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HomeMy WebLinkAbout2929 E. . , Borrower and Leader covenant and agree a. follows: 1. Pal?saeat of Psirtciptl sad Interest. Borrower shall promptly Pay whoa due the principal of and iatered on We indebtednep evid~osd by tM Note. prepayment and late charges u provided in the Note, sad the principal of end interest on any Future Advanea secured by this Mortgage. 2. PLnda for Ta:es and Iruuraaoe. Subject to applicable law or b a written waiver by Lender. Borrower shall pay to Lender on the dsy monthly instalbasettts of prindpal and interest are payable undm the Note. until the Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly to:ea and asaasmenta which may attain priority over this Mortgage. and ground rents on the Property. if any. plus oae• twelM of yearly premium installments for hazard insurance, plus one•twelfth oiyearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and !Foss time to time by Lender on the basis of essessmenb and bills and reasonable estimates thereof. TM Fends shall be held in as institution the deposits or accounts of which an insured or guaranteed by a Federal or State agency (including Lender u Lender is each an inutitution)_ Leader shall apply the Funds to pay said taxes. asaeaamenb. insurance premiums and ground rents. Lender may rest charge foe so holding and applying the Funds. analysing said account, os verifying and compiling said assessmaab and biW. nnlees Lender pays Borrower interest on the Fupda and applicable law pernuts Lender to make such a charge. $orrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower. and unlace such age+eernent is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or . earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting 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 ae additional security for the auras secured by this Mortgage. If the amount of the Panels held by Lender. togeWer with the future monthly installments of Funds payable prior to the due dates of taxes,. assessments. insurance premiums and ground ants. shall exczed the amount required to pay said taxes, assessments. insurance premiums and ground rents as Way fall due. ouch excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. U We amount of We Funds held by Lender shall not be sufficient to pay taxes, aaeeaarnents, insurance premimna and gronnd recta as Wey fall due, Borrower shall pay to Lender any amount necessary to make up We deficiency wiWin 30 days from the date notice is mailed by Lender to Borrower requesting Payment Wereof. Upon payment in fall of all sums aecnred by Wis 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 acquisition by Lender. any Fonda held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under We 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 the Note, then to We 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 the manner provided under paragraph 2hereofor, if not paid in such 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 Sonrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligation 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 We-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 rnverage; '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 rnverage required to pay the sums secured by this Mortgage. 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 insuranrn 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 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 We Property damaged, provided such restoration or repair is economically feasible and We 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 soma secured by this Mortgage, with the excess, if any, paid to Borrower. Itthe 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 i Hsu*ance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monWly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof We Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance poliriea and in and to the proceeds thereof reanlting from 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 each sale or eoquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall rnmply wiW 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, We by-laws and r~egulationa 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 wiW Wia Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the ; rider were a part hereof. t 1 7. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any action or pr~ocee~ding is commenced which materially affects 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, Wen Lender at Lender's option,upon I notice to Borrower may make each appearances, disburse such sums and take arch action as. is necessary to protect Lender's interest, ~ including, bat not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lends regoired ~ mortgage inanrance as a condition of making the loan secured by thin Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until arch time as We requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under f paragraph 2 hereof. - 1 Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other tears of payment, such amounts shall be payable upon ~ notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at the rate payable firom 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 We highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. 1 ~ arioK~~4 PAGE2~ _ 4~ 1