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HomeMy WebLinkAbout0994 Bonrower and bender covenant and agree as follows: 1. Payment of PrFncipal and Interest. Borrower shall promptly pay when due the principal of t+nd interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any F uture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to n wri/ten waiver by Lender, Borrower shall pay to !.ender un the day 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` twelfth ottee yearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the Property, iiany, plusone- t• •eltth otyearly premium installments for hazard insurance, plusonetwelfth ofyearly premium installments fur mortgage insurance, i[any, uU as reasonably e$timated initially and from time to tirt+e by Lender on the basis of assessments and bills and n .?sonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency !including Lendre it Lender ie such an institution). Irnder shall apply the Fonda to pay said taxes, assessments, inauran+r premiums and Kround rents. !.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless [.ender pays Borrower interest on the Fonda and applicable law permits !.ender 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, at+d 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 Fl+nds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by !.ender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer's option, either pmmptly repaid W Bonower or credited to Borrower on monthly inatsllmenta of Fonda. If the amount of the Funds held by !.ender shall nut be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shag pay to Lender any amount necessary to make up the deficiency within 30 days fmm the date notice is mailed by Lender to Burrower 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. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by [.ender, any Funds held by !.ender 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 !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph `l 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. Borrowershall pay all taxes, assessments and other charges, fines and impositions attributable to the I'roperh• which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner pn?vidcrl under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee ther+•uf. Burmw•er shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event 13orruwer shall make payment din•c•tl~•, Born,wer shall promptly furnish to I .ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this MortKage;provided, that Borrower shall not be required to discharge any such lien so long as Borruwershall agree in writing to the p:+yment of theubliKaliun sec ured by such lien in a manner acceptable to Lender, or shall in gaud faith contest such lien by, or defenc! entormment of such he•n 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 loss by fire, hazards included within the term "extended coverage," and such other hazards as !.ender may require:+nd in such amounts and for such periods as Lender enay require: pro~~ded, that Lender shall not require such rnverage 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 sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chu.4en by Borrower subject to approval by lender; pruyicicd, that such :+ppnn•al shall not be unreasonably withheld- All premiums on insurance policies shall be paid in the manner pnn•ulc•c1 under par-.+Kr.+ph 'L hern,f or, if f nut paid in such manner, by Borrower making payment, when due, directh• to the insurance carrier. All insurance policiea'and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favor of :+nd in form acceptable to Lender. I.enderahall have the right to hold the policies ann renewals thereof, and Burrower shall promptly furnish to j .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 E and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unless 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 economica0y 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 thie+ 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. If the Property is abandoned by Borrower, or if Borrower fails W respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carver oKers to settle a claim for a insurance benefits, Irnder ie authorized to collect and apply the insurance proceeds at [~ender'e 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 thedue date of the monthly installments referred to in paragraphs I and 2 hereotor change the amount of such installments. If under paragraph lA hereof the Property ie 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 sums secured by this titortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholda;Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioratior. 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, Burrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the ccndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent 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 the covenants and agreements otthis Mortgage as if the rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced 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 Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action se is necessary 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 g 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 tenninatea in accordance with Borrower a and Lender s written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Burrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fmm the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be wntrary to applicable law, in which event such amounts shall bear interest at the highest rate pennisaible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any aMion hereunder- a, ~ ~ ~Itii •,~J P:GE _ a