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HomeMy WebLinkAbout2977 f t v Borrower and Lander covenant and agree a. folbws: 1. Payment of Prlnoipal sad Interest. Borrower shall promptly pay when dw the principal of and inlerat oa the iadebtedaees evidenced by the Note. prepayment sad late charges as provi~d in the Note, and the principal of and interest on any Future Advances secured by this Mortgage: 2. Fmrde for Ta:ea sad Insurance. 8ubjed to applicable law or to a written waiver by Lender. Borrower shall pay to Lender oa the day - moathly irutalla4eats of principal and interest sae payable under the Note, until the Note is paid in ltitll, a sum (herein "Funds' equal b oae- twelRh ofthe yearly ta:a and assessments which may attain priority over this Mortgage, and ground recta oa the Property. if any. plus one• twellW of yearly peeminm iastallmmrb for hazard inswance. Plus ona•tweliW of yearly premium instsllanents for mortgage insurance. if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof P Tbs Funds shall be heW in an institution the depodts or aooonnb of which are insured aT guaranteed by a Federal or State agency i (inclndin~ Leader if Lender is such an institntioa). I.ende: shall apply the Funds to pay said lases. assessments, insurance premiums and ground recta. Lender may rwt charge for so holding and aPPLI?~8 the Funds. analysing said aooounk or verifying and compiling said aasesnaseats and biW, unless Leader pays Borrower interest on We Funds and applicable law pernrits Lender to make such a charge. Borrower and Lander may agree in writing at the time of ezecution of this Mortgage that interest on We Fends shall be paid b Borrower. and unless 1 such sgreaa~ent 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 Fends. Leader shall give to Borrower, wiWont charge. as annual aeoountiag of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. 4 If the amount of We Fends held by Lender, together with the future monthly installments of Fends payable prior to the due dates of lases. aasasmenta. insurance premiums and ground rents. shall exceed the amount required to pay said taxes, assesament0. insurance premiums - and ground rents as they fall due. such esosse shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fends. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, asscesments, insurance premiums and ground ren4 as they fall due. Borrower shall pay b 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 is fall of all sums secured by this Mortgage. Lender ahaA promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof We 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 Ftirnds held by Lender at the tiros of application as 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 paragraplu 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower ands paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Fntnre 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 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 direMly, 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 the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proc~eedinga 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 lass by fire, hazards included within the term "extended coverage," and such other hazards as Lendei? may require and in such amounts and for 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 sums secured by this Mortgage_ ~ 1 The inawance 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 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 Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the inswance carrier and Lender. Lender may make proof of lass if not made promptly by Borrower. k Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of the Property E damaged, provided such restoration or repair is ernnomically feasible and the security of this Mortgage is not thereby impaired. If each ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inswance proceeds shall be applied to the arms 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 inswsnce benefits. Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the some secured by this Mortgage. Unless Lender 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. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inswance 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 sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma;Planned Unit Developments. Borrowerahail keep the Property in good repay and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaians of any tease 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 condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Bon-ower and recorded together with this Mortgage, the oovenanta 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, aR if say action or proceeding is eonameneed which materially affects Lendei 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 option,npon notice to Borrower may make such appearances. disburse arch sums and take sacb action as is necessary to prated Lender's interesk including, but not limited to, disbursement of reasonable attorney's fees and entryoupon We Property to make repairs. If Lade: required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time ae We requirement for such insurance terminates in accordance wiW Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amount.of all mortgage inawance premiums in the manner provided render paragraph 2 hereof. Any amounts disbursed by Lender peraoant to this paragraph 7, wiW interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older temAa of paymenk such amounts shall be payable upon notice from Lender to Bon~ower requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to appUcable law, in which event such 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 take any action hereunder. ' BU~(~~ P.dGf~~