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HomeMy WebLinkAbout2035 • Borrower and Lroder covenant and agree a. follows: 1. Payte?eat of Principal and Interest. Borrower shall promptly troy when due the principal of and intend on the indebtedness { evidanosd by tM Notes, prepayment and tats charges as provided in the Note. and the principal of and interest oa any Futare Advances secured by this Mortgage. Funds for Testes and Inwraaes, 3ubjed to applicable law or to a written waiver by Fender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until We Note is paid in full, a sum (herein "Funds' equal to ores twelfth ottbe Yearly lases sad assessments which may attain priority over this Mortgage. and ground :eats ontheProperty, ifany, plwone- twelfth ofyearly premium instalments !err hasard insurance. plus one-twelM of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lends on the basis of aaaassments and bills and reasonable estimates thereof The Funds shall be held in an institution the depodts or aooounts of which are insured or guaranteed by a Federal or State agency (including Lender ii Leader is such as iastitntioa). Lender shall apply the Fends to pay said to:es, assessments, insnrance preminavs and around recta. Lender may not charge for so bolding and applying the Funds. analysing said account, or verifying and compiling said aasessmenta and DiIL, unless Leader pays Borrower interest on the Fends and applicable law permits Lender tO mate such a charge. Borrower and Leader rosy agree in writing at tl» time of execution of thin Mortgage that interest on We Funds shall be such agreement is nude or applicable law requires such interest to be P~ ~ Borrower. and unless paid. Lender shall not be required to pay Borrower any intered or earnings on the Pearls. Larder shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which sash debit to the Funds was made, The Funds are pledged as additional security for the sums secured by this Mortgage. Itthe amount otter Fends held by Lender, together with the future monthly installments of Funds payable prior to the due dates of lases, assessments, insurance premiums and ground rents. shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, sack excess shall be. at Bonower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatalianeata of Fends. If the amount of the Funds held by Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the de5ciency within 30 days from the dale notice is mailed by Lender b 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 Leader. Vander ~ 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 Properly or its acquisition 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 Payments. Unless applicable law provides oWerwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Landes first in payment of amounts payable to bender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intered and principal on any Future Advances, 4. Charges; Liana. 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, i f any, in the manner provided under paragraph 2 hereof or. if not paid in each manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly famish 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 reodpta 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 Borrowershall 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 included within the teen "extended 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 e:eeed that amount of oover~age required to pay the sums 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 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 shall include a standard mortgagedause in favorof and inform acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly fnrniah 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 shat! 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 same eecnred by thin 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's option either to restoration or repair of the Properly or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or postpone thedue 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 acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resetting 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 safe or acquisition. 6. Preservation and 1Ylaiatenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the ' proviaiona 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 orcovenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnatituent 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 shall amend and supplement the covenants and agreementsofthis Mortgageaa ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage, err if any action or proceeding is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, oak enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Leader's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. I! 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 arch time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or app&cable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under Paragraph 2 hereof. AnY amounts di,abnsaed by Lender perauant 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 epos notice trvm Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement st the rate payable keen 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 [.ender to incur say ezpense or take any action hereunder. Bo~~315 PA~E2t132 -