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HomeMy WebLinkAbout0686 . ~ _ ' i i .j Borrower and Lender covenant and agree a. follows: 1. Payment of Principal earl IAterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenotd by the Note, prepayment and late charges as provided in the Note, and the princips! of and interest on any Future Advances secured by this Mortgage. t 2. PLnda for Tares and Insurance. 3ubjed b applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal earl interest are payable under the Note. until the Note is paid in fid1. a sum (herein "Panda")equal to pne• { twelfth of the yearly lases and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any. plw ores- i( twelfth of yearly premium installments for hasard insurance, plea one•twelRh ofyearly premium installments for mortgage insurance, 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 in as institution the depwita or acoonnts of which are insured or guaranteed by a Federal or State agency (including Lends: if Lends is such an institution). Lender shall apply the Funds to pay said lases. assessments, insurance premiums and ground ants. Lender mqy not charge for so holding and applying the Funds. analyzing said account. or verifying and compiling said easessrnenta and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower i 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 b be paid, Lender shall not be required b pay Borrower any interest or ~ earnings on the I.1nda. Lender shall give to Borrower, without charge, an annual aorounting of the Funds showing credits and debits to the 1 Funds and the purpose for which each debit to the Ftinds was made. The Funds are pledged as additional security for the soma secured by ibis , Mortgage. j If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, i assessments, insurance premiums and ground rents, shall exceed the. amount required to pay said taxes, aaeeasmenta, insurance premiums and ground yenta as they fall due, such excess shall be, at Bonowefa option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Fonda held by Lender shall not be sufficient to pay taxes, asseaamenta, 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 ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all same secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender ahaA apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any F1mda held by Lender at the lime of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the .Note and i paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower ender 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 t 4. Charges; Liana. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain 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 manner, by Borrower making payment, when due, directly to the payee thereoL Borrowerahall 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 each payments. Borrower shell promptly discharge any lien which has priority over this Mortgage; provided, that Borrows shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by i 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 j 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 eziating or hereafter erected on the Property insured against loan by fire, hazards included within the term "extended coverage," and such other hazards ere Lender may require and in such amounts and for such i periods ae Lender 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 some 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, if s 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 in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ i.enda all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier i 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 damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the ezoess, 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 is authorized to collect and apply the insurance proceeds at Lende~a 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 prooseda to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property ie acquired 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 peas to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment of 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, 3 Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned .unit development, the by-lava and regulations of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrows and recorded together with this Mortgage, the eovenante and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Searrity. If Borrower fails to perform the ooveaants and agreements contained in Ibis Mortgage. or if say action or proceeding is commenced which materially affects Lender's interest in the properly, including, but not limited to, eminent domain, insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Harrower may make such appearances, disburse such sums and take arch action as is necessary to proted~Lenda's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Properly to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows shall pay the praninms required to maintain , such insurance in effect until such time as the requirement for such insurance terminates in aooordance with Barrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. _ Any amonnta diebnrsed by Lender persuant to this paragraph 7, wild interest thereon, shall become additional indebtedness of Borrows secured by thin Mortgage. Unless Borrows and Leads agree b other tams of payment, such amounts shall be payable upon _ notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of disbursement atlhe rate payable from time to time on outstanding principal ands the Note unless payment of interest at such rate would be contrary to appfibable law, in which ~ event such amounts shall bear interest at the highest rate permissible ands applicable law. Nothing contained in this paragraph 7, shall require Larder to incur any expense or take any action hereunder. 800K 30O PAGE 686 z