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HomeMy WebLinkAbout1512 Borrower sad Lender covenant and agree as follows: 1. Payreat of Prindpal sad laterest. Borrower shall promptly pay when due the pcinapal of and interest on the indebtedness evidenced by the Note, prepayment and late dtarges ss provided in the Note. and the principal otand interest on any Fntnre Advances eecured by this 2 Fsurds for Ta:es sad Iawranot:. 3nbjeet 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 is paid in full. a sum (herein "Funds' equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one twelRh of yearly praninm installments for hasard insurance, plus onetwelfth otyearly premium installments for mortgage insurance. if any. all as reasonably estimated initially sad from time to time by Lender on the basis of aaaeasrnents and bilb and reasonable estimates thereof. The Ponds shall be heW in an imstitnfion the deposits or accounts of which are insured or guaranteed by a Federal or State agency (indoding Larder if Lends is ouch an inatitntiort). Lender shall apply the Funds to pay said tares, assessments, iasurmce premiums and ground rent. Lender may not Burge far w holding sad applying the Fonda. analyzing said account, or verifying and compiling said assessmeats sad biW, unless Lender pays Borrower iatereat on the Pbttds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of e:ecntion of this Mortgage that interest on the Funds ahaA be paid to Borrower. and nnkss sods agr~eemeat is made or applicable law requires audt interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the P1mds. Larder shall give to Borrower. without Burge, an annual accounting of the Funds showing credits and debits to the Farads and the purpose for which each debit to the Plutds 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 inatallmenta of Funds payable prior to the due dates of fazes, assessments, iastaance preminma and ground yenta, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they faA due. such exaeas shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of P1mds. If the amount of the Funds held by Lender shall not be auffiaent to pay razes, assessments, insurance premiums and ground rar4 as thry fall doe. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Calder to Borrower requesting payment thereoL Upon payment in fall of all sums aecnred by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Unnder 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 axle of the Property or its aognisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3 Application of Paysaenta. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 a~ 2 hereof shall be applied by Deader 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 ahaB pay all tares, 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 Borrowershall promptly fumiah to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to [.ender reotipta 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 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 indnded within the teen "eztended rnverage," 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 sums secured by this Mortgage. Tbe 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 2 hereof or, if not paid in such manner. by Borrower making payment. when due, direNly 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 Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to j 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 Leader. Lender may make proof of loan if not made promptly by Borrower. ` Unless [.alder 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 [easible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or itthe security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the ezcess, if any, paid to Borrower. l f the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Ltnder within 30 days from the date notice is mailed by [.ender to Borrower that the insurance carrier olTers 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 of the Property or the 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 the due date of the monthly installments referred to in paragraphs I 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 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; Condominums; Planned Unit Developments. Borrower shall 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 unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents. If a rnndomininm or planned unit development rider is ezecuted 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 agreements of this Mortgage as if the rider were a part hereof. k 7. Protection of Leader's Security. If Borrower fails W perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is eommenoed which materially affects Lender s interest in the Property. including, but not limited to, eminent domain. insolvency, code enforoemmt, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearaneea, disburse such anms and take such action as is necessary to protect Larder's intereN, r induding, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required ~ mortgage insurance as a rnndition 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 accordance with Borrower's and Lender's written agreement or appGcabk Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under € paragraph 2 hereof. ~ Any amounts diabnraed by Linder persuant to this paragraph 7, with interest thereon, shall become additional indebtedaew of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable neon 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 ender the Note nnleas payment of interest at such rate would be contrary to applicable law. in which event anch 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. a~>>x `~K 315 PACE 1510 ~ ~ .