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HomeMy WebLinkAbout0010 Borrower and Lender covenant and agree u follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when dw We principal of and interest on We indebtednea evidenced by the Note, Prepayment and late charges u provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. S. Ftirads for Ta:es and Insurance. 3ubjed to applicable law or to a written waives by Lender, Borrower shall pay to Lender on 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 oae• twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on We Property, if any. plw one- twelRh ofyearly premium installments for hasard insurance. plw one•twelRh otyearly premium installments for mortgage insurance. if any, all u reasonably estimated initially and from time to time by Lender on the hair of assessments and bills and reasonable estimates thereof. The Fends shall be held in an institution the depodts or aooounts of which are irunred or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds b pay said lases, assessments. inuurance premiums and ground rents. Lends may rwt charge for so holding and applying the Funds, analysing said aooount, or verifying and compiling said asseaments and bi1L, unless bender pays Borrower ingest on the Fends and applicable law permits Lender to make such a charge. Borrower and Lender 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 shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Finds showing credits and debits to We Fends and the purpose for which each debit to the Funds wu made. The Funds are pledged u 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 payrable prior to the due dates of lases, aaseeameata, insusance premiums and ground rents, shall exazed the amount required to pay said lases, assessments, insurance premiums and ground rents u they fall due, sack excess shall be, at Borrowei s option, either promptly repaid b Borrower or credited to Borrows on monthly installments of Funds. It the amount of the Funds held by Lender shall not be sufficient to pay tares. assessments, insurance pnmiams and ground rents u they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof We 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 Lender, any Fonda held by Lender at the time of application u a credit against the sums secured by this Mortgage. - 3. Application of Payments. Unleea applicable law provides otherwise, all payments received by Lender ender the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment o1 amounts payable to lender oy Borrower under paragraph Z hereoi, Wen 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 to:ea. assessments and other charges, fines and impositions attributable to We Property which may attain a priority over Wis Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due ands Win paragraph, and in We 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 W is Mortgage; provided, W at Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to We payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faiW contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or for[eiture of the Property or any part Wereof. 5. Hazard Insurance. Borrower shall keep the improvements now ezisting or hereafter erected on We Property insured against loan by fin, hazards included within the term "eztended coverage,° and such other hazards as Lender may require and in such amounts and for such periods u Lender may regain; provided, Wat Lender shall not regain such coverage amount exceeding We minimum, as may be required by state or federal regulations governing activities of bender, or Wat amount of coverage required to pay We sums second by this Mortgage, whichever is We greater. The insurance carrier providing We insurance shall be chosen by Borrower subject to approval by Lender provided, that such approval shall not be unreasonably withheld. All 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 We insurance carrier. All insurance policies and nnewala Wereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and is form aeoeptable to Lender. Lender shall have the right to hold We policies and renewals Wereof, and Borrower shall promptly furnish to . i.ender all renewal notices and all receipts of paid premiums. In We event of loss, Borrower shall give prompt notice to We insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unless Lender and Borrower oWerwiae agree in writing, insurance proceeds shall be applied to restoration or repair of We Property damaged, provided each restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If inch E restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance. pr~oceeda shall be applied ~ to the sums secured by thia Mortgage, wiW We excess, if any. paid to Borrower. If the Property is atandcnai by $orrasver, or if Borrower faila to ~ respond to Lender wiWin 30 days from We date notice is mailed by Lender to Borrower that We insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply We insurance proceeds at Lenders option either to restoration or repair of the M Property or We soma secured by this Mortgage. Unless Lender and Borrower oWawiee agree in writing, any inch application of proceeds to principal shall not extend or postpone W edue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each installments. If ender paragraph 18 hereof We Property is acquired by Lender, all right, title and interest of Borrower in and b any insurance policies and in and to We proceeds Wereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We extent of the some secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Idaintenance of Property; Leaeehoids; Condominums; F'ssun€€~l isms screiapu?cutS. fiur-ru,arer shah seep We Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply wild We provisions of any lease if Wia 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 Borrower's obligations under We declaration or oovenante creatingor governing We condominium or planned unit development, We by-lava and ngalations of We condominium or planned unit development, and constituent documents. If a oondomir~inm or planned emit development rider is ezeeuted by Borrower and recorded togeWer wild this Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of Wis Mortgage as if the rider were a part hereof. - 9. Protection of Lender's Security. If Borrower fails to perform the oovarants and agreements contained in this Mortgage, or if any action or proceeding is oommeaeed whid? materially affects Lender's interest in the Property. including, bet not limited to, eminent domain, insolvency, node enforcement, ~ arrangements or proceedings involving a bankrupt or decedent, then Calder at Lender's option,npon notice to Borrower may make such appearances, disburse such sums and take such action u is necessary to prated Lender's interest, including, bet not limited to, disbnrsanent of reasonable attorney's Ease and entry upon We Property to make repairs. If Lender required ~ mortgage insurance u a condition of making the )can secured by this Mortgage. Boaower shall pay We pnminms required to maintain sack insurance in effect until such time u We requirement for such insurance terminates in accordance wild Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided ender Paragraph 2 hereof. Any amounts disbursed by Lender pereuant to this Paragraph 7, wild interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, arch amounts shall be payable upon notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which event sack amounts shall bear interest at We highest rate permissible ender applicable law. Nothing contained in this paragraph 7, shall regain Calder tp incur any expense or take any action hereunder. 60G1c a~t10 PAGE 10 ~ ' ~