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HomeMy WebLinkAbout1921 t Borrower and Lender covenant sad agres a. folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidsaod by the Noes. prepayment and late charges a. provided in the Note. and the principal of and interest on any Plrture Advances secured by this It[oetgags. 2 Funds for Tues and Insurance. 3abjed to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly insWhneata of prindpal sad interest are payable ands the Note, until the Note is paid in full, a sum (herein "ltirnds'7 equal b one- twelfth of the yearly taxes and aasasmants which may attain priority over this Mortgage, and ground rents oa the Property, if any, plus ones 4welf W of yearly premiam inatalbnetrts for hasard insurance, plus one•twelfth olysarly prsmium installments for mortgage insurance, if any, all as reasonably estimated initially and hoar time to time by Lender on the basis of assessments and bids and reasonable estimates thereof. 1Le Fonds sbaU b held in an iastitntioa the depasita or acc.~utrts of which an insured or guaranteed by a Federal or State agenry (including Leader if Lender is such as inatitutionl. Leader shall apply the Funds to pay said taxes. assessmenh, insurance premiums and ground rents. Leader may rtot charge far so holding and applying the Funds. analyzing said account, os verifying and compiling said aasessanerrts sad bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to makts such a charge. Borrower and Lender mqy agree in writing at the brae of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unlep ouch agrseasenE is made or applicable law requires such interest to be paid, Lender_shaU not be required. to pay Borrowsr any interest or earnings on the Fonda. Leader shall give to Borrower, without charge, an annual accounting of the Inds showing credits and debits to the Funds and the purpose for which each debit to the Fonda waa made. The Funds an pledged as additional security for the sums tenured by this Mortgage. if the amount of the Funds held by Lender, together with the futon monthly installments of Funds payable prior to the due dates of taxes, aaseeammrts. insnranoa premiums and ground Hats, shall exoaed the amount required to pay said taxes, assessments, insurance pnnuums and ground rent~? as that' fall due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds, ff the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums end grotmd rents as Wet' fall dos, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fall of all soma secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof We PropMy is eotd or the Properly is oWerwiae acquired by Lender, Lender shall apply, no later than immediately prior to the ask of the Properly or its acquisition by Lender, any Fbnds held by Lenderat the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under We Note and ' paragraphs 1 and a 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 We Note. Wen to We principal of We 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 Wis Mortgage, and leasehold payments or ground ants, ifany, 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 furnish to Lender all notiom 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 W eobligation 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 We 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 against loss by fire. hazards included within the term "extended rnverage,"and such other hazards as [.ender may require and in such amounts and for such periods as Leader may regain; provided, that Lender shall not regain that the amount of such rnverage 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 insuranm 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. f All insurance policies and renewals Wereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof ~ and in forms acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender 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. Unleea 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 We security of this Mortgage is not Wereby impaired. If such restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess,ifany, 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 suthorize+d to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or We soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or postpone Wedue date of the monWly installments referred to in paragraphs 1 and 2 hereotor change We 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 Wis Mortgage immediately prior W such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominuma; Planned Unit Developments. Bortowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wild We provisions of any lease if Wis 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 rnvenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with Wis Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as ifthe ' rider were a part hereof. 7. Protection of Leader'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, ' insolvenry. code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,apon notice to Borrower may make such appearances, disburse such sums and take arch 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 such insurance in effect until each time as We requirement for such insurance terminates in accordance wild Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amount o! all mortgage insurance premiums in We manner provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph 7. wild interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older Leona of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shalt bear interest from We date of disbursement at We rate payable fiom time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate penniasible under applicable law. Nothing contained in Wis paragraph 7, shall require Lender to incur any expense or take any action hereunder. 8~~~ 316 PACE 1921 • E