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HomeMy WebLinkAbout0880 V ~V Borrower and Lends: covenant and agree et follows: 1. Payment of Principal and Iaterest» Borrower shall promptly pay when due the principal of sad interest on the indebtednea evidenced by the Note. prepayment and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. P1~nds for Taxes and Insurance- Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inaWhneats of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds' equal to one- _ twelfth of the yearly taxes and aasewments which may attain priority over this Mortgage, and ground rents on the Property. if any. plusone- twelRh ofyearly premium inaWhments for basard insurance. plus onetwelfth of yearly premium installments for mortgage insurance. i[ any. all as reasonably estiaoated initially and from time to time by Lender on the basis o! asaeeaments and bills and reasonable eatirnates thereof The Funds shall be held in an institution the deposits or eooounts 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 tares, assessments. insurance premiums and ground rent. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bills. unlew Lender pays Borrower interest on We Funds and applicable law permits Lender b make such a charge. Borrower and Lender may agree in writing at the time of execution oI Wis Mortgage that interest on the Funds 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 interact or earnings on the Fonds. Fender shall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debits to We Funds and We purpose for which each debit to the Funds was made. The Funds an pledged ss additional security for the sums 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, inau:anoe premiums and ground rents. shall exassi the amount required to pay said taxes, assessments, insurance premiuau and ground rents as they fall due, such exoaa shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Inds. If We amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums sad ground rents as they fall due, 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 sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under 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 Inds 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 parageapha 1 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. 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 hereofor, 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 make payment direMly, 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 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 Lender, or shall in good 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 part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by f re, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forauch 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_ The insurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by Ixnder, 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, direMly 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 ~I and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly 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 such ~ ! restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied i to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to respond to Lender within 3b 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 oI the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue 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 Property is acquired by Lender, all right, title and interest of Borrower is and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent o! the sums secured by thin Mortgage immediately prior to such 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 rnmmit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium 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 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 Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender a interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Leader at Lender's option,upon notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to protect Lendei • interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repair. 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 [or each insurance terminates in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Urileae Borrower and Lender agree to other terns of payment, ouch amounts shall be payable upon notice from Lender to Borrower requesting 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 unless 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 thin paragraph 7, shall require Lender to incur any expense or take any action hereunder. ago 334 PEE 879 . , f'~ ~ ~ '