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HomeMy WebLinkAbout1485-t. ~~ Bc-tmwer and finder covenant and ague as folbws: I. 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 prit~•ipal of and interest on any Future Advances secured by this Mortgage. 2. Flrrtds for Taxes 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, unfit the Note is paid in full, a sum (herein "Fonda"- 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 ofyearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by !.ender 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 if Lender ie such an institution). Lender shall apply the Funds to pay said taxes, asaesamenta, insurance premiums and -:round rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling 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 in writing at the time of execution of this Mortgage that interest on the Ftirnda 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, ~Ovilhout 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 Funds are pledged as additional security for the some secured by this Mortgage. If the amount of the Ftitnds held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, asaeasmenta, insurance premiums and ground rents as they fall due, such excess shall be, at BotTOwer a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender 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 soma secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by [.ender. 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 thin 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 Lender first in payment otamounta 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. Borrower shall pay all taxes, assessments and c-thercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, i[any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower maY.inq payment, when due, directly to the p:+yee 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 I .ender receipts evidencing such payments. Korrower shall promptly discharge any lien which h:+s priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien so long:+s lic-rrower shall agree in writing to the pay meat of theobligation secured by such lien in a manner acceptable to !.ender, or shall in good faith n-n'tcst such lien by, ordefend 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 erected on the Property insured against lose by fire, hazards included within the term "extended cover:+ge."and such other h:+zards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Lender shall nc-t require that the amount of such coverage exceed that amount otcoverage required to pay the sums secured by this Mortgage. _ The insuranrn carrier providing the insurance shall t-c• chosen by Borrower subject to :+ppnn•:+I by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurnce 1-c-licics shall t-c• paid in th+• m:+nner peen idcd under paragr.+ph'l hermf or, if not paid in such manner, by Borrower making payment, when due, dirw•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable d- !.ender and shall include a standard mortgage clause in favorof a nd in form acceptable to Lender. Lender shall have the right G- hold the policies and renewals therer-f, and Korruwer shall promptly furnish to -.ender all renewal notices and all receipts of paid premiums. In the event of Icon, l;,-rn-wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless !.ender and Borrower otherwise agree in writing, insuranm 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 nr 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 Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is mailed by Lender tc- Borrower that the insurance carrier offers tosetlle a claim for insurance benefits. Lender is authorized to collect and apply the insurance proceeds at Lender's 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 1 and 2 her+r-f or change the amount of such installments. If under paragraph l8 hereof the Property is acquired by (.ender, all right, title and interest of l3c-rrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acqu+sitic-n shall pass tc- 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; ('ondominums; Planned Unit Developments. Korrowerahall 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 htorigage is on a leasehold. If this Mortgage is on a unit in a rnndc-minium or a planned unit development, Burrower shall perform all of Bc-rrower's obligations under the derlar.+tion or covenants crealingor governing the condominium 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 rnvenanta and agreements of such rider shall be incorporated into and shall ::mend and supplement thecoven:+nts and agreementaof this Mortgagees ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Fender 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 soma and take such action as ie necessary to protect Lender a interest, including, but not limited to, diaburaement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance ae 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 ae the requirement for such insurance terminates in accordance with Borrower a and Lender'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 pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and [.ender agree to other terms 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 each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph ?, shall require Lender to incur any expense or take any action hereunder. ~~344 P~i485 - r -: -_ _ ~~~~