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HomeMy WebLinkAbout2908 .1t~1~ ,,~~.,,i Borrower and Lender covenant and agree a folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when dw the prinaapal of and inbrest~oa the indebtedness - svidenesd bythe Nob, prepayment and lab charges as provided in the Nob. and the principal of and iatsrest on any Fbtura Advances secured by this Mortgage. Z. Farads !or Tares sad Inauranoe. Subjed b applicable law m b a written waiver by Lender, Borrower shall pay to Lendec on the day monthly installments of principal and u?terest are payable under the Nob, until the Nob L paid in full, a sum (herein "Funds'? equal to eras twelRh of the yearly lases and assessments which may attain priority over thin Mortgage, sad ground rents on the Property, if any, plw eras twelfth of yearly premium installments [m hazard insurance, plw oastweltth of yearly premium installments for mortgage insurance, if any, all w reasonably estimated initially and !from time b time by Lender on the basis of aaesement and bills and reasonable estimates thereof. The Funds shall bs held in an institution tl» deposits oar aoooants of which ors insured m guaranteed by a Federal or Stab agency (including Lender if Lender i. snap as institution). LendeS stall apply the Funds to pay said lazes, asseeameals, insuranos premiums and ground rent. Lender may not charge for so holding and applying the Ponds. analyzing said aoaount, or verifying and compiling said awesement and biW. unlace Lender pays Borrower interest on We Fends and applicable law permits Lender b make such a charge. Borrower and Lender may agree in writing at the time of execration of this Mortgage that inbrest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law regains such interest to be paid, Lender shall not bs required b pair Borrower any interest m earnings on the Funds. Lender shall give to Borrower, without charge. an annual accounting o! the Farads showing credit and debits b the Pads and the purpose for which each debit to the Fends was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amoraat of the Funds held by Lender, together with We future monthly installment of Fonda payable prim to the due dabs of tares, assessments, imsaaraace premiums and ground Hats. shall a:owed the amount required to pay said tea:ea, assessments. insurance pnminau and ground rent as they fall due, such eacesa shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower oa monthly installments of Fonda. If the amount of the Fonda held by Lender shall not be srafficiant to pay lases, assessments, iwnranoe premiums and ground rent w they fall due. Borrower shall pay to Lender any amorant necessary to make up the deficiency within 30 days from the date notice is mailed by Leader b Borrows requesting payment thereof. - Upon payment is fall d all cams secured by thi. Mortgage, Lender shall promptly retnnd to Borrower any funds held by Lender. If ender paragraph 18 hereof the Property is sold m the Property is othe:.vise acquired by Lender, Lade: shall apply, no later than immealiably prim to the sale of the Property m it aognisition by Leader. any Fends held by Lender at the time of application as a credit against the sums secrared by this Mortgage. 3. Application of Payments. Unka applicable law provides otherwise, all payments rea~enved by Lender ender the Nob and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Leader by Borrower ender paragraph 2 hereof, then to inbrast payable on the Note, then to the principal of the Nob, and then to interest and principal on any Fntme Advances. 4. Charges; Liens. Borrower shall pay all tares, assessment and other charges, fines and impositions attributable to the Property which may attain a priority overthis 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 shag promptly fnrniah to Lender all notices of amounts due under this paragraph, and in the eves! Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payment. 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 Bach 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 or any part thereof. 5. Hazard Insuraaoe. Borrower shall keep the improvements now eziating or heresfler erected on the Property insured against loss by fire, hasards included within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that !.ender shall not require such coverage amount exceeding the minimum, as may be required by state m federal regulations governing activities of Leader, 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 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 Lender and shall include a standard mortgage claws is favor of and inform aooeptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to We insurance carrier and Lender. Lender may make proof of toes 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 of repair is not economically feasible or i[ the security of this Mortgage world be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the eaoeas, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 Jaya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to setae a claim for insurance benefit, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the { Property m the sums secured. by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall sot extend or postpone the due ~ date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such installment. Tf amder paragraph 18 { hero[ the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insuranee policies and in and to the proceeds thereof resralting from damage to Property prior to the sale or acquisition shall pass to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or aognisition. , 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit west or permit impairment or deterioration of the Property and aha11 comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a Wait in a ooadomiainm or a planned Wait development, Borrower shall perform all of Borrower's obligations under the declaration or covenant creatingor governing the condominium or planned snit development, the by-laws and regulations of the condominium or planned Wait developmenE, and oonatituent document. If a condominium or planned unit development rider is execrated by Borrower and recorded together wild this Mortgage, the covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider were a part hereof. Protection of Lender's Security. U Borrower fails to perform the covenant and agreement contained in this Mortgage, m if any } action or proceeding is commenced which materially affects Lw?der's interest in the Property, including, bet not limited to, eminent domain, insolvency, code enforcement, m anangemeat or proceedings involving a banlQnpt m decedent, then Lender at Lassder's option,npon notice to Borrower may make such appearances. disbarse such soma and take such action as is necessary to parotect I.endes"s interest, including, but not limited to, dubn»emeat of reasonable attorney's fees and entry upon the Property to make repairs. If Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to-maintain such inenranoe in effect anti! such-time s. the regniremaat for arch inaarance terminates in aocordanoe with Borrower's and Lender's written agreement m applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided ender . paragraph 2 hereof. Any amount disbursed by Leader persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amount shall be payable upon E notice iron Lender to Borrower requesting payment thereof, and shall bear interest from the dab of disbarsement at the rob payable from time to time on ontatanding principal ender the Nob unless payment of inbred at such rate would be contrary to applicable law, in which event each amount shall bear interest at the highest rat permissible ender applicable law. Nothing contained in this paragraph 7, shall i require Leader b incur any expense or take any action hereunder. a t . ae~x 30z FacE2~l~5 ~ . ~''.v _ F t ;