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HomeMy WebLinkAbout2482 Borrower and Leader covenant 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 as provided in the Note. and the principal of and iatrest oa any Future Advances secured by this Mortgage. 2. Funds for Tares and Insurance. f3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installment of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fuads'~ equal to oae- twelRh ofthe yearly tares sad assessments which may attain priority over this Mos<gage, and ground rents on the Property, if any. plw one- twel~th of yearly premium installments for hasard insurance, plw one•tweltth of yearly premium installments for mortgage insurance, if any. all s. reasonably estimated initially and frob~ time to time by Lender on the basin of asaaament and tilt and reasonable estimates thereof. The Fends shall be held is an institution the deposit or account of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such an institution). Leader shall apply the Funds to pay said lases, assessments, insurance premiums and ground rents. Lender may not charge fce so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and biW, ualesa Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower sad Lender may agree is writing at the time of execution of this Mortgage that interest on the Funds shall 6e paid to Borrower, and anless such agreement is made or applicable law requires such interest to be paid, Lender shall not bs required to pay Borrower any interest or earnings on We P1mds. Leader shall give to Borrower, without charge, an annual soaounting of the Funds showing credits and debits to the Fuada and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. Utbe amount of the Funds held by Lender, togeWer with the future monthly installment of Funds payable prior to the due dates of lases, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said lases, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited Lo Borrower on monthly iastalbnent of Funds. If the amount of the Funds held by Leader shall not be'sufficient to pay tales, assessments, insurance premiums and ground rents as they faA dw, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dat~aotice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender ahaU 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, Leader ahaU apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. ~}~egj~, 3. Application of Payments. Unless applicable )~;vvP,prg~c~e~s~~-~ ~O tai received by Lender undue the Note and paragraphs 1 and 2 hereof shall be applied by Lender firtit erg a o t~~~b derby Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of We Note, and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all lases, ~tmd , , - 'j~tns attributable to the Property which may attain a priority over thin Mortgage, and leasehold payments orgrtiund ran i an in the manner~rovided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, wher~Zldl; ~ire~tly ~ ~ereo~: $orrov6ler shall promptly furnish to Lender all notices of amounts due under this paragraph, and in tltsevent8orrowelr aha11 make payment directiy, Borrower shall promptly furnish to L~der receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahaU 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 enforcementof 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 We improvement now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "ezteaded rnverage," sad 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 the minimum, as may be required by elate 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, 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 I,ende:. Lender shall have the right to hold the policie8 and renewals thereof, end Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of lase, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Bonrower. 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 E to the soma aecnred by this Mortgage. with the excess, if say, 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 ogers to settle a claim for insurance benefits, Leader 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 thin Mortgage. i Unless Lender sad Borrower otherwise agree in writing, say such application of proceeds to principal shall note:tend or postpone the due 6 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 aegaired by Lender, all right, title sad interest of Borrower in and to any insurance policies and in and to the proceeds thereof ~resnlting from damage to Property prior to the sale or acquisition shall pass to Leader to the extent of the soma secured by thin Mortgage immediately prior to ouch sale oz acquisition. ~ 6. Preservation and Maintenance 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 thin Mortgage is on a leasehold. If thin 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 rnndomiaium or planned unit development, and constituent document. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the eoveaaat and l agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of thin Mortgage as if the r rider were a part hereof. _ 7. Protection of Lender's f3ecarity. If Borrows: fails to perform the aovenaat sad agreement contained in this Mortgage. or if any action or proceeding is commenced which materially affects Leader's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangement or proceedings involving a bankrapi or decedent, then Lender at Leader's option,npon notice to Borrower may make such appearances, disburse such sums sad take such action as is necessary to protect Lender's interest, including, but not limited to, disbnrsemeat of reasonable attorney's fees and entry neon the Property to make repairs. If Leader required mortgage insurance as a condition of malting the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in efTect until such time as the requirement for such insurance terminates in accordance with Borrower's sad Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under 3 Paragraph 2 hereof. Any amount disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lends agree to other terms of payment, anch amount shall be payable upon notice from Lerida to Borrower requesting payment thereof, and shall bear interest from the dal of dubnrsement at the rate payable ltom r time to time oa ontstandiag principal Hader the Note unless payment of interest at sack rate would be contrary to applicable law, in which event ouch amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereunder. y 4 - F~R,310 Y~~r2480 . ~ ~ ~ ~ a