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HomeMy WebLinkAbout1153 1 1 t Borrower and Leader covenant and agree a. folban: 1. Payment of Priaclpal sad Interest. Borrower shall promptly pay when due the principal of and interest oa the indebtedness evideaotd 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. - Z. Funds for Toes and Insurance. Subject to applicable law or b a written waiver by I.ender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid is 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, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetweltth of yearly premium installments for mortgage insurance, if any. all as 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 heW 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 iastitutioa). Lender shall apply the Funds to pay said ta:ea, assessments, Insurance premiums and ground recta. Lander may not charge for eo holding and applying the Funds. aaalyziag said account. or verifying and rnmpiling said assessments and biW. nnleas Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may ague in writing at the time of a:ecution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Leader 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 sad debits to the Funds sad the purpose for which each debit to the Fuada was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the futon monthly installments of Funds payable prior to the due dates of taxes, assessments. Insurance premiums and ground rents, shall e:oaed the amount required to pay said taxes, aaeaamenta, insurance premiums and ground recta as they fall due, such excess shall be. at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of We Funds 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 We 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 Chia Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Lf 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 We sale of the Property or its aoquisitioa by Lender, any Fonda 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 Lander under the Note and paragraphs 1 and 2 hereof shall be applied by Lender 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 interest and principal on say Future Advances. 4. Chsrges; Liens. Borrower shall pay all taxes, aaeesamenta 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 make payment directly, Borrower shall promptly furnish to Lander 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 ao 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 faith contest such lien by, ordefend 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 fire, hazards included within the term "extended coverage," and such other hazards as 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 berequired by state or federal regulations governing activities of Lender, or that amount of rnverage required to pay the soma 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. ~ All 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 Lander. Lender shall have the right to hold the policies and renewal8 thereof, and Borrower shall promptly furnish to iender all renewal notices and all receipts of paid premiums. In the event of lass. Borrower shall give prompt notice to the insurance carrier and Lender. Lander may make proof of lass if not made promptly by Borrower. Unless Lander and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided each 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 world be impaired, the insurance proceeds shall be applied to the some 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 to Lender within 30 days from the date notice is mailed by Leader to Borrower that the insurance carrier offers to settle a claim for Insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the j Property or the same aecnred by this Mortgage. i Unless Lender and Borrower otherwise agree is writing. any arch application of proceeds to principal shall note:tend or postpone the due date of the monthly inatalimenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Lf under paragraph 18 hereof the Property is aognired by Lender, all right, title and inter~eat 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 aoquiaition shall pass to Lender to the extent of the sumo secured by this Mortgage immediately prior to such sale or aoquiaition. 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 `'s provisions of any lease if thin 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 rnndominium or planned unit development, and constituent documents. If a € I 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 incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the z ` rider were a part hereof. 7. Protection of Lender's $ecurity. If Borrower fails to perform the covenants and agreements contained in thin Mortgage, or if any action or proceeding is commeaoed 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 Lander at I.endei a option,upon notice to Borrower may make arch appearances, disburse such arms and take ouch action as is necessary to protect Leader s interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repair. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain sach insurance in effect until sach time as the requirement for arch insurance terminates in accordance with Borrower's and Leaders written agreement or applicable Isw. Borrower shall pay the amount of all mortgage insurance premiame in the manner provided under paragraph 2 hereof. ~ Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall became additional indebtedness of ; Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, ouch amounts shall be payable upon notice from Lander to 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 law, 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 to incur any expense or take any action hereundu. F 1 3-,P. X06 s; :1~5 z _