require and is such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount ezceeding the minimum, as may berequired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender provided, that such approval shall not be unreasonably withheld. AU premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall indude s standard mortgage dause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid prerninme. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose 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 j damaged, provided such restoration or reparr is economically feasible and the security of this Mortgage is not thereby impaired. If such f restoration aT repair is not economically feasible or if the security of this Mortgage world be impaired, the insurance proceeds shall be applied i to the soma secured by this Mortgage, with the excess, if anY, paid to Borrower. If the Property is abandoned by Borrower, orif Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a daim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due C date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Vender paragraph 18 hereof the Property is acquired by Lender, all right. title and interest of Borrower in and to say insurance policies and in and to the proceeds thereof resulting from damage to 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 sale or aequisition. - - 6. Preservadoa and 1ilaintenance of Property; Leaseholds; Condominums; Planned Unit I?evelopmeate. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall wmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowerb obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and r+egnlationa of the condominium or planned unit development, and oonstitnent documents. If a condominium or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the eoveaaats and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the j rider were a part hereof. 7. Protection of Lender's Security. If i ~~*rower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materiaL~ affects I.endei's interest in the Property, induding, but not limited to, eminent domain, ' insolvency, code enforcement, or arrangements or pro~;:~dings involving a banlaupt or decedent, then Lender at Lender's optiom,npon t ti notion to Borrower may make such appearaaoes, disburse ndr sums and take each action as is necessary to protect Leader's interest, { inducting, but not limited to, disbursement of reasonable attwney's fees and entry upon the Property to make repairs. If Leader 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 until each time as the requirement for such insurance terminates in sa~ordance with Borrower's and Lmder's written agreement or applicable Law. Borrower shall pay the- amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbaraed by Lender persuaat to thin paragraph 7, wiW interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable neon notice fiom Lender to Borrower requesting payment Wereof, and shall bear interest from the date of disbursement at the rate payable from time to time on ontatanding principal under the Note unless payment of interest at arch rate would be contrary to applicable law. in which event such amounts shall bearinterest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall require Lender to incur any expense or take any action hereunder. • _ - . 800K~iVl/ PACE S