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HomeMy WebLinkAbout2061 • . UNtrorw WVP.NAN1'!. Borrower and Leader covenant and agree as follows: >l. ~t d hiweipel ttttsi In1aa1. borrower shall promptly pay when due the principal of and interest on the indebtedness evideaoed by the Note, prepayment and late charges ac provided in the Note. and the principal of and inteRSt oa any Future Advances sauced by this Mortgage. I. trtttoti's fore Tttorw rtni iwr..ae. gu~,jat i3 i~liColsi:. law ~~r to a vrriLttn waiver by L~+der, Borrower shall pay to Lender on the day monthly installments of principal and interest arc. payabk under the Note. until the Note is paid in full. a stun (herein "Furtds'~ egwl to one-twelfth of the yearly tax~Y and assessments which may attain priority over this Mortgage, and ground rent: on the Property. if any. plus one-twelfth of yearly premium installments for haurd insurance, pier. ~-:we{€th of p~rly p.w+.~,-tt trstall.~.,t:rts toz' rt:.rta:i°e :rs:ere: if any, ell as r~as~bly estimated initially and tr+om time to time by Lender on the basis of assessments and hills and rcasonabk estimates thereof. The Funds shall be held in an institution the deposits or accounts of which arc inwred or guaranteed by a Federal of state agency (including bender if Lender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. lender may not charge for so holding and applying the Fttnds. analyzing said account, or verifying.and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds seed applicable law permits Fender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fttndt; 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 arc pkdgod as additional security for the sums secured by this Mortgage. Tf the amount of the Ftmds 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 exceed the amount required to pay said taxes. assasments, insurance premiums and ground rents as they tall due, iuch excess shall be, at Borrowers option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds 6dd by Lender. shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ss they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailod 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 18 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 or its acquisition _ by Lender, any Funds held by Loader at the time of application as a credit against the stuns sectued by this Mortgage. 3. A~piication of Pq~werts. 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 tinder 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. 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 such manner, by Borrower making payment, when due. directly 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 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 o[ such lien ia, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properly or any part thereof. S. Hazard latauaace. Borrower shall keep the improvements now existing or hereafter erected on the Properly insured agaitut 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 Lender may require; provided, that Lender shall not require that the amount of i~ such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. - ~ "Ilse 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 j 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 Lender all renewal notices and all receipts of paid premiums. 1n the event of loss, Borrower shall g?ve 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 damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. 1( such 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 stuns secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower tails to respond to Lender within 30 days from the date notice is maiicKl by~ LcnJer tv l3urr~wer that the ittsurattct: carrier afitrs su settle a clsim for insurance becefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propertv or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph I8 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 thereof resulting from damage to the Properly 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 ;lfaintenance of Property; Leaseholds; Condominiums; Planned Unit Devebpments. Borrower shall keep the Properly in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Properly and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage 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 creating or governing the condominium or planned unit development, the by-laws and regulations of the condominium 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. i 7. Protectan 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 invoh•ing a bankrupt or de.edent. then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including. but not limited to. disbursement of reasonable attorney's tees and entry upon the Property to make repairs. 1f Lender reyuircd 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 as the requirement for such insurance terminates to accordance with Borrowers and y ~ " a ~3~'~ P~E2052