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HomeMy WebLinkAbout2395 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 un the ~udebtednc~s evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any hl~ture Advances secured by this Mortgage. 2. Funds for Taxes and 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 twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, iianv, plus one twelfth of yearly premium installments for hazard insurance, plus onPtwelfth ofyearly premium installments for mortgage insurance, if an~•, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates there ,f. The Funds 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 ie such an institution). Lender shall apply the Funds to pay said taxes, aaseasmenta, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Fonda, analyzing said account, or verifying and .rompiting said asaeasmenta and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to~nake such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the 1•~nda shall be paid to Borrower, and unless ouch agreement :s made or applicable law requires such interest to be paid, Lender shat! not be required to pay Borrower any interest or earnings on the Funds. 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 Funds was made. The Fonda are pledged as additional security for the soma secured b~ this Mortgage. If the amount of the I:Lnda held by Lender, together with the future monthly installments of Fonda payable priortutheduedatr s of:axe~, aeaeasmenta, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, aesesamenta, insurance pry rniums and ground rents as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Fk~rrnwer on monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assesamer tr+, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount isecesaary !o make up the deficiency •.vithin 34 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 Lender, any Fonda held by Lender at the time of application as a credit against the soma wx:ured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 h: roof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future ~?.i.ances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground rents, itany, in the manner provided underparagraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payirent directly, Borrt;vaer shall promptly furni_gh to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; prur-ided, that Borrower shall not be required todischarge any such lien so long as Borrowershali Agree in writing to the payment of theobligation hecured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legzl proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property iasar~vi against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such arnaunts and for such periods as Lender may require; provided, that bender 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 Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such appro~ al shall not be unreasonably withheld. All premiums on insurance policies shat) be paid in the manner pn,vided under paragraph Y hereof nr, 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 sl,sll include a standard mortgage clause in favor of and in form acceptable to bender. 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, Bor:ower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose 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. I ' 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 aecnred by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower :ails to respond to bender 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 or repair of the 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 the due P date of the monthly installments refen-ed to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tide 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 Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall encnnly 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 planncc? snit 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 constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvri,ants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this htortgagc as if the rider were a part hereof. S 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this M~,rtgage, or if any = action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited ta, 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 each some and take such action as is necessary to protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If bender required ! mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regained to maintain = each insurance in effect until each time ae the requirement for such insurance terminates in accordance with Borrower's and L~~3er a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner pr~vi3~d under paragraph 2 hereof. f 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 tenors of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payeblefrom 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 each amounts shall bear interest at the highest rate permissible under applicable law. tiothing contained in this paragraph 7, shall s uire Lender to incur an ex req y penes or take any action hereunder. I f 3 r r rr'~rl~ ~ 3 U