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HomeMy WebLinkAbout1925 _ . - _ - Borrower and Lender covenant and agree s• fotlews: 1.. Payrrrent of Principal and Interest. Borrower shall promptb? Pay when due the principal of and interest on Ws indebtednea evideaosd by the Note, prepe~ymeot and late charges w provided in the Note, and the principal of and interest on any Phture Advances secured by this Mortgage. . 2 fitads for T'a:es and Inwraaoe. subj.et to applicable law or to 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 in full, a sum (herein "Fuads'~ equal to ores twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any. plw ens ,twelfth of yearly premium installments for hazard insurance, plw 2astwelfth ofyearly premium installments four mortgage insurance, ff any, all as reasonably estimated initially and ilrom time to time by Lender on the basis of aaeesments and bind and reasonable estimates thereof. The Funds shall be held in an institution the deposits or aooounts of which are insured or gwraateed by a Federal or State agency (inducting Leader it Leader is such an institution). Leader shall apply the Fends to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said account. or veri$ring earl compiling said asaessonents 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 execution of this Mortgage that interest on the Funds shall be paid to Borrower. and nnlea such agreement is made or applicable law requires sack interest to be paid, Lander shall not be re4nired to pay Borrower any interest or . earnings on the Ptimds. Lender shall give to Borrower, without drarge, an annual aooouating of the Funds showing credits and debits to We Fends and the purpose for which each debit to the Fends was made. The Funds are pledged as additional security for We sums secured by tLis Mortgage. If the amount of Wa Ftmds held by Lender, together with the future monthly inatsllments of Funds payable psior to the due dates of taxes, assasaanents. iasmance premiums sad gronud rents. shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as Way fall due, arch excess shall be, at Borrowefs option, either promptly repaid to Borrows or credited to Borrower on - monthly installments of Fends. If We amount of the Funds held by Lender shall not be sn~cient to pay tares. assessments, insurance premiums and ground rents ss Way fall due, Borrower shall pay to Lends aqy amount necessary to make up the deficiency within 30 days from We date notice is mailed by Leader to Borrower requesting payment Wereof. , Upon payment in full of all sums secured by this Mortgage, Leads shall promptlyrefnnd to Borrower any funds held by Lender: If under paragraph 18 hereof We ProperRy is sold or We Property is otherwise acquired by Lends, Lender shall apply. no later Wan immediately prior to the sale of the Property arils aoquiaitionby I.ender, any Fnndsheldby Lenderatthetimeof application as a credit againatthesums secur+ad _ by this Mortgage. i 3. Application of Payments. Unless applicable law provides oWerwiee. all PeU?menta received by Leader under the Note and paragraphs 1 a~ 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower Hadar paragraph 2 hereof, - then to interest payable on the Note, Wea to the principal of the Note, and Wen to interest and princpal on any Future Advances Charges; I.ieas. Borrows shall pay all taxes, assessments and older 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 We manner provided under Paragraph 2 hereof or, if not paid in such manna, by Borrower making payment, when due. directly to We payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this.paragraph. and in We 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 th;s Mortgage; provided, W at Borroa+a shall not berequired to discharge any such lien so bug as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner aoxptable to lends, or shall in good faiW contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforo~aent of the lien ~ forfeiture of the Property or any part thereof. 5. Hazard Inwranos. Borrower shall keep the improvements now ernsting or hereafts erected on We Property insured against lose by fire, hazards iadnded within We tam "eztended omrerage," end such older hazards as Lender may require and in such amoanta and forsuch - periods as Lends may require; provided, that Lends shell not require such coverage amount exceeding the minimum, as may be regaled by state or federal regulations governing activities of Lender, or Wat amount of coverage required to pay We sums secured by this Mortgage, whichever is the greater. ~ The insurance carrier providing the insurance shall be chosen by Borrows subject to approval by Lender; provided, that suds approval ; shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manna provided ands paragraph 2 hereof or, if E not paid in such manna. by Borrows making payment, when due. directly to We insurance carris. All insnranos policies'and r+aiewals Wereof shall be in form acceptable to Lender and shall inducts a standard mortgage douse in favor of and in farm acceptable to Leads. Leads shall have the rightto hold We policies and renewals Wseof, and Borrows shall promptly furnish to i.emds all renewal notices and all receipts of paid premiums. Ln We event of loss, Borrower shall give prompt notice to the insurance carris and Lends. Lends may make proof of loss if not made promptly by Borrows. ~ Udess Lends and Borrows oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration err repair is economically feasible and the security of this Mortgage is red Waeby impaired. If such - reatoration err iepair isnot economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to We same secured by Wiz Mortgage. weld the ezoess, if any, paid to Borrows. Lf the Property is abandoned by Borrower, or if Borrows fails to respond to Treads within 30 days from the date notice is mailed by Tends to Borrows that the insurance carrier offers to settle s daim for insurance benefits, Lends is authorized to collect and apply the insurance proceeds at Lender's option eiths to restoration or repair of We Property or We sums secured by Wiz Mortgage. Udess Lends and Borrows oWswiee agree in writing. any each 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 drangr the amount of such installments. If Wads paragraph 18 hereof the Property is acquired by I.ends, all right. title and interest of Borrows in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lends to We eztent of We sums secured by this Mortgage immediately prior to each eerie or sognisition. 6. Preservadon and Haintenanoe ofProperty; Leaseholds; Condominams; Planned Unit Developments. Borrows shall keep the property in good repair and shall no! commit waste or permit impairment or deterioration of the Properly and shall comply wild We provisions of any lease if this Mortgage is on a leasehold. Tf this Mortgage is on a nni! in a condominium or a planned snit development, Borrows shaII perform all of Borrows's obligations ands We declaration or oovensate cveatingor gowning We condominium or planned ! unit development, We by-laws and regulations of We condominium or planned Wait development; and constituent docaments. If a oondomininm or pknned snit development rider is esecuted by Borrows and recorded togeWs wild this Mortgage, We covenants and agreements of such rids shall be incorporated into and shall amend and supplement the cosenants and agreements of this Mortgage ea if the rider were a parl hereoL 7. Protection of Lender's Secarity. Lf Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Leader's interest is the Property, iacluciirig, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or deoedeat, then Lends at Leaders optimr,upon notice to Borrows mqy make such appearances. drsbnrse sacb sums and take such action as is necessary to protect Leeds's interest, inducting, bat noL limited to, disborsement of reasonable attorney's fees and entry IIPw the Properly to make repairs. If Lender required mortgage insurance w a condition of making the loan second by this Mortgage. Borrows shall pay We premiams repaired to maintain such insurance in effect until such time s. We requirement for such insurance laminates in accordance wild Borrows's and Lmdar's written agrreement or applicable Law. Borrows shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. Any amounts disbarsed by Leads pasuant to this paragraph 7, wild interest Wereon, shall become additional indebtednea of Borrows secured by Wiz Mortgage. Unkw Borrows and Leads agree to older tams of payment, such amoants shall be payable upon . notice from Leads to Borrower regwstin8 laymeat Weno~ and shall bear intend from the date of disbursement at the rate payable $+om time to time on ontdanding principal ands the Note ndea payment of interest at such rate world be contrary to applicable law, iA which event sack amounts shall bear interest at the highed rate permissible ands applicable law. Nothing contained in this paragraph 7, shall require Leads to incur any e:pease or take any action haennder. . ~~x 3~7 P~~.9~2