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HomeMy WebLinkAbout2070 1 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 and late charges as provided in the Note, and the principal of and interest on any Ptintnre Advances secured ; by this Mortgage. 2 Funds for Toes and Insurance. Subject to applicable law or to s written waiver by I.ender, Borrower shall pay to Laideroa the day monthly installments of principal and interest are payable ands the Note, until the Note is paid in full, a sum (herein "Faads'~ equal to aoe- tweltth ofthe yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property. ifany, plosone- f twelfth of yearly premium installments for hazard insurance, plan onetwelRh 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 Ptimds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State aigeonr ' (including bender if lender is such as institution). Lender shall apply the Funds to pay said fazes, assessments, iwuraaoe peemiums a~ ~ ground rents. Lender may not charge for so holding and applying the Funds, analysing said account, or verifying and compiling said i asseaamenb and biW, naless Lender pays Borrower interest on the Fends and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of ezecution of thin Mortgage Wet interest on the Funds shall be paid to Borrower, and unless E arch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pe~y Borrower any interest or earnings on We Faads. Lender shall give to Borrower. without charge, an annual accounting of the Farads 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 sums secwred by this Mortgage. If the amount of the Fonda held by Leader, togeWer wi W We future mon Wly installments of Funds payable prior to the due dates of toes, assessments, insurance premiums and ground rents, shall ezot+ed We amount required to pay said fazes, asaeasmenta, inauraace premiama and ground rents as Wey fall dae,~such ezoeas shall be, at Borrower a option, either promptly repaid to Borrower or Qedited to Borraweron monthly installments of Fonda. V the amount of We Funds held by Lender shall not be sufficient to pay fazes. assessments„ insorance premiums and ground yenta as Wey fall due, Borrower shall pay to Lender any amount necessary to make up the defiaency within 30 days from We date notice is mailed by Leader to Borrower requesting payment Wereof. Upon payment in full of all sums secured by this Mortgage, Leader shall promptly refund to Borrower any funds held by Lends. Dander paragraph 18 hereof the Property is sold or the Property is oWerwise acquired by Lender, Lender shall apply, no latex than immediately prior to the sale of We Property or its acquisition by Lender, any Fonda held by Lender at the time of application as s.credit against fhe soma secor+ed by this Mortgage. 3. Application of Payments. Unless applicable law provides oWsrwise, 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 Lender by Borrowenr under paragraph 2 6ezeo~ Wen to interest payable on We Note, Wea to We principal of the Note, and Wen to interest and principal on any Fntnre Advannoea. 4. Charges; Liens. Borrower shall pay all tuxes, assessments and other charges, fines and impositions attributable to the Prepe:ty which may attain a priority over Win 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 farniah to Lender all notices of amounts due under Win 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 over this Mortgage; pro~~ded, that Borrower shall not be required to discharge any such lien so l~~ hg as Borrower shall agree in writing to the payment of theobligation aexured bq such lien in a manner acceptable to Lender, or shall in good faiW contest such lien by, or defend enforcement of such Gen in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaaraace. Borrower shall keep We improvements now existing or hereafter erected on the Property insured against Iona by fire, hazards included within the term "e:tended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, Wort Lender shall not require each coverage amount ezceeding We 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 this Mortgage; whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by Lender; provided, that such approcal 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 We insurance carrier. All insurance policies and renewals Were+of shall be in form acceptable to Lender and shall include a stagdard mortgage douse in favor of and in form acceptable to Lender. Lender shall have the right to hold We policies and renewals thereof, and Borrower shall promptly tarnish to lender all rernewal notices and all receipts of paid premiums. In We event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ' Unless Lender and Borrower oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~i damaged, provided such restoration or repair is economically feasible and We security of Wis Mortgage is not thereby impaired. if such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance pi'ooeeda shall be applied to We soma secured by this Mortgage, wiW We e:oeas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from We date notice is mailed by Lender to Borrowerthat-tine insurance carrier offers to settle a daim for j insurance benefits, Lender is auWorized to collect and apply We insurance proceeds at Lenders option either to restoration or repair a[ the E Property or the sums aecared by this Mortgage. I Unless Lender and Borrower oWerwiae agree in writing, any such application of proceeds to principal shall not extend or postpone thedae date of the monthly installments referred to in paragraphs 1 and 2 hereof or change We amount of such installmenta_ If 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 Wereof resulting from damage to Property prior to the sale or acquisition shall pass to bender to the eztent of the sums aecared by thin Mortgage immediately prior to each sale or acquisition. 6. Preservation and Yaiatenance of Property; L~easeholda; Condominums; Planned Unit Developments. Borrowerahail kexp We Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the i provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned snit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the eondomininm or planned t unit development, We by-laws and regulations of We condominium or planned unit development, and oooatitamt docameat~ If a ~ condominium or planned unit development rider is executed by Borrower and recorded togeWer wiW this Mortgage, the oovenaata and ~ agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgagees if the a 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 aqy action or proceeding is commenced which materially affects Lenders interest in We Property, including, but not limited to, eminent domain, insolvency. code eafor+oement, or arrangements or proceedings involving a bankrupt or decedent, they Lender at Leader's eiptiognpon notice to Borrower may make each appearances, disburse arch soma and take such action as is accessary to protect Lender's iater+est; including, but not limited to, diabursemeat of reasonable attorney's ices and entry upon We Property to make repairs. If Leader regsired mortgage insurance as s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regoired to maintain such insurance in effect until sncln time as We requirement for such insurance terminates in accordance with Borrowers and Lenders written agreement err applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided antler paragraph 2 hereof. Aay amounts disbnraed by Lerndex perenant to this paragraph T, wiW interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Leader agree to other terms of payment, such amounts shall be payable upon s notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of diabursesnent at the rite payable from time to time on outstanding principal under We Note anises payment of interest at such rate would be contrary to spplicabk law, in which event each 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. 3UU! ~~tJU ~af.~ ~l~ i _ _ _ _