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HomeMy WebLinkAbout1091 - _ - _ i~ • r .i Borrower and Lender covenant and agree as tolbrvs: 1. Payment of Prtnclpal sect Interest Borrower shall promptly pay when due the principal of and interest on the indebtednew evideaeed by the Note, prepayment and late charges as provided in the Nots, sad the principal otand interest on arty Future Advances secured by this Mortgage. { Z. Pywda for Taw and lasarauos. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly instalbaaents of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funda'h equal to one• twelfth of the yearly to:ea end assessments which may attain priority over this Mortgage. and ground rents on the Property, If any, plus one• twelfth otyeariy premium instalLsseats for hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance, itany, all as reaaausbly estimated initially and from time to time by Lender on the basis of asscesmenta and bills and reasonable estimates thereof. The Funds shall be head in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Leader is such can institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rent. Lender may not c~ka.*ge fc~r as holding and applying the Funds. analysing said account, or verifying and compiling said assesanrnb sect bills, unless Lender pays Baerower interest on the Funds and applicable law pernuts Lender to make such a charge. Borrower and Londe! me~y agree in writing at the time of execution of this Mortgage that interest oa the Funds shag be paid to Borrower. and 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 We Ptimda. Lender shall give to Borrower. without charge, an annual aooounting of the Funds showing credits and debits to We Funds sad the parpose for which each debit to the Funds was made. The Funds are pledged asadditional security forthesumssecured bythis - - - Mortgage. If the amount of the Eructs held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes„ assessments. insurance premiums and ground rents. shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of PYrnds. Tf the amount of the Funds held by Lender shall not be sufficient to pay_ taxes, asseesrnents, insurance premiums and ground recta as they fall due. Borrower shall pay to Lender sny amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lends to 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. Tf under t 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 aoquieition by Lender, any Phnds 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 bender 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 Future Advances 4. Charges; Liens. Borrower shall pay all taxer, assessments 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 arch manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall 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 bender. 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. i 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended rnverage." and such other hazards as Lender may require and in such amounts and forauch 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 arch 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. Allinsurance 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 Borrowershall promptly furnish 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. Udeas Lender and Borrower otherwise agree in writing, insurance proceeds shalt 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 such 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 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 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 extend or postpone the due date of the monthly installments referred to in paragraphs I 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 to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or aequisition. 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 creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent 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 oovenante and agreements contained in this Mortgage, or if sny 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,upan notice to Borrower may make such appearances, disburse such sums and take such anion as is necessary to ported Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lends 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 such time as the requirement for such insurance terminates in accordance wiW Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance prrm7iums in the manner provided under paragraph 2 hereof. Any amounts disbnraed 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 teens 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 frrom 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 each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph T, shall require Lender to incur any expense or take any action hereunder. BOOK 3~6 PdGE 1091