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HomeMy WebLinkAbout2904 Borrower and Leader covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptl~r pay when due the prindpal of and interest on the indebtednep evidenced by the Note, prepayment and late charges err provided is the Note. end the principal of end iatereet on any Plrttrre Advance secured by thin Mortgage. Z. Fonda for Taxes and Iaenraace. 3ubjed to applicable law m to a written waiver by Leader, Borrower ahsll pay to Lender on the day monthly installments of prindpal and ingest are payable under the Note, until the Note is paid in full. a sum (herein "Ftiwwds'7 equal to one twelRh of fhb yearly taxes and assewments which may attain priority over thin Mortgage. and ground rents on the Properly. if any. plus one twelfth of yearly premium installments for hazard insurance, plw onstwelRh of yearly premium installments for mortgage inuurance, if any, all es reasonably estimated iaitialbr and ltom time to time by Candor oa the basis of asseama?ts end biW and reasonable estimates thereof. 'Ilia Ptimda sbsll bs held in ao inditution the depwita or aocounb of which ors insured a guaranteed by a Federal os State agency (including Loader U Lander is such as irutitution). Lender shall apply the Funds to pay said lases. esseesmeats. insurance ptwniums and ground rw?ts. Lroder may not d~arge for so holding and applying the Fonds. analyzing said sooount, or vaitying and oampilin~ said asseesmenta sad biW. unlen Lender psys Borrower interest on the Funds and applicable law permits Leaden to make wch a charge. Borrower sad Lender may ogres in writing at the time of esecutioa of this Mortgage that interest on the Fonda shall be paid to Borrower. and unless such agreement is made or applicable law requirm such interest to bs paid, Leader shall not be required to pay Borrowrer any interest or esraings on the Fonds. Lender shall give to Borrower. without charge. an annual aoooanting of the fiinda showing credits and debits to We Funds and the purpose for which each debit to the Fends was made. The Faada an pledged as additional security for the sums secured by this Mortgage. If the amount of the Fwuis held by I.ender, together with the future monthly inataUmenq of F'nnds payable prior to the due dates of lases, . assessments, insaraace premiums and gronad rests, shall asceed the amount required to pe~y said tares, assessments, irunranoe premiums and gronad rents as they fall due, such ernes shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of F1mda. If the amount of the Flrnds held by Lender shall rwt be anffident to pqy tares. assessments, insurance premiums and ground rents ai they fall doe, Borrower ahaU pay to Lender any amount necessary to make rap the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon psyment in full of all arms secured by this Mortgage. Lender shaD promptly refund to Borrower any farads 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 We Properly or its acquisition by Lender, aqy Flrnds held by Lender at the time of application as a credit against the sums secured by this Mortgage. _ 3. Applicadoa of Payments. Udea applicable law provides otherwise, all payments received by Lender ender the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower seder paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to ir?terest and prindpal on any Fatnre Advances. 4. Charges; Liens. Borrower shall pay all takes. asseesments and other charges, 5nea and impositions attributable to the Property which may attain a priority ova Ibis 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 evidendng 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 ro 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 ice, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly_or any part thereof. 5. Hasard Insursnoe. Borrower shall keep the improvements now esiating or hereafter erected.on the Property insured against lose by fire, hazards included writhin the teem "extended coverage," and each other hazards ae Lender may require and in such amounts and for such periods as Lender may roq~ provided, that Lender shall not require such coverage amount exceeding the minimum, as may beregnired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the anrns sernred 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 Leader and shall include a standard mortgageclanse in favor of and in form acceptable to Lender: Lender shall have the right to hold the polidea sod renewals thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipts of paid preminma. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Inca if not made promptly by Borrower. .Unless bender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair ie economically feasible and the security of this Mortgage is not thereby impaired. If arch restoration or repair is not economically feasible or if the security of this Mortgage world be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the ezceae, 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 by Landes to Borrower that the insurance carrier offers to nettle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender`s option either to restooration 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 prindpal shall not a:tend or postpone the doe date of the monthly installmerrta referred to in paragraphs 1 and 2 hereof or change the amount of each installments. If under paragraph 18 hereof the Property is aogaired by Lender, all right. title and interest of Borrower in and to soy insurance polidee and in and to the proceeds € thereof resulting from damage to Property prior to the sale or acquisition shall peas to Lender to the aslant of the sums secured by this ~ Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and 1[aintenanoe otProperty; Leaseholds; Condominams; 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 eomply-with the provisions of any lease if thin Mortgage is on a leasehold. If this Mortgage is on a unit in s 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 rnndomiaiam or planned snit development, and oonatituent docnmenta. If a condominium or planned unit development rider is e:ecnted by Borrower and recorded together with this Mortgage, the covenants and agreemenfs of arch rider shall be incorporated into and shall amend and supplement the covenants and agreements ofthiaMortgage as if We rider were a part hereof. - - 7. Protection of Lender's 8eenrity. If Borrower fails to perform the covenants and agreements oontaiaed in this Mortgage, err if any adios or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, g insolvency, node mforement, or arrangements or proceedings involving a bankrupt or decedent, they Lander at Lender's option,apon ' notice to Borrower may make ench appearances, disburse such sums and take arch action as is necessary to protect Lenddr interest, s including, b~ not limited to, disbn=sement of reasonable attorney's fees and entry upon the Properly to make repairs. If Lender required - mortgage insurance as a condition of making the loan secured by this Mortgage, Bo:eower shall pay the premiums required to maintain each inanraaoe in effect until arch time a. the requirement for arch insurance .terminates in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all morlgaRe insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lends perauant to this paragraph 7, with interest thereon, ahaU become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lends agree to other terms of payment, such amounts shall be payable upon notice from Leader to Borrower requesting payment thereof: and ahsll bear interest from the date of disbursement at the rate payable from . time to time on ontst.anding prindpai ender the Note unless payment of interest at such rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Larder to incur any expense or take any action hereunder. 1 r P. y~~ - t ~ ~ , i s . F 'T.s x`54 ~ ,j~ f -i.. a ~ `%q'~ a ~ ~