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HomeMy WebLinkAbout2199 - - - s _ _ !4'! Borrower and Lender covenant and egret u follows: 1. P'syment of Prdacdpal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by tM Note, prepe~ya4ent and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. ~ - 2. 1?titnds for Tares sad Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Under on the day monthly installments of principal and interee~t are payable under the Note. until the tiote is paid in full, a sum (herein "Funds'? equal to ones twelfW of the yearly fazes and asssssmenta which may attainpriority over this Mortgage. and ground rents on the Property. if any, plus ores- i twelfth of yearly premium installments for hasard insurance, plus onetwelf W of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimateathereof. - The Fends shall be heW in an institution the deposits or aocounta of which an insured or guaranteed by a Federal or State agency (indnding Fender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asaeaaraents. insurance premiums and ground rents. Lender may rat charge for eo holding and applying We Funds. analysing said account, or verifying and compiling said assesema~b and bills, unless Leader 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 Fonda shall be paid to Borrower. and unless sorb agreement is made or npplicabk 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. an annual aooounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the P1~ads held by Lender, together with We future monthly installments of Funds payable prior to the due dates of tares. assessments. insurance premiums and ground rents. shall exaaed the amount required to pay said taxes, assessments, insurance premiums and ground r+rnta as they fall dne, such exceed shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of P1~nds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments. insurance premiums and ground yenta as they fall doe, Borrower shall pay to Lender say amount necessary to make up the deficiency 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 funds held by Lender. If render paragraph 18 hereof the Property is soil or the Property is otherwise acquired by Lender, Lender shall apply, no Later than immediately prior to the sale of the Property err its acquisition by Lender, any Fonda held by Lender at the time of`application as a credit against the sums aecnred { by this Mortgage. 3. Application of Payments. Unless,applicable law provides otherwise. all payments received by Lender ender the Note and paragraphs 1 and 2 hereof shall be applied by Lender fu~at in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then b interest payable on the Note. Wen to the prinripal of the Note, and then to interest and principal an any Future Advances 4. Clrargea;Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to We Propertyzrhich 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 Wereof. Borrower shall promptly furnish to Larder all notices of amounts due under Wier 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 this Mortgage; provided, Wat 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, or defend enforcement of such lien in, legal pra~eedings which operate to prevent We 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 coverage; 'and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided; Wat Lender shall not require that the amount of such coverage exceed that amount of coverage j required to pay the sums secured by Wis 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 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 i,ender 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 lass if not made promptly by Borrower. - Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property damaged, provided such restoration or repair is economically feasible and the security of Wis Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied f to We sums secured by this Mortgage, wiW the excess, if any, paid to Borrower. if the Property is abandoned by Borrower. or if Borrower fails to respond to Lender wiWin 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 We sums secured by Wis Mortgage. ~ - Ualess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the dne 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 Wereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such axle or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit d~velopmente. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wiW We provisions of any lease if Wis Mortgage is on a leasehold. If this illortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium oLplanned unit development, We by-laws and regulations of We condominium or planned unit development, and eonstitnent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together wiW this Mortgage. We oovenante and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of Wier Mortgage as if the rider were a part hereof. Pmtedion of Lender's Security. U Borrower fails to perform We oovenanta and agreements contained in thin Mortgage, or if any action or proceeding is commenced which materially affects Lender s interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcmnent, or arrangements or proceedings involving a bankrupt ar decedent, Wen Lender at Lender's option,npon notice to Borrower may make such appearances. disburse such enms and take such action as is 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 Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower c'hall pay the preaunma required to maintain such insurance in effect until such time as We requirement for arch insurance terminates in accordance wiW Borrower's and Larder's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. Any amonnta disbursed by Lender persuant to this paragraph 7, wiW interest Wereon, shall become additional indebtedness 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 requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from . time to 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 inta+est at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereunder. . ~~x3~7 Pd~E2196 ~