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HomeMy WebLinkAbout0712 .i ; a F Borrows: and Leader covenant and ogres as follows: 1. Payarent of Principal sad Interest. Borrower shall promptly pay when doe the principal of and interest oa the indebtednea evidenced by the Note, prepayment and late charges as provided is the Note, and the principal of and interest on any 1?btare Advances accused by thin Mortgages Z. Fonds [or Taues and Insurance. 3ubjed to applicable law or to a written waiver by Lender. Borrower shall pay to L~der on the day monthly inewleaents of principal aSrd interest are payable under the Note. until the Note ie paid is full. a sum (herein "Funds' equal to ono twelfth of the yearly taxes and assasmenta which may attain priority over th4 Mortgage. and ground rents on the Properly, if any, plus o~~- twelith ofyearlypremiuminstallments for hazard insurance. Plus one•twelRh otyearly premium installments for mortgage insurance, itany. alt as raaeouably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof The Fltnds shall be held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Leader shall apply the Funds to pay said taxes. aaaaments, insurance premiums and ground rent. Leader may not charge for so holding sad applying the Funds. analyring said actionnt, or verifying and compiling said aaseaatents and bill, noises Leader pays Borrower ir?terest on the Funds and applicable law pernuts Lender to make such a charge, Borrower and Leader may ogres in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and anises such agreement is made os applicable law requires such interest to be paid, Lender shall not be required to prpt Borrower any interest or ; earnings oa the Flmds. Lender shall give to Borrower. without charge, an annual aeoountiag of the Inds showing credits and debits to the FuncL and the purpose for which each obit to the Funds was made, The Funds are pledged as additional security for the sums secured by this Mortgages if the amount of the Footle 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 exceed the amount required to pay said taxes, assessments„ insurance premiums and ground cents as they fall due. such ezcess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonds. If the amount of the Funds held by Leader shall not be sufficient to pay taxes, assets, insurance premiams and ground rents s. they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date police is mailed by Lender to Borrows requesting payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. V padre paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, ao toter than immediately prior to the sate of the Property or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the sums second by this Marlgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender undo: the Note and paragraptu 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrows under paragraph 2 hereof, then to interest payable on the Note, then to the 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 2 hereof or, _ if not paid in such manna, by Borrower making payment, when due, directly to the payee thereof. Borr+owershal) promptly furnish to Lender atl 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 aecared by such lien in a manner a 1 oceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of 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 the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the terra "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 the soma secured by this Mortgage. The inwrance carrier providing the inaunrnce~hall_be chosen by Borrower su bZect 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 manner, by Borrower making payment, when due, direMly to the insurance carrier. AU 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 Bortowerahal! promptly furnish to fender all renewal notices and all receipts of paid premiums. In the event of foss, 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 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. If the Property is abandoned by Borrower, or it 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 setae 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 the auras secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedne date of the monthly instagments referred to in paragraphs l and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by bender, 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 the extent of the sums second by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and)1laiatenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borr+owershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property end 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants cteatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and eonatituent docamenta. It s condominium or planned unit development rider is executed by $orrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the rider wen a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the wvenants and agreements contained in this Mortgage, or if any action or proceeding is oo~mrnenoed 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 deredent~ they Lender at Lender's option,apon notice to Borrower may make such appearances, dislwrae such sums and take such action as is neeasary to protect I.er?det"s interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for ouch insurance terminate in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lends 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 terms of payment, such amounts shall be payable npan notice from Lends to Borrower requesting payment thereof, and shall bear intered from the date of dubnrsement ai the rate payable from time to time on outstanding principal antler the Note unless payment of interest at such rate would be wntrary to applicable law, in which event such amounts shall bear interest at the highest rate permisrible under applicable law. Nothing contained in this paragraph T, shall require Lender to incur any expense or take any action hereunder. . ~ ;1~ 31.5 P4cE 710