Loading...
HomeMy WebLinkAbout1912 - _ ~ Borrower and Lender covenant and agrtis as tollows: 1. Pa~?atent of 1PrlneipsJ and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepaymaAt erect late charger ea provided in the Note. and the principal of and interest on any Future Advances second by this Mortgage. 2. Fonds for Toes and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly instalhaents of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds") equal to ono twelfth of the y~rl y lases and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. Plus one• twelfth of yearly premium installments for hasard insurance. plus onetwelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and lireom time to time by Lender on the basis of assessments and hilts and reasonable estimates thereof. The Funds shall be held in an institntton the deposits or accounts of which are insured or guaranteed by a Federal or State agency ~ (including Lender if Leader is such an inatitation). Lends shall apply the Funds to pay said taxes, aseeaements, insurance premiums and ~ ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account. or verifying and compiling said # assessments and bills. nnlea Lender pays Borrower interest on the Funds and applicable law permits Lender to makesuch a charge. Borrower ~ and Lender may agree in writing at the time of execution of this Mortgage that interest on the Inds shalt 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 the Farads. bender 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 the Inds was made. The Funds are pledged as additional security for the auras secured by this Mortgage. If the amount of the Funds 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 to:es, 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 Borrows on monthly installments of Ftinds. Tf the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance ' premiurs and ground teats as they fall tine, Borrower shall pay to Lender any amount necessary b make up the deficiency within 30 days from the date notice is mailed by Lender 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. 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 sak of the Property or its acquisition by Lender, any Funds held by Lender at the time of application ae 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 hereof shall be applied by ]:,ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then tO interest payable on We Note, then to the principal of the Note, and then b interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all ta~c~, As+~smenta 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 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 event Borrower shall make payment directly, Borrower shall promptly furnish to 1 Lender receipts evidencing such payments. Borrower shall promptly discharge any'lien which has priority over this Mortgage; provided, that j Borrower shall not be required to discharge any such lien so long as Borrower shalt agree in writing to the payment of theobligation secured by such lien in a manner acceptable to bender, or shall in good faith rnntesl 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the teen "extended coverage," and such other hazards as i.ender may require and in such amounts and fur such ` 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 soma 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 polities and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form aeceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and $orrower 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 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 sua?s secured by. this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or postpone the due date of the monthly installments refenred to in paragraphs 1 and 2 hereof or change the amount of snch 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 frrom 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 otProperty; Leaeehotds;Condominums; Planned Unit Development~.l3orrowershallkeep the Property in good repair and shall not commit wa8te 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's obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominiwn or planned unit development rider is executed by $orrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shell amend and supplement thecovenants and agreementsof this Mortgage asifthe 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 commenced which materially affects Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, code enforoernent, or arrangements or proceedings involving a Uanlwpt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the 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 snch insurance in effect until such 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 ail mortgage insurance premiums in the manner provided under paragraph 2 hereof. gay amounts dislwned by Lender persuant to this paragraph T, with interest thereon, shall become additional indebtedness of Borrower secreted by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower regnesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note nnless 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 taw. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. nN3 B~ ;r - E~9 • ~ i 16 QA~