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HomeMy WebLinkAbout0653 • • i is sY . 1 Borrower and Lender covenant and agcy a. folbws: 1. Prgrraeat of Principal and Iateced. Borrower shall promptly pay when dw the prindpal of and iatered on the indebtedness rvidenead by the Hots, pn~gaynwnt and late charges as provided in thaNote.and the principal of and interest on any Fitton Advaaoss secured by this >tilartgaga . 2 IMnds for Tares and Inwraace. &tbjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthljr installments of principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds'? equal to ores twelfth of the yearly taxes and apeamsats which may attain priority over this Mortgage, and ground rents on the Properly, if any. plw one• twelRh of yearly premium inatalhnmtts fm hazard insurance, plwone-twelfth of yearly premium installments for mortgage insurance, if any, all a. reasonably estimated initially and ifom time to limo by Lender on the basis of aseeasmenta and bills and nas~nable estimates thereof ' The Fends shall be held is an inditntioa We depodb a accounts of which era insured or guaranteed by a ederal or 3tats agengr . i (including Leader if Leader is such an indittttion). Lender shall apply the Funds to pay said taxes. asseeamen~uranee premiums and ground rents. Lendee may-not charge f±oe so bolding and appiyirtg the Funds, analy3ing-„laid aa~unt, oc-v and ~~apiliag said--- - saesamrnts and bi14, unless Lender pays Baerower interest on the Ftimds and applicable law permits Lender to make inch a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Fltnds shall be pt~ ?o Borrower, and artless ; such agrewnent is made os applicable law requires such interest b be paid. Lender shall not be required to pay >~orrower any interest or earnings oa the Ftimds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing t:redits and debits to the Funds and We purpose for which each debit b the Funds was made. The Fonda an pledged as additional security for the soma 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 dne dates of tares, ~ assessments, iastaance premiums and ground ants. shall excted the amount required to pay said taxes, assessments, insurance premiums and ground Hats as they fall dne, such e:eeas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ftitads. It the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments insurance pnmi~s sad ground rents as they fall dne. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. ~ o 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 Properly is sold or the Property is otherwise acquired by Lender. Lender shall apply. no latex than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under We Note and paragraphs 1 and 2 bere~of shall be applied by Lender first in paymentof amounts payable to Lender by Borrower under paragraph 2 hereof. thrn to intend payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which i may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under pasagraph 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 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 li=en 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 againstlosa by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods ae Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage t i required to pay the sums secured by this Mortgage. The insurance Carrie: providing the insurance shall be chosen by Borrower subject to approval by Ixnder; 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 mortgage clause in favor of 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 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 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 f damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repay is not economically feasible or if the 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 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 E 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 thedne 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 reanlting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the Bums aecn~ed by this Mortgage immediately prior to each sale or acgnisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; 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 rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatitnent 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 agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially affects Lendei a interest in the Pro_erty, including, but not limited to, eminent domain, insolvency, code 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 soma and take such action as is necessary to prated Lender's interest, inclndwg, but not limited to, disbursement of reasonable attorneyb fees and entry upon the Properly to make repairs. Ii 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 each time as the requirement for such insurance terminates in accordance with Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided nude: paragraph 2 hereof. Any amounts disbursed by .Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other tenna of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intered from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at each rate would 6e contrary to applicable law. in which event each amounts shall bear intered at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall regain Lender to incur any expense or take any action hereunder. ~ ~5