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HomeMy WebLinkAbout0448 i Borrower and Lender covenant and agree as folMws: 1. Pavyment of Principal wad 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 any Future Advances secured by this Mortgage. - - 2. Fonda for Ta=ea and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly inetalhnenta of grincipal and interest are payable under the Note, antil the Note is paid in full. a sum (herein "Funds' equal b oae- twelfth ofthe yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if say, plus oas twelfth of yearly premium installments for hazard insurance, plus onehxelRh 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 reasonable satimatea thereof. The Funds shall be held in as institation the deposits or aooounts otwhich are iaswred or guaranteed by a Federal or State agency (including Lender if Leader ie anch an iaatitntioa). Lender shall apply the Fonds to pay said fazes. assessments, inansance premiums and ground yenta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unleea Lender pays Borrower interest on the Fonda sad applicable law peranita Lender to mare such a charge. Borrower sad Leader may agree is writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and ndsss such agreement is made or applicable law requires such interest to be paid, Leader shall not be regrind to pay Borrower any lateral or ewrnings on the Fonda. Lender shall give to Borrower, without drarge, an annual aooouating of the Funds showing credits and debits to the Fonda and thy. purpose for which each debit to the Fonda was made, The Funds an pledged ere additional security for the sums secured by this Mortgage. If the amount of the)tinds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance p~aiums and ground rents. shall e:oaed the amoant required to pay said taxes, asaesamentt, insurance premiums and ground rents as they fall doe. anch excess shall be. at Borrowerrs option, either promptly repaid to Borrower or credited to Borrower on monthly iaatsll~aenta of Fuada. If the amount of We Fonda hel8 by Lends! shall not be anfficient to pay fazes, aseesamenta, insurance premiums and ground rents as Way faB doe, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender b Borrower requesting payment thereof. Upon payment in full of all eama secured bythis Mortgage. Lender shall promptly refund to Borrower any funds held by Landes. If Hader paragraph 18 hereof theProperty is sold or the Property is otherwise acquired by Lender. Leader shall apply, no later than immediately prior to the sale of the Property orite acquisition by Lender. any Fuada held by Lender at the time 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 paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then lathe principal of the Note, and then to interest and principal on any Futon 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 say. 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 I.ender all notices of amounts due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly furnish to - Lenderreceipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired 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 is good faith contest such lien by. or defend enforcement 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 on the Property insured against lone by fire; hazards included within the term "extended coverage," and anch other hazards as Lender may require and is anch amounts and for such periods as Lender may regain; provided, that Lender shall not require such coverage amount exceeding the aunimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the grater. The insurance carrion 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 anch manner, by Borrower making. payment, when due, directly to the insurance caner, All insurance policies sad renewals thereof shall be in form acceptable to Leaderand shall indnde a standard mortgage clause in favor of and in form aooeptableto Ler?der. Lenderahall have therighttohoki Wepo6cies and nnewela thereof, and BorrowerahaU promptly furnish to lender all rsaewal notices and all r~eoeipts of paid premiums. In the event of loan, Borrower eh~?l give prompt notice to the insurance carrier and lender. Lender may mane proof of Mae if not made promptly by Borrower. - Unless Lender and Borrower otherwise agree in writing; insurance proceeds shall be applied to restoration ~r repair of the Property . damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If anch restoration or repair is not economically feasible or if the aecnrity of this Mortgage would be impaired, the insurance proceeds shall be applied _ b the sums secured by thin 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 b Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propertyr or the sums secured by this Mortgage. - Unless Lender and Borrower otherwise agree in writing, any anch 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 anch installments. If under paragraph 18 hereof the Property is aegnired by Lender, all right, title and interest of Ba rower in and to any insurance policies and in and to the proceeds thereof resalting from damage to Property prior to the sale or acquisition shall pass b Lender to the extent of the sums secured by this Mortgage immediately prior to anch sale or ~oquisition. 6. Preservation and Maintenance of Property; Leaeeholda; Condomiaums; 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, Borrower shall perform all of Borrower's obligations under the declaration or oovenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominum or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the oovenanfa and agreemeata of this Mortgage as if the rider were a part hereof. Protection of Lender's Secarlty. IS Borrower fails to perform the covenants and agnementa ooatained in thin Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, indnding, bat not limited to, eminent domain, insolvency. code eaforoemeat, or arrangements or proceedings involving a banlQnpt or decedenk then Leader at Lroder'a ~tion,apon notice to Borrower may make each appearaaoes, disbanre such anm,s sad take anch action as is necessary to protect Lende'r's ioteresk indading, but not limited to, disbursement of reasonable attorney's fees end antsy upon-the Property to make repairs. If Lender regrind mortgage insarance as a condition of making the loan secured by thin Mortgage, Borrower shall pay the premiams required b maintain anch insurance in effect until each time as the regnirenieat for each iasnretnce terminates in aoDOrdance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amoaate disbursed by Lender pennant to this 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, anch amounts shall be payable upon notice fi~ Lender to Borrower requesting putyment thereol; and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note anlesa payment of interest at such rate would be contrary to applical i 31aw, in which event such amounts shall bear interest at the highest rate permissible ender applicable law. Nothing contained in thin paragraph 7, shall require Lender to incur say expense or take any action hereunder. g:~x3ZT ~~F 448 -