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HomeMy WebLinkAbout0783 i . ~ Borrower and Lender covenant sad agres as follovrs: 1. Paymeat of Priuclpal and Iaterest. Borrower shall prompt~jr pay when due the principal of and interest on the indebtednew evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest on any I~ture Advances secured by this Mortgage. 2 Ptiutds for Taxes and Insurance. Subject to applicable law or to a written waiver by [.ender, Borrower shall pay to Lender on the dsy . 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 twaltth ottee yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Properly. if any, plus one• twelfth of yearly premium installments !or hasard insurance, plus one•twelfth ofyearly 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 9~he Funds shall be held in an institution the deposits or accounts o! 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, 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 Fonda 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 unlew 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 Furids. Lender shall give to Borrrwer, without charge, an annual accounting of the Funds 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 Mortgage. If the amount of the ~rnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, asaeaemercts, insurance premiums and ground rents, shall exctcd 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 Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, sasesamenta, 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 [.ender to Borrower requesting payment tnereof Upon payment in fuU of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held byiender. 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 shall be applied by Lender first in payment of amounts payable to [.ender 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. 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 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, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this 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 disch arge any such lien so long as Borrower shall agree in writing to the payment ottee obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, ordefend enforcrmentof 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 lose by fire, hazards included within the term "extended rn~cerage,"and such other hazards as [.ender may require and in such amounts and for such periods as Lender may require; provided,• that Lender shall not require that the amount of such coverage exceed that amount of coverage- required to pay the sums secnred by this Mortgage_ The insurance carrier providing the insuranrn shall be chosen by liom,wer 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 not paid in such manner, by Borrower making payment, when due, dinrth to the insuranrn carrier. - - Allinsurance 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 Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender all renewal notices and all receipts of paid premiums. In the event of loss. Korn,wer shall give prompt notice to the insurance carrier II and Lender. Lender may make proof of loss it not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agrre~ in writing, insurance proceeds shall be applied to restoration or repair of the Property f 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 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, itany, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within :i0 days from the date notice is mailed by bender to Borrower that the insurance carrier otters to settle a claim for insurance benefits, Lender 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 2 hereof or change the amount of such installments. if under paragraph 18 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 pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowershall keep i the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the" 1 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 the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the rnndominium 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 agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements otthis Mortgage as if the rider were a part hereof. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is rnmmeneed which materially affects Lenders 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,apon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lenders interest„ including, but not limited to, disbursement of reasonable attorney 8 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 such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders written a ment or a licable Law. Borrower shall the amount of all mortgage insurance remiums in the manner gees pp pay p provided under paragraph 2 hereof. My amounts disbursed by Lender perauant to this paragraph with interest thereon, shall become additional indebtedness of Borrower 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 tiom 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 to incur any expense or take any action hereunder. , . ~ X341 78~ 5 _