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HomeMy WebLinkAbout2514 lorrower and bender 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. 2. Funds for Tszee and lneurance. Subject tc, applicable low or to a written waiver by Lender, Burrower shall pay to Lender on the day f monthly installments of principal and interes? are psq•s+ble under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one # twelfth of the yearly tsutea s+nd assessments which may attain priority over this Mortgage, and ground yenta on the Property, itnny, plus one- tweltth ofyearly premium installments fur hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all s+a reasonably estimated initially and from time to tirr+e by lender on the basis of assessments and bills s+nd re<•+sonnble estimates thereof. The Flrnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Fonda Wpay-said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the htitnda, analyzing said account, or verifying and compiling said ..ssesamenta and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender 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 agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda 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 future monthly installments of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they [all due, such ezcess shall be, at Borrower's option, either promptly repaid to Bun-ower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, 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 mailed by Lender to Borrower requesting payment thereof. Upon payment in full 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 the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Ftirnda held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides other++~ae, 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 interest and principal on any Future Advances. d. Charges; Liens. Borrower shall pay all taxes, assessments s+nd othen•hargea, fines and impositions attributable to the Property which ma>• attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph l hereof or, if not paid in such manner, by Burrower making payment, when due, directly to the payee thereof. Burrower shall promptl~r furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Itorrowerstht~tl~etsamptly furnish to [,ender receipts evidencing such payments. Borrower shall prompth• discharge any lien which has priority overt~l~Iortja$ap~'ovided, that Burrower shall not be required to discharge any such lie n so IonK :+s 13uerower shall agree in K•riting to the payttie'gttlft#le4~lisation secured by :uch lien in a manner acceptable to Lender, or shall in g+x,d faith contest such lien by, ordefend enforcemertiq~tuch~iq.legalpsooeedings which operate k, prevent the enforcement of the lien or forfeiture of the Property ur any part thereof. _ r 5. Hazard Insurance. Borrower shall keep the improvements; now existing or hereafter erected on titre Prroperty insured against lose by fire, hazanls included within the term "extended rnverage," and such other hazard8 as ixnder may require aitdinesneh s~?gQbaadforsuch periods as Lender may require; provided, that Lender sha?1 not require such coverage amount exceeding the minimum. as may be rst+gnired by .+ate or federal regulations governing activities of [.ender, or that amount of coverage required to pay the surge secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen b~• Borrower subject to approval by l.c•nderr, provided, that such approval hall not t,e unreasonablt• withheld. All premiums un insurance p,licic•s shall l,+• paid in the manner provided under paragraph 'l hert•+,f or, if not paid in such manner, by Borrower making p:+yment, when due, directly to the insurance carrier. Ail insurance poticies 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 Bo,TOwerahall promptly furnish to sender al? renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall Rive prompt notice to the insurance carrier and Ixnder. Lender may make proof of loss if not made pn,mptly by Borrower. [ Unless Lender and &,rrower 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 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 lllortgage, with the excess, if any, paid to Bon:ower. Ifthe Property is abandoned by Borrower, or if Borrower fails to respond to [.ender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ur repair of the 1 Property or the sums secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue t date of the monthly installments referred to in paragr.+phs 1 and 2 hereof or change the amount of such installments. If under paragraph IS 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 from damage to Property prior to the sale or acquisition shall pass to (.ender to the extent of the sums secured by this tilortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; 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 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants cmatinRor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorlx~rat•d into and shall amend and supplement the covenants and agreementsof this Mortgage as ifthe a rider were a part hereof. 7. Protection of Lender's Security. If Borrower 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, including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain ~ each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower a and Lender s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under F` paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7. with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and (.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender in Borrower requesting payment thereof, and 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 taw, 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 u, incur any expense or take any action hereunder. t3 so~K 304 ~A<<2511 ~r - - - , _ ~ .s:~