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HomeMy WebLinkAbout0579 N Borrower and Leader oovenaat and agree u folbws: I. Papmeat of Psiueipal sad IateresR Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, praq?yment sad late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgages 2 Ptiutda for Taxes sad Inaaranee. 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 "I~?nds") equal b one` twelfth oithe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, iiany, plus one- iwelith ofyearlypremium installments for hazard insurance. plus onetwdflh of yearly premium installments for mortgage insurance, if any. all u reasonably estimated initially and from time to time by Lender on the basis of assessments and bilb and reasonable estimates thereof. The Phttds shall be held in an institntion the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender it Lender is such an institution). Lender shall apply the Funds to pay said to:es, assessments, insurance premiums and ground r+enta 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 on the Funds and applicable law permits Lender to makesuch a charge. Borrower and Landes may agree in writing at We time of execution of this Mortgage Wat interest on the Funds shall be paid b Borrower, and unless such agreement is made or applicable law requires snch interest to be paid. Lender shall not be required b pay Borrower any interest or earnings oa the Ptimds. Lender shall give to Borrower, without charge, an annual aeoounting of the Funds showing credits and debits to the Fuads and the pnepose for which each debit to the Funds wile made. The Funds are pledged u additional security for the sums secured by thin Mortgage. If the amormt 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. shall e:caed the amount required to pay said taxes, assessments, insurance premiums and ground rents u they fall due. such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by Lander shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents u Way fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by W is Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is oWerwiee acquired by Lender, Lender shall apply, no later Wan immediately prior to We sale 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 Mortgages , 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 Borrower under paragraph 2 hereof, then to interest payable on We Note, Wen to We principal of We Note, and Wen 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 Wia Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if notpaid in each manner, by Borrower making payment, when due, directly to the payee thereof 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 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 er?forrnment of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrows: shall keep the improvements now existing or hereafter erected on the Property insured against loss 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 Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay We sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subjeM 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 paragrap~? 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 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 ~ damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such i` 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 sums secured by this Mortgage, with the excess, if any, paid to Borrower. I f 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 ~ insurance benefits. Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or We arms secured by Wia Mortgage. , Unless Lender and Borrower oWerwise agree in writing, any such application of pra~eeds to principal shat)not extend or postpone the due f date of We monthly installments refer-ed 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, 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 acquisition shall pass to Lender to We extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrowershall keep ' the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with We 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, We 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 Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially aftccte Lender'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's option,upon notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney 8 fees and entry upon We Property to make repairs. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insnrance in effect until each time as We requirement for such insurance terminates in accordance wild Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided undo: _ Paragraph 2 hereof. My amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secnred by Wis Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at We rate payable from time to lime on outstanding principal under We 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 perrr?iseible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. j - s s~K 314 PacE 577 ~ - ' r. ~