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HomeMy WebLinkAbout1251 Borrower and Lender covenant and agree as follows: 1. Payment of Pelaclpal and Interest. Borrower shall promptly pay when due the principal of and interact on the indebtednea evideaoed by the Note, prepayment and late charges as provided in the Note, and the principal of and interest oa any Palate Advances secured by this Mortgage. . Z. Dads for Taws and Iasuranoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inatalhnents of principal and interest are payable under the Note. until the Note is paid is toll. a sum (herein''Funds'7~~ua! to one- ' twelRh of the yearly taxes and assessmenb which may attain priority over this Mortgage, and ground rents on the Property. if any. plw one- twelith ofyearly premium instalhnente for hazard insurance, plw onetwelRh of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'lire Funds shall be held in as institution the deposits or aopounts 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 taxes. ass~sements, insurance premiums and ground rents. Lends: may rat charge for so holding and applying We Fltnds, analysing 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 Lander may agree in writing atthe lima 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 Borrows any interact or earnings oa the Funds. Lender shall give to Borrower, withont charge. an annual aooounting of the Rands showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Moxtgage• If the amount of the Funds held by Lender. together with the futon monthly instaUmenta of Funds payable prior bo the doe dates of taxes, assessments, inswanoe premiums and ground recta, shall exoaed the amount required to pay said taxes, assessments, 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 installments of Ftirnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay b 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 fnU of all soma second 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 Funds 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 paragraphs 1 and 2 hereof sbaU 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 intend and principal on any Future Advances. Charges; Lien.. Borrower shall pay all taues, assessments and other charges. fines and impositions attributable to the Property which may attain s 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 thereof. Borrower shall promptly famish to I.ender all notices of amounts due under thin paragraph, and in the event Borrower shall make payment directly, 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 ao long as Borrower shalt 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 6y, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the ben or forfeiture of the Property or any Part thereof. 5. Hazard Inwranoe. Borrows shall keep the improvements now existing or hereafter erected on the Property insured against loss by fin, hazards ineinded within the term ."e~etended wverage." and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided. that Lender ehaU not regain such coverage amount exceeding the minimum, aB may be required by state or federal regulations governing activities of Lender. or that amount of coverage required to pay the,auma secured by this Mortgage, whichever is We greater. The insnrance carrier providing the insurance shall be chaser 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 I'I not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. j All insurance policies'snd renewals thereof shall be in foam acceptable to Lender and shall incinde 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, and Borrower shalt promptly furnish to lender all renewal notices and all r+eoeipta of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. lender may make proof of foss if cwt made promptly by Borrower. Udees Lender and Borrower otherwise agree in writing, insnrance procetda 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 [easible or if the security of thin Mortgage would beimpaired, the insurance proceeds shall be applied to the soma secnred 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 30 Jaya from the date notice is mailed by Lender to Borrower that the insurance carrier ogera to settle a claim for inaunmce benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lrndefa option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone the due date of the monthly inatalimenta referred to in paragraphs 1 and 2 hereof or change the amownt of arch installments. If ender paragraph 18 hereof the Property is acquired by bender, all right, title and interest of Borrower in and to any insurance poGciea and in and to the proceeds thereof mm~lting from damage to Property prior to the sale or acquisition shall pass to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or eogaiaition. 6. Preservation and itls3nteaance 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 provisions of any lease if this Mortgage is on a leasehold. If thin Mortgage is on a unit in a condominium or a planned unit deveioproent, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development. the by-laws and regnlations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Sonrower 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 thin Mortgage as if the rider were a part hereof. Protection of Lender's Security. Tf Borrower fails to perform We oovenanb and agreements oontaiaed in this Mortgage. or if any , action or proceeding is commenced which materially affects Leadrr's interest in the Property. including, bet not limited to. eminent domain, ~ insolvency, code enforcement, or arrangements or pr+ooeedings involving a bankrupt or decedent. then Lender at Lender's optionupon 9 notice to Borrower may make such appearances, disbnree such soma and take arch action as is necessary to protect Lender's interest, including, bet not limited to, disbursement of reasonable attorney's fees and entry neon We Property to make repairs. Ii Lender regnired mortgage insurance as a oandition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in efr'ect until sncL time as the requirement for arch insurance terminates in accordance with Borrower's and Larder's i written agreement ~ applicable Law. Borrower shall pay the amonnt of all mortgage insnrance premiums in We manner provided render paragraph 2 hereof. ? Any amonnts dubuned by Lender persuant to this paragraph with interest thereon. shall become additional indebtedness of ~ Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amonnts shall be payable upon notice from Larder to Borrower requesting payment thereof. and shall bear intend from the date of dubnreement st the rate payable from time to time on outstanding principal under the Note anleN taY~t ~ ~kr~ at each rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highed rate permissible under applicable law. Nothing contained in this paragraph 7, shall ~ require Lender to incur any e~cpense or take any action hereunder. i , ~t~}p ~ 3 BO~Of~(tJJO P~Gf .l.~~~~ Ny. 5. -