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HomeMy WebLinkAbout2596 Borrower and Lender covenant and agree u follows: • 1. Payment at Principal and Interest. Borrower shall promptly pay when dw the principal of and interest on the indebteduea evideaad by lM Note, prepayment and late charges u provided In the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2 Funds for Tares and Iruuraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly instaUmenta of principal and interest are payable under the Note, until the Note b paid in full, a sum (herein "Elands") equal to ones twelfth of the yearly to:es and assessments which may attain priority over this bortgage, and ground rents on the F'ropeety, if any, plw ens twelRh of yearly pewtaium installments far hasard insurance. Plus one•twelRh of yearly premium installments for mortgage insurance, it any, all u reasonably estimated initially and fCOrra time to time by Lender on the basis of assesements•and biW and reasonable estimates thereof. The rands shall bs held in an iastitutioa the deposits err accounts of which an insured or guaranteed by a Federal or State agency (iaduding Leader U Leader b such as inatitation). Leader shall apply the Fonda b pay said lases, assesnnenta, lasuraaoe premiums and grated resales. Leader may rwt charge for so holding and applying the Fnads. analysing ssid aooouat, or verifying and compiling acid assewmeats sad biW, nnlea Lender pays Borrower interest onthe Ftiands and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of eucecntion of this Mortgage that interest on the Farads shall be paid to Borrower, and antes such agreaaeut b made or applicable law regnires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Ftiuads. Leader shall give to Borrower, wiWoal charge, as annual accounting of the Funds showing credits sad debits to the Funds and the purpose for which each debit to the Ftinnds was made. The Funds are pledged u additional security for the sums secured by this Mortgage. Iflllae amount of the Elands held by Lender. together with the future more Wy irutallmeats of Fends payable prior to the dw dates of tares. assegmenb, irasuraaos premiums and ground rents. shall exceed the amount required to pay said taxes, assessments, insurance premiams and ground rents u they fall dw, such erases shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on mMhtthly installments ~ Fonds. U the amount of the Funds heW by Lender shall not be suffident to pay lazes. assessments, iaaurance premiums and groand rents u they fall dw. Borrows: shall pay to Leader any amoual neoeaary to make rap the deficiency within 30 day. from the date notice b mailed by Lender to Borrower requesting payment thereof. Upon payment in roll aE all same secured by fhb Mortgage, Lender shall promptly refund b Borrower any funds held by Lender. U under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply. no later than immediately prior b the sale of We Property or its aognisitioa by Lender. any Flauds held by I~nder at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provide. otherwise, all payments received by Lender under the Notes and paragraplu -1 end 2 hereof shall be applied by Lender first is payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to interest payable oa the Note, then to the principal of the Note, and then to interest and principal on any Fatnre Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over fhb Mortgage, and leasehold payments or ground rents, if any, ire the manner provided under paragraph 2 hereof or, if no't paid in such manner, by Borrower making Payment, when due. directly to the payee thereof. BorrowershaU 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 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 Gen in a manner acoptable to Lender, or shall in good faith contest such lien by, or defend eaforcenaent of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof b. Hazard Insurance. Borrows= shall keep the improvements now eziating or hereafter erected on the Property insured against loss by fire, hazards inducted within the term "extended coverage," and such other hazards as Caudal may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount ezceeding 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 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. AU 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. AU inuurance 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 We right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.erader all renewal notices and all receipts of paid premiums. In the event of loa, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lea if not made promptly by Borrower. ~ Ualea Leader and Borrows: otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Pro damaged, provided such restoration or air is economically feasible and the eecari of this M rep ty ortgage b not thereby impaired. If such restoration a repair is not economically feasible or if the security of fhb Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the erases, if any. paid to Borrower. If the Property b abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice b mailed by Lender to Borrower that the insurance carrier olTers to settle a claim for inanrana baefits, Leader is aatharized to collect and apply the insurance proceeds at Leaders option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrows otherwise agree is 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. If ender paragraph 18 hereof the Property b aogaired by Lender, all right, title and interact of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or aegnisition shall pea to L- ender to the eztent of the swas secured by this Mortgage immediately prior to such sale or aoquidtion. 6. Preservadon and Mainteaanoe otProperty; Leaseholds; Condaminums; 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 provisions of any lease if fhb Mortgage b on a leasehold. If fhb Mortgage is on a Wait in a condomininin or a planned unit development, Borrower shall perform all of Borrower • obligations ands the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned Wait development, and constituent documenls. If a oondomininm or planned unit development rider is esecuted by Borrower and recorded together with this Mortgage. the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ae if the rider were a part hereof. • 7. Protection of Lender's Secnr[ty. If Borrower fails to perform the covenants and agreemwb contained is fhb Mortgage, or ff any action or proceeding is eommettoed which materially affects Leaders interest in the Property, indnding, brat not limited to, eminent domain, insolvenry, code anforeernent, or arrangements or proceedings involving a banlQUpt or deoede~nt, then Leader at Ler?der's option,upon notice to Borrower may make such appesranoes, disburse suds cams and take such action u is necessary to protect Leaders interest, indnding, bat not limited to, dtsbtanemeat o[ reasonable attorney's fees and entry upon the Property to make repai». It Lender required mortgage insurance as a condition of making the loan secured by fhb Mortgage, Borrower shall pay the premiums required to maintpin each instaemee in affect until each time as the requirement for such insurance terminates in aeoordanos with Borrowers and Leaders ~ written agreement or applicable Law. Borrowm shall pay the amount of all mortgage insurance premiums in the manner provided Hader paragraph 2 hereof. Any amounts dubnreed by Lends penaiant to this Paragraph 7. with ialesest thereon. shall become additional iadebtednea of Borrower secured by this Mortgage. Unlea Borrower and Lender agree to other terau of payment, sack amounts shall be payable upon t notice from Leader to Borrower requesting payment thereof, and shall bear interest from We date of dbbursement at the rate payablefrom time to time oa 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 fhb paragraph shall require Lender to incur any expense or take any action hereunder. • _ ~_5 _ - - 3~z ~ ~ - -