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HomeMy WebLinkAbout0477 • :j r- • a t Borrower and Lender covenant and agree as folbws: 1. Pgrmeat of Prlaetpal and Interest Borrower shall P~PW? PaY whey due the prinapal ~ and interact oa tLu irdeMedna~s evidenced by the Note, Prepayment and late charges as provided is the NMe.and the principal o[andwterest onany Fntnre Advances secured by this Mortgage. Z. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrows: shall prly to Lender oa the day r monthly installments of prinapal and interest are payable under the Note, until the Note is paid in full, a sum (herein "I?tinds'~ equal to one- twelfth ofthe yearly to:wand assessments which may attain priority over this Mortgage, and ground recta on the Property. if any. Phtsone- iwelith of yauriy premium installments for hasard insurance, plus one-twelfth of yearly premium installments for mortgage irtsuranoe, if any. all as reasonably estimated initially and from time to time by l.a?der on the basis of aaeeamenta and bills and reasonable estimates thereof ~ The Funds shall be held in an institution the deposits or aooo~mts of which are insured a guaranteed by a Federal or State agency (including Lender if Lender is sndt an institution). Lender shall apply the Funds to pay acid fazes, assessments, insurance premiums and ground Hats. Lender may not charge far so holding and applying the Funds, analyziing said account, or verifying and compiling said ~ aeaessmertts and biW. ndess Lender pays Borrowrr interest on the Funds and applicable law permits Lends: to make such a charge. Borrower i and Larder may agree in writing at the time of execution of this Mortgage that interest on the Fonder shall be paid to Borrower, sad anleis t such agreaaent is made or applicable law requires each interest to be paid, Lender shall not be required to {.ay Borrower any interact or earnings on the Funds. Fender shall give to Borrower. without charge. an annual accounting of the Funds clawing credits and debits to the Funds and the purpose [or which each debit to the Funds was made.'I~e Funds are pledged as additional security for the lama secured by this Mortgage. If We amount of the Funds held by Leader. together wild the future monthly instaUmer?ts of Funds payable prior to the due dates of lases, assessments, insurance premiums and ground rafts. shall exoaed We amount required to pay said taxes, aasa~smenta, insurance premiums and ground rents as they fall due. ouch excess shall be, at Borrower's option, either PromPtiY rid to Borrows or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by Iander aha6 not be sufficient to pay taxes. assessrneats, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting Payment thereof 3 Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrows: any funds held by Lender. Tf render 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 Lender at the time of application as a credit against the sums eecnred by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender ender the Note sad fnragrapAB 1 And l Ilert3i dDAIi Oe 8ppiiai ily Censer Ilrsi iA 11ay'meni 8f amounts pay:iaic iu is7uirr iiy u:srrurores iiuuu ir9i~yGfairu ~ ucieu ; ~ then to interest payable oa the Note. then to We principal of the Note, and then to interest and prindpal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, Eraser 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 thereat Borrower shall promptly furnish to I.ender all 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; provided, that Borrower shall not be required to discharge any such lien so song as Borrower shah 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 of such lien in, legal pre~eedings ~ which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard I nsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loa¢ by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in each 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 sums secured by this Mortgage. F The 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 provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directh 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 favorof and in form acceptable to Lender. Lender shall have the right to hob the policies and renewals thereof, and Borrower shall pranptly furnish to i.ender all 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 Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If each restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, theinsurance proceeds shall be applied to the sums aecnred by thin Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to t 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 restorat_ ion or repair of the Property or the auras secured by this'Mortgage- Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the dne 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 Properly is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof reaalting from damage to Property 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 Maintenance of Property;Leaseholds; Condominums;Planned Unit Developments. Borrowesahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the pmviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominiwn or a planned unit development, Rrirmwer shall perform all of Borrower a obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-fawn and regulations of the rnndominium or planned snit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta 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 7. Protection of Lender's 3ecnrity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, err if any action or proceeding is commt~noed which materially affects Lender s interest in the Property, including, bat not Limited to, eminent domain. t insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lenders option,apon notice to Borrower may make such appearances, dislwrse such sums and take such action as is necessary to protect Lenders interest. including, but not limited to, disbursement of reasonable attorney's toes and entry upon the Property to make repairs. If Fader 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 for such insurance terminates in accordance with Borrower s and Lender's written agreement or applicable Law. Borrower shall pay the amount of ail. mortgage insurance premiums in the manner provided antler paragraph 2 hereof. My amounts disbursed by .Lender persuant to this paragraph T, with interest thereon, shall become additional indebtedness of Borrower secured by tl?is 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 interact from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at arch rate would be coat:cry to applicable law. in which } event such amounts shall bear interest at flu highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action lureunder. - i ~ l-~ 8~~28 ~~F 4?7 r i i