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HomeMy WebLinkAbout2196 i Borrower and Lender covenant and agree as folbws: 1. Payment of Priaclpal sad Interest. Borrower shall promptly pay when due We principal of and interest on the indebtednew 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. a. Funds for Taxes sad Insurance. Subject to applicable law or b a written waiver by !.ender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under We Note, until the Note is paid in full. a sum (herein "Funds") equal to oae• 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, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and ftom time 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 accounts of which are insured or guaranteed by a Federal a: State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, esseaamenta, insurance premiums and ground rents. Lender may not charge for eo holding sad applying the Funds, analyzing said aooount, or verifying and compiling said ~ assessments and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower end Lender may agree in writing at the time of ezecution of this Mortgage that interest oa the Funds shaA be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or # earnings on the Fuada. Lender shall give to Borrower. without charge, en annual accounting of the Funds showing credits and debits to the M Funds 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 I'lmds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of fazes, assessments, insurance premiums and ground rents, shall e:oaed the amount required to pay said Lazes, 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 P1mds. If the amount of the Funds held by Leader shall not be sufficient to pay taxes, 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 ie 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 is sold or the Property is otherwise acquired by Leader, Lender shall apply, no later Was immediately prior to We sale of the Property ~ its aoquiaitioa by Lender, any Fends held by Lender at the time of application as a credit against the soma secured by Wis Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under We Note and: paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrows; under paragraph 2 hereof, Wen to interest payable oa We Note, Wen to the principal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges, fines and impositions attributable to We 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, i if not paid in such manner, by Borrower mating payment, when due, directly to the payee. Wereof. Borrower shall promptly furnish to Lender all noticce 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 i 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 rnnteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of We lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on We Property insured against loss by fire, hazards included within W e term "extended coverage; 'sad such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, Wat Lender shall not require such coverage amount exceeding We minimum, as may be required by state or federal regulations governing activities of Lender, or Wat amount of coverage required to pay We soma secured by this Mortgage, whichever is We 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 W ereof 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 Wereof, and Borrower shall promptly furnish to s i.ender all renewal notices and all receipts of paid premiums. In We event of loss, Borrower shall give prompt notice to We 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 We Property damaged, provided such restoration or repair is economically feasible and We security of Win Mortgage is not Wereby impaired. If such r+eatoration or repair is not economically feasible or if the security of W is Mortgage would be impaired; We insurance proceeds shall be applied to the sums secured by Win Mortgage, wild We 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 We date notice is mailed by Lender to Borrower W at We insurance carrier offers to eettle a claim for insurance benefits, Lender is authorized to collect and apply We insurance proceeds at Lender's option either to restoration or repair of the ~ Property or We soma secured by this Mortgage. Unless Lender and Borrower oWerwise agree in writing, any arch application of procxeda to principal shall not extend or postpone the due date of the monWly installments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property is soquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds € Wereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We eztent of the auras secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep We Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wild We 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 We declaration or covenants creatingor governing the condominium or planned • unit development, We by-laws and regulations of We condominium or planned unit development, and rnnatituent documents. If a ~ condominium or planned unit development rider is ezecuted by Borrower and recorded together wild this Mortgage, We covenants and agreements of such rider shall be incorporated into and~ahaU amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform We oovenaata and agrcemeats contained in this Mortgage, or if say action or proceeding is oommeneed which materially affects Lendes'e interest in We Property, including, but not limited to, eminent domain. ~ insolvency, Dods enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lendds option,npon ` notice to Borrower may make such appearances, disburse such sums and take each action es is necessary to protect Leader s interest, including, b~ not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by Wis Mortgage, Borrower shall pay the premiums required ~to maintain such insaranee in effect until arch time as We requirement for such insurance terminates is accordance wiW~ Borrower's and Lendds written agreement or applicable Law. Borrower shall pay We amount of ail mortgage insurance premiums in the manner provided Hader paragraph 2 hereof. Any amounts disbursed by Lender pereuant to Win paragraph 7, wild interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower sad Lender agree to older terms of payment, each amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from We date of disbursement at the rate payable from time to time on outstanding principal under We Note nnleas payment of interest at each rate would be contrary to applicable law, in which event arch amounts shall bear interest at We highest rate permissible under applicable law. NoWing contained in Wis paragraph 7, shall ~ regnire Lender to incur any expense or take any action hereunder. # aocK ~Uz ~ac~z~~ - ~ .