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HomeMy WebLinkAbout2991 . . r . , Borrowee sad Lender oovanant and agree as folbws: 1. Payment of Princlpal and Iatesest. Borrower shall promptly pay when due the psindpal of and interest on the indebtedness ~ evidenced by the Nots, prepayment and late charges as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2 Funds for Ta:ea and laauraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to i.end~ on the day monthly instalhneab of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to ore~- twelfth ofthe yearly lases and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelRh ofyearly premium installment for hassrd insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, ~ all as reasonably estimated initially sad from time to time by Lender on the basis of asseeamenb and bills and reasonable estimates thereof. j The Farads shall be held is an inetitutioa the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay said lases, asaesamenb, insurance premiums and ground rant. Lender mr~y not charge for so holding and applying the Funds. analysing said account, or verifying and compiling said assegmenb and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecution of this Mortgage that interest oa the Funds shall be paid to Borrower, and unless ` such agreement is made or applicable law requires such interest to be paid. Leader shall not be required to pay Borrower any interest or earnings on the PLnda. Leader shall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to We Funds was made.-The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Pbnds held by Lender, together with the futon monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground nub, shall exa~ed the amount required to pay said to:ea, asaeasmenta, insurance premiums ; and ground nab as they fall due, such a:Dees shall be, at Borrower's option. eiWer promptly repaid to Borrower or credited to Borrower on monthly iastaUmenb of Fhnds. if the amount of the Funds held by Lender shall not be sufficient to pay tares, asaeasmenb, insurance. premiums and ground nab as they fall due, Borrower shall pay to Lendes any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all arms secured by this Mortgage, Lender shag 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 Leader, Lender shall apply, no later than immediately prior to the sale of the Property or ib 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 payment received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof, - then to interest peiyable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advaneea. 4. Charges; Liens. Borrower shall pay all fazes, aasessmenb and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payment or ground ants, if any, in the manner provided under paragraph 2 hereof or, if not paid in arch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounb due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to { Lender receipt evidencing such payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that i 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 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. Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "ezteaded coverage," and such other hazards as Lender may require and in such amount and for such periods as Lender may regain; provided, that Lender shall not regain such coverage amount exceeding the minimum, as may be required by aisle or federal regulations governing activities of Lender, or that 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 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 acceptble to Lender and shall include a standard mortgage clause in favor of ' and in form acceptable to Lender. Lender shall have the right to hold the policies and nnewais thereof, and Borrower shall promptly furnish to 1 i.ender all renewal notices and all receipt of paid premiums. In the 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 otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property 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 this Mortgage would be impaired, the insurance proceeds shall be applied to the same secured by this Mortgage, with the e:eeas, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to respond to Lender withi? 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefit, Lender is authorized to collect sad apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. ~ Unless Lender sad Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installment referred to in paragraphs 1 sad 2 hereof or change the amount of such installment. If under paragraph 18 hereof the Property is aegnired by Lender, all right, title and interest of Borrower in sad to any insurance policies and in and to the proceeds I thereof resnltiag from damage to Property prior to the sale or acquisition shall pass to Lender to the a:tent of the sums secured by this ' Mortgage immediately prior to such sale or acquisition. s 6. Preservation and Maintenance of Property; Leaeeholda; Condominuma; Planned Unit Developments. Borrower shall keep f the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the rovisiona of an lease if this Mo p y rtgage is oa 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 covenant creatingor governing the condominium or planned unit development, the by-lava and regulations of the condominium or planned unit development, and oonstitnent document. If a condominium or planned unit development rider is a:scaled by Borrower and recorded together with this Mortgage, the covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider wen a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the oovenanb and agreemeab contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lenders interest in the Property, including, but not limited to, eminent domain, insolvency. node enforcement, or arrangemeab or proceedings involving a bankrupt or decedent, then Leader at Leadei s option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is neoesasry to protect Leader's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If bender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay We premiums required to maintain such inanrsace in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Asy amounb 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 Leader 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 unless payment of interest at such rate would be contrary to applicable law, in which event such amounb shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall 5 require Lender to incur any expense or take any action hereunder. gooK 306 o~E 2987 - f~ r_~.