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HomeMy WebLinkAbout2347 w? ~ ~ - ,j ~ ~ ~ f Borrowea ar+d Lands covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenosd by the Notq, prepayment and late diarges as providedua the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Z. Funds for Tares and Insaranoa Subject to applicable law or to a written waiver by Leader. Borrower shall pay to Leader on the day monthly instaUmea4 of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fnnds'~ equal to one' twelfth of the yearly taxes and assessments which may attain prio~ty over this Mortgage. and ground rents on the Property, if any, plus oae• twelfth of yearly premium installments for hazard inauranos. Plus onatwelilh of yearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and tlrom 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 accounts of which are insured or guaranteed by a Federal or State agency (inducting Lender if Lender is such an institution). Leader shall apply the Fonda to pay said taxes, asaeaements. insurance premiums and ground rents. Lender may rwt charge for eo holding and applying the Ponds. analyzing said account, or verifying and compiling said assessments and bills, Hulas Lender pe~,ya Borrower interest on the P1mds and applicable law permits Lender to make sud? 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 such agreement is made or applicable law-requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Phnde. Lends shall give to Borrower, without charge. an annual aooounting of the Fonda showing credits and debits to the Funds and the purpose for which eadr debit to the P~uads was made. The Panda are pledged as additional security for the some secured by this Mortgage. _ If the amount of the P1mds held by I.ender. together with the future monthly installments of Ptimda payable prior tothe due dates of taxes. assasmenta, insurance premiums and ground rents, shall exoaed the amount required-to pay said taxes, aesaamenta, insurance pnmiams - and ground rents as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credi' ed to Borrows: on monthly installments of P1mds. Tf the amount of the Phnds held by Lender shall not be sufficient to pay taxes, asaeeements, insurance premiums and ground rents as they fall due, Borrower shall pay to Lends 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 all sums secured by this Mortgage, Lender shall promptly refund to Borrower any (ands held by Lender. If Hader paragraph 18 hereof the Property? is sold or the Property is otherwise aognired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application 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 ender paragraph 2 hereof then to interest payable on the Note, then to the grin©pal of the Note. and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges. fines and impositions attributable to the Property which may attain a priority oven this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereafor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly famish to I.ender all notices of amounts due Hader 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 manna 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 Propertyr or any. part thereof. ~ 5. Hazard Insurance. Borrows shall keep the improvements now eziating or hereaRs erected on the Properly insured against loss by ~ fire, hazards inducted within the term "extended coverage,"and such other hazards as Leader may require and in such amounts and for such periods as I.enda may require; provided, that Lender shall not require such oovaage amount a:seeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the grmta. 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 Borrows 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 Borrows shall promptly famish to i.ender all renewal notices and all neoeipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carris and Lender. Lends may make proof of lose if not made promptly by Borrows. Unless Lends and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ofthe Property damaged, provided arch 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 to the soma secured by this Mortgage, with the ezcess. 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 cams offers to settle a daim for • insurance benefits, Lender is aaWorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lends and Borrower otherwise agree in writing, any arch application of proceeds to principal shall not eztend or postpone the due 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 Lends, all right, title and interest of Borrower in and to any iranrance poficiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lends to the eztent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit IDeveiopmenta. Borrows 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, Borrows shall perform all of Borrower's obligations under We dedaration or covenants creatingor gowning the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and eonstitaent docnmenta. If a oondomininm or planned Wait development rider is ezewted by Borrower and recorded togeths with this Mortgage, the covenants and agreements of such rider shall be inrnrporated 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 Searrlty. if Borrower fails to perform the covenants and agreements contained in this Mortgage. or if any action or proceeding is commeaoed which materially affects Lender's interest in the Property, inducting, but sot limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a baninnpt or deoedeat, then Lends at I.eader'a option,npon notice to Borrows may make each appearances, diabarse arch ass and take sndr action as is neoasary to protect Lender's interest, indading, b~ not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows shall pay the premiums required to maintain andr insurance in effect until such time as the regniremeat for sncb insarnnce terminates in accordance with Borrowers and Leader's written agreement or applicable Law. Borrows shall pay We amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this Paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrows and Lends agree to other terms of payment, arch amounts shall be payable neon notice 5rom Lender to Borrows requesting payment thereof, an.', shall bear interest from tl?e date of diabnrsemeat at the rate payable from time to time on oatstending prindpal ids the Note unless payment of interest at sack 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 T, shall require Lends to incur any a:pease or take any action her+amder. ~~x3i7 P,~~344 ~ : ~ r ~