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HomeMy WebLinkAbout1855 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness 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. Z. Fonda [or Taxes sad Insurance. Subject to applicable law or to a written waiver by Lender, 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• twdRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ors twelRh of yearly premium installments for hasard insurance, plus onatweltth of yearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and tfom time to time by Lender on the basis of asseeaments and bills and reasonable estimates thereof. The Funds shall be held in as institution We deposits or aooounb of which are insured os guaranteed by a Federal or State agency (ineludir?g [.ender if Leader is such an institution). Lender shall apply the Funds to pay said tares, aaseaamenb, insurance premiums and ground rests. Lender may not charge for so holding and applying the Funds, analysing said account, or verifying and~compiling said asaessm~ta and bills. unless Leader pays Borrower interest on the Ptimds and applicable law permits Lender to make each a charge. Borrower sod Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agnemer?t is made or applicable law requires such intermt to be paid. Lender shall not be required to pay Borrower any iatered or . earnings on the Plrnds. Linder shall give to Borrower. without charge, an annual accounting of the Funds showing coedits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. V We amount of the Funds held by Lender, together with the future monthly installments of Fonda payable prior b the due dates oitaxes, aaessmeata, insurance premiums and ground rents. shall e:oaed the amount required to pay said taxes, aasesaments, insurance premiums and ground rests a. they fall due, such excess shall be, at Borrower's option, either promptly repaid b Borrower or credited to Borrower on monthly installments of Pbnds. V the amount of the Funds held by Lender shall not be sufficient to pay fazes, 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 is _paailed by Lender to Borrower requesting payment thereof. Upon payment in full d all sums secured by this Mortgage, Lender shall pranptly refund to Borrower any funds held by Lender. V under ,paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Leader, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda held uy Lender 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 Lender first in payment of amount8 payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then b interest and principal on.any Future Advances 4. Charges; Liens. Borrower shall pay all fazes, asaeaements and other charges, fines and impositions 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. Borrowerahall promptly inrnish 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 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 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, ordefend enforcement of such lien in, legal proceedings which operate to pnwent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inauranoe. Borrower shall keep the improvements now existing or hereaRer elected on the Property insured against loss by fire; hazards inducted within We term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Iliortgage, 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 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 foes, 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 err repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasiblg or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ; l to the same seciu~ed by this Mortgage.with the excess, if any, paid to Borrower. If We Property is abandoned by Borrower, or if Borrower tails to ! respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for i insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Prope:<y or the sums secured by this Mortgage. Unleaa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. V under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance poUciea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pegs to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or aoqui~tion. ' 6. Preservation and 1[ainteaance ofProperty; 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 proviaior~s of any lease if this Mortgage is on a leasehold. If this Mortgage ie on a unit in a 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 condominium or planned unit development, and conatitnent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of sack rider shall be inrnrporated into and shall amend and supplement the rnvenant$ and agreements otthig Mortgage erg if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the oovenante and agreements contained in this Mortgage, or if arty action or proceeding is commeaoed which materially affects Lender's interest in the Property, including. but not limited to, eminent domain. a insolvency,- ao~ rnfor+eem~t, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon 1 notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, ' including, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repair. V Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain g such insurance in effect until such time as the requirement for arch insnranot terminates in aoDOniance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ E Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, arch amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, sad shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or talcs any action hereunder. s ~o~~ 303 PAGE 1853 r' _ ' ~ ~ f