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HomeMy WebLinkAbout2926 . . t , ' ~ ~ F Borrower and Lender covenant and agree as follows: E 1. Payment of Pr[ncipal and Interest. Borrower ehaA promptly pay when due the principal of and iaterert on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of sad interest on any Future Advances secured by this Mortgage. 2 Funds for Toes and Insurance. 3ubjed to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installment of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fonda")equal to one- twellth of the yearly to:es 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 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 tilt and reasonable estimates thereof. The Funds shall be held in as institution the deposits or account of which are insured or guaranteed by a Federal or 3tat agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not drarge for w holding and applying the Funds, analyzing said account, or verifying and eanpiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and L~der may agree in 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 bs paid, Lender shall not be required to pay Borrower any interest or earnings on the Farads 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 Funds are pledged as additional security for the sums second by this Mortgage. If the amount of the Funds held by Lender, together with the futon monthly installments of Funds payable prior to the due dates of tares, ~ assessmeata, inswanoe premiums and ground ants, shall exceed the amount required to pay said taxes, assessments, insurance premiums end ground ants as they fall due. such excess shall be, at Borrower's option, either pmmpdy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the.amoupt of the Fends held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rent 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 full of all soma 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 sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Applicadon 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 d 4. Charges; Liens. Borrower shall pay all taxes, assessments 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 i all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to ; Lender receipt 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 eo long as Borrower shall agree in writing to the payment of the obligation secured by ~ such lien in a manner aeceptable 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. Razard Insurance. Borrower shell keep We improvement now existing or hereafter erected on the Property insured against loss by - fire,hazards included within the term "extended eoverage,^ and such other hazards es Lender may require and in such amount and for such periods as Lender may require; provided, that Leader shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations goventing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The inswance carrier providing the insurance shall be chosen by Borrower subject to approval bar Lender, provided, that such approval shall not be unreasonably withheld. A11 premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if j not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. E All insurance policies sad renewals thereof 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 the policies and renewals thereof, and Borrower shall promptly furnish to ~ i.ender all renewal notices and all receipt of paid premiums. In the event of foes, Borrower shall give prompt notice to the irtaurance carrier and Lender. Lender may make proof of loos if not made pmmpdy by Borrower. `p Unless Lender and Borrower otherwise agree in writing, inawance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided arch 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 aecmrity of this Mortgage would be impaired, the inewance proceeds shall be applied to the sums secured by this Mortgage. with the e:cxea, 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 Lender to Borrower that the insurance carrier offers to setae a claim for ~ insurance benefits, Lender is authorized to collect and apply We insurance proceeds at Lenders option either to restoration or repair of the t Property or the arms secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, say such application of proceeds to principal shall not extend or postpone the due e date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is aegnired 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 aequiaition shall peas to Lender to the eztent of the sums secured by this Mortgage immediately prior to each sale or aequisition. 6. Preservadon and lNa3ntenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep i the Property in good repair and shall not commif waste or permit impairment or deterioration of the Property and shall comply with the ( s 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-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the covenant and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenant and agreements of this Mortgage as if the rider were a part hereof. ; T. Protection of Lender's fiecur[ty. Tf Borrower fail to perform the covenant and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lmder'a interest in the Property, including, but not limited to, emineat domain, insolvency. code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may males such appearances, disburse such sums and take such action as is necessary to Protect Lender's interest, including. but not limited to, disbanement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until snc6 time as the requirement for ouch insurance terminates in aeoordanoe with Borrower's and Lender's , written agreement or applicable Law. Borrower shall pay the amount of all mortgage inawance premiums in the manner provided ands: paragraph 2 hereof. Any amount disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ` Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such amount shall be payable upon _ notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rat payable from time to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law, in which - evert such amount 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. ~ OR ~a~306 ~E2922 1~ a i ~ _Y f S