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HomeMy WebLinkAbout1945 _ ~ , - ~ ~ ~ 'i l Borrower and Lender covenant and agree ufollows: - 1. P~asent of Prlnclpal and Interbst. Borrower shall promptly pay when due the principal of and interest oa the indebtednea evidenced by the Note, prepayment erect late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. - - 2. Funds for Toes and Insnraaoe. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lendw on the day monthly installments of principal and interest a<~ payable under the Note. until the Note is paid in full, a sum (herein "Funds'q equal to one- twelfth of the yearly taxes and asseeamenta, which may attain priority over this Mortgage. and ground ants on the Properly. if any, plus ores- _ twelRh of yearly premiwn installments for hazard insurance, plus one•tweltth ofyaarly premium installments for mortgage iruuranoe, if any. all a• reasonably estimated initially and from time to time by Lender on the basis of assessments and bills erect reasonable estimates thereof } The Funds shall be held m as institution the deposits or accounts of which an insured or guaranteed by a Fedora! or State agency (inclndin~ Leader if Lender is such an institution). Landes shall apply the Ftinds to pay said taxes. asaeasmenta, insurance premiums and r ground rents. Lender may not charge for ao holding and applying We Funds. analysing said account, or verifying and compiling said assessments and bilb, unless Lender payaBorrowes interest on the Flrnda and applicable law permits Lender to make such a charge. Borrower sad Lender may agree in writing at We time of a:ecntion of this Mortgage that interest on the P1mds shaA be paid to Borrower. and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not lie required to pay Borrower any interest or earnings on the Fonds. tender shall give to Borrower. without charge. an annual aooounting of the Funds showing credits and debits to the Funds and the purpose for which oath debit to the Fonda was made. The Funds are pledged as additional security for the euma secured by this Mortgage. ~ H We amount of the Funds held by bender. together with the future monthly installments of Farads payable prior to the due dates oftazes, assessments, insurance premiums and ground rents. shall a:oted the amount nquisod to pay said to:oa. asaeesnaents, inausanoe premiums and ground ruts as they fall due, such a:Dees shall be, at Bormwe~s option, either promptly rnpaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Fonda hcld by Leader shall not be sufficient to pay fazes, aueesmonta, insnrariee pnmimns and ground rants as they. fall due, Borrower shall pay to Lender any amount necessary to make rep the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. - - Upon payment in fall Ball sumo secured by this Mortgage. Lender shall promptly nfand to Borrower any funds held by Lender. Unnder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, nalater than immediately prior ` i to the sale of the Property or its aegnirition by Lender, any Fonda held by Lender at the time of application as a credit against the sums second by thin Mortgage. 3, Applk~ation of Payments. Unless applicable law provides otherwise. all payments received by Lender under the Note and pare~graphs 1 and 2 hereof shall be applied by Lender fiat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof,- then to interest payable on the Note, then to We principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes. asaersmenta 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 paiSl in such manner, by Borrower making payment. when due. directly to the payee thereof. Borrower shall promptly famish to Lander all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish 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 aeceptable 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 forfeitureof the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ere~~ted on the Property insured against lose by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such ~ periods as Lender may require; proLnled. that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the soma secured by this Mortgage. _ - i The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval ahaB not be unreasonably withheld_ All premiums on insurance policies shall 6e 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 aecepiable 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 ; lender 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 ie not thereby impaired. If such - restoratioa or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, orif 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 collect and apply the insurance proceeds at Lender a 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 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. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; 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 thin Mortgage is on a leasehold. [f this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or ooveuants creatingor governing the rnndomininm or planned unit development, the by-laws and regulations of the condominium or planned unit development, and eonetianent documents. If a rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, We covenants and agreementa:of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreementsof this Mortgage as if the rider wen a part hereof. _ - 7. Protection of Lender's $ecarity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is ooma>ceoed which materially affects Lendei s interest in the Property. including. but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances. disburse such sums and take such action sa is aeoeuary to protect I.endds interest, including, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shalTpay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in socordanca arith Borrowds and Laude's written agreement or applicable Law. Borrower ehaB pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. Any amounts disbarred by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtednew 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 requeeting payment thereof, and shall bear interest from the date of disbursement at the rate payable from. time b time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event sneh amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7. shalt require Lender to incur any expense or take any action hereunder. ' 800K347 P~E1942 ~ ~