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HomeMy WebLinkAbout0527 _ . _ - - Bosrowec and Lander covenant and agrss as iolbwa: 1. Payateat of Petacipal sad Interest. Harrower shall promptly pay what due the principal of and interest oa the indsbtednea evidenasd by the Note, prepaymsat and fats charges y provided In the Note. and the principal of and iateeest on any Phtnee Advanea secwred by this Moetgags. ~ Iwnda for Ter:es sad Inatranoe. 3ubjed to applicable law or to a written waiver by Lends, Borrower shall pay to Lender on the day monthly inataliments o[prindpal and interest are payable under the Note. until the Note is paid in full. a sum (herein •'Funds'7 equal to one- 4weltth ottM yearly to:ea and aaaamenta which a~ay attain priority over this Mortgage, and ground rents on the Property. if any. plw a~? twelRh of yearly premimn installmenb for hazard inauraaes, plus onstwelfth of yearly premium installments for mortgage inauranos, i[any. all ss reasonably estimated initially and fkam time to time by Lender on the basis of assessments and bi1L and reasonable estimates thereof. ~ The I+ltnds shall be beta in an inatitntion the deposits or aooounes of which are insured or guaranteed by a Federal or State agency (including Iwadm if Leader is snch an institution). Leader shall apply the Funds to pay said tares. assessments, iruurance premiums and gronnd rants. Lender may rat d~args fa so holding and applying the Fonda. analyzing said aornunt, or verifying and eompiliag acid aaaessmeatr and bilb>, nalesa I.ertde: pays Borrows interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Lander may agree in writing at the time of execution of this Mortgage that interest on the Ptinda shall be paid b Borrower. sad ndess sock agr+esment i. made or applit:able law regnira snch interest to be paid, Lender shall not be required to pay Borrower. any interest or earnings on the Fttr~ds. Landes shall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debib to the Fonds and the pnrposs for which each debit to the Funds was made. The Funds are pledged as additional security for We arms aecnred by this Mortgage. . If the smoant of the Funds held by Lender. together wiW the futon monthly instalments of Funds payable prior b the due dates of taxes. ansassaents, irumanoe premiums and ground rents. shall exceed the amount r'egdr'ed to pay said taxes, aasesamenls, insurance premiums and ground renb as they fall doe. such excess shall be. at Borrowed option, either promptly repaid to Borrower or credited to Borrower on monthly installments o[ Fuada. U the amount of the Pearls held by Lender shall rat be sufficient to pay taxes. assessments. inanraaca premi®s and ground rents as they fall doe. Borrower shall pay b Lender any amount necessary to make rep the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment is fall d all sons second by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. Uunda paragraph 18 hereof the Properly is sold or the Property is otherwise acquired by Lender. Lender shall apply. no Isla than immediately prior to the sale of the Property err its aognidtion by Lender. any Linda held by Lender at the time of application sa a credit against the sums secured by this Mo~tgaga 3. Application of Payments. Unless applicable law provides otherwise. aA payments received by Lender ands the Note and paragraphs 1 sand 4 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrows undo paragraph 2 hereof then b interest payable on the Note. then to the principal of the Note. and then to interest and principal on any Futon Advances. 4. Charges; Liens. Borrmerer shall pay aq taxes,assessments and other charges. fines and impositions attributable to the Property which may attain a priority ova this Mortgage, and leasehold payments or ground rents, if any, in the manna provided nods paragraph 2 hereof or, . if not paid in arch manna, by Borrows making payment. when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due ands this paragraph, and in the event Borrows shall make payment dimtly, Borrower shall promptly furnish to Lends receipts evidencing such payments. Borrows shall promptly discharge any lien which has priority ova this Mortgage; provided, that Borrows shall red 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 manna acceptable to Lender, or shall in good faith rnnteat such lien by, or defend enforcement of such lien in, legal proceedings which opsate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Berard Insurance. Borrows shall keep the improvements now existing or hereaRer erected on the Property inanred against loss by 5re, hazards included within the term "attended oovsage," and such other hazards as Lender may require and in such amounts and for such periods as Lends may require; provided, that Lends shall not regain that the amount of such doverage atceed that amount of coverage required to pay the some secured by this Mortgage. The insurance cams providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approve! 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 manna, by Borrows 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 Lends. Lender shall have the right to hold the policies and renewals thereof, and Borrows shall promptly furnish to lends all renewal notices and all receipts of paid premiums. In the event otlosa, Borrower shall give prompt notice to the insurance carrier and Lends. Lends may make proof of lose if not made promptly by Borrows. ~ Unless Lends and Borrows 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 sndi 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 auras secured by this Mortgage, with the ezeeaa, if any, paid to Borrows. If the Property is abandoned by Borrows, or if Borrows faib to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance Car[IS offers to setae a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option eiths to restoration or repair of the Property ce the sums secured by this-Mortgage. Unless Lerida and Borrows otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 besot or change the amount of such installments. If ands paragraph 18 hereof the Property is acquired by Lends, all right, title and interest of Borrower in and to any insurance policies 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 such sale or acquisition. - 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrows shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Properly 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, Borrows shall perform all of Borrower s obligations ands the declaration or rnvenanta 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 snit development rids is executed by Borrows and recorded togeths with this Mortgage, the wvemsnts and agreements of such rids shall be incorporated into and shall amend and auppl4riient the covenants and agreements of this Mortgage as if the rider were a part hereof. Protecttoa of Leader's Security. If Borrows fails to psform the covenants end agreements contained in this Mortgage, or if any action or proceeding is oommaieed which materially affects Lenders interest in the Property. induding, but nol limited to, eminent domain. insolvency. code enfor+oement, or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lenders option,npon notice to Borrows may make each appearances, disburse such soma and take such action as is necessary to protect Lsrder'~ interest, indading, bat not limited to, disbaraement of reasonable attorney's fees and entry upon the Property to make repair. If Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows shall pay the premiums required to maintain such insurance in effect nntii such time as the requirement for such insurance terminates in aeoordance with Borrower's and Lendet'a written agreement err applicable Law. Borrows shall pay the amount of all mortgage insurance premiums in the manna provided ands paragraph 2 hereof. Any amounts disbursed by Lends persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unlace Borrows and Lends agree to oths lama of payment, such amounb shall be payable upon notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of disbnnement at the rate payable from time to time on outstsnding principal undo the Note ankss payment of interest at such rate would be contrary to applicable law, in which event aneh amonnta shall bear interest at the highest rate permissible ands applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any a:pence or take any action hsennds. . B~oK 315 PACE 5Z~