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HomeMy WebLinkAbout2326 _ , ; Borrower and Lendm covenant and agree as follows: 1. Payment of Priadpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Nola, prepayment and late charges as provided in the Note, and the principal of and interest on any I~ture Advances secured by this M~~ 2 Ftitads for Tares and Luuranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to Lender on the daffy monthly installments of prindpal and interest are payable under the Note, until the Note is paid is full, a sum (herein "Funds' equal to ono- twelfth of the yearly tares and assessmentswhich may attain priority over this Mortgage. and ground rents on the Property, ifany, Plus ono- twelfth of yearly premium installments for hazard insurance, Plus ono-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated tnitial~ and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Tbs Pbnds shall bs held is as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency Cmdnding Lender if Lender is such an institntionh Lender shall apply the Funds to pay said fazes. assessments, insurance premiums and ground tents. Lender may sot charge for so holding and applying the Funds. analysing said account, or verifying and compiling said aaessments and bills, unless bender pays Borrower interest on the Funds and applicable taw permits Lender b make such a charge. Borrower sod Lender may agree in writing at the time of ezecntion of this Mortgage that interest on the Funds shall be paid to Borrower, and naless such agreement is made or appliptble law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Ptimds. Leader shall give to Borrower. without drarge, an annual aeoounting of the I~rnds showing credits and debits to the 1?lmds sad the purpose for which each debit to the Ptimds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Leader, together with the future monthly installments of Fonda payable prior to the due dates of fazes, assessments, insurance premiums and ground rents, shall ezoaed the amount required to pay said tares, assessments, insurance premiums and ground rents en they fall due, such ezeess shall bs, at Borrower's option, ether promptly repaid to Borrower or credited to Borrower on monthly installments of 1?1mds. If the amount of the Enacts held by Lender shall not be sufficient to pay fazes. assessments, insurance preauinms and ground rents as they fall due. Borrower shall pay to Lender any amount aeoeesary to make ap the defidency within 30 days frog We date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fall of all same secured by this Mortgage, Lender shall promptly refund to Borrower say funds held by Lender. If ender paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Leader, Lender shall apply, no later than immediately prior to the sale of the Property er its aogniaitioa 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 paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amowata 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 prindpal on any Future Advances 4. Charges; Liens. Borrower shall pay all tares, assessments and other charges, fines and impositions attributable to the Property which mayattain 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 a~nner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under thin paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fiuniah to Lender receipts evidendng such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrows shall not be required to discharge any such lien eo long as Borrower shall agree in writing to the payment of the obligation aecared by each lien in a manner aooeptable to Lender, or shall in good faith contest such lien by, ordefend enforcementof 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. Boaower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards inducted within the term "extended coverage,° 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 such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. 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. Ali premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereo[or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance polities and renewals thereof shall be in form aooeptable to Lender and shall inducts a standard mortgage clause in favor of and in form aeoeptable to Lender. Lender ahaA have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of lass, 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 Property damaged, provided arch 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 f to the soma secured 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 ie mailed by Lender to Borrower that the insurance tamer offers to settle a claim for I 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 soma eecared 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 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 insarance polities and in and to the proceeds thereof resulting fiom damage to Property prior to the sale or aognisition-ahall pass to Lender to the extent of the some secured by this ! Mortgage immediately prior to such sale or acquisition. - E 6. Preservation and Maintenance of Property; I.easeholda; Condominums; Planned Unit Developments. Borrower shall kcep 6 the Property in good repair and shall not commit wade or permit impairment or deterwration of the Property and shall comply with the provisions of any lease if tltis Mortgage is on a leasehold. If this Mortgage is on a snit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constitaent documents. If a condominium or planned unit development rider is executed by Borrower sad 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 8ecarity. U Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any ~ action or proceeding is commenced which materially affects Lender's interest in the Property. indnding, bat sot limited to, eminent domain, insolvency, code enforoement, or arrangements or proceedings involving a baatQnpt or decedent, then Leader at Lenders option.npon notice to Borrower may make sndr appearances, disburse such sums and take wch action as is necessary to protect Lenders interest, indading, but not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repairs. If Leader repaired mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiams required to maintain sadr insaranas in dyed until each time as the requirement for such insurance terminates in aeoordance with Borrowers and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided Hader paragraph 2 hereof. Any amounts disbursed by Lender perenant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teens of payment, such amounts shall be payable neon notice atom Lender to Borrower requesting payment thereof; and shall bear intered from the date of disbarsement at the rate payable from 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 ender applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. - g~~~ 315 P~~E 23x1 ~ ~ ~