Loading...
HomeMy WebLinkAbout0245 r,. Bonower and Lender covenant and ague as follows: I. Payment of Principal and Ittterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evtdenCed by the Note, prepayment and laic charg+z ue provided in fife R'otc, and Lhr Frincipal of snd interest ar? any Future Advances secured by this Mortgage: 2. Ftiuida forTa:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowershall pay toLender on theday monthly installments otprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly iaxa. au3 aes~esu+eT.ts Kltich tnuy ultsin priority over this Mnrf~age; and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus one-twelfth otyearly 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 estimates thereof. The Funds anal) be hew in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution?. Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground yenta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaesamenLs and bills, unless Lender 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 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 Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the ~+nds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exctcd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+mwer s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of Funds, If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiuina 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 all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property orita acquisition by Lender, any Funds held by Lender at the time ofapplication as a credit against thesums secured by thin Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shat! be applied by Lender fimt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. d. Charges; Liens. Bott-owerahal! 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 Kn,und 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 p;+ycr thereof. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the Brent Borrower shalt make payment directly, Borrower shall promptly furnish to I nder receipts evidencing such payments. Borrower shall prompth discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as lturn,wer shall agree in writing to the pat merit of lheobligation secured by such lien in a manner acceptable to Lender, or shall in gc,od faith contest such lien by, urdefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss 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 !.ender may require: provided, that [.ender shall nut require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this blortgage•. The insurance carrier providing the insurann• shall lx• chosen by Burruwr•r subject to appr:n•al by 1.cnder, provided, that such approval shall not be unre•+scmably w•ithheid. All premiums nn insurance tx~licies sh:dl l,c paid in the manner pruriderl under paragraph'lhereof or, if nut paid in such manner, by Borrower making payment. when due. dircc•th• h, thc• insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to lr_ nder and shalt include a standard mortgage clause in favor of and in form acceptable to Lender- !.ender shall have the right to hod the policies and renewals thereof, and Borrowershall promptly furnish to ,,ender all renewal notices and all receipts of paid premiums. In theevent of loss, l;<,rn,wer shall Kive prompt notice to the insurance carrier :+nd Lender. Lender may make proof of loss if not made promptly by 13c,rrower. Unless Lender and Burrower otherwise agree in writing, insurance procccr1s shall he applied to restoration or repair of the Property damaged, provided such restoration or repair is cc•onomicatly feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not en,nomically feast ble or if the security of this Mortgage wc?uld be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to (.ender within 30 days from the date notice is mailed by !.ender to Burrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and :+pply thc• insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this 11foriK:+Ke- Unless Lender and Borrower otherwise agree in writing. ant such application of proceeds to principal shall not extend or postpone the due. date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such installments. If under paragraph 18 ..~:.uf Llsc Prol.~ri) is scquire' b; 1 r, ~?er.:ct! sight. title aria interest ..f }turn,wr•r in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the tit+le or ac•yu+sition shall pass to Lender to the extent of the sums secured by this 4lurtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit imp:+irment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, s~urrower shall perform all of Borrower's obligations under the declaration ur covenants c•rratingor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by lic,rrower and recorded '.,gether with this Mortgage, the covenants and :,Kree•ments of such rider shall he incurtx,rated into and shall amend and supplement the c•uvenant.4 and agreements of this Mortgageas if the nder were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this 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 enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a 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 such insurance in effect until such time ae the requirement for such insurance terminates in accordance with Borrower a and Lender's written agreement or applicable [,aw. Borrower shall pay the amr,unt of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. d 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 agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the 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 such amounts shall bear interest at the highest rate permissible. under applicable law. Nothing contained in this paragraph shall require Lender to incur any expense or take any action hereunder. - acoK3~ PecE~ 2~5