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HomeMy WebLinkAbout1095 4' ',.,t' Borrower sad bender covenant sad agree as folbws: 1. Payment of Prlaeipa! sad interest Borrower shall promptly pay when dae the principal of and iatered on the indebtedness evideriosd by the Hots„ pnpaymaat and late charges as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. Z. Funds for Taws sad insurarree. 8ubjed to applicable law or to a written waiver by Leader, Borrower shall ps4Y to Leader on the day monthly installments of principal and interest are payable under the Note, antjl the Note is paid in full, a sum (herein "Funds'q equal to ono- ~ twelfth of the yearly taxes and assessments which mqy attain priority over this Mortgage, and ground rents on the Property, uany, plw ono- twelRh of yearly prremium installments for hazard insurance, plw ono-twelRh ofyesrly premium installments for mortgage insurance. if any, all a. reasonably estimated initially and korn time to time by Lender on the basin of aaaeesmenta and bills and reasonable estimates thereof The Ptimds shall be held in an iwiitntion the deposits or accounts of which are insured or ~ guaranteed by a Fed or State agency , (including Calder H Leader b such ea institution). Lender shall apply the Funds to pay said taxes, assessments, inauTs~i~ce remiums and ground rants. Leader rosy not charge for w holding aced applying the Funds. analysing said account, or verifying and compiling acid aaaesemsnts and bills. unless I.eoder pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree is wilting at the time of execution of this Mortgage that interest. on the Pnadsshall-be paid t4 Borrower, and unless _ such agreement is made or applicable law requires such interest to be paid, header shall not be required to pay Borrower any iatereet or - - th* F4~~ets_ T~d~ shall eiMS to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Fends and the pnrpoes for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. ; If the amount of We Funds held by I.ender, together with the future monthly installments of Funds payable prior to the due dates of tares. aasesemeats, insurance premiums and ground rents. shall a:aced the amount regnired to pay said taxes, assessments, insurance premiums and ground rents as they faA due, snch excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Ponds, U the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premimns and ground rents as they fall dae. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Bor[oww requesting payment thereof. Upon payment in fall of cell sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If ender paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lends; shall apply, no later than immediately prior to the sale of the Property or its sognisition by Lender, any Funds held by Lender at the tune of application as a credit against the sums aecnred by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and ~ paragraplu 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, Wen to the principal of the Note, and then to interest and principal on any Future Advances 4. 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 or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in each manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Leadei all notices of amounts due under this paragraph, and in W e event Borrower shall make payment directly, Borrower shall promptly famish to Landes receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, W at 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, ordefend enforcement ofsuch lien in,legal proceedings which operate b 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 lass by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsach periods ea Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the autos secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that snch 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, 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 forni acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly famish to fender all renewal notices and all receipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose 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 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 beapplied to We 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 settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds st Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower oWerwiae agree in writing, any such application of pra~eeds 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 aaquu+ed by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proeeeda thereof resulting from damage to Property prior to We 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 ldaintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Properly and shall comply wild We provisionH of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower eliall perform all of Borrower's obligations under the declaration or covenants creatingor governing We condominium or planned unit development, We by-laws and regulations of the condominium ar planned unit development, and rnnstitueat documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, We covenants and f agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of Wis Mortgage as if the rider were a part hereof. Protection of Leader's Security. If Borrower fails to perform We covenants and 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, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender s optionnpon notice to Borrower may make snch appearances, disburse snch soma and take such action ea is necessary to prated Lender's interest, including, but not lianited to, disbursement of reasonable attorney's fees and entry neon We Property to make repairs. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums tegnired to maintain such insurance in effect until such time as the requirement for snch insurance terminates in aa~ordaace with Borrowers 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 diabnrsed by Lender perenant to this paragraph wild interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable neon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbunsement at We 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 snch amounts shall bear interest at We highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. aa~x316 PA~E1095 ~