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HomeMy WebLinkAbout0294 f •i . Borrower and Lender covenant and agree as follows: 1. Payment of Principal sad Interest. Borrower shall promptly pay when due 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 intereston arty Future Advances secured by this Mortgage. 2. Faads for Taxes and Insurance. Subject to applicable law or b a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid is full, a sum (herein "Funde'7 equal to one- twelfth ofthe yearly taxes and assesemcats which may attain priority over this Mortgage, and ground rents on the Property, if any. plusone- tweltth ofyearly premium installments for haaard insurance, plea one-twelfth ofyear)y 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 reasonable estimates thereof. The Farads sha3 be held in an institution the deposits or aoaouats of which are insured or guaranteed by a Federal or State agency (iadudiag Lender if Lender is such an institution). Lender shall apply the Fnnda to pay said taxes. assessments, insurance premiums and ground rents. Leader may not charge for so-holding and applying the Funds, analysing said account. or verifying and compiling said asaessmeata sad bills, unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge: Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and udeea such agreement ie made or applicable law requ~tee such interest to be~ paid, Lender shall nos be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower. without charge, an annual aooouatiag of the Fends showing credits and debits to We Funds and the purpose for which each debit to the Furda was made.l'he Fonda are pledged as additional security for the sums secured by this Mortgage. If We amount of the Funds held by Lender, together with We future monthly installments of Fuada payable prior to We due dates of taxes, assessments, insurance premiums and ground rents, shall exoaed the amount required to pay said fazes, assessments, insurance premiums sad ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amourat of the FnndB held by I.end~ shall not be sufficient to pay taxes, 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 payment thereof. Upon payment is full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any fiords held by Lender. Tf 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 sale of the Property or its soquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma 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 ender 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 Fugue Advances. 4. Charges; Liens. Borrower shall pay all taxes, asaesamenta and other charges, fines and impositions attributable to the Property which may attain a priority over thin 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 thereoL 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 Lender receipts evidencing such pay-meats. 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 aoaeptable to Lender, or shall in good kith oont.est such lien by, or defend en forcemeat 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 oa the Property insured against loss by . fin, hazards induded within the term "extended eoveragp "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 minunum, as may be required by state or federal regulations governing aclivitiea 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. AU 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 reaewals,thereofshall be in form acceptable b Lender and shall include a standard mortgage douse in favor of sad in form aooeptable to Lender. Lender shall have the right to hold the policies and renewals thereof; and Borrower shall promptly furnish to i,ender all renewal soticee sad all receipts of paid premiums. Ia the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender maq make proof of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to natoratioa or repair of the Property 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 world be impaired, the insurance proceeds shall be applied to the soma 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 Leader within 30 days from the date notice is mailed by Leader to Borrower that the insurance carrier offers to setae a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to natoration or repair of the Property or the some secured by this Mortgage. - Unless Lender and Borrower otherwise agree in writing, any arch 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, Ctle and interest of Borrower in and to any insurance policies and is and to the proceeds thereof vaulting from damage b Property prior to the sale or aequiaition shall pees to Lender to the extent of the soma secured by this Mortgage immediately prior to arch sale or aogniaitioa. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit DeveloFmenta. Harrower 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 tease if this Mortgage is sin a leasehold. If this Mortgage is on a unit in s candomiaium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants c~eatingor governing the eoadomininm or planned unit development. the by-laws and regulations of the condominium or planned Wait development, and consrituent documents. If a rnndonrinium or planned unit development rider is execrated by Borrower and worded together with this Mortgage, the covenants and agvementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreem~ts of this Mortgage as if the rider were a pari hereof. " 7. Protection of I.gnder'e Security.lS Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any , action or proceeding is commenced which materially affects Lender's interest in the Property. induding, bat not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a banlQUpt or decedent, they Lender at Lender's option,apon notice to Borrower may make each appearances, disburse such arms and take arch action as is necessary to proved Lender's interest, indnding, brat not limitod to, disbnrsemeat of reasonable attorney's face and entry upon the Property to make repairs. U Landes required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance is effect until arch time as the requirement for such insurance terminates in accordance with Borrower's and Leader's written agrcement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna: provided Hader paragraph 2 hereof. Any amounts disbursed by Leader persuant to thin paragraph 7. with interest thereon. shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower retineating payment thereof, and shall bear interest from the date of diabnraement at the rate payable tom time to time on outstanding principal under the Note unless payment of interest at arch rate'would be contrary to applicable law, in-which event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragrnFh 7, aball regain Lender b incur any expense or take any action hereunder. auaK317 PaGE ~4