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HomeMy WebLinkAbout1932 Borrower and Lender covenant and agree as folbws: 1. Paysaent of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indeb ass evidenced by the Note. prepayment and late charges a. provided in the Note, and the principal of and interest on any Future Advances ured by thin Mortgage. 2. Funds for Tszes and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender o the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Fonda") equ to one• twelfth of the yearly tares and assepments which may attain priority over this Mortgage. and ground rents on the Property. if any, lus one• twelfth of yearly premium installments for hazard insurance. plea onstwelfth of yearly premium installments for mortgagt insuran , if any. all as reasonably estimated initiaQy and frown time to time by Lender on the basis of assessments and bills and reasonable estima thereof. The Enacts shall be held in an iastitntioa the deposits or accounts of which are insured or guaranteed by a Federal or Sts agency (including Lender if Lender is such an institution). Lander shall apply the Funds to pay said tares. aaecesments, insurance premi and ground rents. Lends may not charge for so holding and applying the Funds, analyzing said account, or verifying and compi said assessments and bills, unless Lender pays Borrower iatenat on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender 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 regaires wch interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Fonds. Lender shall give to Borrower. without charge. an annual aooounting of the Funds showing credits and debits to the ~ Fonda and the purpose for which each debit to the Funds was made. The Fonda are pledged ere additional security for the sums secured by this Mortgage. ` If the amount of the Funds held by Lender, together wiW the future monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground rents, shall ezoaed the amount required b pay said fazes, asaeasmeata, insurance premiums ti and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of Funds. if the amount of We Fonda held by Lender shall not be sufficient to pay fazes. 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 Lender to Borrower requesting Payment thereof. - Upon payment in roll of all soma secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. L[urider paragraph 18 hereof the Property is sold or the Property is oWerwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fuada held by Lender atthe time of application as a credit against the soma secured by this Mortgage. 3. Appilcation of Payments. Unless applicable law provides othervpiee, 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; Liana. Borrower shall pay all fazes, asseeamenta 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 thereoL 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 Borrows 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 improvements now eziating or hereafter erected on the Property insured against loss by fire, hazards included withia We term "eztended 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 ezceeding the minimum, as may be required by state or federal regulations governing activities of Lender. or that amount of coverage required to pay the soma 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. AU 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 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 receipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carrier and bender. Lender may make proof of lass 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 sack restoration or n~pair 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 sums secured by this Mortgage. with the ezoess, if any. Paid to Borrower. If We 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 settle a claim for insurance benefits. Lender is anWorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage- Unlese Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Lf 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 fiom 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 each sale or acquisition. 6. Preservation and i1[aintenance 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 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 bylaws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Secartty. If Borrower fails to perform the oovenanta and agreeanente contained in this Mortgage. or if any action or proceeding is oommenoed which materially affects Lender's interest in the Property, including. but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a banksnpt or decedent, then Leader at Lender's option,npon notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to protect Lender's interest, _ including. but not limited to, dialinrsement 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 such insurance in effect until such time as the requirement for such iaanrance terminates in aoeordaace 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. Any amounts disbursed by ads perauant to this paragraph 7, with interest, thereon, shall become additional indebtedness of Borrower secured by this Mortgag Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon ~ notice from Lender to Borrower req flog payment thereof, and shall bear interest from We date of disbursement at the rate payable from time to time on outstanding principal der the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear iaterw t the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any e:penee o take any action hereunder. s box 307 ~~E 1932 t. - - - - r 3`