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HomeMy WebLinkAbout0909 _ _ ~ .-l.. Borrower sad Lender covenant and ogres ,sa folbvrs: 1. Pt~yment of Principal and Interest. Borrower shall promptlj pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2. Ponds for Tazea and Insttranee. 3ubjed to applicable law or b a written waiver by Larder, 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 "Fnnds'~ equal to one• twelfth of the yearly tares and assessments which may attain priority over this Mortgage. and groundrents ontheProperty, ifany.plus one- tweiRh ofyearly premium installments for hazard insurance, plus one•twel tth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held is an institution the deposib or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is anch an institutioa). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground vents. Lender ms~y not charge for so holding and applying the fltrtds, analyzing said account. or verifying and compiling said assesamenfs and bills. unless Lander pays Borrower interest on the Funds and applicable law peranits Lender b make such a charge. Borrower sad Lender many agree in writing at the titres of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless ouch agreement is made or applicable law requires anch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Futtds. Letxler 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 b the Fltuds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates of taxes, aseesameats, insurance pzemiuma and ground rents, shall exazed the amount required to pay esid taxes, sasesamenta, insurance premiums and ground rests as they fall dne, arch extxas shall be, at 8ottrower s option, either promptly repaid to Borrower or credited b Borrower on monthly inatalhnents of Fonda. V the amount of the Funds held by Lender shall not be auf~icient to pay taxes, assesameats, insurance premiums and ground rafts as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower 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. 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 Funds held by Lender at the time of application as a credit against the soma 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 henwf shall be applied by Lender first in payment of amounts payable to Lender by Borrower render 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. 1 4_ Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which i may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrowerahall promptly furnish toLettder i ell notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall pranptly furnish b Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that I 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 shat l in good faith contest such lien by, or defend 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 loos by fire, hazards included within the term "extended rnverage; and such other hazards as Lender may require and in such amounts and for ouch 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 insurance carrier providing the insurance shall be chosen by Borrower subject to approval by (.ender, provided, that such approval shall not be unreasonably withheld. A1! premiurtta nn insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if 3 not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. I 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. [.ender shall have the tight to hold the policies and renewals thereof, and Borrowerahall 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 anch restoration or repair is economically feasible and the security of thin 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 if Borrower fails to respond b 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 Properly or We sums 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is aoquir~ed 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 the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominuma; Planned Unit Developments. Bomowershall 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 Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants cteatingor governing the rnndominium 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 be incorporated into and shat l amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, ce if any action or proceeding is commenced which materially affects Lender a 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 sack appearances, disburse such Boma and take such action as is necessary to ported Lender's interest, including, but not limited to, disbursement of reasonable attorney a 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 anch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall became additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other temps of payment, anch amounts shag be payable upon notice from Lender 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. ``"315 y07