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HomeMy WebLinkAbout1523 _ } - - - ~ t Borrower and Erodes covenant and agree u folbwrs: 1. Patyenent of Prlnctpal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedness evidenced by the Note, prepayment and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2 Ftieuds for Ta:ee and Iasetraaoe. Subject to applicable law or b a written waiver by Lender. Borrower shall pay to Lender on the day monWly installments of principal and interest an payable undo: the Note. until the Note is paid in full. a sum (herein "Funda'~ equal to one• twelfth of the yearly taxes and assess emenwta which may attain priority over this Mortgage. and gerund rents on the PropeKY. if a~Ly, Dlns one- tweltth ofyearly premium installments for hazard insurance, Plus one•twelRh of yearly premium installments for mortgage insurance, if soy, sU u reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be heW in an inditution the depodta or eooonnts of which are insured or guaranteed by a Federal os State agency ~induding Lender U Lender is snch an ioatitution). Lender shall apply the Funds to pay said taxes, t±ssesaments, insurance premiums and ground seats. Lander may not charge foe ao holding and applying the Funds, analysing said account, or ver}fying and compiling said assessments and bills. nnless Lander pays Borrower interest on the Fonda and applicable law perririta Lender to make anch a charge. Borrows: and Lender may agree in writing at the time of a:ecution of this Mortgage that interest on the Fonds shall be paid to Borrower, and unless each agreement is made or applicable law regnires such interest to be paid. Lends: shall not be required to pay Borrower any intemat or earnings on the Fnnde. bender shall give to Borrower, without charge. an annual aeoounting of the Funds showing credits and debits to the Funds and We purpose for which each debit to the Funds was made. The Funds are p!~ :g:.a :.a additional security for the sums secured by thu Mortgage. _ Tf the amount of the Fonda hdd by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, asaeesment0. ina~uance premiums and ground rents. shall exceed the amount required to pay acid taxes. asaeasmenta, insurance premiums and ground rents as they fall doe. snch e:oees shall be, at Borrower's option. either promptly repaid to Borrows or credited to Borrower on , monthly installments of Funds. If is a amount of the Fonda held by Lender shall not be sufficient to pay taxes. assessments, insurance ' premiums and ground nob u they fall due, Borrowtr shall pay to bender any amount necessary to make up the deficiency within 30 days fTOm We date notice is mailed by Lender to Borrower requesting Payment thereof. Upon payment in full ~ all same secured by this Mortgage, Lender shall promptly nfnnd to Borrower any funds held by Lender. Ttender paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender. Le er 1 app y, no ter Wan atdy prior - to We sale of We Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against We sums secured by thin Mortgage. 3. Ap+plicatlon of Payments. Unless applicable law provides otherwise. all payments reodved by Lender under We Note and paragraphs 1 and 2 here shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest. payable on We Note. Wen to the principal of the Note, and Wen to interest and principal on any Fntnre Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority ova Win 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 Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the evert Borrower shall make payment directly, Borrower shall promptly fnmiah b [,ende~.reoeipts.evid~cingauch paymenta_Bon~nvre:• ahallprnmptly_discharEtn_ env 1., ien which has o~rity ovsLthia Mortgage; proms, Wet _ 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 taiW contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against toes by fire, hazards included within the teen "extended coverage." and such other hazards as Lender may require and in such amounts and forsnch 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 We 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 Wereof shall be in foam 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 Wereof, and Borrower shall promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of lose, 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 repair is economically feasible and the security of this Mortgage is not thereby ipnpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would beimpaired, We insurance proceeds shall be applied to We 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 We Insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or We sums secured by this Mortgage. Unless Lender and Borrower oWerwise agree in writing, any such application of proceeds to principal shall not extend or postpone the doe date of We 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 b the proceeds thereof resulting from damage to Property prior to the acme or acquisition shall pass to Lender to the extent of the soma secured by thin Mortgage immediately prior to such sale or acquisition. 6. Preservatlon and Maintenance of Property: Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply wiW 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's obligations under the declaration or rnvenants creatingor governing the condominium or planned unit development, We by-laws and regulations of the condominium or planned unit development, and oonatitnent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together wiW 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 covenants and agreements contained in this Mortgage, or if any action or proceeding is oommeneed which materially affects Lendei a interest in the Property, including, but not limited tp, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving s bankrupt or decedent, then Lender at Lender's option,apon notice to Borrower may make such appearances, disburse such auras and take such action sd is neoeuary to prated Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender 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 ench time u 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 under paragraph 2 hereof. My amounts disbursed by Lender pereuant to Wia paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secared 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 Wereof, and shall bear interest from We date of disbursement at the rate payable from time to time on outstanding principal ender the Note unless payment of interest at anch 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 talcs any action hereunder. dUuK~~U PdGE1522