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HomeMy WebLinkAbout0828 f , . ~ ~ r~ : ~ 1 Borrower and Lender covenant sad agree as folbws: 1. Payment of Principal and Interest. Borrower shag promptly pay when due the principal of and interest on the indebtedness evidenced by the Kota, prepayment and late charges as provided in the Note. and We principal of and interest on any Future Advances secured ~ by this Iortgage. 2. Funds for Tares and Insurance. 3ubjeet to applicable law or to a written waives by I,ender, Borrower shall pay to Lender on the day monthly installments of princRpal and interest are payable ender the Note. until the Note is paid in full, a sum (herein "Funds' equal to one- twelRh ofthe yearly lases and assessments which may attain priority aver this Mortgage, red ground rents on the Property. if any, plus one- ~ twelRh of yearly premium installments for hasadd insurance, plus one•twelfth of yearly premium installments for mortgage insurance. if any. aq as reasonably estimated initially and from time to time by I .ends on the basis of assessments and bills and reasonable ~timatea thereof. ~ The Enacts shall be held in an institution We deposits or accounts of which are insured or guaranteed by a Federal or State agen~r (indnding Lender if Lender is such an institution). Lender shag apply the Funds to pay said taxes, assessments, insurance premiums and ground teals. Lender may not drarge for so holding and applying the Funds. analyzing- said account, or verifying and compiling said assessments and bills. unless Deader pays Borrower interest on the Funds and applicable law permits Lender to mate such a charge. Borrower t and Calder may agree in writing at the time of ezewtion of this Mortgage that interest on the Funds shall be paid to Borrower, and unless a such agreement is made os applicable taut regnirea such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fends. Lender shall give to Borrower, without charge, an'ennual aeoounting of the Funds showing credits and debits to the Fonda amt the purpose for which each debit to the Fonda was made. The Fends are pledged as additional security forthe sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, aeaeaements. inamanae premiums and ground rents. shall e:ezed the amount required to pay said tares, assessments,-insurance premiums and ground rents ere they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fends: V the amount of the Fandslreld by Lender 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 Harrower requesting payment thereof. - - - - Upon payment in fell of all seers secured by this Mortgage, Lender shaA promptly refund to Borrower any funds held by Lender. If ender paragraph 18 hereof the Property is sold or the Property is otherwise aognired by Lender, Lender shall apply, ao later than immediately prior to the sale dtha Property or its aagnisitioa by Lender, any Funds held by Lender at the time of application as a credit against the sums eecnred by this Mortgage. - i 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 interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances - 4. Chargce; Liens. Borrowerahall pay all fazes, 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 Borrows shall make payment directly, Borrower ahallpromptlyfurnish to - La,da reoeiptsevidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrows shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment o; the obligation secured by such lien in a manna acceptable to Lender, or shall in 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. Borrows shall keep the improvements now eziating or hereafter erected on the Property insured against loss by fi~ hazards indnded within the term "eztended eoverage,° and andr other hazards as Lender may require and in each amounts and for each periods as Lender may require; provided, that Lender shall not require such coverage amount ezceeding the minimum, as may be required by state or federal regnlationa governing activities of Lender, or that amount of courage required to pay the sums secured by this Mortgage, whichever is the geeata. The insurance carries 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 manna, 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 aeceptable to Lender. Lends shall have the right to hold the policies and renewals thereof, and Borrows shall promptly furnish to i,enda all renewal notices and all receipts of paid premiums In the event of lose, Borrower shall give prompt notice Lathe insurance carrier and Lender. Lends may make proof of lose if not made promptly by Borrows. ~ Unless Lends and Borrows otherwise agree in writing, insurance proceeds shall be applied to restoration 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 ~ repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the alms secured by this Mortgage. with the ezeese, if any, paid to Borrows. If the Property is abandoned by Borrows, or if Borrower fails to f respond to Lends within 30 days from the date notice is mailed by Lender to Borrows that 1lre insurance carries offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance prooceda at Lenders option either to restoration or repair of the ? Property or the sums secured by this Mortgage. - UnleseLendsand Borrows oWerwise agree is writing, any such application of praceeda to principal shall not eztend or postpone the due date of the monthly installmen~ refereed to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender paragraph 18 ' - hereof the Property is aognired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the praceeds thereof resulting from damage to Property prior to the sale or aoquisitioa shall pass to Lends to the eztent of the sums secured by this Mortgage immediately prior to each sale of aoquiaition. - 6. Preservation and Illaintenance of Property; Leaseholds; Condominnens; 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 E provisions of any lease if. this Mortgage is on a leasehold. If this Mortgage is on a unit is a condominium or a planned unit development, Borrows shall perform all of Borrower s obligations under the declaration or covenants c~eatingor governing the condominium or planned unit development, the by-laws and regnlatioas of the eondamiaium or planned nniti development, and constituent documents If a rnndoeniniam or planned unit development rids is ezecuted by Borrows and recorded togeths with this Mortgage, the covenants 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 hseof. ~ 7. Protection of Lender's $ecarity. If Borrower fails to perform the covenants and agreemeata contained in this Mortgage, os if any action or proceeding is eommenoed which materially affects Lenders interest is the Property, including, bet not limited to, eminent domain. insolvency. code enforcement, or arrangements or proceedings involving a banlQnpt or decedent, then Lender at Lender's option.npon notice to Borrows may make such appearances, disburse each anma and take such action as is necessary to protect Lender's interest, indnding, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. V Leader required mortgage inenranoe as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regmred to maintain each insurance in effect until such time as the requirement for such insurance terminates in aanoedance with Borrower's and Larder's written agreement or applicable Law. Borrows shall pay the amount of all mortgage insurance premiums in the manner provided Hader paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph with interest Wereon, shall become additional indebtedness of Borrows. secured by this Mortgage. Unless Borrows and Leads agree to oths terms of payment, such amounts shall be payable upon - aotice from Leads to Borrower requesting payment thereof and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal nada the Note unless payment of interest at each rate would be contrary to applicable law, in which event each amounts shalt bear intseat at the highest rate permissible ender applicable law. Nothing contained in this paragraph 7, shall regain Lends to incur any ezpense or take any action hereands. - g~x3~.7 8~2~