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HomeMy WebLinkAbout1153 Borrower and Lender rnvenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and interest on any Future Advances secured { by this Mortgage. 2 F1mds for Taxes and Insurance. Subject to applicable law or b a written waiver by I.ender, 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 "Funds") equal to one t twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, i all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. j The Funds shall be held in an institution the deposits or aceougts of which are insured or guaranteed by a Federal or State agency ~ (including Lender if Lender is each an institution). Lender shall apply the Funds b pay said taxes, assessments, insurance premiums and ~ ground rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said ~ assessments and bills, unless Leader 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 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 be paid, Lender shall not be required b pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual aeoounting 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 soma secured by this ~ Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, t+Ha~l'e*i~ed the ~t4id~ltMegitirejA pay said tares, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BorrovHe' promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds bRlds ~ all not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to ~n "~nnt deceb'shry to make up the deficiency within 30 days, from the date notice ie mailed by Lender to Borrower requesting payrtllM~uereot. _ Upon payment in full of all awns 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 aequiaition by Lender, any Funds held by Lender at the time of application ash credit against the arms secured by this Mortgage. 3. Application 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 Bonaower 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; 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 themanner 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 all noticeaof 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 rnntest 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire. hazards Included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lends may require; provided, that Lender shall not require such coverage amount exceeding 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. 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. dinxtly to the insurance carrier. All insurance poUcies 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 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 j 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 awns secured by this Mortgage, with the excess, 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 settle a claim for i insurance benefits, Lendez is authorized 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. Unless Lender and Borrower otherwise agree in writing, any such applieation of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each installments. If 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 from damage to Property prior to the sale or aoquiaition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and ffiaintenance of Property; Leaseholds; t~ondominums; 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 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 such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. - 7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to. eminent domain, 1 insolvency, code enforcement, or arrangements or proceedings involving a bsnkrapt or decedent, then bender at Lender's option,apon notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to ported Lender's interest, including, but not limited to, disbursement 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 insurance terminates in accordance with Borrower's and I.ende:rs 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 Lender persuant to thin 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 amounts shall be payable neon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time b time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law. in which event such amounts shall bear interest at the highest rate penniasible under applicable law. Nothing contained in this paragraph 7, shall ~ require Lender to incur any expense or take any action hereunder. 308 5 -~~:1153 , n:~'