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HomeMy WebLinkAbout0695 ~ t i , v' i~ Borrower sad Leader covenant sad agree as folbws: 1. Paysneat of Principal and Iatereat. Borrower shall promPtlY paY when due the principal o[ and interest on the indebtedaea evideaoed by the Note, prepayment sad late charges u provided in the Note, and the principal of and interest oa nay Pliture Advances secured by this Mortgage. 2 Funds for Tazu and Insursace. Submit t<r applic-sl~le law or to a written wwivsr by 1.ender. Borrows shall pay to I.endes on the day _ monthly installnaeata of principal sad interest are payable under the Note. until the Note is paid in full. a sum (herein "Funda'~ equal to oae- twelRh ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any. plw ooa :welRh of yearly premium installments for haaard insurance. plus one`tweltth of yearly premium installments for mortgage insurance. if any. all w reasonably estimated initially and from tune to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Foals shall be held in as inditntioa the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader it Lender is such as institution). Lender shall apply the Funds to pay said taxes, assesuaeats, insurance premiums and ground rents. Lender may not chi fa: so holding and applying the Funds. analysing said account, or verifying and compiling said aseessnaents-and bps, natess Leader pays Borrower interest oa the Funds and applicable law permits Lender to make each a charge: Borrower - - - - - and Leader may agree in writing at the time of a:ecutioa of this Mortgage that interest on the Funds shall be paid to Borrower. all unless. such agreement is made or applicable law requires such interest to be paid, Lender shall not be requited to pay Borrower any interest or earnings oa the Funds. Lender ahaU give to Borrower, without charge, an annual aeoouating of the Funds showing credits and debits to the Funds and the purpose for which each debit b the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. U We amount of the Fends held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and groand rents, shall exceed the amount required to pay said tares, assessments. insurance premiums and ground rents u Way faA due, such excess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. U the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and gr+o~md rents u they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender b Borrower requesting payment thereof. 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 Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the~time of application u a credit against the sums secured by this Mortgage. 3. Application of Payareats. 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, 1 then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. i 4. Charsu; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority oust 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 Borrowerahall promptly furnish to I.eador 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 ahaU not be required to discharge any such iien so long as Borrowershall 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, 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. Borrower shall keep the unprovementa now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage; 'and such other hazards as Lender may require and in such amounts and for each 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. 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. Alt 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, direMly 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 ' t iender 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. ~i 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 anch ! ~ 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 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 setae 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. U 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 soma seta..-ed by this Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall 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 rnvenanes 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 rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreement$ 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 Leader's Security. If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any o. ; ~ , ~~„1.~,1 wh;~l, ~.ato.iw)ly pffarta Tendei s interest in the Property. including, but not limited to, emineatdomain, insolvency, code enforcement. or arrangements or pmceedinga involving a bankrupt or decedent, then Lender at Leader's option,npon notice to Harrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interact, including, but not limited to, disbnreement of reasonable attorney's foes and entry apon the Property to males repairs. U Lender required mortgage insurance ere 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 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. My amounts disbursed by Lends persuant to this paragraph T, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, ouch amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, sad shall bear interest from the date of diabnrsement at the rate payable from time to time on outstanding principal ender 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 rnntained is this paragraph shall require Lender to incur any expense or take any action hereunder. ' ~ 80 II~(J~U PAGE