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HomeMy WebLinkAbout1458 _wk Borrower sad Lender covenant and i agree as folbws: ~ 1. Psyment of Principal and Interest. Borrower shall promptly pay when due the principal of and intercat on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the pritcipal of and interest on any Future Advances secured by Win Mortgage. - 2. Funds for Ta:ea and Insurance. Subject to applicable law os to a written waiver by Lender. Borrower shall pay to Lender on tl,e 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 one• , twelfth of the yearly tares and asseaaments which pray attain priority over this Mortgage, and ground rents on the Property, if any, plusone- twelRh ofyearly premium installements for hazard insurance, plus onetwelfth of yesr1r premium installments for mortgage insurance. if any. t all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof The Phads 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 tares. asseasrr,ents. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and bender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unless ~ such agreement is made or applicable law requires 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. sn annual accounting of the Funds showing credits and debits t*~ We fi,nda and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the some secured by this Mortgage. If We amount of the Fends held by Lender, together with the future monthly installments of Funds payable prior to the duedatee of tares, asaeasmenta, insurance preminma and ground rents, shall exceed the amount required to pay said taxes, aeseasmenta, insurance premiums ~ and ground rents ae Way fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on { monthly installments of P1mds. If We amount of the Fends held by Lender shall not be sufficient to pa~? taxes, assessments, insurance preminma and ground rents as Way felt due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting payment Wereof. Upon payment is full of all sums secured by Wis Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender-shall apply, no later W an immediately prior to the sale of the Property or its acquisition by Lender, any Funds 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, ail payments received by Lender under We Note and paragraphs 1 and 2 hereof shall be applied by Lendez fast in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on We Note. then to the principal of the Note, and then to interest and principal on say 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 priority over this Mortgage; and leasehold payments or ground Tents, if any, in the manner provided under paragraph 2 hereofor, ~ if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrowershall promptly furnish to I.ender ~ . alt 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 payments. 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 acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legs! proceedings f 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 lose by fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of rnverage required to pay the sums secured by this Mortgage. 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 favorof and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender ail 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 Lo the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by $orrower, or if Borrower fails to j 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 collect and apply the insurance proceeds at Lenders option either to restoration or repair of We Property or the sums secured by this Mo .gage. Unless Lender and Borrows otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of We monWly installments referred to in paragraphs 1 and 2 hereotor 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. - - t 6. Preservation and Maintenance of Property;Leaseholds: Condominums: Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment os 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, $orrower shall perform all of Borrower s obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regutationa of the rnndominium ~r 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 covenants and agreements of such rider shall be incorporated into and shat l amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. Protection of Lender's $ecrrrity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any ; action or proceeding is commenced which materially aNects Lender's interest in the Property, including, bet not limited to, eminent domain, insolvency, code enfocement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lenders option,upon notice to Borrower rosy make arch appearances, disburse such soma and take such action as is necessary to ported Lender's interest, including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If bender required mortgage insurance as a condition of malting the loan secured by this Mortgage, Borrower shall pay We premiums required to maintain such insurance in effect until such time ae We requirement for such insurance terminates in accordance wiW Borrower s and Lenders 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 disbursed by Leader persuaat to this paragraph 7, wiW interest thereon, shall bernme additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teams of payment, such amounts shall be payable upon notice from Leader to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from lime to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at We highest rate permissible under applicable law. Nothing contained in Wis paragraph 7, shall require Lender to inter any expense or take any action hereunder. • ~~~3~7 P~E~456