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HomeMy WebLinkAbout2306 ~ . f Borrower sad Lender oovetrant and agree as folbws: 1. PaUrment of Principal sad Interest. Borrower shall promptly Pay when due the principal of and interest on the indebtedness bevtY' ~o~ by the Note. prepayment and late d?arges as provided is the Note. and the principal of and interest on any Future Advances secured Z. Dads for Tares sad Iasnraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Leader on the day monthly instalbaeata of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds'? equal toone- twelRh oftheyearly taxes sad aasessmeata which may attain priority over this Mortgage, and ground rents on the Property. if any, plw one• twelttlr of yearly Premium indallmenta for hasard insurance, plw one-twelfth otyearly premium installments for mortgage insurance, if any, all ai reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof 1Le fimdr shall bs held in an institutlon the deposits or accounts of which are iruured or guaranteed by a Federal or State agengr (including header ff Lender is anch an institution). Leader shall apply the Funds to pay said taxes, assessments, insurance premiams and ground Teats. Lender may not charge for so bolding and applying the Funds. analyzing said account, or verifying and compiling said aseeameats and bills, nalea Lander pays Borrower interest oa the fiords and applicable law permits Lender to make such a charge. Borrower and Lender rosy agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid b Borrower, sad unless such agreement is made or applicable law requires such iatarest to be paid, bender shall not be required to pay Borrower any interest o: earnings on the Farads. Lender shall grvs to Borrower. without ~wga as annual aeoounting of the Funds showing credits and debits to the Funds sad the purpose for which each debit to the Funds was made.'11re Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the fimds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, sesesaments, insurancce premiums and ground rents, shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents w they fall due. such excess shall be, at Borrowers option, either promptly repaid b Borrower or credited to Borrower on monthly iasWlments of Fonds. If the amonnt.of the Funds held by bender shall not be sufficient to pay taxes, assessments, insurance pnmiuars and ground rents eu Wey fall doe, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting paymditiltl~bE( ~~n~ Upon payment is fall of all wma secured by this Mortgage, Lender shall promptly ref to ~or~v~ e~hnds held by Lender. If under Paragraph 18 hereof the Property is sold or the Property is otherwise ac~ired b~ deP ~ y, no later than immediately prior to the sale of the Property orits acquisition byLender, any PLndaheld b°yll.,eend'e - ~lru il8ttt t#EgPpl~gtio t against the sums secured by this Mortgage. . ;1- . 3. Applieat3on 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 Leader by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the prrincipal of We Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, Ernes and impositions attributable b 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 Lendei 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 ofsuch 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 unprovemenis now existing or hereafter erected on the Property insured against low by fire, hazards included within the term "extended rnverage,"and such other hazards ae Lender may require and in such amounts and forench 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. - 'IUe inawance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably.withheld. A!1 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 favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowezahall 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 Leader. Lender may make proof of loss if not made promptly by Bonrower. 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 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 sums eecnred 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 insurance benefits, Lender is authorized to rnllect 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 proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereotor 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; G,ndvminu~ud; Planned L'nit Derelapmcnts. Borro:strshall 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 rnvenanta creatingor governing thecondominium or planned unit development, .the. by-laws and regulations of the rnndominium or planned unit development, and rnnstitnent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thip Mortgage, the oovenaafs and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage w if the rider were a part hereof. 7. Protection of Lender's Security. It Borrower fails to perform the covenants and agreements contained in thin Mortgage, or if any action or proceeding is commenced which materially affects Leader s interest in the Property, including, but not limited to, enniaent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendds option,npon notice b Borrower may make each appearances, disburse such sums and take such action as is necessary to Pr'oteCt Leaders interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Tf 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 snd? time as the requirement for such insurance terminates in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. - Any amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to ether terms of payment, such amounts shall be payable neon notice from Lends 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 under the Note anises payment of interest at such rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Illothing contained in this paragraph 7, shall requve Leader to incur any expense or take any action hereunder. $~x3~.5 ~A~E2~301 .4