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HomeMy WebLinkAbout2635 • - « . ~jj • - I Borrower and Lender covenant and agres as follows: i 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtednew j evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any F~tun Advances secured by this Mortgage. ~ 2. Funds toe Ta:ea and Iaauraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day 4 monthly installments of principal and interval are payable under the 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 Mprtgage, and ground rents on the Property, if any, plw ores twelfth of yearly premium installments for haserd insurance. plus onetwelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and prom time to time by !.ender on the basis of assessments and bills and reasonable estimates thereof Ths Funds shall bs heW is an institution the deposits ~ accounts o! which an iruured or guaranteed by a Federal or State agency (inducting Lender if Lender is such an institution). Lends shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rent. Lender may not dlarge for so holding and applying the Funds, ana~ning said aooount, or verifying and compiling said 4 assessments and bills. unless Lender pays Borrower interest on the Fonds and applicable law permit` Lends to make such a charge. Borrower ; and Lender me~y agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and nnlees - such agreement is made or applicable law requises such interest to be paid. Lender shall not be required to pay Borrower any interest or ' earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Ftinda showing credits and debits to the Funds and the purpose for which ouch 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 futon monthly installments of Funds payable prior to the due dates of taxes, asacsaments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, aeaesaments. insurance premiums and ground Hats as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly instaDments:of Funds.• If the amount of the Fonda held by Lender shall not be sufficient to pay taxes. aseeaamente, insurance premiums and ground rents eat Way fall due. Borrower aball pay to Lends any amount necessary 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 refund to Borrower any funds held by Lender. If under ' paragraph 18 hereof the Property is sold or Wa Property is otherwise acquired by Lender, Lender shall apply, no late than immediately prior to the sale of the Property or its acquisition by Leader, any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Application of Payments. Unleea 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 bender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interact and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, aeaesaments and other charges, fines and i~npositiona 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 - I.enderreceipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Bc'rrows shall not be required to discharge any such lien ro long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manna acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcementofauch lien in,legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. t 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the reran "extended coverage," and such other hazards es Lender may require and in such amounts and for such periods as Lender may regain; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by I state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, f whichever is the greats. - i The insurance carrier providing the insurance shall be chosen by Borrows 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 ands paragraph 2 hereof or, if not paid in such manna, 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 inform acceptable to !.ends. Lends shall have the right to hold the policies and renewals thereof, and Borrows shall promptly furnish to _ fends all renewal noticce and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier t and Lender. Lends may make proof of loss if not made promptly by Borrows. j Unless Lends and Borrower otherwise agree in writing, insurance proceeds shall be appGed.to restoration or repair of the Property damaged, provided sudi 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 excess, if any, paid to Borrows. If the Property is abandoned by Borrows, or if Borrower fails to respond to Lends within 30 Jaya from the date notice is mailed by Lender to Borrows that the insurance cams offers to settle a claim for r insurance benefits; Lends is authorized to eoilect and apply the insurance proceeds at Lender s option eiths to restoration or repair of the Propsty or-the soma secured by this Mortgage. ~ Unless Lends and Borrows otherwise agree in writing, any finch application of proceeds to principal shall not extend or postpone the due date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. U ands 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 5rom damage to Property prior to the sale or acquisition shall peas to Lender to the extent of the sums secured by this s Mortgage immediately prior to auc6 sale or acquisition. , ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unlt Developments. Borrows shall keep ° the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply 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; Borrows shall perform all of Borrows'a obligations under the declaration or covenants creatingor governing theoondominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a # condominium or planned unit development rids is executed by Borrows and recorded togeths with this Mortgage, the covenants and ~ agreements of ouch rids shall be incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrows fails to perform the covenants and agreements contained in this Mortgage. or if any ~ action or proceeding is commenced which materially affects Lender's interest in the Property, inducting, but not limited to, eminent domain, insolvency, code enforcement` or arrangements or proceedings involving a bankrupt or decedent, then Lends at Lends's option,npon ' notice to Borrower orgy make such appearances, disburse such sums and take sud? action as is necessary to ported Lender's interest, inducting, but not limited to, diabnrsemeot of reasonable attorney's fees and entry upon the Property to make repairs. If Lends required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows shall pay the premiwna required to maintain such insurance in effect until such time as the requirement for such insurance laminates in aooordance with Bo:r+ows's and Lender's written agreement or applicable Law. Borrows shaA pay the amount of all mortgage insurance premiums in We manna provided ands € paragraph 2 hereof. Any amounts disbursed by bends persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unleea Borrows and Lends agree to other lama of payment, such amounts shall be payable neon notice frrom Lends to Borrows requesting payment thereof, and eball bear interest from the date of disbursement at the rate payable from l time to dine on outstanding principal ands the Note unless payment of interest at arch rate would be contrary to applicable 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 Lender to incur any expense or take any action hereunds. e itg ~ i d00K~~i PAGE~~ f-'~ 3 , „r~ _ - ~ , ~