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HomeMy WebLinkAbout1941 • ~ .nr Borrower sad Lender ooveaaat and agree w folbws: ` 1. Payssent of PriadW?t 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 aqy Ptitture Advances secured by this Mortgase. 2. I,~ for Ta:ea sad Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the dry monthly installments of principal and ingest are payable under the Note. until the Note is paid in full, a sum (herein "Funds' equal to one- twelf W of the yearly tazea and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one• Twelfth of yearly premium inatalhaeats fm hasadd insurance. plug onetwelfth of yearly premium installments for mortgage insurance, if say. all as reasonably estimated initially and !from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or sooount# of which are insured or guaranteed by a Rederal or State agency (including Leader if Leader is ouch an institution), Lender shall apply the Funds to pay said to:ea. aasmsmenta, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said account. or verifying and ocenpiling said asseeanents and biW. unless Leader pays Borrower interest on We Funds and applicable law permits Leader to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and nukes such agreement is made ce spplicabk law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the P1mds. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credits end debits to the Fends and the purlwse for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. - U Weamount oftheFunds held by Lender, together wiW the future monthly installments of Funds payable prior to the due dates of fazes, asseeansent0. insurance premiums and ground rents. shall ezoaed the amounLrequired to pay said fazes. assessments, insurance premiums and groimd rests as they fall due, such ezase shall be. at Bonowe~s option. either promptly repaid to Borrower or credited to Borrower on monthly installments of P1mds. U the amount of We Funds held by Lender shall not be sufficient to pay fazes, 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 We date notice is mailed by Lender to Borrower requesting payment thereof. - Upon payment infull of ell sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If ender paragraph 18 hereof the Property is add or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediatelyprior - tothesale ofthe Properly or its acgmsition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgages 3. Applicatlon 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. 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 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 furnishto Lender all notices of amounts due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender reuetpts 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 in good faith rnntest such lien by, ordefend 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 loss by fire, hazards included within the term "extended coverage; 'and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided. that Lender shall not require that the amount of such coverage ezceed that amount of coverage required to pay the sums scarred 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 i 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 tolender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly firsnish to lender sdl 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 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 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 extend or postpone the doe date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each 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. 6. Preservation and Maintenance otProperty; 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 unit in a condominium or a planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium o. planned unit development, and eonstitaent documents If a rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be iarnrporated into and shall amend and supplement the covenants and agreements of this Mortgage self the rider were a part hereof. 7. Protection of Lender's Security: If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any action or prooeoding is commenced which materially affects l.endei a interest in the Property. inc;~.ding, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's op#i ~nnpon notice to Borrower may mate such eppearanoes, disburse such sums and take such action as ie necessary to protect Lender's interest, including. but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leader regained mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required io maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Leadats written agreement or applicable Law. Borrower shaft pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon. shall become additional indebtedness of Borrower secared by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such amounts shall be payable upon notice from Lender :o Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from• time to time on outstanding principal ender the Note unless payment of interest at such rate world be contrary to applicable law, in which event aneh amounts shall bear interest at tbe highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereunder. 60~K 3~7 PAGE