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HomeMy WebLinkAbout2833 Borrower and Lender covenant and agree as follows: 1. Payment of Princlpsl snd Interest. Borrower shall promptly pay when due the principal of and interest on the indebtednew evidenced by the Note, prepayment sad late charges as provided in the Note, and the principal of and interest on any I•lttun Advances secured by this Mortgage. - Ftuads for Toes and lasuraace. 3ubjed 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 NotR is paid in full, a sum (herein "Funds") equal to ono- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plw ono- twelRh of yearly premium installments [or hasard insurance, plw onotwelRh ofyearly premium installments for mortgage insurance, if any, all a. reasonably estimated initially and loom time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fui?ds shall be held in an institution the deposits or aeoounts of which are insured or guaranteed by a Federal or State agency (including Lender if Leader is such an institution). Leader 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 assesanents and bi1L, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of a:ecution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is mu?de or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the P1mds. Lender. shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The finds 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 groumd rents, shall exeaed the amount required to pay said to:ea, assessments, insurance premiums and ground yenta w they fall dw, 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 the Fnnde held by Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents 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 bender to Borrower requesting Payment thereof. Upon payment is 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 Lender, Lender shall apply, no later than immediately prior to the Bale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums 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 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 any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, aesesamente 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, ' it 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 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 Borrower shall agree in writing to the payment of theobligation secured by such lien in 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. Hasard 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 ae Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount a:seeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of rnverage 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. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender ahaA have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ixnder all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of Ices 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 II damaged, provided such 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 thin Mortgage would be impaired, the insurance proceeds shall be applied 1 to the soma second 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 Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in 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 each installments. 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 thereof resulting from damage to Property prior to the sale or acquisition shall peso to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. i ~ 6. Preservation sad Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ' - 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-lawn and regulations of the condominium or planned unit development, and oonatitnent documents. If a• condominium or planned unit development rider is executed by Borrower and rernrded togeWer with this Mortgage, the eovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of thin Mortgage ae if the ~ rider wen a part hereof. ~ Protection of Lender's Security. If Borrower fails to perform the covenants and agnementa contained in this Mortgage. ~ if any action or proceeding is commenced which materially affects Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforememt, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's tron,n op ' pore notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protest Lender's interest, x including, bM not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required r mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay We premiums regaind to maintain such insurance in efYed until such time as the requirement for arch insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insaraace premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ' q Borrower secured by this Mortgage. Unless Borrower and Lender ague to other terms of payment, such amounts shall be payable upon notice from Lender 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 nnlees 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 ~ regain Lender to incur any expense or take any action hereunder. n n(~ f r BUDK JQU P~GI i~yV~ Z L .s , J. - _ - - _ - ;P ~ ~ ~ ~