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HomeMy WebLinkAbout0655 r ~ i t ' • t• Borrower and Lander covenant and agras u folbws: 1. Payment of Peinclpal and Interest. 8orrowa shall promptly pay when des the prindPal of and interest on Ws indebtednew evidenod by the Nob, P»pay_ meat sad late cbargas u provided in the Nob. and tM principal of and interest on any I~tn» Advances secu»d by this Mortgage. - 4. Ptitnds for Taxes and Insurance. Subject to applicable law or to a writbn waiver by Lender, Borrower shall pay to Lends on the day monthly installment of principal and interest are payable under the Nob. until the Nob is paid in full. a sum (he»in "Funds'h equal to ores tweliW of Ws yearly taxes and assewmenb which may attain priority over this Mortgage, and ground »nt on the Property, i[any, plw one twsllW of yearly premium instalhrscnb for haurduuurance, plw one•twelfW of yearly premium inatalhnent for mortgage insurance. if any, aU u »asoaably estimated initially and from time to time by Lender on the bola o[ assessment and bills and reasonable estimates theno! 1Ls I+lrnds shall bs held W an iastltutioa tM deposit or account of which a» insured or guaranteed by a Federal or Stab agency (including Lander U Linder i. such as iastitntioa). Leader shall apply-the Funds to pay said taxes, awewmenb. insurance premiums and ground rent. Lender may not charge for so holding and applying the Frauds, analyzing said account, or verifying and compiling said asswsmenb and biW, unless Lander pays Borrower interest on the Funds and applicable law permit Lender to make such a charge. Borrower and Leader may agree ip writing at the lima of execution of this Mortgage that iab»d on the Funds shall be paid to Borrower. and unless such agreement b made or applicable law requires arch interest to be paid. Lender shall not be required to pay Borrower any intred or earnings on the Minds. Lender shall give t Borrower. without charge. an annual aooounting of the Plrnds showing credit and debit to the Funds sad the purpose for which each debit to We F1mds gras made. The Funds a» pledged u additional secwity for the sums secured by this Mortgage. Itthe amount of the PLnds held by Lender, together with the futon monthly installment of Funds payable prior to the due dates of taxes, assessments, iasnranos premiuau and ground rent. shall exazed the amount required to pay said taxes. assessment, insurance pnmiwns and ground rent u they fall due. such exoew shill be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installment of Funds. Tt the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessment. insurance premiums and ground rwrb as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days . from We dot notices 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. Itundes paragraph 18 he»of the Property b sold or the Property is otherwise acquired by Lender; Lends shall apply. no later Wan immedrably prior to the sad of the Property oz it aognirition by Lender.any Funds held by Lender at We time of application u a credit against the sums secured by this Mortgage. . 3. Applkadon of Payments. Unlew applicable law provides oWerwise. all payment received by Lender under We Nob and paragraphs 1 and 2 he»of shall be applied by Lender fi»t in payment of amount payable to Lender by Borrower under paragraph 2 hereof. then to inbred payable on We Nob, Wen to the principal of the Nob, and Wen to it?tred and principal on any Future Advances. 4. Charges;Liens. Borrower shall pay all taxes, assessment and other charges. fins and impositions attributable to the Property which rosy attain a priority over Wia Mortgage, and leasehold payment or ground rents, if any. in the manner provided under paragraph 2 hereof or. if not paid in each manner. by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amount due undo Wia parag»ph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender reoaipt evidencing ouch payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shell 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 lies in a manna acceptable to Lender, or shall in good faiW rnntest such lien by, ordefend enforcement of such lien in, legal proceedings which operat to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof. b. Hazard Insurance. Borrower shall keep the improvement now existing or benafter erected on the Property insured against low by fin, hazards included within the term "extended coverage." and such older hazards u Lender may regain and in such amount and for wch periods as Lender may require; provided, that Lender shall not regain Wat the amount of ouch coverage exceed Wat amount of coverage required to pay We sums secured by Wis Mortgage. The insurance carrier providing We insurance shall be chosen by Borrower subject to approval by Lender, provided, that ouch approval shall not be unreasonably withheld. All premiums oninsurance policies shall be paid in the manner provided under paragraph 2 hereof or. if not paid in wch manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals Wereof shall be in form acceptble 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 nnewab thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipt of paid premiums. In the event of low, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lends and Borrower oWerwise agree in writing, insurance procee~w shall be applied to restoration or repair of We Property ~ damaged, provided such restoration or repair is ernnomically feasible and Wersecurity of Wis Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of Wiz Mortgage would be impaired. the insurance proceeds shall be applied to We sums secured by this Mortgage. wild the excess, if any. paid to Borrower. I! We Property is abandoned by Borrower, or if Borrower fail to respond b Lender wiWin 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier oge» to settle a claim for ! insurance benefit. Lends is auWorized to rnllect and apply the insurance proceeds at Lender's option either b restoration or repair of the E Property or We awns secured by this Mortgage. Udew Lender and Horrower otherwise ague in writing, any such application of proceeds to principal shall not extend or pwtpone the due dot of the monthly instllment referred to in pa»graphs 1 and 2 hereof or change the amount of such installment. If under paragraph 18 hereof the. Propesty i. acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds Wereof resulting from damage to Property prior W We sale or acquisition shall pass to Lender to the extnt of the sums second by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Development. Borrower shall 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 this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under We declaration or covenant creatingor governing the condominium or planned unit development. We by-laws and regulations of the condominium or planned unit development. and constituent document. If a rnndominium or planned unit development rides is executed by Borrower and recorded togeWer with this Mortgage, We covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fait to perform We covenant and agreement contained in this Mortgage. or if any action or prooesding i. commenced which materially affect Lender's intrest in the Property. including, but not limited to, eminent domain. insolvency, node enforosmmR or arrangement or proceedings involving a bankrupt or decedent. then Lender at Lender's optioa,npon notice to Borrower may make such appearances. disburse such sums and take wch action u is necessary to protect Lender's interest. including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make »pai». If Lender required mortgage insurance u a condition of making We loan secured by this Mortgage, Borrower shall pay We premiums required, to maintain wch irunranoe in dfect until wch time w We requirement for such insw~ance terminates in accordance wild Borrower's and Ler?dels written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manna: provided under paragraph 2 hereof. Any amowrb dubnrsed by Lender pe»uant to Wis paragraph with intrat thereon, shall become additional indebtednew of Borrower secured by this Mortgage. Unlaw Borrower and Lender agree to other terms of payment. such amount shall be payable upon notice from Lends to Borrower requesting payment Wereof, and shall bear intred from the dot of disbursement at the rob payable from time to time on outstanding principal under We Not~uriew payment of intend at such rat would be contrary to applicable law, in which event such amount shall bear interest st the highest rat permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. 800 ~ P~ ,I