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HomeMy WebLinkAbout0312 Borrower and Lender covenant and agree as follows: 1- Psyarent of Prinelpal and Irtescst. Harrower shall pump»s pa)' x`cn dLe the principal of and inWrrat un 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 Ta:es and Insurance. Subject to applicable law or to a written waiver by lender. Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Funds")equal to one- twel~th of the yearly taxes and assessments which may attain priority over this Mortgage, and ground cents on the Property. if any, plus one- twelith ofyearly premium installments for hazard insurance, plus one•twelith ofyearly premium installments for mortgage insurance. if any. alias reasonably estimated initially and from time to time by Lender on the basis of assessments and bleb and reasonable estimates thereof The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or Scats agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said to:ea, assessments, insurance premiums and ground renb. Lender may not charge for so holding and applying the Ponds, analysing said account, or verifying and rnmpiling 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 is 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 Hinds. 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 Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exoaed the amount required to pay said taxes, assessments, insurance premiums end ground rents as they fail due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borroweron monthly installments of Fonds. 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 to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lends to Borrower requesting payment thereof. Upon payment is full of all soma secured by this Mortgage. Lender shall promptly refund to Borrower any [under held by bender. 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 j to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit agai nst the soma secured i by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 2 and 2 hereof shall be appUed by Lender first in payment of amounts payable to Lender by Horrower under paragraph 2 hereof, then to interest payable on the Note, then to the prindpal 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 paragraphs hereof or, ;f not paid in such manner, by Hormwcr making payzasrt, when due. directly is the payer thrreuf. 8urrowerahaii 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 [.ender 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 so long es 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 by, or defend enforcementof such lien in, legal proceedings which operate-to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. _ 5. liasard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hasards included within the term "extended coverage,° and such other hazards as Lender may require and in such amounts and forauch periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as 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 the greater. The inawance carrier providing the insurance shall be chosen 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 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. - All insurance 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 ah all promptly furnish to ? i.ender ali renewal notices and all receipts of paid premiums. In the event of toes, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Leuder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided snch 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 soma secnred by this Mortgagt, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to .~s~,crd to Lender within ~ uays from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds et Lender s option either to restoration or repair of the Property or the enms 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender paragraph 18 ; Ili hereof the Property is aoquued by bender, 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 a:tent of the auma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation end lisdntenance of Property; Leaseholds; Condorainums; Planned Unit Developments. Harrower 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 rovisions of an lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, p y - w hall orm all of Borrower's ob ' ations under the declaration or rnvenants creat.ngor governing the rnndomimum or planned Borro er s perf hg unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. I[ a condominium or planned unit development rider is executed by Borrower and Fecorded 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 this Mortgage as if the rider wen a part hereof. 7. Protection of Lender's Security. If Borrows fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced whid? materially affects Lender's interest in the Property. including. bet not limited to, eminent domain. insolvency. node enforcement, or ar<angemeata or Proceedings involving a bankrupt or decedent. then Lender st Lender's option,upon notice to Borrower may make such appearances. disburse such sums and take such action as is neoasary 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 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 Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under - paragrapb 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 Mortgages Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, sad shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note anlese payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate petmiasible under applicable law. Nothing contained in this paragraph shall require Lender to incur any expense or take any action hereunder. - . X342 P~~E 3~2 _ ~ -s~.9; ~