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HomeMy WebLinkAbout0912 Borrowar and !.ender covenant and agree as folbws: I. Payment of Principal wad 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 Future Advances secured by this Mortgage. 2 Funds for Taxes and Insurance. SubjM b applicable law or b a written waiver by Lender, Borrower shall pay to Lender an the day monthly installments 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 assessments which may attain priority over this Mortgage, and grour?d rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plusonetwelfih ofyearly premium installments [or mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the basis of asseaaments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including [.coda 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 Funds, 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 and Lender may agree in writing at 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 such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give b Borrower, without charge: an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit b the Funds was made. The Fonda are pledged as additional security for the soma secured by this Mortgage. If the amount of the Fonda held by !.ender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall excrcd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Phnds. If the amount of the Funds held by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall 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 soma 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, [.ender 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 thesums 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 Leader first in payment of amounts payable to Lender by Borrower under paragraph Z 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 paymentsorground rents, if any, in the mannerprovided under paragraph 2hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrowershall promptly furnish to !.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 nut be required to discharge an4 such lien so long as Borrower shall agree in writing to the pay ment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforcement ofsuch 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 fire, hazards included within the teen "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as Lender may require; provided, That Ixnder 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 Ix• chosen by liom,wer subject to approval try IA•nder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner providrri under parrgraph'l hereof or, if nut paid in such manner, by Borrower making payment, when due, diredh• to the insurantr carrier. All insurance policies and renewals thereof shall be in form acceptable W Letfderand shall include a stanaanl mortgage clause in favorof and in form acceptable to Lender. Ixnder shall have the right to hold the policies and renewals thereof, and &,rrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, i3r,rwwer shall give prompt notice to the insurance carrier I~ and Ixnder. !.ender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall fie 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 it 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 if Borrower fails to respond to Lender within :10 days from the date notice is mailed by Fender to Borrower that the insurance carrier offers to aetUe a claim for insurance benefits. [.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of 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 l hereof or change the amount of such installments. I[ under paragraph 18 hereof the Property is acquired by Ixnder, all right, title and interest of Borrower im 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 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. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the s provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants cre:rtingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and•conatituent documents. I[ 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 :rod 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 oovenante and agreements rnntained in this Mortgage, or itany action 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 Lender's option,npon notice to Borrower may make such appearances, disburse such some and take such action as ie 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 ae a rnndition 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 n 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 persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upo?i notice from Lender to Borrower reglrestin~ 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, shah require Lender to incur any expense or take any action hereunder. ' i 8001f PACE ~0 4 ~ ~ -r_.