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HomeMy WebLinkAbout1502 _ t Borrower and Lender covenant and agree as follows: 1. Payment of Prinelpal sad Iatereat. Borrower shall promptly 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. Funds for Taxes and Insursutoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note. until the Note ie paid in full, a sum (herein "Funds' equal to one twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelith of yearly premium inatalhnents for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance. if any, all as seasonably 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 in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (inclnding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writinji at the time of execution of this Mortgage that interest on the Winds shall be paid to Borrower. and nnleaa such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on We 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 We 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 of taxes, asaeeaments. insurance premiums and ground rents, shall exceed the amount required to pay said f$:ea, assessments. insurance preminms and ground rents as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance r premiums and ground rents 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 auras secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior tr, the sak of the Property or its acquisition by Lender, any Fonda 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 the 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 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 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 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 shall in good faith contest such lien by, or defend enforcement otsuch lien in, legal proceedings i 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 insnred against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forauch 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 sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by harrower subject to approval by Lender, provided, that such approval ~ shall not be unreasonably withheld. A!1 premiums on insurance p~dicies 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 shalt 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 prodreds 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 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 I 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 soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of procreds to principal shall note:tend or postpone the due date of the monthly installments refened to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ 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 i 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 t Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and Maintenance of Prnperty; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahail rnmply 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 rnvenants 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 condomininm or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the aovenante and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage 8a if the l rider were a part hereof. 7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding ie commenced which materially affects Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender s option,npon notice to Borrower may make ouch appearances, disburse such sums and take such action as is necessary to protect Lender's interest„ including, but not Wnited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required f mortgage insurance as a condition of making the loan secnred by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect nntil such time as the requirement for such insurance terminates in accordance with Borrowers and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ` paragraph 2 hereof. l My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtednees of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payabk from ~ time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable taw, 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 aMion hereunder. a ' ~ ~ 80~K 3~5 PaGE1~