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HomeMy WebLinkAbout1743 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Ta:ea and Insurance. Subject to applicable law or to a written waiver by bender, 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 one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hawed insurance, plus one}twelfth 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 assessments and bills and reasonable estimates thereof. The Farads ehaU be held in an institution the depwits or accounts of which are insured or guaranteed by s Federal or State agency (including Lender if Lender is such an institution). Lender ahaA apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said aocount._or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender b make such a charge. Borrower and Larder may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower, and unless such agreement is made or applicable law requires ouch interest to be paid, Lender shall pot be required to pay Borrower any interest or earnings on the Fnnde. Lender shall give to Borrower. without charge. an annual accounting 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. Itthe amount of the Funds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assmamente, insurance premiums and ground rents, shall exoaed the amount required to pay said to:es, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers 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 sufficient to pay taxes. aaeessrnents, insurance premiums and ground rents as they faB due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment Wereof. Upon payment in frill of aB sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under 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 Lender, any Funds held by Lender at the time of application as a credit against the sums secured by Wis 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 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 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 Borrower 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 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 improvanents now existing or hereafter erected on the Property inanred against loss by fire, hazards included within the term "extended coverage," and ench other hazards as Lender may require and in ouch amounts and for such periods as 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 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, 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 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.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, ina~uance proceedss 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 I~ restoration or ro is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied t~ ~ to the enms secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Boaower, 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 setae a claim 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 date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of arch installments. If under paragraph 18 hereof the Property is 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 ahaB pees to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit I~evelopment8. Borrower shall keep 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's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage se if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements wntained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. including, brat not limited to, eminent domain, insolvency, .code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Fender s option,npon notice to Borrower may make such appearances, disburse ench arms and take each action as is necessary to prated Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making tbe loan secured by this Mortgage. Borrower shall pay the premiums required to maintain ench insurance in effect until ench time as the requirement for such insurance terminates in aeoordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided rands ~ g paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of- Borrower secured by this Mortgage. Unless Borrower and Lender agree b other terms of payment, such amounts shall be payable upon notice from bender to Borrower requesting payment thereof, and shall bear interest from the date of disbursenent at the rate payable from time to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law, in which j event such amounts shall bear interest at the highestYate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ' ~~Rr 302 ~ 1743 ~ { _ _ - y . _ ~ .