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HomeMy WebLinkAbout1133 llotrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and 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 Future Advances secured by this Mortgage. 2. Funds forTa:es and Insurance. Subject b applicable law or to a written waiver by !.ender, Borrower shat! pay to !.ender on 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 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 for hazard insurance, plus onetwelfth ofyearly premium installments [or mortgage insurance, if any, al: as reasonably estimated initially and from time to Circe by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender i[ [.ender is such an institution). !.ender 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 rnmpiling 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 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 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 Funds was made. The F ands are pledged as additional security for the soma secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, asaeasmenta, 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums 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 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 !.ender first in payment of amounts payable to Lender 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. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground 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. Korrowershal) promptly furnish to [.ender :+11 notices otamounts 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 h:+s prion'ty over this Mortgage: provided, that Korrower shall not be required to discharge any such lien so long :rs Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in gcwd faith n,ntest such lien by, or defend 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 ereMed on the Property insured against loss by fire, hazards 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 tender 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 he chosen Icy Burrower sutyecl to apprava) by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums un insurance 1N,licics shall l,c• paid in the manner pn-vided under paragr,+ph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier- Allinsurance policies and renewals thereof shall be in firm acceptable G, Ixnder and shall include a standard mortgageclause in favor of and in form acceptable to Lender. Ixndershall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to i xnder all renewal notices and all receipts of paid premiums- In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Iiorrower_ Unless Lender and Borrower otherwise agree in writing, insuranrn 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 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, if any , paid to &rrrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notim is mailed by bender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect :+nd apply the insurance pn-ceeds at Ixnder'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 par:+graphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right, title and interest of Kormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acqursition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; I.easeholda; ('ondominuma; Planned Unit Uevelopmenta. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration 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, Borrower shall perform all of Rorrower'a obligations under the declaration or covenants creatingor governing thecondominium 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 agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage as ifthe rider were a part hereof. T. Protection of Lender's Security. If Borrower fails to perform the rnvenanta 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 some and take each action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a 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 such insurance in effect until each lime as the requirement for such insurance terninatea in accordance with Borrower's and Lendei s written agreement or applicable Law. 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 thin paragraph 7, with interest thereon; shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terns 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 from 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 contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. sow 344 P~1133 r ,~ ~ 1