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HomeMy WebLinkAbout0278 t ~ .~rlr ~ ; Borrower and Lender covenant and agree as follows: . 1.-Payment of Principal and Interest. Borrower shall promptly pay when dos the principal of and interest on the indebtedness ' evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured ~ by this M~~rigage. - - Funds for Tares sad Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest ass payable under the Note, until the Note is paid is full, a sum (herein "Funds'9 equal to ores twelfth of the yearly taxes 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 one-twelfth of yearly premium installments 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 seasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender-if Landes is such an institution). Lender shall apply the Funds to pay said to:ea, assessments, insurance premiums and 1 . ground rents. Lender may sot charge for so holding and applying the Funds. analyzing said account. or verifying and compiling said ~ assessments and bills, anises Lender pays Borrower interest on the Funds end applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecution of this Mortgage that interest on the Funds shall be paid to Borrower, and anises arch agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pry Borro~:,ar any interest or earnings on the Funds. Landes shall give to Borrower, without charge, an annual accounting of the Funds showing credits an, ? debits to the Fends and the purpose for which each debit to the Funds was made. The Funds are pledged as additional aecnrity for the some secured by this Mortgage. If the amount of We Enacts held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, inaun3noe premiams - snd ground rents ae they fall due, each exoESS shall be, at Borrower's option, either promptly repaid to Borrower or edited b Borrower on monthly installments of Enacts. V the amount of the Funds held by Lender shall not be sufficient to pay fazes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting paymen. thereof. Upon payment in fall of all sums secured by this Mortgage, Lender shall pnmptlY reined to Borrower any funds held by Lender. Tf ender paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender-shall apply, no latex than immediately prior to the sale of the Property or its aegniaitC6nby Lender, any Funds held by Lender atthe time of application as a credit against We 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 Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intareit.payable on the Notc, 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 prissily over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in anc~ manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly fnnush to Lender all notices of aenaunfs due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall pranptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall rot be required to discharge any such lien Fo Ieng as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner aooeptaole to Lender, or shall in goon faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Aasard Insurance. Borrower shall keep the improvements nova existing or hereafter erected on the Property inanred against lose by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage. whichever is the greater. 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 thereof shall be in form acceptable to Lender and shall include a standard mortgage claase in favor of sad in form acceptable to Lender. Lender ahaL' 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 premiame. In the event of lose, Borrower shall give prompt notice b 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 E damaged, provided each 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 pmoeedsshall beapplied - to the soma eecnred by this Mortgage, with the excess, if any, paid to Borrower. If the Property ire 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 eeWe a claim for insurance benefits, Lender is authorized to collect and apply the insurance prooceds at Lender's option either to restoration or repair of the Property or the soma secured by=this Mortgage. _ - ~ Unless Lender and Borrower otherwise agree in writing, any arch application of proceeds to principal shall not eztend or postpone the due date of the monthl~iastallmenta referred to in paragraphs 1 and 2 hereof or change We amount of such installments. If under paragraph 18 hereof the Property is eognired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proeeeda 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 aogniaition. 6. Preservation and)ilaintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Horrower shall perform all of Borrower's obligations ender the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominiam or planned unit development, and oonstitaent documents. If a condominium or planned unit development rider is ezecated oy Borrower and recorded together with this Mortgage, the oovenanta 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. Prote~.iion of Lender's f3ecnrtty. U Borrower fails to perform tine covenants and agreements contained in this Mortgage, or if any _ ~ - action or proceeding is oommenoed which materially affects Lender's interest is the Property, including, bat not limited to, eminent domain. insolvency, code enforcement, or arrangements or Proceedings involving a bankrupt or decedent, then Lender at Lender's optionupon notice to Harrower may make each appearances, disburse arch sums and take such action as is necessary to protect I.endeers interest, including, but not limited to, disbnreement 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 secared by this Mortgage, Bosrower shall pay the premiums required to maintain sack inantance in effect ualil each time as the requirement for such insurance terminates in aooordance with Borrower's and Lender's written aBtreem~t ar applicable Law. Borrower shall pay the amoant of all mortgage insurance premiams in the manner provided ender paragraph 2 hereof. Any amounts disbursed by Lender perauant to this Paragraph with interest thereon. shall become additional indebtedness of Harrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. each amounts shall be payable neon notice from Lender to Borrower requesting payment thereof and shall bear interest from the date of aisbare.::..ent at the rate payable frrom time to time on outstanding principal under the Note anises payment of interest at such rate would be contrary to applicable law, in wbich event such amounts shall bear interest at the highest rate permissible Hader applicable law. Nothing contained in this paragraph 7, shall require Leader to incur any expense or take any action hereunder. OFFICIAL RECORD ~p,~ ~ _ j - ~o~x 317 ~~E 27"8 5~ X2425 - Shy