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HomeMy WebLinkAbout2190 a , i~. Borrower and Lender covenant amd agree w folbws: 1. Payment of Prineipat and Interest. Borrower shall promptijr pay why due the principal of amd intered on the indebtedrtsss evidenced by the Nola, prepayment and late charges as Provided in the Note, an3 the principal of and intereston any Fbture Advances secured by this Mortgage. - - a. Inds for Taxes and Insteranoe. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day ; monthly ineWhaartts of principal and interest are payable undo the Note. until the Note is paid in full, a sum (herein "Funds' equal to one? i twelfth of the yearly tares and assessments which may attain priority over this Mortgage, sect ground rents ontheProperty. ifany. Plwone- twelfth ofyearly pr+emiam inatalhnents fm hasardinsurance. Plus onetwelRh of yearl)r premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by bender on the basis of assessments and bills and reasonable estimates thereof. The Pbnds shall be heW in an institution the deposits or accounts of which an insured or guaranteed by a Federal or State agency (indading Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asaesemeats, insurance premiums and ground rents. Lender may not charge for w holding and aPP1Ymg the Farads, analyzing said account, or verifying and compiling said i assessments and bills. anlea Lender pays Borrower interest on We Funds and applicable law permits Lender b 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 unless ` sceh agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any intered or earnings on the Fends. Lender shall give to Borrower, without dusrge, an annual aeoounting of the Funds showing credits and debib to the Fends and the purpose for which each debit to the Fends was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fends hdd by Lender, together with the future monthly installments of Fends payable prior to the due dates of tares. assessments, insurance premiums and ground rents, shall exoaed the amount required to pay said fazes, assesamemta, insurance premiums and ground Hats as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited b Borrower on monthly ina+ralbztents of Ptmds. If the amount of the Funds held by Lander shall not be sufficient to pay taxes. assessments. insurance ` premiums and ground rents as they fall due. Borrower shall pay b Lender any amount necessary to make up the de5ciency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. Upon payment in fell of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any fends held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no Eater than immediately prior to the sale of the Property orits acquisition by Lender, any Funds held by Lender at the time of application ae a credit against We soma secured by this Mortgage. 3. Application of Payments. Unless appUcable 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 b Lender by Borrower Hader paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then tointerest 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 arch manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shall promptly furnish to lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fwnish 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, 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 inanred against loss by fire, hazards included within the term "extended coverage," 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 rnverage exceed that amount of coverage required to pay the soma 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 heredfor, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. AU 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 nigh t to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender 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 lose 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 each restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shall be applied I to the sums secured by this Mortgage, with the excess, if any, paid toBorrower. IftheProperty isabandoned byBorrower, or ifBorrowerfails 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 s option either to restoration or repair of the Property or We sums secured'by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eactend or postpone the due date of the monthly installments referred to in para6raphs 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 b 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; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit warts or p~ rmit impairment or deterioration of the Property and shall comply with We provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration orrnvenants creatingor governing thecondominium br planned unit development, the by-laws and regulations of the rnndominium or 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 shall amend and supplement 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 covenants and agreements contained in this Mortgage. ~ if any action or proceeding is commenced which materially affects Lender's interest in the Property. indnding, bet not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,apon notice to Borrower may make each appearances, disburse such soma sad take such action as is necessary to protect Lender s interest, inducting, but 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 shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lende:•s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided seder paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured-by-this Mortgage. Unless Borrower and Lender agrez to other terms of payment, arch amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at We rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate world be contrary to applicable law, in which event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any e><pense or take any action hereunder. Bo~317 PAfiE~187 . ~ .