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HomeMy WebLinkAbout1991 Borrower and Lender covenant and agree as follovw: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and intend on the iadebtedaess avideaosd by the Note. prepayment and late charges as provided in the Note. and the principal o[ sad interest on any I~tun Advances secured by this Mortgage. 2 Ftitnds for Tares sad Insurance. 3ubjed b applicable law or to a written waiver by 1.ender, 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 ofthe yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus one•twellth 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 Funds shall be held in an institution the depodts ~ aooounb of which are insured or guaranteed by a Federal or State agency (including Lender if Leader is each an institution). Lender shall apply the Funds to pay said fazes, asseesmeata, insurance premiums and gronad rests. Lender may not charge for so holding and applying the Fonda, analyzing said aonount. or veritying and coanpiliag 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 is writing at the time of e:ecntion of this Mortgage that interest on We Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shaft not be required to pay Borrower any iatered or earnings on the Phnds. Lender shall give to Borrower. without charge, an annual aeoountiag of the I~nda showing credits and debits to the Enacts 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 Leader, together with the futon monthly installments of Funds payable prior to the due dates of fazes, assessments, insmance premiums and ground nnta, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground ants as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay fazes, asaessmeata, insurance pnminms and ground rents as they fall due, Borrower shall pay to Leader any amount accessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fall of all sums secured by this Mortgage, Lender shall promptly nfimd to Borrower any funds held by Lender. If under i paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Leader shall apply, no later than immediately prior ; to the sale of the Property or its aoquisitioa by Lender, any Fonda held by Leader at the time of application as a credit against the soma secured by this 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 Leader first in payment of amounts payable to Lender by Borrower render paragraph 2 hereof, j thm to iatered payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. Charges; Liens. Borrower shall pay all tares. assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground Hots, if any, in the manner provided under paragraph 2 hereof or, i if not paid in each manner, by Bonaows making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amonnta 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 ague 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 err any part thereof. 5. hazard Insurance. Borrows shall keep the improvements now eziating or hereafter erected on the Property insured against lost by fin, hazards included within the term "eztended coverage," and such other hazards as bender may require acid in such amounts and for such periods as Lender may regain; provided, that Lender shall not require such coverage amount ezceeding 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 Borrows subject to approval by Lender; provided, that such approval i 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 lender all renewal notices and all receipts of paid premiums. In the event of lost, 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, 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 a repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the ezcesa, if any. paid to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to E respond to Lender within 30 days from the date notice is mailed by Lender to Borrows 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 soma secured by this Mortgage. Unless lender and Borrower otherwise agree in writing. any such application of proceeds 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 undei paragraph 18 i hereof the Property is acquired by Lender, all right, title and inter~eat 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 aegnisition shall pass to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or aogniaition. ~ 6. Preservation and 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 a planned unit development, r 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 regnlataaa of the condominium or planned unit development, and eonatituent docnmenta. If a F ooadomininm or planned unit development rider is executed 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 covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. V Harrower fails to perform the covenants and agreements contained in this Mortgage, or if any 3 action or proceeding is oommenoed which materially affects Lendez's interest in the Property, including, bat not limited to, eminent domain, ~ insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decadent, then Lender at Lender's option,npon notice to Borrower may make each appearances, disburse such sums sad take such action as is necessary to prated, Lender's interest, indnding, but not limited to, disbursement of reasonable attorney's fees sad entry upon the Property to make repairs. If Lender required 3 mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain r each ins~uanee in effect until such time 88 the requirement for each insurance laminates in accordance with Borrower's and Leader's written agreement or applicable Law. Harrower shall pay the amount of all mortgage insurance premiums in the manna: provided ands = paragraph 2 hereof. Any amounts disbursed ~by Lends persuant to thin paragraph 7. with interest thereon, shall become additional indebtedness of ; Borrows secured by this Mortgage. Unless Borrows and Lender agree to other tense of payment, such amounts shall be payable upon 1 notice fiom Lends to Borrows requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from ~ ng principal ands the Note anises ant of interest at such rate would be ooatr to a hcable law. in which ~ time to time on outatandi paym cry PP event such amounts shall bear interest at the highest rate permissible ands applicable law. Nothing contained in this paragraph shall ' regain Lender to incur any expense or take any action haeunda. e g~a~~OZ .~~:1991 a - - -