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HomeMy WebLinkAbout1892Borrower and [.ender eovenaat and a~ee eu follows: 1. P~yme~t of Principal and [ntere~t. Borrower ahal) promptly pay when due the prinripel ot and interest on the indebtedncs~ evideaced by the Note, prepayment end late chargea as pmvided in the Note, a~d the principa~ of and interest on any ~ture Advences secured by this Mortgage. 2. Pltnds for Ts:es and [nsurance. Subject to applicable law or to a written waiver by L.end"'e~r.+ Bor~ower shall pay to I.ender on the day monlhly installments of principal a~d interest are payable under the Note, until the Note ia paid u[.~U, a sum (herein "Ftinds") equal to oat twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus o~t twelfth of yearly premium inatallme~ts for hazard inau~ance, plua onetwelfth of yearly premium installmenta for morigage insurance, if any. aU ae reaeonably eatimated initially snd trom lime to tirr~e by l.ender on the baaie o[ assessmenta and billa and reasonable estimatxs thereof. The Fl-~ds shall be held in an institution the deposite or accounte o! which are insured or guaranteed by a Rederal or State agency lincluding I.endec if Lender is such an institution). Lender ehall apply the Funds to pay said taxes, assesaments, insurance premiums and gtound nnte. Lender may not chacge for w holding and epplying the Funds, analyzing said account, or verifying and rnmpiling said aasesamente and bilte, u~less Lender pays Bormwer interest on the ~nds and applicable law permits l.ender to make such a charge. Borrower and Lender may agtee in writing at the time of execution of this Mortgage that i~tereet on the l~tinds ahall be paid to Borrower, and unless auch agreement ie made or applicable lavir requirea such interest to be paid, Lender shall ~ot be requioed to pay Borrower a~y interest or earnings on the ~nds_ Lender shall give to Borrower, without charge, an ennual accounting of the Funds ahowing credite and debite to the Funda and the purpose for which each debit to the Funda was made. The Funde are pledged as additional eecurity for the suma secured by thie Mortgage. ' If the amount o[the i~'unds held by I.ender. together with the tuture monthly inatallmente of Fu~da payable prior to the due datea of taxes. aeseasmente, ineurance pnmiums and ground re~te, ahaU e:cred the amount required to pay said taxes, asseBements, insurance premiume and ground rente aa they fall due, such excese ehall be. at Borrower'e option, either promptly repaid to Borrower or crediled to Borrower on monthly installmenta of Flinde. If the amount of the Funds held by Lender ahall not be aufficient to pay ta:es, seaeasments, insurance premiuma and ground rente as they fall due, Borrowe~ ahall pey to Lende~ any amount neceasary w make up the deficiency within 30 daya from the date ~otice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full otall aums secured by thia Morigage, I.ender ahall promptly refund to Borrower any tunda held by Lender. If u~der paragraph 1$ hereof the Property ia sold or the Property is otherwiee acquired by [.ender, Lender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any F unds held by Lender at the time of application as a credit againat the auma secured by this Mortgage. 3. Applieation o! Payments. Unlesa applicable law providea otherwine, all paymenta received by I,ender under the Note and paregrapha 1 and 2 hereof ehall be applied by Lender firal in payment of amounta payable to Lender by Bortower under paragraph,2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principai on nny Futur~e Advances. 4. Charges; Liena. Borrower shall pay all taxes, as.sessments and othercharges, fines and imposiiionx attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenls or Kround rents, if any, in the manner provided under paragraph `l hereofor, if not paid in such manner, by Burrower making payment, when due, directly to the payre thereot E3orrower shall promptly furnish to Lender all nolices of amounts due under this paragraph, and in the event E3orrower shali make payment directly, Borrowe~ shall promptfy furniah to l.ender receipts evidencing such pa~ ments. E3orrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that f3orrower shall not be required to discharge any such lien so long as F3orrower shall agree in writing tu the payment o[the obligation secured by such lien in a mannrr acceptable to lxnder, or shall in g«x1 faith contest such lien by, ordefend enforcemeni of such lien in, legai proceedings which operate to prevent the enformment of the lien or [or[eiture of the Pn,perty or any part thercuf. 