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HomeMy WebLinkAbout0022 . Borrower and bender covenant and agree a. folbws: 1. payment of Principal and IntesesL Borrower shall promptly pay when dun the principal of and interest on the indebtednew evidenced by the Note, prepayment and late charges a. provided in the Note. and the psincipal of and interest on any Phture Advances secured by this Mortgage. 2. Fonds for Ta:ey and Insurance. 3ubjed to applicable law or to a written waiver 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 ono- twelfth of the yearly lases and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any. plus ono- twelfth of yearly premium installments for hazard insurance. plus onetwelfth of yearly premium installments for mortgage inawance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held is 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). Leader shall apply the Funds to pay said lases, assessments, insurance premiums and .ground rents. Lender may not charge for so holding and applying the Funds. analysing 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 in writing at the tiros of a:ecution of this Mortgage that interest on the Phnds shall be paid to Borrower. and unless such agreement is made or applicable laver requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the P1mds. Lender shall give to Borrower. without charge, an annual aeoounting of the Funds showing credits and debits to the Fonds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by I,ender, together with the future monthly installments of Funds payable prior b the due dates of lases, assessments, insurance prdaiums and ground rents. shall exoaed the amount required to pay said lases. asaesamenta, insurance premiums sad ground rents as they fall due, such e:oess shall be. at Borrowers option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents sa they fall due, Borrower shall pay to Lender say amount necessary to make up the deficiency within 30 days from the date notice is 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. If under paragraph 18 hereof the Property ie sold or We Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Properly or its aoquiaition by Lander, any Fends held by Lender at the time of application as a credit against the sums secured by ibis Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the 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. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all tares, assessments and other charges, fines and impositions attributable b the Property which may attain a priority over this Mortgage. and leasehold payment8 or ground yenta, if any, in the manner provided under paragraph 2 hereof or, if not paid in each manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts doe under this paragraph. and in the event Borrower shall make payment directly, Borrower shall pr~ptiy furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now Basting or hereafter erected on the Property insured against lose 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 Leader may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required 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. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, it 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 include a standard mortgage clause in favor of and is form aeceptable 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 premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and bender. 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 damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage world be impaired. the insurance proceeds shall be applied to the soma eecnred by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if 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 claim for insurance benefits, Lender ie authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any each application of proceeds to principal shall not eztend or postpone the due date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is aogaired by Lender, all right, title and interest of Borrower in and to any 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 eztent of the sums secured by this Mortgage immediately prior to such sale or aognisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmenta.Bon-over shall kcep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply 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 Borrower a obligations ender the declaration or covenants cxeatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and oonatitnent docnmenta. If a condominium or planned unit development rider is eiecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if say x action or proceeding b eommenoed which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or deeedeat, they Lender at Leader's option,npon notice to Borrower may make such appearances. disburse such some and take sack action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make reparo. V Lender required mortgage insurance es s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in aooordanca with Borrower s and Leaders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render paragraph 2 hereof. Any amounts disbursed by Lender persuant to thin paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other tams of payment, such amounts shall be payable neon notice frrom bender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable ftom time to time on outstanding principal under the Note anises payment of interest at arch rate would be contrary to applicable law, in which event sack amounts shall bear interest al the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take say action hereunder. . _ _