Loading...
HomeMy WebLinkAbout2880 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 indebtednew evidenced by We Note, prepayment and late charges as provided in the Note. and the principal of and interest on any Future Advances secured by thin Mortgage. Funds for Ta=es end Insurance. Subject to applicable !aw or to a written waiver by Lender, Borrows shall pay to Lender on the day monthly irutallmeata o[ principal and interest are payable under the Mute, until the Note is paid in full. a sum (herein "Funds")equal to ono- twelfth of the yearly tares and assessments which may attain priority over thin Mortgage, and ground rents on the Property, if any. plus ono- twelRh of yearly premium inatalhaenta for hazard insurance, plus oao-twelRh ofyearly premium inetallmente for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of sasessments and bills and reasonable estimates thereof. The Fonda shall be held in an inrtitution the deposits or aaouats of which an insured or guaranteod by a Federal or State agency (including Lender if Lends; is such an institution). Lender shall apply the Funds to pay said tares. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said account, or verifying and compiling said assesemwrts and biW, 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 thin Mortgage that interest on the Funds shall be paid to Borrower, and unless -ouch 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 Funds. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and We purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall ezoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fuada. If the amount of the Funds heW by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and groaad rents ae they fall due, Borrower shall pay to Leader eny amount necessary to make up We deficiency withir? 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 Lead, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by 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 Leader first in payment of amounts 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 to iatereat and principal on any I~ture Advances: 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 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 shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall m ake 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 Bilrrowe~r shall agree in writing to the payment of the obligation secured by such lien is 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fin, hazards included within the term "extended coverage," and such other hazards as Lender may require and is such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, ss 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. 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. AU 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 i.eader all renewal notices and all receipts of paid premiums. In the event of loss, Borrower 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. If such i restoration ar repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond b Leader within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ l insurance benefits. Lender is authorized to ooUeM and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or We some secured by this Mortgage. Unless Lender and Borrower otherwise agree is writing, any anch application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to is 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, title and interest of Borrower in sad 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 Maintenant~ 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 t 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 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 oovenante-and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the eovenanta and agreements wntained in this Mortgage, or if any action or proceeding is eommenoed 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 optioa,apon ' notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to prated Lender's interest, inclnding, bnt not limited to, disbursement of reasonabk attorney's foes and entry upon the Property to make repairs. If Lender required ~ j ~ mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows: shall pay the premiums required to maintain ench insurance in effect until aaclt time as the requirement for such insurance terminates in accordance with Borrower's and Lenders ~ written agreement or applicable Law. Borrower shall pay the amoant of all mortgage insurance premiums in the manner provided under ~ 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 Lender agree to other terms of payment, such amounts shall be payable upon 'v notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from r time to time on outstanding principal under the Note unless paymentof interest at such rate would be contrary to applicable law, is 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 take any action hereunder. ii 4c~r X05 ~.a~:~ 2874 ` - s_