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HomeMy WebLinkAbout1244 - - - _ a~ . _ - R Borrower and Lender covenant and agree a. follows: 1. Psq?ntent of Principal and Inteewt. Borrower shall promptly pay when dw the principd of and interest on the iadebfedoass evidenced by the Note, prepayment and late charges u provided in the Note, and the principal deed intered on any Ptirtar+s Advanoa seeared by this Mortgage. Z. Penile for Tries and Ilawranoe. Subject to applicable law ar b a written waiver by Lender, Borrower shall pay to Lenderoa the dq monthly insWhnertta of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Faads'1 egad to oua- twelRh of the yearly lases and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any. phts os?e~ twelRlt of yearly premium insleJba4ents far hasard insurance, plw onstwelRh of yearly prenuum installments far mortgage insoraooe. itarty. all as reasonably estimated initially and frees time to time by Lender on the basis of anenrnenta and bills and reasorusbie estimates theseot The Penile shall bs held in an institution the deposits or aooounts of which are insured ar guaranteed by a Federal ar State ~7 (including I.wder if Lender is such as institution). Lender shill apply the Funds to pay said taxes. assessments. insoraaoe premissas and ground rents. Lender may cwt chugs fee so holding and applying the Funds. analysing said aeoount, ar ve:ifyirtg and oompi4ng said asseamertts and bills. unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make sndt a draege. Bosrewer and Lender may agree in writing at the time of esecution of thin Mortgage that interest on the Penile shall be paid to Borrower. and rnlass such agreement i. made ar applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Ptimds. Lender shall give to Borrower, without charge, an annual accounting of the Penile showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums 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 due dates oftaaes~, assessments, insurance premiums and ground ants. shall exceed the amount required to pay said lases„ s~aesateats, inwranoe premises and ground rents as they fall due, such excess shall be. at Botrowe+ts option. either promptly repaid to Borrower ar a+edited b Bo::oweron monWly irtstaUments of Funds. U We amount of the Fends held by Lender shall not be sufficient to pay taus. assessments, insurance premiums and ground rwtta as they fill due. Borrower shall pay to Lender any amount necessary to make np the deficieney within 30 days from We date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full dell sums secured liy this Mortgage. Lender shall promptly refund to Borrower any funds heW by Lender. Vander paragraph 18 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender shall apply, no later then immediatdy prior to the sale d the Property ar its acquisition by Lender, any Funds held by Lender at the time of application as a credit against theaums seeared by this Mortgage. } 3. Applkation of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note soil paragraphs 1 and 2 hexed shall be applied by Lender first in payment of amounts payable to Lender by Borrower ender paragraph 26eres~ then to interest payable on the Note, then to the principal of the Note, and then to interest and principal ~ any Future Adranaea~ 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Prop~aty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowerahall promptly fnrnishtot.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly tarnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired to discharge any such lien so long as Borrower shall agree in writing to the paymentof theobligation assured by sdch lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, or defend enforcementotsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Iiezard Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the Property insured against loesby fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in such amounts and farsnch 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 Lender, provided, that such approval shall not be unreasonably withheld:-All premiums on insurance policies shall be paid in the manner provided under paragraph Z hereofor, 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 dense in favor d and inform acceptable to Lender. Lenderahall have the right to hold the policies and renewals thereof, and Borrower shall promptly farnieh 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 writin~insuranc~proceeda shall be applied to restoration or repair of thr Property - damaged, provided such rcetoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If snd~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance proc~eedsshall beapplied 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 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 a option either to restoration or repair d the Property or the sums secured by this Mortgage. E Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not eztend ar postpone thedae date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. TI under paragraph 18 k 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 the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrawerahall keep the Property in good repair and shall not rnmmit 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 condominium or a planned snit development~ Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the oondomininm ar planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnstitnent docameats. U 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 shall amend and supplement the covenants and agreementsdthis Morlgageasifthe , rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, ar if air € action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or procxedings involving a bankrupt or decedent, then Lender at Leader's opfienapon notice to Borrower may make such appearanoea, disburse such sums and take such action as is necessary to protect Leaders interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. U 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 such insurance terminates in aeoordance with Borrower's and I~der'a written agreement ar applicable Law. Borrower shall pay the amount of all mortgage inswance premiums in the manner provided under paragraph 2 hereof. l Any amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedner d I, Borrower secured by this Mortgage. Unless Borrower and Lender agree to other tense of payment, such amoonts shall be payab4 aeon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payabk hero time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicabk 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. ~~3~3~5 PA~E1242 ~