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HomeMy WebLinkAbout0597 ~ - ' r t3orrowar sad Leader covenant and agree eu follows: - 1. Pagr~+eat of Principal wad Inter+aet. Borrower shall promptly pay when due the principal of sad iatarest oa the indebtedness e~-idenced by the Note, prepayraart and late d,arges as provided in the Not.; sad the principal of and iatereatoa any lhrture Advances secured by this 11lortgage. . 2 Funds !or Tomes sad Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly :nslsllaneats of priadpal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds'? equal to ono twrdRh of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. if any. Plus one- twelRh of yearly ptaaium ir?etalhaeats for hasard insurance, plus oaetwdith ofyearly premium instalUnents for mortgage insurance, if any. ell as reasonably estimated initially and from time to time by Leader on the baaia of assessments and bills and reasonable estimates thereof. ' The Funds shall be hdd is sa institntio•t the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Leader is arch an iaatitution): Leader shall apply the Funds b pay said taxes, aaseasmeats, insurance premiums and 1 rent. iendar may not chores for so holding and applying the Funds, analyzing said account, or verifying and rorapiling acid seaessmeats sad bills, unless Larder pays Borrows interest an the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and ureksa . such agreemect is made or appliuole law requires such interest to be paid, Lender shall not be required to pay Borrower nay interest os earnings oa the Fonda. Leader shall give to Borrower, without charge, an annual accounting of the 1?lrnda showing credits and debits to the . Enacts sad the purpose for which each debit to the Funds was macte.'ILe Fonds are pledged as additional security for the sums segnred by this , i Mortgage. - - _ ' If the amennt of the Funds held by Larder. together with the future monthly installments of I•tinda payable prior to the due dates of taxes, assasa~eata, insurance prstniums and ground yenta, shall exceed the amount required to pay said taxes. asseasaAenta, ias•~raaoe premiums end ground rents as they fall due, such excess ahail bo, at Borrower's option. either promptly repaid to Borrower or credited b Borrower on monthly installmtnts of Fuada. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and groaad rmta as they fall due, Borrower shall pay to Lender any amount neoeaeary to make up the deficiency within 30 days from the date notice u mailed by Lender to Borrower requesting payment thr~eof. Upon payment in fall of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof the Property is sold or We Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property ar its acquisition by Lender, any Fonds 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 here shall be applied by Lender first in payment of amounts payable to Lender by.Borrower ands paragraph 2 hereof, . then to interest payable on the Note, then to the principal of the Note, and-then to intenwt and prinapal on anjr Future Advsnoea. 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 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershal! promptly furnish to Leader ail notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to :.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; previded,that - Borrowershall 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 [.ender, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in,legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. - 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the Property inaared against lase by fire, hazarls inducted within the term "extended ooverage,° and such other hazards se Lender may require and in such amounts and forsuch ; periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the name secured by this Mortgage. - _ Ttr~ insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such aiproval shall not be unreasonably withheld. All premiums on insurance policies shall br paid in the manner provided under paragraph 2 hereof or, if not-paM in such manner, by Borrower making payment, when due, directly to the insurance carrier. AU inaunu?ce policies and renewals thereof shall by in form acceptable to Lender and shall include a standard mortgage clause in favor of and inYorm acceptable to Lender_ Lender shall have the right to hold the policies and renewals thereof, and Borrower shall prompt)}- furnish to - ~ i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prorr_pt notice to the insurance carnet and Lender. Lender may make proof of loss if not made promptly by Borrower. - Unless Lender and Borrower otherwise agree in writing, insurance pra~eeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ernnomically tensible and the security of this Mortgage is not thereby impaired. If such _ - f restoration or repair is not economically feasible or if the recnrity of this Mortgage would be impaired, the inswance proceeds shall be applied to the same 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 Lender within 3d days from the date notice is mailed by Lender to Borrower that the inswance carrier offers to settle a claim for insurance benefits, Lender is authorized to collets and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the auma 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 ender 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 thereof resnltirg fom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to etch sale or acquisition. _ 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 leaseho:ct. If 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 creatingor governing the rnndominiam or planned ~ unit development. the by-laws and regulations of the condominium or planned unit development, and eonatituent documents. If a condominium or pla:~ned unit devebpment rider is executed by Borrower and retirorded_together with this Mortgage, the wvenanta and j agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of thin Mortgageaa if the ~ rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the oavenants and agreements contained in this Mortgage. or if any 1 ~ action or proceeding is commenced whid, materially Affects Lender's interest in the Property, including. bet not iimitedto, eminent domain. ineolpency, code enforcement, or. arrangements or proceedings involving a bankrupt o- decedent, then Lender at Lender'• option,upDn notice to-Borrower may make such appesranocs. disburse such sums and take arrch action as is neoesaary to protect Lender's interest, inducting, bat nut limited to, disbursement of reasonable attonsey's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a ooadition of making the loan secured by this Mortgage, Borrower shat[ pay the premiums required to maintain r such insurances itr effect'. until each time as the requirement for such insurance terminates in aocordanee with Borrower's and Lender'r written agnxmeat oT applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender E paragraph 2 hereof. ~ Any amounts disbarred by Lender personal to this paragraph with interest therzon, shall become additional indebtedness of Borwwer secured by this Mortgage_ Unless Bom?wer and Lender agree to other terms of payment, arch amounts shall be payable upon notice from Lender to Borrower regnes~ing 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 nnleae payment of interest at such rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Noshing contained in this paragraph shall require Lender to incur any expense or take any action herrrnder. f i