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HomeMy WebLinkAbout0215 1~.~ ~ ' tti ~ t LINIDORl~r (:pvtSNANTd. BOrr~Ower and Lender covenant and agree as follows: Z? )!ai)~wep at trlotfMl atati lnlerat. Borrower shall promptly pay when due lbe principal of seed interest on the indebtetL>ca evidenced by the Note, prepayment and late charges as provided in the Note, and the principal o[ and inter+at an soy Futuro Advances secured by this Mortpge. 2. il?rr.rr tar Ta:as tr.i itrwnece. Subject to applicable law or to • written waiver by Lender. Borrower shall pay ' to Lender on the day monthly installments of principal and interest arc payable under the Note. until the Note is paid in full, s soot (herein "Funds' equal to one-twelfth of the yearly tax~~ and assessments which may attain priority over this ' Mortgage. and ground rmtt on the Property. if any, plus orre-twelfth of yearly premium itutallments for hazard insurance. plw one-twelfth of yearly premium installments for mongsgt instrrartce, if any, all ss reasonably estimated initially and froth i pros to time by Lentkr on the basis of assessments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are ittsut+ed or gwranteed by s Federal of state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes,. assessments. insurance premiums and ginned rents. lender may not charge for so holding and applying the Fiends. analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such i charge. Borrower and Lender may agree in writing at the time of execution of iha Mortgage that interest on the Funds shall be paid to $orrower. 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 Futrds and tree purpose for which each debit to the Funds was made, The Funds arc pledged as additional security for the sums secured by thu Mortgage. If the amount of the Fund: 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. • ast~sments, insurance premiums and ground rents as they fall due, such 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 Funds btdd by Lender shall not be suiticieat to pay taxes, assessments, iruurance premiums and ground rents ss they fall dot, 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 soma secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hencwf the Property is sold or the Properly is otherwise acquired by Lender. Lender shad apply, rro later than immediately prior to tht sale of the Property or its acquisition by Lender, any Funds held by Lender at the tune of application as a credit against the sums secured by this Mortgage. 3. Applkdloa of Payasests. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender first 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. ' 4, Charges; Lieas, 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 providtd 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 snake 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 bt required to discharge any such lien so tong 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 goad 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 pan thereof. S. Hazard Inwrarrce. Borrower shall keep the improvements now existing or hereafter erected on the Properly 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 Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the s?ims secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shalt not fie unreasonahly withheld. All premiums ore insurance policies shall 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. A!! insurance paliciss 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 Ler,;'e~. Lender shall have the right to hold the policies and renewals thereof. and Borrower shall promptly furnish to Lender ail renewal notices and all 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 Properly 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 Mongage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mongage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower. or it 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 settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Propene 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 i 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 18 hereof the ProFerty 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. Presen•ation and Maintenance of Property; Leaseholds; ('ondominiums; Planned Unit lkvebpments. Borrower shall keep the Properly in good repair and shall not camrpit ysastc or permit impairment or deterioration of the Property and shat! comply with the provisions of any lease if thu :~lortgagc is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform ail 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 v?ith 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 parl hereof. - 7. Protection of Lender's Securffy. If Borrower fails to perform the covenants and agreements contained in this r Mortgage, or if any action eer proceeding is commenced which materially affects Lender's interest in the Property, including. but not limited to. cmutent domain, insokency, code enforcement, or arrangements or proceedings invoking a bankrupt or decedent, then Lender at Lender i option, upon notice to Borrower, may make such appearances, dishurse such sums and take such action as is necessary to protect tender's interest, including. but not limned to. disbursement of reasonable attorney's lees and entry open the Property to make repairs. II !-ender reyuircd mortgage insurance as a cvnditiun of ieealiing the loan secured h}• thi+ htungage. Born:«cr shsl! pay the premiums required to maintain such insurance ire effect until such time as the requirement for such insurance terminates in accordance with Borrower's and aQ0 PAGE ~ ~ ; , . X15 ~ `