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HomeMy WebLinkAbout0292 ` i.t t , ~ ~ Kormwer and Lender 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 evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of and intereaton any Future Advances secured by this Mortgage. 2 Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to lender on the day monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum (herein "Funds")equal tonne- - twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth otyearly premium installments for hazard insurance, plus onetwelfth of yearly 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 re:+sonahle estimates thereof. The Fl+nda shall be held 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 rents. Lender may not charge for so holding and applying the E•ti+nda, analyzing said account, or verifydng and compiling said assessments 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 1'ti+nda 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, am annual accounting of the Funds showing credits and debits to the `y'ards and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds 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, assessments, imsurarce prerniuma - and ground rents as they fall due, such excess shall be, at Bo+rower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to bender any amount necessary to male up the deficiency within 30 days from the date notice is mailed by Lender to Kormwer requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by bender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, (.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by (.ender 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 :+mounts payable to bender 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; 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 Kround rents, if any, in the manner provided under paragraph 2 hereof or, if nbt paid in such manner, by Borrower making payment, when due, directly to the payee thereuL Kormwer shall promptly furnish to i,ender aii notices o[amounts due under this paragraph, and in the scent Korn,wer shall make pay ment directly, Kormwer shall promptly furnish W !.ender receipts evidencing such payments. Korruw•er shall prompth• discharge any lien which has priority m•er this Mortgage; pmvided, that . 1?orrower shall not berequired to discharge arc such lien su IonK as It+,rrower shall agree in writing to the payment of theubliKation secured by :uch lien in a manner acceptable to Ixnder, or shall in goexl faith cunte•st such lien by, ur defend ynfonrment of such Ern in, leKal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'n.lx•rty ur am• part thereof. Hazard Insurance. Kormwer shall keep the-impn,vements now existing or hereafter erected un the Property insured against loss by fire, hazards included within the term "extended ce,verake," and such other hazards as Lender may require and in such amounts and for such periods as [xnder may require: provided, that LendeP shall nut require that the amount of such n,verage exceed that amount of coverage required to pay the sums see•ured h}• this Mortgage. - The insurance carrier pn,cidinK th+• insurance shall I,e• chuse•n by Korruwer suhj+r•t to approval by l.e•nder, provider(, the+t wch appn,cal :hall not be unreasonably withheld. rVl pre•miums.,n insurance policies .hall lx• paid in the manner pruvide•t1 under paragraph here~,f or, if nut paid in such manner, by lie,rnrwer making payment. when du+•, din•e•tly to the insurance carrier. All insurance policies and renewals thereof shall he in firm acceptable to I:e•nder and shall include a standard mortgage clause in favor of and in form acceptable to Lender. (.ender shall have the riKht to held the policies and renewals thene,f, and Kormwer shall pmmptly furnish to ' render all renewal notices and all receipts of paid premiums: In the event of loss. 1?orn,wer shall give prompt notice to the insurance carrier ' 'i and Lender. Lender may make proof of loss if nut made pmmptly by Korruwer. Unless Lender and Kormwer otherwist• agree in writing, insurance prex•yeds shall he applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is ye•unumically feasible and the security of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasibly or if the security of this Murtgagewould heimpaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to 13<,rn,wer. If the Property is abandoned by Kormwer, or if Kormwer fails to respond to Lender within :?0 days from the date notice is mailed by bender to Kormwer that the insuranrn carrier offers to settle a claim for ~ insurance benefits, Lender is authorized to coller•t and apply the irisur.+nce pnxeeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortgaKe• Unless Lender and Borrower otherwise aKr•e• in a'ritinK. any such application of pn,ceeds to principal shall not extend or postpone thedue date of the monthly installments referred G+ in paragraphs I and 'L hereof or chanKe the amount of such ins4•+llment.4. If under paragraph 1H hereof the Property is acquired by !.ender, all riKht, title and interest of Rorn~wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsitiun shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and rlaintenanceofYmperty; Lcaseholda;('ondominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterior.+tiun of the Property and shall comply Kith the provisions of any lease if this 111ortgagy is un a leasehold- (f this MurtKaKe is on a unit in a rundominium or a planned unit development, ltnrrower shall perform all of I3orruwer's obligations under the deti•laratiun or covenants cn•atint;or Kuvrrmng the condominium or planned unit development, the by-laws ara regulations of the rundominium ur planned unit development, and constituent documents. If a rundominium or planned unit development rider is yxeruted bj Ke,rn,wer and recorded together with this Mortgage, the covenants and - regiments of such rider shall tx• inc+rrpett7+t+d into and shall :+mend and supplement the covenants and aKreementc of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements contained in this Mortgage, or if any :+ction 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 l,ender'8 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, diabureement of reasonable attorney's 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 as the requirement fur such insurance terminates in accordance with Borrower's and Lender e e written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this par:graph with interest thereon, shall become additional indebtedness of Kc,rrower secured by this Mortgage. Unless Kormwer and Lender agree to other terms of payment, such a+nounta shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fn,m the date of distiur8ement at the rate payable from time to time on outstanding principal under the Note unles_a 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 7, shall require i.ender to incur any expense or take any action hereunder. B00 taGO PbfE