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HomeMy WebLinkAbout0707 _ 4~'_ 'E - , . Borrower and Lender covenant and anew ss tollows: 1. Payatent of Principal and Interee~t. Borrowez shall promptly pay when due the principal of and' interest on tbe indebtedness _.;.'.e-.,.--''~.. ~ i :e::ow. w~r~:...»,t o:.d I w:..i.~ so g:o~t :!ed its t!:• 1i1^t:, •*~d thap~e!c~psl Ata~ interetnn any ih.tn?. ~ldvaneea aeenred by this Mortgage. 2. PLnda for Tasen and Insurance. 3ubjed to applicable law or b a written waiver by Gender, Borrower shall pay to Lender oa the day monthly itsstallments of principal and interest are payable under the Note, until the Note is paid in full. a sum (heeein "i'lsnds'~ equal to one- , twelRls of the yearly taxes usd assessments which rosy attain priority over this Mortgage, and ground rents on tbe Property, if any. plusone- twelRh ofyearly premium insteJluaeests for hassrd insurance, plus one•twelfth of yearly premium inatallmenta for mortgage insurance. if any, i all as reasonably estimated initiaiq? and iirom time to time by Gender un the ba,aia of assessments ~.d bills and raa,.=able wtinna•.w t~.~'~f The Fonds shall be held in an institution tbe deposits or aocounta of which are insured or guaranteed by a Federal or State ag~scy (inducting Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said account, or verifying and compiling said assessoneesLs seed bilb, anlws Lender pays Borrowerinterest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writdng at the time of execution of this Mortgage that interest on the finds shall be paid to Borrower. and unless . such agrwment is made or applicable law requires ouch interest to be paid. Lender shall not be requieed to psy Borrows any interest or earnings on the Fonda. lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to We 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 l,eesder, together with the futon monthly inataliments of Fonda payable prior to We due dates of taxes, assessmeats, insurance pretninms and ground rents. shall e:oaed the amount required to pay said taxes, assessments, insurance premiums and ground rents a. they fall due. such excess shall be, at Borrowers option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. iE tbe amount of We Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance pnminms and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up tbe deficiency within 30 days from the date notice is mailed by Lewder to Borrower requesting payment thereof. Upon pr~ymertt in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any fonds held by Leader. Tf Hader 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 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 beeeof shall be applied by Fender 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 Future Advances. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payments orground 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 Borrower shall promptly fnrniah to Lender all notioEe 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 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. Hasard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againstlosaby fire, hazards included within the term "eztended rnverage," 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 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 lender 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. 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 reprilr is ec-unumi~l:y raaaibl2 and tl~.e se:.u; ~g of il:is *"=ortsage is act th€zcbp impai.~. If such restoration or repair is not economically feasible or if the security of this 1?lortgage 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 b 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 soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the doe ( date of the monthly inatallmenta 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 hom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the soma secured 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 Properly 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 condominium or a planned unit development, Borrower shall perform all of Borrower a 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 constituent documents. If a rnndominiwn or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the oovenante 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 oovenante and agreements contained in this Mortgage, or if any action or proceeding is oommeneed which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceeditsga involving a bankrupt or decedent. then Lender at Lender's option,npon notice to Borrower may make such appearances, disburse ouch awns and take such action as is necessary to protect Lender's interest, including, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leader repaired mortgage inanraesce as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until sorb time as the requirement for such insurance terminates in accordance with Borrower s and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbnreed 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 render the Note unless payment of interest at such rate would be contrary to applicable law, in which event each 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. g~~3~:6 P~f 707