Loading...
HomeMy WebLinkAbout2987 . • Borrower and Lender covenant and agree as fopowa: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest oa We iadebtednea evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest oa any Future Advances secured by thin Mortgage. 2 I+tiada forTasea and Iawraaoe. Subject to applicable law or b a written waiver by Cruder. Borrower shall pay to Leader on the day moath>,jr instapmeate of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to oae~ twelfth of t~fe yearly to:es and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plusone- twelRh ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, if any, all ae reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'Ills Funds shall bs held is an institution the deposits or aooounts of which are insured or guaranteed by a Federal or State agency (iaduding bender if Lender is ouch as institution). Lender shall apply the Funds to pay said taus. assessments, insurance premiums and ground rata. Lender may not diarge foot eo holding and applying the Flmds, analyzing said account. or verifying and compiling said aseesamenta and biW, unless Lender pays Borrower interest on the Funds sad applicable law permits Lender to make such a charge. Borrow and Leader may agree in writing at the tiaoe of execution of this Mortgage War interest on the Funds chap be paid to Borrower, and unless such agreement ie made or applicable law requires sndr iater+est to be paid, Lender chap not be required to pay Borrower any interest or earnings on We Flrnds. Leader shag give to Borrower. wildcat charge, as annual aeoountiag of the Funds showing credits sad debits to We Funds and We purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by Wiz Mortgage. If We amount of the Funds held by Lender, togeWer wild We future moa W ly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground rents. shag e:eaed We amount required to pay said to:es, assessments, inaurancee premiums and ground rents ae Wey fall due, such e:oess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on atonthly irutallmeats of Fnada. If We amount of We Frmda held by Lender shag not be eufficieat to pay tares, asaesamenta, insurance premiums and ground rents as Wey fall due, Borrower shag pay to Lender any amount necessary to make up the deficiency within 30 days from We dab notice ie mailed by Lender to Borrower requesting payment Wereof. 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 We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later W an immediately prior to the sale of We Property ce its acquisition by Lender, any Flinch 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 oWerwise, 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. Wen to interest payable on the Note. Wen to We princapal of the Note, and Wen to interest and principal on any Future Advanoce. 4. Charges; Liens. Borrower shall pay ap taxes, assessments and other charges, fines and impoaitiona 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 Wereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in We event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing wch payments. Borrower shall promptly discharge any lien which has priority over W is Mortgage; provided, W at Borrower shall not be required to discharge any such lien so 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 taiW 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 Inenranoe. Borrower shall keep We improvements now dating or hereafter erected on We Property insured against loss by fire, hazards induded within the tens "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 We minimum, as may be required by state or federal regulations governing activities of Lender, or Wat amount of rnverage required to pay We sums secured by this Mortgage, whichever is We greater. The inwrance carrier providing the insurances shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. AU premiums on insurance policies shall be paid in We 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 erect shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Leader. Leader shall have the right to hold We policies and renewals Wereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. Ia We event of loss, Borrower shall give prompt notice to We insurance carrier and Leader. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property ` damaged, provided such restoration or repair ie economically feasible and We security of this Mortgage ie not Wereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied to the sums secured by this Mortgage, wild We excess. if any, paid to Borrower. If We Property is abandoned by Borrower, or if Borrower fails to respond to Leader within 30 days from We date notice is mailed by Lender to Borrower Wat the insurance carrier offers to nettle a claim for insurance benefits, Lender is authorized to collect and apply We insurance proceeds at Lender s option either to restoration or repair of the Property or We sums 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 date of We monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of sud? installments. If under paragraph 18 ~ hereof We Property is acquired by Lender, ap right, title and interest of Borrower in and to say insurance policies and in and to the proceeds ~ Wereof resulting from damage to Property prior to We sale or acquisition shall pass to Leader to Wee:tent of the sums secured by this ~ Mortgage immediately prior to wch Bale or acquisition. ~ 6. Preservation and illaintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property is good repair and shall rat commit waste or permit impainneat or deterioration of the Property and shag comply wild We ¢ provisions of any lease if this Mortgage is on a leasehold. If Win Mortgage is on a unit in a condominium or a planned unit development, a Borrower shall perform all of Borrower's obligations under We declaration or rnvenanta creatingor governing We condominium or planned ~ unit development, We by-laws and r+egnlations of We condominium or planned unit development, and eonatituent documents. If a E condominium or planned unit development rider is ezecut~ed by Borrower and recorded togeWer wild this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the ~ rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform We ooveaants and agreements contained in this Mortgage. or if eny action or proceeding is commenced which materially affects Lendds interest in the Property. iadnding, bat not limited to, eminent domain, a insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wan Leader at Lender's option,npon notice to Borrower may make such appearances, disburse such sums and take such action as is neoeswry to protect Lendds interest, indnding, but not limited to, disbursement of reswnable attorney's fees and entry upon We Property to make repai». If Leader required mortgage insurance ae a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums required to maintain arch insurance in effect until each time as We requirement for such insurance terminates in accordance wild Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We meaner provided under ~ paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, wild interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lends: agree to older terms of payment, arch amonnta shall be payable upon s notice from Leader to Borrower requesting payment thereof, and shall bear interest from We date of diabnreement at the rate payable from time to time oa outstanding principal under We Note unless payment of interest at each rate would be contrary to applicable law, in which ' event such amounts shall bear interest at We highest rate prrmiaaible under applicable law. Nothing contained in Wiz paragraph 7, shall l require Lender to incur any ezpense or take any action hereunder. i 4 ~ BOOMJVU PAGEGJpv