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HomeMy WebLinkAbout1290 forrower and Lender rnvenanl and agree as follows: 1. Payment o[ Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any F uture Advances secured by this Mortgage. 2. Fonda for Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds equal W one- twelfth ottee yearly faxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if eny, all as reasonably estimated initially and from time to time by Lender on the tu+ais of assessments and bills and reasonable estimates thereof. The Ftirnds 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 Fonda to pay said taxes, assessments, insurance premiums and ground rents. (.ender rosy not charge for so holding and applying the- Funds; analyzing said account, or verifying and rnmpiling said assessments and bills, unless Lender pays Borrower interest on the F unda and applicable law permits 1 ruder to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Irnder shall not be required to pay BoROwer any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the F unda showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security fortheauma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of F unda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall sacred the amount required to pay said taxes, asaesamenta, insurance premiums and ground rents as they fall due, ouch 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 Fonda held by Irnder shall not be sufficient to pay taxes, aaaeasments, insurance premiums and ground rents as they fall due, Borrower shall pay to Irnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Irnder to Borrower requesting payment thereof. Upon payment in full of all Bums secured by this Mortgage, Irnder 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 Irnder, Irnder shall apply, no later than immediately prior to the sale of the Property or its acquisition by Irnder, any F unda held by Irnder 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 Irnder under the Note and paragraphs 1 and 2 hereof shall be applied by Irnder first in payment of amounts payable to Irnder 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. Bonrower shall pay all taxes, assessments and other ch:+rges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gn,und rent.4, if any, in the manner provided under paragraphs hereof or, if not paid in such manner, by 1{oROwer making payment, when due, directly to the payee thertrd. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event 1{oROwer shall make payment directly, Rorn,wer shall promptly furnish to , Lender receipts evidencing such payments. BoROwer shall promptly discharge any lien which h:+s priority over this Mortgage; provided, that Korrower shall not be required to discharge any such lien so long as f{r,ROwer shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to lender, or shall in good faith nmtest such lien by, ordefend enfi,n•rment ofsuch lien in, legal proceedings which operate to prevent the enforcemen/ of the lien or forfeiture of the Pn,p+•rt~• or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvementx now existing or hereafter erected on the Property insured against loss by fire, hazards included within the teen "extended coverage," and such other hazards as I ruder may require and in such amounts and for such periods as Irnder may require; provided, that Lender shall nut require that the amount of such coverage exceed that amount of cove required to pay the sums secured by this Mortgage. ~Og" The insurance carver providing lh+• insurance shall tK• chosen by 1{uRUwl•r subject U, approval by I.c•nder, provided, that such approval shall not be unreasonably withheld. All premiums un insurance Iwlici+•s shall he• p:+id in the manner pn,vided under paragraph 'l hereof or, if nut paid in such manner, by 1{orn,wer making payment, K•hen dw•, dinvth• 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 favor of and in form acceptable to Irnder. Irnder shall have the right G? hold the policies and renewals thereof, and &?ROwer shall promptly furnish to ,.ender all renewal notices and all receipt.R of paid premiums. In the event of Ir,.cs, lir,rn,wer shall give prompt notice to the insurance carrier and (.ender. Lender may make pra,f of loss if not made promptly by BoROwer. Unless Irnder 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 I 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 BoROwer. If the Property is abandoned by Borrower, or if Burrower fails to respond to Lender within 30 days from the date notice is mailed by Irnder G, 1{orn,wer that the insurance carrier offers to settle a claim for ?nsurance benefits, Lender is authorized to collect and apply the insurance proceeds at fender's option either to restoration or repair of the f Property or the sums secured`by this Mortgage. Unless Lender and Borrower otherwise agree in writing, am such application of proceeds to principal shall not extend or postpone the due date of the monthly installments refeRed to in paragraphs 1 and 'L l+ereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right, title and interest +,f 1orrower in 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 Irnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. I 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. BoROwer shall keep the Property in good repair and shall not commit watite 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 nn a unit in a condominium or a planned unit development, }{orrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned p y egulations of the condominium or planned unit development, and constituent documents. If a unit develo ment, the b -laws and r condominium or planned unit development rider is executed by BoROwer and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as ifthe ~ rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements rnntained 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 Lender at Lender's option,upon notice to 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 condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time as the requirement for each insurance terminates in accordance with Borrower's and Lender s 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 (.ender perauant to thin paragraph 7, with interest thereon, shall become additional indebtedness of Eorrower secured by this Mortgage. Unless Borrower and (.ender agree to other terms of payment, such 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 this paragraph 7, shall ~ require Lender to incur any expense or take any action hereunder. • 800 ~ PdCE~ _E_ L~ r - - s,