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HomeMy WebLinkAbout0671:t rt 3. Subject to applicable law and upon request by Mortyagee, Mortgagor shall pay to•fNo-tgagee a- the day monthly install• meats of principal and interest are payable under the Note, until the Note is paid in full a sum (herein "Funds") equal to one- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments of hazard insurance (including flood), plus one-twelfth of yearly premium install- ments for Mortgage inwrance, if any, all as reasonably estimated initially and from time to time by Mortgagee on the basis of assess- ments and bills and reasonable estimates thereof. The Funds shall be held ir- an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Mortgagee if Mortgagee is such an institution), Mortgagee shall apply the Funds to pay said taxes, assessments, in- surance premiums and ground rents. Unless agreement is made or applicable law requires interest to be paid, Mortgagee shall not be regwred to pay Mortgagor any interest or earnings on tf~e Funds. Mortgagee shall give to Mortgagor 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 Mortgagee, together with the future montfily installments of Funds payable prior to due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assess- ments, insurance premiums and ground rents as they fall due, such excess shall be, at Mortgagor's option, either promptly repaid to Mortgagor or credited to Mortgagor on monthly installments of Funds. If the amount of the Funds held by Mortgagee shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Mortgagor shall pay to Mortgagee any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Mortgagee to Mortgagor requesting payment here. Upon payment in full of all sums secured by this Mortgage, Mortgagee shall promptly refund to Mortgagor any Funds held by Mortgagee. If under paragraph 11 hereof the. Property is sold or the Property is otherwise acquired by Mortgagee, Mortgagee shall apply, no later than immediately prior to the sale of the Property or its acquisition by Mortgagee, any Funds held by Mort- gagee at the time of application as a credit against the sums secured by this Mortgage. 4. Unless applicable law provides otherwise, all payments received by Mortgagee under the Note and paragraphs 1, 2 and 3 hereof shall be applied by Mortgagee first in payment of amounts payable to Mortgagee by Mortgagor under paragraph 3 hereof, then to interest payable on the Note, then to the principal of this Note. 5. If all or any part of the Property or an interest therein is sold or transferred by Mortgagor without Mortgagee's prior written consent, excluding (a) the creation of a lien or encumlxance subordinate to this Mortgage, (b) the creation of a purchase money security interest for household appliances, (cl a transfer by devise, descent or by operation of law upon the death of a joint tenant or Idl the grant of any leasehold interest of three years or less not containing an option to purchase, Mortgagee may, at Mortgagee's option, declare all the sums secured by this Mortgage to be immediately due and payable. Mortgagee shall have waived such option to accelerate if, prior to the sale or transfer, Mortgagee and the cerson to whom the Property is to be sold or transferred reach agreement in writing that the credit of such person is satisfactory to Mortgagee and the proper transfer forms and fees have been furnished to Mortgagee. If Mortgagee exercises such option to accelerate, Mortgagee shall mail Mortgagor notice of acceleration. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Mortgagor may pay the sums.declared due. If Mortgagor fails to pay-such sums prior to the expiration of such period, Mortgagee may, without further notice or demand on Mortgagor, invoke any remedies permitted by this Mortgage_ 6. Mortgagor shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the real or personal Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is ort a unit in a condominium, Mortgagor shall perform all of Mortgagor's obligations under the declaration creating or governing the condominium, the by-laws and regulations of the condominium and constituent documents. Mortgagor shall keep all improvements, buildings and personal property situated on the above described land in good state of repair, well painted and waterproofed, and shall promptly pay all costs and expenses thereof. Without the written consent of the Mortgagee, the Mortgagor shall not remove, or allow to be removed, the tangible personal property hereby encumbered from the above described real property_ 7. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of the Property, or part thereof or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Mortgagee. Mortgagee shall also be entitled to recover from Mortgagor any attorney's fees incurred in connection therewith. If the Property is abandoned by Mortgagor, or it, after nonce by Mortgagee to Mortgagor that the condemnor otters to make an award or settle a claim for damages, Mortgagor fails to respond to Mortgagee within 30 days after the date such notice is mailed, Mortgagee is authorized to collect and apply the proceeds, at Mortgagee's option, either to the restoration or repair of the Property or to the sums secured by this Mortgage. Unless Mortgagee and Mortgagor 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 the note and this Mortgage or change the amount of such installments. 8. Mortgagor shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included with the term "extended coverage", and such other hazards as Mortgagee may require (including flood) and in such amounts and for such periods as Mortgagee may require; provided, that Mortgagee shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen oy Mortgagor subject to approval by ',Aortgagee; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided un- der paragraph 3 hereof or, if not paid in surh manner, by Mortgagor making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Mortgagor and shall Include "standard" or "union mortgage" loss payable clause so that the interest of the Mortgagee shall not be invalidated by the act or neglect of the Mort- gagor. Mortgagee shall have the right to hold the policies and renewals thereof, and Mortgagor shall promptly furnish to Mortgagee all renewal notices and all receipts of paid premiums. In the event of loss, Mortgagor shall give prompt notice to the insurance car- rier and Mortgagee. Mortgagee may make proof of loss if not made promptly by Mortgagor. Unless Mortgagee and Mortgagor otherwise agree in writing, insurance proceeds shall be applied to restoro ion or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mort~~;~ is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insur- ance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Mortgagor. If the Property is abandoned by Mortgagor, or if Mortgagor fails to respond to Mortgagee within 30 days from the date notice is maned by Mortgagee to Mortgagor that the insurance carrier offers to settle a claim for insurance benefits, Mortgagee is authorized ro collect and apply the insurance proceeds at the Mortgagee's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Mortgagee and Mortgagor otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly ins*_allments referred to in the note and this Mortgage or change the amount of such in stallments. If under paragraph 11 hereof the Property is acquired by Mortgagee, all right, title and interest of Mortgagor in and to any insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall past to Mortgagee to the extent of the sums secured by this Mortgage immediately prior to such sate or acquisition. 9. As additional security hereunder, Mortgagor hereby assigns to Mortgagee the rents of the Property, provided that Mort- gagor shall, prior to acceleration under paragraph 11 hereof or abandonment of the Property, have the right to collect and retain such rents as they become due and payable. 8~~344 PEE Eli