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HomeMy WebLinkAbout0951 Y Borrower and Lender covenant and agree a. follows: 1. Payment of Principal sad iatere~st. Borrower shall promptly pay when due the principal of and interest oa the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Fntnre Advances secured by this Mortgage. 2 Funds for Tuea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowu shall pay b Lender on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in lull. a sum (herein "Funds")equal to ~are~ twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifaay, plus oae- twelRh ofyearly premium ituttlbanents for hazard insurance, pluaone-twelRlr ofyearly premium installments for mortgage insurance, itaay, all as reasonably estimated initially and from time to titres by Lender on the basis of assessments and bills and reasonabk estimates thereoL The Funds shat) be held in an institution the deposits or accounts o! which are insured or guaranteed by a Federal or State agency (including Lender if Lends is such an institution). finder shall apply the Funds to pay said taxes, asaesamente, insurance premiums and around 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 applicablelaw permits Lender to makesuclt a charge. Bernower 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 utrkss 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 to Borrower, without charge, an annual accounting of the Funds 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 for the sumssecured by tbis Mortgage. If the amount of the I~rnds held by Lender, together with the future monthly installments of Funds payabk prior to the due dates of tares, aaseeamenta, insurance premiums and ground rents. shall ezcred the amount required to pay said taxes, assessments, insurance preminms and ground rents as they tall due, such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay rues, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30daytt from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all auras secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by lands. itatrderr paragraph 18 hereof the Property is sold or the Properly 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 Lander at the time of application as a credit against thesumsserured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise, all payments r+eoeived by Lender under the Note and paragraphs 1 and 2 hereof ahaU be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph thereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and prinapal on any Future Advances. 4. Charges;Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable W 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, dirrMly to the payer thereof. Borrowershall promptly famish to lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly tarnish to Lender receipts evidencing such payments. Burrower shall promptly discharge any lien which haspriwity 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 ottheobtigation seruned by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by. ordefend 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 loos by fire, hazards included within the term "extended coverage." and such other hazards as Lender may require and in such amountsand foranch periods as Lender may require; provided, that Lender shall not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortg.ge. The insurance carrier providing the insurance shall he chetisen b~• Borrower subject to approval ht bender, provided, that such approval shall not be unreasonably withheld- All premiums on insurance policiew shall be paid in the manner pnn•ided under paragraph L hereof or, it not paid in such manner, by Borrower making payment, when due, dircY•th to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable w l.enderand shall include a standard mortgageclausein favorof and in form acceptable to I.ender. [.endershall have the right W 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, Born~wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it not made pn?mptly by Borrower. - Unlesa 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 unpaired. 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 to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. Itthe Property is abandoned by borrower, or ilBorc~ow•er faiblo respond taLender within 30 days hom the date notice is mailed by Fender to Borrower that the insurance carrier ogees to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration e?r repair of the Property or the sums secured by this Mortgage. .Unless Lender and Borrower otherwise agree in writing, any such application otproceeds to principal shall not Mend or postpone thedae date of the monthly installments referred to in paragraphs 1 and 2lrereof or change the amount of such installments. If under paragraph I8 hereof the Property is acquired by Lender,.all right, title and interest of Borrower 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 p.•rss to Lender to the extent of the soma aerur+ed by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Development. Borrowtrshall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall corrpty 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 a obligations under the declaration or covenants creatingor governing the condominium or planned ' unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreementsofauchridershallbeincorporatedintoandshallamendandsupplementthemvenantsandagreementsofthisMortgageasifthe rider were a part hereof. _ 7. Protection of Lender's Security. If Borrower fails to perform the oovenante and agreements contained in thu Mortgage, err if say action or proceeding is rnmmenced 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 under at Leader's optionapon notice to Borrower may make such appearances, disburse such soma and take each aMion as is necessary to protest 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 rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain s such insurance in effect until ouch time ae the requirement for such insurance terminates in accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided render paragraph 2 hereof. - i Any 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 Lander agree to other terms o! payment, such amounts shall be payable gpon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at therate payable bnm - 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 rnntained in this paragraph 7, shall $ require Lender W incur any expense or take any action hereunder. (jx