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HomeMy WebLinkAbout2486 - - _ _ _ - - ~ _ ; Borrower and Lender coveaaat and ague as folbws: I. Pa,1?raest of Psiwcipal acid Itlterwt. Borrower shall promptly pay whoa dw the principal of and interest on the indebtedness evideaosd by the Note. prsprtynwat and fats charges as provided in the Note, and the principal stand intenstoa aqy Furors Advanoa secured by this Mostgage. 4. P~utda for faxes and Ituarattoe. Sub3ed to applicable law or to • written waiver by La?dor, Borrower shall pay to Lender on the ds~y maathly irrsWUneata of prindpal and interest are payable under the Note, until the Note is bald is full, a sum (herein "Flrnda'~. equal to one• twelfth of the yearly taxes sad asssssmarts which may attain priority over this Mort`age, and ground rents on the Property, ifaay, plw ores twelfth of yearly premium installments for hasard insurance, plus oaetwelfth ofyearly premium irretallmen4 for mortgage inanratree, itany, cep as rsaso~aably estimated initially sad groin time to time by Lender on the basis of assessments and bills and reasonable estimates thereof: ' '!Le Fwtda shall be held in as institution the depodta or aooounts of which an insured or guaranteed by a Federal or State ageagr _ (uaclndirrg Leader if Lender is sadr an institution). Lender shall apply the Funds to pay said taxes. aaesaments. insurance premiums and - - ground rents. Loader may not ehar~ for so holding sad applying the Funds, analysing said aooonnt, or verj~jring sad compiling said asabsseoenta and Mlle, nnlea Lenderpaya Borrower interest oa We Funds and applicable law permits Lender b make such a charge. Borrower and Leader may agree in writing at tM time of execution of this Mortgage that interest oa the Ptirnds shall be paid to Borrower. sad unless such agreenae~at is made or applicable law requires such interest to be paid, Laredo: shall not be required Oo ppr Borrower any iatesest or earnings on the Funds. Leader shall give to Borrower, withoat charge, an snnnal aooounting of the Funds showing credits and debits to the Funds and tbs purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Pbnds hdd by Lender. together with the fatuse monthly installments of Enacts payable prior to the duedates of taxes, assessments. insurance premiums and ground rents. shall exozed the amount required to pay said taxes, assessments, irrsuranoe premiums and ground rents as they fall due. such excess shaA be, at Borrower's gplion~ eitbstzPromptllrropaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by I,en~er s.~ll oot,be sufficient to pay taxes, assessments, inanranoe premiums and ground rents as Way fall due. Borrower shall pay to Lender tittlTaufiroturf neoeeaary to,make cep the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment th~reof:~~ ~ • Upon payment in fall of all sums secured by this Mortgage. Leader shall prpinptly refund to Borrower any funds held by Lender. Itunder 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 acquisition by Lender. any Fonda held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Applkation_ of Payments. Unless applicable law provides otherwise, all payments received by bender under the Note and paragraphs 1 a~ Z hereof shall be appfied by Lender first in payment of amounts payable to Lender by Borrows under paragraph 2 hereof, then to interak 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 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 such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowerahal) promptly furnish to bender all notices of amounts due under thin paragraph, and in the event Borrower shall make payment directly, Borrower shall p~~1y furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ehaU not be required to discharge any such lien eo 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 enfomemeniofauch lien in, legal pmceedi.-sga 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 lean "extended coverage," and such other hazards as Lender may require and in each 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 such approval shall not be unreasonably withheld. All premiums on insurance policies steal! 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 form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowershali promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carries and Lender. Lender may make proof of loan 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 err repair is not economically feasible or if the security of this Mortgage would be impaired, the inswance 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 inawance carrier offers to aeWe a claim fw 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 sums secured by this Mortgage. Unless Landes 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 1 and 2 hereof or change the amount of such installments. Lf under paragraph 18 hereof the Property is acquired by Lender, alt right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof rrsnlting 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 err acquisition. 6. Preservation sad 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 it 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 condominium or planned unit development, the by-lawn and regn[ationa of the rnndominium or planned unit development, sad constituent 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 inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Proteetlon of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding it commenced which materially affects Lender's interest in the Property, including. but not limited to, eminent domain, insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or deoedart, than Lender at Lender's option,npon notices to Borrower may make such appearances. disburse such sums and take such action a. is neaesary to protect Lender's interest, including, but not limited to, disbursement of reasonable attoraey'a fees and entry upon the Property to make repai». If Lender regretted mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower chap pay the premiums required to maintain such insurance in effect until such time as the requirement for such inswance laminates in accordance with Borrower's and Lender's written agreement or applicable Lsw. Borrower shall pay the amount of all mortgage inewance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become adcitional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shag be payable neon notice from Lender to Borrower requesting payment thereof, and chap bear interest from the date of disbursement at the rate payable float 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 such amounts shall bear interest at the highest rate permieaible under applicable law. Nothing contained in this paragraph 7. shall require Lender to incur any expense or take any action hereunder. . ~ ~~x3~6. P~~F2486 ~