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HomeMy WebLinkAbout1149 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 sad late charges as provided in the Note, and the principal of and intereston any Ftiture Advances secured by this Mortgage. . 2. Funds for 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 oae- twelfth ofthe year>,ytaxe~ and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any. plus one- twelfth ofyearly premium installments for hazard insurance, plus one-twelftb of yearly premium installments for mortgage insurance, if any. all ae reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 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 is such $.a institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground teats. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said assessments 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 a:ecutioa 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 Funds. Leader shall give to Borrower, without charge. an annual aeoounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to We Funds 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 due dates of fazes, assessments. insurance premiums and ground rents, shall e:eaed the amount required to pay said fazes, assessments, insurance premiums sad ground rents as they fall due, such excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inataLmeats of Funds. If the amount of the Fuada held by Lender shall not be sufficient to pay taxes, aeaeeameata, insurance premiums and ground Hats 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 Leader to Borrower requesting payment thereof. Upon payment in frill 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 Bold 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 secured by Win Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender. under We Note and paragraphs 1 sad 2 hereof ahaU be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, Wen to interest payable on We Note. Wea to We principal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes. asaeaementa and other charges, fines and impositions attributable to the Property which may attain a priority over Wis 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 Wereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in We 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 aver this Mortgage; provided, Wat 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 faiW contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof. 5. Hazard Insurance. $orrower shall keep the improvements now existing or hereafter erected on We Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards sa 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 Wat amount of coverage required to pay the sums secured by Wis Mortgage, whichever is We 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 t not paid in wch manner, by Borrower making payment, when due, directly to the insurance carrier. € All insurance policies and renewals Wereof 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 We policies and renewals Wereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In We event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Leader may make proof of loss if not made promptly by Borrower. Unless Lender sad Borrower otherwise agree in writing, insurance_prooeeds shall be applied to restoration or repair of We Property damaged, provided such restoration or repair is economically feasible and We security of Win Mortgage is not Wereby impaired. If such restoration or repair is not economically feasible or if the security of Wis Mortgage would be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, wild We excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to respond to Lender wiWin 30 days from We date notice is mailed by Lender to Borrower Wat We insurance carrier offers to settle a claim for I insurance benefits, Lender is anWorized to collect and apply We insurance proceeds at Lender's option either to restoration or repair of the Property or We soma secured by this Mortgage. Unless Lender sad Borrower oWerwise 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. ff under paragraph 18 ~ 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 We sale or acquisition shall pass to Lender to We extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Coadominums; 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 wild We E provisions of any lease if Wis Mortgage is on a leasehold. If this Mortgage is on a unit in a wndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under We declaration or covenants creatingor governing We condominium or planned ~ unit development, We by-laws and regulations of We condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded togeWer wild this Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of Win Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender a interest in the Property, including, but not limited to, eminent domain, insolvency, code e~aforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's optioa,upoa notice to Borrower may make such appearances, disbarse 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 sad entry upon We Property to make repairs. If Leader required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as We requirement for each insurance terminates in aooordance wild Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. ' Aay amounts disbursed by Lender perauant to Wis paragraph wild interest Wereon, shall become additional indebtedness of ~ Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, each amounts shall be payable upon ~ notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under We 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. NoWing contained in Wia paragraph 7, shall require Leader to incur any expense or talcs any action hereunder. 3 a i ~ BL'Rr ~U6 ~-~~;.1149 s