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HomeMy WebLinkAbout2047 . Borrower and Lender covenant and ages as follows: 1. Payment of Prdnclpal and Interest. 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 l~toetgsge. 2. Funds for Tares and Iruaretnoe. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inateJlments of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Fonda") equal to ones twelRlt of the yearly taxes and aseesatnenta which may attain priority over this Mortgage, and ground rents on the Property. ifany. plw one' iweltth of yearly premium instalhnenta for hazard insurance, Plus onetwel tth of yearly premium installments for mortgage insurance, if any. ' ell as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Pltnds shall be held in an inditation We deposits or accounts of which are insured os guaranteed by a Federal or State agency (including Leader if Lender it snch an institution). Lender shall apply the Funds to pqy said taxes. assessments, insurance premiums sad ground rents. Larder may not charge for so holding sad applying the Funds, analysing said accounk or verifying and compiling said assessments and bills, nnlea Landerpays Borrower interest on the Funds and applicable law perntits Lender to make such a charge. Borrower _ and Larder may ogres in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower, and nnleq such ageeenaent is made or applicable law requires such intered to be paid, Lender shall not be required to pay Borrower any intered or earnings on the FLnds. Lander shall give to Borrower, without charge, an annual accounting of the Fonda 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 of taxes, assessments, insurance premiums and ground rents. shall exoaed the amount required b pay said taxes, asaeasmenta, insurance pnmiams 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 Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tali due. Borrower shalt pay to Lender any amount necessary to make up the deficiency within 30 days from the date rwtice is mailed by Lender to 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 Lender, If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, [.ender shall apply, no later than immediately prior to the Baia of the Property or its acquisition by Lender, any Fonda 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 otherwise. all payments received by Lender under the Note and paragraplu 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower render paragraph 2 hereof, then to intend payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanaa. } 4, Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Property which 's 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. Bormwershall promptly famish to Lender alt notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Ixnder 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 ottee obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend 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 lose by fire, hazards included within the term "extended rnverage; 'and such other hazards as Lender may require and in such amounts and forsuch 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 Borrower subject to approval by Lender, provided, that such approve) 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 mortgage clause in favorof 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 al! 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 shall be applied to restoration or repair of the Propertys damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair ie not economically feasible or itthe security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Pxoperty 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 Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall note tend 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 We 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 each sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Gondominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit 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 rnndominium or planned unit development, and rnnatituent documents. If s 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 agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreeraenta contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency. code enforcemenk or arrangements or proceedings involving a bankrupt or deoedenk then Lender at Lendds option,apon notice to Borrower may make such appearances, disburse such snores and take each action as is necessary to ported I.endes'a interesk including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender 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 accordance with Borrower's and Lender's written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional rode o~ Borrower secured by this MortgagevUnless Borrower and Lender agree to other terms of paymenk such amounts shall be payable po notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable time to time on outstanding principal udder the Note unless payment of interest at such rate would be contrary to applicable law, in .fhich event such amounts shall bear interest at the highed rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. a~ox 315 PACE,~O~4