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HomeMy WebLinkAbout1473~ ~ Y •~ . r`` Borrower and Lender covenant and agree as fopows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the prindpal oI and interest on the indebtednea evideaoed by the Nota. prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. ~. Fluada forTa:es and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrowerahall pay to Lenderontheday monthly itutallmen4 of principal and interest are payable under the Note. until the hole is paid in full, a sum (herein "Funds'? equal b oas twelfth of the yearly taxes and asseaments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw oas• twelfth of ~roarly premium inatalhnwts for hazard insurance, plw one•twelRh of yearly premium installments for mortgage insurance, if any, ap v reaeoaably estimated initially and fkom time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds chap be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Leader is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge !or so holding and applying the Funds. analysing said account, or verifying and compiling said assessments and biW. unless Lender pays Borrowec interest on the Funds and applicable law permits Lender to make each a charge. Borrower and Lends: may agra in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unle» attch agreement is made or applicable law requires such interest to be paid, Lender shall not be' requited to pay Borrower any interest or earning on the Fends. Lander shall give to Borrower. without charge, as annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds vyas made. The Funds are pledged as additional security for the sums secreted by this Mortgage. If the amount of the Fends held by Lender, together with the future monthly installments of Funds payable prior to the due data of taxes, wesaments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents w they fag due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly irutapmeats of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes. asseaments, insurance premiums and ground rents eu 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 Lender to Borrower requesting payment thereof. Upon payment in fall o[ ap sums secured by this Mortgage, Lender shall promptly refund to Borrows any funds held by Lender. If ender paragraph 18 hereof the Property is soW or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or ib aoquidtioa by Lender, any Funds held by Lender at the time of application a. a credit against the sums secreted by this Mortgage. - 9. Application of Payments. Unless applicable law provides otherwise, all paymen4 received by Lender under the Note and paragnplu 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to infered payable on We 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 charge, fines and impositions attributable to the Property which may attain a priority ova this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, it not paid in such manna, 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 discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest 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. Hasard 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 Lender may require and in such amount and forsach 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 secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval chap not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, it 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 o` and in form acceptable to Lender. Lender shall have the right to hold the policies and renewab thereof, and Borrower shall promptly !welsh to i.eader all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Leader. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree•in writing, insurance proceet'i+ 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 appped 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 to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier oilers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to resWration or repair of the P-operty or the sums secreted by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shell not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount olsuch 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 sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation end Maintenance of Property; Leaseholds; Condominuras;Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the PropeRy and shall wmply with the provisions of any lease if this Mortgage is on a leasehold. It 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 rnvenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium 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 oovenanta sad agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage w itthe rider were a part hereof: 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreemenb contained in this Mortgage, a (t aqy action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not pmited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lender's option,npon notice to Borrower may make such appearances, disburse such sums and take such action ea is necessary to protect Leader's iatsreat„ including, but not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repairs. Ii Lender rsgni:,d mortgage insurance a. a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums requird to maintain such insurance in effect until such time as the requirement for such insurance terminate in accordance with Borrower's and Lendse'a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph T, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree eo other terms of payment, such amounts shag be payable upon notice from Lender to Borrower requiting payment thereof, and shall bear interest Erom the date of disbursement at the rate payable fkom time b time on ontataading principal under the Note unless payment of intern at such rate would be contrary to apppcabk law, is which event such amounts shall bit interit at the highit rate permissible under applicable Isw. Nothing contained in thin paragraph 7, shall require Lender to incur any expense or take any action hereunder. ' y ~" 1 ` e~344 P,~19TJ - -. :~