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HomeMy WebLinkAbout2900 c• Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest un the inciebtcdnesa evidenced by the Notr, prepayment and late charges ae provided in the Nate, and the principal of and interest an any Future Advances secured by this Mortgage. 2. Ptitnde for Ta:es and Insurance. Subject to applicable law or to a written waiver by (.ender, Borrower shall p:ty to I A nder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, ar sum t herein "Funds") equal to one tvgelfth of the yearly to:ea and asaeaamenta which may attain priarity over this Mortgage, and ground rents an the Property, if any, plus one twelRh of yearly.premium installments for hazard insurance, plusorte•twelfth ofyearly premium installments for mortgage insurance, ituny, all as reasonably estimated initially and from time W tierce by Lender on the basis of .u+aessments and bills and reasonable c~timatrs thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including !.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and gtTOUnd rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the F ands 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 W be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borriwer, without charge, an annual am,unting of the Funds showing credits and debits to the Funde and the purpose for which each debit W the Fonda was made. The F ands are pledged as additional security for the sums secured by this ' Mortgage. If the amount of the Fonda held by lxnder, together with tl?e future monthly installments of Fonda payable prior to the due dates of taxes, assessments, inawance premiums and ground rents, shall exceed the :+muunt required tcc pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BorTOwer's option, either promptly repaid to Borrower or credited to Harrower on monthly installments of Fonda. if the amount of the Funds held by lxnder shall net be sufficient to pay taxes, :+ssessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within days from the date notice is mailed by !.ender to Horrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Itorn,wer any funds held by Iw•ndrr if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall :+pply, no later than immediately prior to the sale of the Property or its acquisition by !.ender, any Funds held by !.ender at the time of applic•ution as a credit ag;uinst th+• sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by !.ender under the tiote and paragraphs 1 and 2 hereof shall be applied by lxnder first in payment of amounts payable to (,ender by Horrower under paragraph hereof, then to interest payable on the Note, then to the principal of the Nate, and then to interest and principal on any Future Advances. • A. Charges; Liens. Borrower shall pay all !axes, assessments and other ch:+rges, fences and impositions attributable to the Pru{,+vt}• which may attain a priority over this Mortgage, and leasehold payments or Kmund rents, if any, in the manner pn,vid+d under paragraph L hercr,f ur, if not paid in such manner, by Harrower making payment, when due, directly to the payet• thc•n.,f. horr„wer shall promptly furnish to Lender all notices of amounts due under Chia paragraph, and in the event Horrower shall make p:+yment dircc•tty, Rorro+ver shall pnunptly furnish to (.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this ~lortg:ag;c•; pruvidc•d, that harrower shall not be required to discharge any such lien so long aq 13ar_rower shall agree in writing to the payment.,f the obligation sc~e•und by wch lien in a manner acceptable to lxnder, or shall in g;cxxl faith contest such lien by, ordefend enfon•e•ment of such lien in, Irgal pnn-+•c•clings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part then.,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the 1'ropert~• incurcd :+gainst lass hy- 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 Lender may require; provided, that !.ender shall not require such coverage amount exceeding{ the minimum, :+s may lx• rc•duired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums sc•c•ur+d by this ~1urtK~+K+•. whichever is the greater. The insurance carrier providing the insurance shall be chosen by Korruwc•r subjctia to approval by I.c•nder. providcri, that su,-h approval :hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pn,vui+•cl wcdcr pary;r.,ph hc•n•of ur. if not paid in such manner, by Horrawer making payment, when dur•, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in Favor of and in form acceptable to Lender. Lender shall have the right to held the policies and renewals thereof, and horn,wer shall promptly furnish to sender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notic+• to the• insurance Tamer and Lender. Lender may make proof of lose if not made promptly by I3orrower- 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 sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Horrower, or if Harrow er fails to respond to Lender within :10 days from the date notice is mailed by lxnder to Horrower that the insurance carrier offers to settle a claim for insurance benefits, Lender ie authorized to collect and apply the insurance proceeds at Lender's option either to restoratian 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 shat I not extend or postpone the due t date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph Ifl 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 I thereof resulting from damage to Property prior to the sale or acquisition ahall-pasa 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; Condominums; Planned Unit Developments. Horrowerahall 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 Aortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Horrower'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 I,e inc•orporated into and shall amond and supplement the covenants and agreements of this Mortgage as tithe x rider were a part herec,f. 7. Protection of Lender'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 Lendei s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender a option,upon 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 IimitRd 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 inswence in effect until such time as the requirement for such insurance terminates in accordance with Borrower a and Ixnder'e written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under `z paragraph 2 hereof. - Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Horrower secured by this Mortgage. Unless Borrawer and Lender agree to other terms of payment, such amounts shall be payable upon - notice from lxnder 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 amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall _ require Lender to incur any expense or take any action hereunder. a~~cr 310 ~a~:2898 a, - - _ .9 _ - .