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HomeMy WebLinkAbout2207 ...r - Borrower and Lender covenant and agree as follows: 1. Payment of Prlnclpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedneea evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and ingest on any ~jture Advance secured by this Mortgage. Fonda for Tares sad Iaanranos. 3ubjed to applicable law or to a written waive: by Lender, Borrower shall pay to Lender on the day monthly inatalhneats of principal and interest are payable under the Tlots, antic the Note is paid is full, a sum (herein "Funds' equal to one• twelRh of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw one- twelRh ofyearlypremium installments for hazard insurance, plea one•twelRh of yearly premium instalhnente for mortgage insurance. if any, all as reasonably estimated initially and from time to time by Lender on the basin of assessments and bills and reasonable estimates thereof. .The Enacts shall be held in an inditntion the deposits or_aooonnts of which are insured err guaranteed by a Federal or State agency (inducting Leridar if Lender is such an institution). Lender shall apply the Fonda to pay said fazes, assesameata, insurance premiums and ground rents. Lender may not diarge for so holding and applying the Phnds, analj?zing said account, or verifying and compiling said ii assessments and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower ! ana Lender may agree in writing at the time of ezecntion of Chia Mortgage that interest on the Funds shall be paid to Borrower, and un2Pss sorb agreement is made os applicable law requires such interest to be paid, Lender shall not be required to pay Borrows: any interest or earnings on the Funds. Lender shall give to Borrower. without duu-ge, an annual aeoounting of the Funds showing credits and debits to the Fonda and the purpose flit which each debit to the Fends was made. The Fonda are pledged ere additional security for the soma secured by this Mortgage. If the amount of the Pbnds held by I.ender. together with the future monthly installments of Funds palyable prior to the due dates of fazes, asseaaoreats, inamanos premiums and ground rents, shall e:oaed the amount required to pay acid fazes, assessments, insurance premiums and ground rants sa they fall due. ands excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay fazes, aeecesmente, 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 the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of aq soma secured by thin Mortgage, Linder shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Leader shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender atthe time of application as a credit against the sums secured by this Mortgage. . 3. Application of Payments. Unleea applicable law provides oWerwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender Brat is payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on We Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shell pay all fazes, aseeasmenta 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, directly to the payee :hereof. Borrower shall prumpily furnish b Lender all notices of amounts due under this paragraph, and in the 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, 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. or defend 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 Insnranee. Borrower shall keep the improvements now ezisting or hereafter erected on the Property insured against loss by fire, hazards inducted within the term "Mended coverage," and arch other hazards as Lender may require and in each amounts and for such periods~sa Lender may require; Provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided. that such appro~ral shall not be unreasonably withheld. AU premiums on insurance policies hall 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. t All insurance polities and renewals thereof shall be in form acceptable to Lender and shall inducts a standard mortgage chase in favor of f and in form aooeptable to Lender. Lender shall have the right to hold the policies and renewals thereof, end Borrower shall promptly Tarnish to i.ender all renewal notices and ell 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 'i 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 proeeedashall beapplied - to tbe soma secured bythis Mortgage, with the ezcees, 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 eeWe a daim 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 the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any each application of proceeds to principal shall not eztend or postpone the tine date of the monthly inetallm~ts referred to in paragraphs 1 and 2 hereof or diange the amount of arch installments. If Hader paragraph 18 hereof the Property is aegnired by I.ender, 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 eztent of the sums secured by this - Mortge~r immediately prior to such sale or acgnisition. 6. Preservation and Maintenance of Property; 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 oondominiam or a planned unit dew elopment, Borrower shall perform all of Borrower's obligations ender the declaration or covenants creatingor governing the condominium or planned snit development, the by-lave and regulations of the condominium or planned snit development, and constituent dacumenta. If a ~ oondominiam or planned unit development rider is e:ecnted by Borrower and recorded together with this Mortgage, the oovenante 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 veers a part hereof. 7. Protedlon of Lender's Secnrlty. If Borrower fail to perform the covenants and agreements contained in this Mortgage, err ff any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, i insolvency, code enforcement, or arrangements or proceedings invdving a bankrupt or deoedmt, then bender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take arch action as is necessary to protect Lender's interest. indoding, bat not limited to, dishnrsement of reasonable attorney's fees and entry upon the Property to make repairs. )t Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows: shall pay the premiums required to maintain such inemsace is eSed until finch time as the regni:ement for such insurance terminates in aeoordanee wiih Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender paragraph 2 hereof. Any amounts disbursed by Lends persuant to this paragraph 7, with interest thereon. shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrower and Leader agree to other terms of payment, each amounts shall be payable upon notice from Lender to Borrower r+egnesticg payment thereof, and shall bear interest from the date of disbnr~sement 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 each amounts shall bear interest at the highest rate permissible mida applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. B~~~KJ~~ PdGE~4