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HomeMy WebLinkAbout0682 • - • ~ x: i'' i Borrower and Lendez covenant and agree as folbws: 1. Paryment of Priaclpal tad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenosd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any I~tun Advanow secured by Wis Mortgap. Z. Funds for Tares and Insurance. Subject to applicable law o< to a written waiver by Lender. Borrows shall pry to Lender on the day ppnnoonthly instalbaenta of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "fl~nda'7 equal to oae• twelRh of the yearly lases and assessments which may attain priority over this Mortgage, and ground yenta on the Property. iteny. plus one• twelRh otyearly premium instalbaents far hasard insurance, Plus onetwelRh of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and frown time to time by Lender on the basis of assossmenta and bills and reasonable estimates thereof 1Le Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader it Lender k such an institution),. Lender shall apply the Funds to pay said lases, asseasunar~h. insurance premiums and ground rents. Lender may not charge fa so holding and applying the th~nds. analyzing said account, or verifying sad compiling said asseeementa end bills. uakn Leader pays Borrower intaestoa the FuncL and applicable law permits Lender_to make such acharge. Borrower - _ _ _ and Lender may agree in writing at We time of execution of this Mortgage that interest on the Ptimds shall be paid to Borrower, ~ unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge. an annual accounting of the Enacts 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. Uthe amount of the Fends held by Lender, together with the future monthly installments of Funds payable prior to the due dates of lases, asseesrnents. insurance premiums and ground nuts. shall escxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall dae, such excess shall be, at Borrower's option, either promptly repaid to Borrower or aedited b Borrower on monthly installments of Farads: _U the amount of the firnds held by Lender shall not be sufficient to pay taxes. asaesemente, ins_nrenee - pnmirmns arm ground reefs as they fail due. Borrower shall pay to Lender any amount necessary to make up the deficieercy within 30 days from the date notice is mailed by Lender to Borrower requceting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Uunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Leader shall apply. no later than immediatdy 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 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 amounts 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 principal on any Futon Advances. 4. Charges; Liens: Barrawerahall pay all taxes, assessments and othercharges, fines and impositions attributable tothe-Prope:ty_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 arch 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 lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, ordefend enforcement of such lien in, legal proceedings which operate b prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hasard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againstloss 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 as Lender may regain; 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 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 mortgageclause 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.errder all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall giveprompt-notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. l 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 i 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 soma second 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 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 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 insurance policies and in and to the proceeds thereof resulting from damage.to Property prior to the sale or acquisition shall pass b 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; Condominuma; 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 rnvenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and - agreementa ofsuch 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 s interest in the Property, 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,upon notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to protect Lender's interest, including. but not limited to, disbursement of reasonable attorney a ices and entry upon the Property to make repairs. If Leader required mortgage irrsnrance 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 undo paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender ague b other terms of payment, such amounts shall be payable upon notice from bender 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 amounts 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. 600X~~U PdCE ~z