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HomeMy WebLinkAbout1978 i - Borrowes and Lender covenant and agree as folbws: 1. Paymeal of Principal and IatereK. Borrower shall promptly pay when due the principal of and interest 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. i 2. Ftiads for Tasa 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 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 hazard insurance, plea one•twelfth ofyearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and from tune to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fends shall be held is sn institution the deposits or aotounts of which are insured or guan9nteed by a Federal or State agency (including Lender if Leader is such an inatitntion). Lender shall apply the Enacts to pay said fazes. assessments, insurance premiums and ground rents. Leader may not d~arge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and biW. nnlesa Lender pays Borrower interest on the Farads and applicable law permits Lender to make such a charge. Borrower 1 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 regnirea such interest to be paid, Leader shall not be required to pay Borrower any interest or t earnings on the Farads. Lender shall give to Borrower, wiWout charge, an annual aooounting of the Funds showing credits and debits to We Fends 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 Funds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, aaseasmenta, Insurance premiums and ground rents. ahap exceed 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, eiWer promptly repaid to Borrower or credited to Borrower on monthly installments of Fends. If the amount of We Fends held by Lander shall not be sufficient to pay fazes, assessments, 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 the date notice is mailed by Lender to' Borrows: requesting payment thereof. ~ Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by bender. Uunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior p to the Bale of the Property or its acquisition by Lender, any Fends held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, ell 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, sect 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 ' Lendei receipts evidencing each 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 rnntest 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 existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended eoverage.° and such other hazards ae Lender may require and in such amounts and for such periods sa Lender may require; provided, that Lender shall not require such coverage amount a:reeding the minimum, as may be required by j state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums 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 - ahall sot 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 sect renewals thereof, and Borrower shall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of lees, Borrower shall give prompt notice to the insurance carrier f and Lender. Lender may make proof of 1QSS if not made promptly by Borrower. i Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided anch 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 We security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured 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 bjr Lender to Borrower that the insurance carrier offers to settle a claim for ~ Insurance benefits, Lender is authorized to rnllect 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 thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph l8 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 reanlting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. ' f 6. Preservation sad Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. 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 s 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 condominium or planned snit development, and oonstitnent documents. If a g oondomininm or planned unit development rider is executed by Borrower and recorded together with thin Mortgage, the oovenante and 5 agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of thin Mortgage as if the rider were a part hereof. I 7. Protection of Lender's $ecurity. )f Borrower fails to perform the covenants and agreements contained in thin Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property. indnding, brat not limited to, eminent domain, j insolvency. code enforcement, or arrangem~ts or proceedings involving s bankrupt or decedent. then Lender at Lender's option,apon notice to Borrower may make anch appearances, diabnrse arch sums and take such action as is necessary to prated Lender's interest, indading, but not limited to, disbursement of reasonable attorney's fees and entry aeon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by thin Mortgage, Borrower shall pay the preminma required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's s ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender _ paragraph 2 hereof. Any amounts diabnrsed by Lender persuanf to this paragraph T, with 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 upon j notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable fiom I 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 such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in thin paragraph T, shall s require Leader to incur any expense or take any action hereunder. ± s~~~ 302 { 1978 • - _