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HomeMy WebLinkAbout0674 _ _ _ - -ti . _ ~ i * ~ . , Borrower and Lender covenant sad agree u folbwa: 1. Pa,I?aaent of Principal sad IIater~eat. Borrower shall promptly pay when due the prindpal of sad interest on the indebtedness evidenced by the Note, prepayment and late charges u provided in the Note, and the principal d and interest on say Future Advances secured by this Mortgage. 2 Fonda for 1'a:ea and Inwranca. 8ubjed b applicable law or to • written waiver by Lender, Borrower shall pay to Lends: on the day monthly installments d principal and interest are payable under the Note. until the Note is paid in full, a wm (herein "Funds' equal to ores twelfth of the yearly lases and assasmenta which may attain priority over thin Mortgage. and ground rents on the Property, if say, plw oaa tv~ellth of yearly premium installments for hasard insurance. Plus onehre!!!h ofyearly premium installments for mortgage irtsuranoe, if amy, all u reasonably estimated initially and !from time b time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Farads shall bs held in an institution the deposits or socouats of which are insured or guaranteed by a Federal or Stale agency F (indnding Lender if Lender is such an institution). Leader shall apply the Funds to pay said lase, assessments, insurance premiums and gronnd rents. Lender may not charge for u_ holding and applying the Fends, analysing ~ account, or verifying and compiling said asseamnenta and bil4, anless Lendespays Borrower interest on the Funds and applicable law permits Lemd~ to make such a charge. Borrower and Lender rosy a;eee in writing at lhe~time of execration of this Mortgage that interest on the Fends shall be pale! b Borrower, and unless such agreernaat is made or applicable law requires such interest to bs Paid. Lender shall not be required to pay Borrower say interest or earnings on the Fends. Lender dull give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the !!aids and the purpose for which each debit do 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 Fonda payable prior to the due dates of tales. aaseseaQenta, inwrance premiums and ground rents. shall exceed the amount required b pay said tares, assessments, insurance premiums and ground rule u they fall dne. such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments d Farads. It the amount of the Funds held by Lender shall not be sufficient to pay lases, assessments. inaoranoe } premiums sad gronad yenta u they fall dne, Borrower shall pay to Lender any amount necessary to make rep the deficiency within 30 days from the date notice is mailed by header to Borrower requesting payment thereof. Upon payment in full doll sums secured by this Mortgage, Lender shall promptly refund to Borrower any fends held by Lender. Itunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the Bale of the Property or its acquisition by Lender. any Funds held by Lender a! the time of application u a credit against the auras 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 fast in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intered payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chsrgsa; Liens. Bozrower shall pay ell taxes, asae~menta and other charges. fines and impositions attributable 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 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrowerahall promptly fiuniab to Lender all notices of amounts dne 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 improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for~ch periods as Lender may require; provided, that bender shall not require that the amount of such ooh crags 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 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 theright to hold the policies and renewals thereof, and Borrower shall promptly fnrniah 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 Lender. Lender may make proof of loss if not made promptly by Borrower. t Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such reabration or repair is economically feasible and the aecnrity of this Mortgage is not thereby impaired. If arch restoration or repair is not economically feasible or if the security of this Mortgage would beimpaired, the insurance proceeds shall be applied to the some aecnred by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie 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 offer8 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 d 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 dne date of the monthly installments referred to in paragraphs I and Z hereof or change the amount of such installments. If under paragraph IS 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 sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceofProperty; Leaseholds; Condominums; Planned Unit Developments. Borrowershall 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 d 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 creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, end oonatituent documents. If a condominium of 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 Securit3?. If Borrower fails to perfoiw the covenants end agreements 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, emin~t domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendds option,apon notice to Borrower may make such appearances, disbunx such sums and take each action as is necessary to prated Lender's interest. including, but not limited to, disbursement of reasonable attoraey's fees and entry upon the Property to make repair. If Lender regnired mortgage insurance as a condition of making the Loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowds and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render 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 terms of payment. such amounts shall be payable upon notice from Lender 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 unless payment of interest at such rate would be contrary to applicable law, in which event such amoants shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. . . , ' ~ aoox316 P~ 674 ~ 1