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HomeMy WebLinkAbout0834 - 1 . f ~ Borrower and Lender covenant and agree as folbwe: r 1. Payment of Prlnelpal and 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 interest on any Future Advances secured by this Mortgage. 2 Fends for Tares and Insurance. Subject to applicable law or to a written waives by Lender, Borrower shall pay to Lender an the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds") equal to ono- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any. plus ono- twelfth of yearly premium instalhneata for hazard insurance. plus ono-twelRh ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and firom time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be held is as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency tincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said takes. assessments, insurance premiums and ground yenta. Lender may not charge for eo holding and applying the 1?bnds. analyzing said eoaunt, or vceifying and compiling said ~ assesamenta and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of e=ecutioa of this Mortgage that interest on the Funds shall be paid to Borrower, and adees such agreement is made or applicable law requires such interest to be paid, Leader ehaU not be required to pay Borrower any interest or earnings on the Funds. Leader shall give to Borrower, without charge, an annual aocenating of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged ere additional security for the soma eecure3 by this Mortgage. If the amount of the Funds held by I.ender, togeWer with the future month~yr installments of Funds payable prior to the due dates of fazes, assessments, insurance premiums and ground rents, shall eicozed the amount required b pay said fazes, assessments, insurance premiums and ground rents as they fall due, such a:Dees shall be, at Borrower's option, either promptly repaid to Borrower or ce+edited to Borrower on monthly installments ~f Fends. If the amount of the Funds held. by Lender shall not be sufficient to pay fazes, aeaessmenta, insurance premiums sad 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 in full of all suns secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, Lender shall aPP1Y, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Fanda held by Lender at the time of application as a credit against the soma secured by this Mortgage. - _ 3. Application of Payments. Unless -applicable lave 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 to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all tares, assessments and other charges, fines and impositions attrib~:table to the Property which may attain apriority-over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided u;;der paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall pronptly furnish to Lender all notices of amounts due under this paragraph; and in the event Borrower shall make payment directly, Borrower shad promptly furnish to i Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrow~ahall 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 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 ezistiag os hereafter erected on the Property insured against lose by fire, hazards incladed within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Leader may require; provided, that bender shall not require such coverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the arms 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 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 - t i .ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to 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 damaged, provided such 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 proceeds shall be applied to the sums secured by this Mortgage, with the ezceas, 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 insurance 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 sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend 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 insurance 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•eztent of the sums secured by this Mortgage immediately prior to such sale or aequisition. '3 f 6. Preservation and Maintenance 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 Wait in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the eondominiam or planned unit development, the by-laws and regnlationa of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is ezecnted by Borrower and recorded togeWer with this Mortgage, the covenants and ~ agreements of such rider shall be incorporated into and shall amend and aupglement 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 oovenante and agreevnenta contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, 3 insolvency, code enforcement, or arrangements or prnoeedinge involving a bankrupt or deoedeat, then Lender at Leader's option,apon ) notice to Borrower may make arch appearances, disburse such sums sad take such action as is necessary to protect bender's interest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leader required mortgage ins~uance as a condition of making the~lban secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time as the regairement for such insurance terminates in aooordance 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 amounts diabnrsed by Lender pereuant 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, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diaburbem~rt at the rate payable from 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 such amounts shall bear interest at the highest rate permissible Hader applicable law.,-Nothing contained in this paragraph 7, shall reynire Lender to incur say expense or take any action hereunder. s ~ - B~~31~' P~ .833