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HomeMy WebLinkAbout2778 i • 1 r ~ ~ . : Vii; Ut+twulwt Oovttrret~s, Borrower sad Leader covenant and agree ss follows: 1~. >ly~weat of )reesei*al ssd ioflerest. Borrower shall promptly pay when due the principal o[ and interest on the f irtdebtedrrea evideaood by the Note. prepayment and late charges ac provided in the Note, srtd the principsl of and interest } oa any Futtrr+s Advances secured by this Mortgage. r 2. 11'`tls ter 7'a:ea rtsttt lttsrrsrtsrt+e. Slrbject to applicable law sx to a written waiver by Letrder. 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. ~ a sum (berets "Fuads'~ equal to one-twelfth of the yeatiy tax~~ snd assessntertts which may attain priority aver this Mortgage, sad ground eenb oa the Property. it any, plus otte•twelfth of yesrty~ premium itutalltrtents for htrzard insurance, ~ plus oaatwelfth o[ yearly premium installtmnt: for moctgsie insurance, if any, all u reasonably estimated initially and from tune to titrre by Leader od the bass of assessments and hills and reasonable estimates thereof. ; The Funds shall be held in an institution the deposits or accounts of which arc irrsttred or gusnnteed by a Federal of t state agency (including Lender if Lender is such an institution). I..ettder shall apply the Funds to pay said taxes, assessments, 1 iasur:aoe premiums and pound rents. lender may not charge for so hoWin=and applying the Frrttds. 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 a charge. Borrower sad Leader may agree in writing st the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires stndr interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender sba8 give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpoae~or which eatdt debit to the Funds was made. 7be Funds are pledged as additional security for the sums secured If the amount of the Funds held by Lender, together with the future rrronthty instaNrtrents of Funds payable prior to the due dates of taxes. assessments. insurance premiums and ground rents, shat! exceed the amount required to pay said taxes. ata~tab, 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 inttallments of Funds. If the amount of the Funds held by Leader-shall not be wtBcieat to pay taxes. assessments, insurance premiums and ground rents as they fall due. Borrower sbap pay to Lender any smount neotxsary to make up the deficiency within 30 days from the date notice is mailed ~ by header to Borrower regtrtating payment thereof. i Upon payment id fuU of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any Funds held by Leader. If under paragraph 18 hereof the Property is sold or the Properly rs otherwise acquired by Lender. Lender thaU apply. no later than immediately prior to the sale of ttre Property or its acquisition by Lender, any Ft;r~~ lseid as Leader at the time of application as a credit against the sums secured by this Mortgage. 3. A~iicatiost of Pq~. Unless applicable law provides otherwise, all payments received by Lender under the Note add paragraphs I add 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower uttderparagraph 2 hereof. then to interest payable on the Note, then to the principal~of the Note. and then to interest and ~ prtdcipa) on any Future Advances. 1. (.'caries; Lieas. Borrower shall pay all taxes, assessments and other charges, tines 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 providod under parsgnph 2 hereof or, if not paid in such manner, by Borrower making payment. whin due, directly to the payee therwf. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, sad in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidedcing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be r 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 of such lien ia, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hard Irrwrawce. Borrower shall koep the improvements now exisCng or hereafter'erected on the Property 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 sums secured by this Mortgage. 'ILe 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 udder paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies add renewals thereof shalt 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. sad Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. in the event of toss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may makt 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 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 sums secured by this Mortgage, 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 oftets 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 Properly or to the sums secured by this Mortgage. Unless Lender and Borrower othewise 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 hereo[ or change the amqunt of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in add to any Assurance policies and. in and to the proceeds thereof resulting from damage to the Property prior to the sale of acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or . acquisition. 6. Prcsenatiod add hiaiatenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall'keep the Property in good repair and shall not comrpit yvaste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. !f this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers 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 bt 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 Ltader's Security. If Borrower fads to perform the covenants anJ agreements contained in this , Mortgage, or if any action or proceeding n 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 Lender's option, upon satire +o 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 fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condstion of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such F insurance in effect until• suchi timC as the requirement for such insurance terminates in accordance with Borrower's and a r' 328 ~a~f 2777