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HomeMy WebLinkAbout2039 1:. Borrower and Lsad~ covenant and ages as foUowa: 1. Payment of Prlaclpal and Interest. Borrower shall promptly pay when dne the principal of and iatered on the indebtednew evidenesd by We Note, prepayment and late charges as provided in Wes Note, and the ~aPm of and interest on any Future Advance secured by this Mortgage. ! g. Farads for Taws and Insurance. 3nbjed to applicable law or to a written waiver by I.ender, Borrower ahaU pe~y to Lender on the day monthly installments oaf principal cad interest are payable under the Note. until the Note is paid is full, a sum (herein "Funds"1 equal to one• twelfth of the yearly tarn and assessments which may attain priority over this Mortgage, and ground rents on the Properly, if any, plw oae• twelfth of Yearly premium iastalhnents foe hazard insurance, plus one^twelfth of yearly Premium installments for mortgage insurance. if nay. all as reasonably estimated initially and firom time to time by Lender oa We basis of assessments and bills and reasonable estimates thereof: TM Fonds shall bs beW in as inditution the deposits or aooonats of which ors insured or guaranteed by a Federal or State agency (iadnding Lander if Lender it such an iastitutioa), leader shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not dre~rge for so holding and applying the Funds, analyzing said acoonnt, or verifying and compiling said assewnenb and biW, udess Lender pays Borrower interest oa the Fonda and applicable law permits Lender to make such a charge. Borrow cad Lender may agree is writing at the time of execution of this Mortgage that interest oa the Fonds ahaU be paid to Bosrower, and unless such agreerneat is made or applicable law requires each interest bo be paid, Leader aball not be required to pay Borrows: any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual aooonntiag of We Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the futon monthly installments of Fonda payable prior to We due dates of taxes, assessnnenti. insurance premiums and ground rents. shall ezoeed the amount required to pay said fazes, assessments, insurance premiums and ground rents as they fall due, such ezoess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. U the amount of the Fends held by Lender shall not be su~cieat to pay fazes. aaseasmeata, insurance premiums and ground renb as they fall due, Borrower shall pay to Leader any amount necessary to make up We deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon paym~t in fnU of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof the Property is sold or the Property is otherwise acgnind by Lender, Lends: shall apply, no later than immediately prior to the sale of the Properly ur its acquisition by Leader, any Phnds held by Lender atthe time of application as a credit against the auras eecnred by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender ender 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 oa the Note. then to the principal of the Note, and then to interest and prindpal on any Future Advances. Charges; Liens. Borrower shall pay all fazes. assessments and other charges, fines and impositions attrilwtable 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 dne Hader this paragraph, and in the event Borrower shall make payment directly, Borrower ahaU promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any Uen 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 is a manner acceptable to Lender, or shall in good faith content 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 Insaraaoe. Harrower shall keep the improvements now eziating or hereafter erected on the Property insured against loss by fire, hazards induded within the term "ezteaded coverage," and each other hazards as Leader may require and in such amounts and for arch periods as Lender may ngnin; provided. that Lender shall not regain such coverage amount ezceeding the minimum, sa may be required by state or federal regulations governing activities of I.ender. or that amount of coverage required to pay the sums eecared by thin Mortgage, whichever is the greater. 'Phe insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. AU premiums on insurance poli«ea 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 is form acceptable to Lender and shall incinde a standard mortgage clause in favor of sad 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 We event of loos, Borrower shall give prompt notice to the insurance carrier and Lender. bender may make proof of lose 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 such restoration or repair is economically feasible and the security of thin Mortgage is not thereby impaired. If arch restoration or repair is not economically feasible or if We security of thin Mortgage would be impaired, We insurance prooeeda shall be applied to the sums aecared by this Mortgage. with the ezoeas, if any, Paid to Borrowrer. If the Properly is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days fiom the date notice is mailed by Lender to Borrower that the insurance carrier o$ers to settle a claim for insurance benefits, Lender is authorized to eoUect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by thin Mortgage. Unless Lender and Borrower otherwise agree is writing, any such application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of arch installments. If Hader paragraph 18 hereof the Property is aognired by Lender, all right, title and interest of Borrower in and to say insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or aogniaition shall pees to Lender to the ezteat of the soma secured by this Morlgage immediately prior to arch agile or acquisition. 6. Preservation and Haintenanoe of Property; Leseehoids; Condominums;Planned Unit Developments. Borrower shall keep the Property in good repair and ahaU not commit waste or permit impairment or deterioration of the Property and ahaU comply with the provisions of any lease if this Mortgage is on a leasehold. If thin Mortgage is on a unit in a condominium or a planned Wait development, Borrower shall perform all of Borrower's obligations under the declaration or eovenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned snit development, and oonatituent docameata. If a oondominiam or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the ooveaants and agreemeate of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ae if the • rider were a part hereof. 1. Protection of Lender's Security. Tf Borrower fails to perform the cevenants and agreements contained in this Mortgage, or if aqq action or proceeding is commenced which materially affects Lenders interest in the Property. indnding, but not limited to, eminent domain. insolvency, code enforcemmt, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Leader's optioa,npon notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to protect Leader's interest, inducting. bat not limited to, dubarsement of reasonable attorney's fees and entry neon the Property to make repairs. If Leader required mortgage inantance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums regoired to maintain such insurance in effect until such time as the requirement for such insurance terminates in aeoordance with Borrower s and Leaders written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance preminma in the manner provided ender paragraph 2 hereof. _ Any amounts dubnrsed by Lender persuant to thin Paragraph 7, with interest thereon, shall become addition in a esb of _ Borrower secured by this Mortgage. Unless Borrower cad Lender agree to other terms of payment, such amounts shall be payable upon notice fi+om Leader to Borrower requesting payment thereof, and shall bear interest from We date of disburaemeat at the rate payable ttom time to time oa. outstanding principal Hader the Note naless payment of interest at such rate would be contrary to applicable law, in which event such amonnte shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Leader to incur any expense or take any action hereunder. ao~x3~5 Pa~E21~ .