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HomeMy WebLinkAbout1940 Borrower and Lender covenant and agree a. followh: 1. Payment of Principal and taterest. Borrower shall promptly pay when due the principal of and interest on the indebtednehs evidenced by the Note, prepayment amd late charges as provided in the Note, and the principal of and interest on any Future Advances secured by thin Mortgage. Z. Ptiarads for Taxes and tnsuraace. Subject 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 Note is paid in full, a sum (herein "Flinch") equal to ores twelfth of the yearly taxes and assessments which may attain• priority over this Mortgage. and ground rents on the Property, if any. plus one• twelfth of yearly premium instalLnenth for hasard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and frot:a time to time by Lender on the basis of saseasments and bills and reasonable estimates thereof. The lalaadh shall bs held in an institution the deposits or aeoounts of which are insured or guaranteed by a Federal or State agency (including Lender ff Lender is such an institution). Leader shall apply the Fuadh to pay said taxes. assessaments,.insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said assessments and biW, unless Lender pays Borrower interest oa the Fundh 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 s agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or gs on the Funds. Lender shall give to Borrower, without charge, sn annual aeoounting of the Funds showing credits and debits to the Funds and We purpose for which each debit to the Fluids was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments olFunds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall e:oaed We amount required to pay said taxes, aseesamenta, insurance premiums and ground rents ah they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ptimds. If the amount of the Elands held by Lender shall not be sufficient to pay taxes, 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 fall of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf 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 sak 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 sad 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 oa the. Note, then to the principal of the Note, and then to intsr+est and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxed, 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 famish 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 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 sow existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lendet may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by a 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 1 shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not aid in such manner. Borrower makin p by g payment, when due, direMly 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 is 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 Lender. Lender may make proof of lose 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 j restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied j to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to f respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle s claim for insurance benefits, Fender is authorized to collect and apply the insurance proceeds at Lenders 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 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. If under paragraph 18 hereof the Property is acquired by Lender, all right, tit]e and interest of Borrower in and to any insurance policies and in and to the proceeds thereof rehulting fiom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condoaniaums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not oammit 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 ie on a unit in a condominium or s planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or eovenante 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 development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of euckrider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a -part hereof. Protection of Lender's Security. If Borrower fails to perform the oovenante and agreements contained in this Mortgage. or if any action or proceeding is eommenoed which anaterially affects Lenders interest in the Property, including, but not limited to, eminent domain, insolvency. code enforcement, or arraagemen4 or proceeditgs involving a bankrupt or decedent, then Lender at Lenders option,upon notice to Borrower may make such appearances, disburse such sums and take each action as is necessary to protect Leader's interest, including, but not limited to, disbursement of zeasoaable attorney's fees and entry upon the Propedy to make repairs. If Lender required mortgage insurance as a oomdition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain g; such insurance in effect until each time ah the requirement for such insurance terminates is aoDOrdance with Borrower's and Leader's - written agreement or applicable Law. Borrower shall pay the an:onnt of all mortgage insurance premiums in the manner provided under - ~ paragraph 2 hereof. Any emonnts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedneha of ~ ~ Borrower secured by this Mortgage Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon I ~4 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 anlese payment of interest at such rate would be contrary to applicable law, in which event each amounts shall bear interest at the h" hest rate pp paragraph 7, shall erg permissible under a licable law. Nothing contained in this _ require Lender to incur any expense or take any action hereunder. ss s~~~30~ ~a~:1940 w ~ ~ _ _ ~ y ~ rte's _ ' ~ mss, Y ~ ~tim_