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HomeMy WebLinkAbout2821 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 Future Advances secured by Wis Mortgages - Funds for Taws 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 We Note. until the Note is paid in full. a sum (herein "1'lu~ds") 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, plw one• { twelfth of y~rly premium installments for hazard insurance, plw 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 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 ouch as institution). Lender shall apply the Fonda fo pay said taxes, assessments, insurance premiums and ground rsnb. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said } asseaaments and biW, unless Lender pays Borrower iutenat on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of execution 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. Lender shall give to Borrower, without charge, an annual aeoounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the 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 tares, assessments, insurance premiums and ground rents, shall e:eaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as Way fall due. ouch excess shall be, a! Borrower • option, either promptly repaid to Borrower or credited to Borrower on - monthly installments of ltinds. If We amount of We Fonda held by Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents as Way fall due, Borrower shall pay to Lender any amount necessary to make up We deficiency within 30 days from We 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 oWe~rwise acquired by Lender, Lender shall apply, no later Wan immediately prior to the sak of the Property or its acquisition by Leader, any Fonds held by Lender at the time of application as a credit against the coma secured by this Mo~rtgaga - 3 Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under We 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 We Note. Wen to We principal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, aeaeasmenta and older charges, fines and impositions attributable to We 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 Wereof. Borrower shall promptly furnish to Lender all notices of amounts due under Wis paragraph, and in We event Borrower shall make payment directly, Borrower shall promptly lurniah to ! Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over Wis Mortgage; provided, that ' Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to We payment of the obligation secured by ' such lien is 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. Borrower shall keep We improvements now existing or hereafter erected on We 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, Wat Lender shall not require such coverage amount exceeding We minimum, as may be required by i state or federal regulations governing activities of Lender, or Wat amount of coverage required to pay the some 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 i 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 W ereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of i and in form acceptable to Lender. Lender shall have the right to hold We policies and renewals Wereof, and Borrower shall promptly furnish to ! lender all renewal notices and all receipts of paid premiums. In We event of lass, Borrower shall give prompt notice to We insurance carrier { and Lender. Lender may make proof of loss if not made promptly by Borrower. ! Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property damaged, provided euc6 restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such s restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied s j to the sums secured by this Mortgage. wild the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender wiWin 30 days from We date notice is mailed by Lender to Borrower that We insurance carrier offers to settle a claim for ; insurance benefits, Lender is authorized to rnllect and apply We insurance proceeds at Lender's option either to restoration or repair of the Property or We soma secured by Wis Mortgage. Unless Lender and Borrower oWerwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due t date of the monWly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ I hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to We proceeds ~ thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We extent of the soma secured by Wis j ~ Mortgage immediately prior to such sale or acquisition. ~ 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 wild We provisions of any lease if Wis 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 We declaration or covenants creatingor governing We condominium or planned ~ unit development, We bylaws and regulations of We condominium or planned unit development, and eonatituent documents. If a e i condominium or planned unit development rider is ezecuted 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 Wis Mortgage as if the rider were a part hereof. 3 7. Protection of Lender's Secdrltp. If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any action or proceeding is eommenoed which materially affects Lender's interest in We Property, including, but not limited to, eminent domain, insolvency, code eaforremeat, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,npon notice to Borrower may make each appearances, disburse such sums and take each action as is necessary to prated Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repsin. If bender required ` mortgage insurance w s condition o! making We loan secured by this Mortgage, Borrower shall pay We premiums repaired to maintain each insurance in effect until such tune as We requirement for such insurance terminates in accordance wild Borrower's and Leadels written agreement or applicabk Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. Any amounts disbursed by Lender pereuant to Wis paragraph 7, wild interest Wereon, shall become additional .indebtedness of ` k Borrower secured by Chia Mortgage. Unless Borrower and Lender agree to older terms of payment, each amounts shall be payable upon j 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 the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at We highest rate permissible under applicable law. Nothing rnntained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. I 3 ~ coax JUIJ PACE 28~~ ~ s _