5. Hezard Ineurance. Borruwer shall keep the improvements now exist~ng or hereaker erected on the Nroperty insured againat loes by fire, hazards included within the term "extended coveragP," and such other hazards as I.ender may require and in auch amounts and forauch periods as l.e~der may require: provided, that Ixnder shall not require that the amount of auch coverage exceed that amount of coverage required to pay the sums secured bY this Murtgage_ • The insuran~r carrier prmidinK the insurance shall t-e chosen by Norrower subject to appro~•al by I.ender; pnn~ided, that such :~pproval shall not be unreasonably withheld. Ali premiums on insur:~nce p~~liciew shall be p:iid in the m~nner pn~videci under paraQraph'L hereof or, if not paid in such manner, by Fiorrow•er makinK payment, when due, directl~ tu the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgaKe clauae in favor of and in form acceptable to I.ender. [.ender shall have the riqht to hald the p~~licies and renewals thereo[, and Rorrower shall promptly fur~ish to i,Pnder all renewal notices and all receipts of paid premiums. In the event of loss, F3nrn,wer ahall give prompt notice to the insurance carrier and Lender. I.ender may make pruof of loss if not made prnmptly by Borrower. ' Unlesa I.ender and E3orrower otherwise agree in writing, insurance proceeds sh'all be appiied to reatoration or repair of the Property dameged, provided such restoratiun or repair is ecunomically feasible and lhr security of this Mortgage is not theteby impaired_ If auch restoration or repair is not economically [easible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the aums secured by this MortKage, with thr excrss, if any, paid to E3orrower. If the f'roperty is abandoned by Rorrower, or if Horrower faila to reapond to Lender within 30 days from the date notice is mailPd by I.ender to F3orrower that the insurance carrier offere to settle a claim for inaurance benefita, I.ender is authorized to collect and apply the insurance proceeds at I.ender's option either to reatoration or repair of the Property or the sums eecured by this MoriKaKe. Unlesa Lender and ~3orrower otherwise agree in writ~nR, any such application uf proceeds to principal ahall not extend or Poatpone thedue date of the monthly instaflmenta referred to in ParaKraphs I and 'L hereotor change the amount of auch installments. If under paragraph 18 hereof the Property ia acquired by I.ender, all right, title and interest ot Borrower in and to any inaurance policies and in and to the proceeda thereof resulting trom damage to F'roperty prior to the sale or acyu~sition shall pass to Lender to the extent of the sums secured by thie Mortgaqe immediately prior to such sale or acquisilion. 6. Preeervation and Maintenence otProperty; Leaseholds; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ahall not commit wabte or permit impairment or deterioration of the Propedy and shall comply with the provisiona of any lease if this MortgaRe is on a leasehold. If this Murtgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of F3orrower's obliQations under the declaration or covenants creatinRor govern~ng lhe condominium or planned unit development, the by-laws and regu~ations of the condom~nium or planned unit development, and conatituent documents. If a condominium or planned unit development rider is executed by E3orrower and recorded togelher with this Mortgage, the rnvenante and agreements of such rider shall be incorporated intu and shall amend and supplement thecovenants and agreementsof thia biortgaqe as ifthe rider were a part hereot ~ ~ ~ 7. Protection of I.ender's 3ecurity. If Borrower faila to perform the covenants and agreements rnntained in thie Mortgage, or if any action or proceeding ie commenced which materially affecte Lender's interest in the Property, including, but not limited to; eminent domein; insolvency, code enforcement, or anengemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances, dieburee auch eume and tate euch action ae is neceesary to protect Lender's interest, including, but.not limited to, disbursement of reasonable attorney'e fees and entry upon the Properiy'Co make repairs. If Lender required mortgage inaurance as a rnndition of making the loan aecured by thie Mortgage, Borrower shall pay the premiums required to.maintain auch insurance in effect until euch time as the requirement for euch insurance terminatea in accordance with Borrower's end Lender~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage insurance premiums in the menner pmvided under paragrsph 2 hereof. Any amounte diebureed by Lender persuant to thia paragraph 7, with intereet thereon, shali beeome additional indebtedness of E3orrower secured by thie Morigage. Unless Borrower and Lender agrce to other terma of payment, such amounfe shell be payable upon notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date of diebursement at the rate payable from time to time on outetarding principel under the Note unleee payment of intereet at euch rate would be contrary to applicable law, in which event auch amounts ehall bear interest at the higheat rate pennissible under applicable lew. Nothing coatained in this peregraph 7, shall require [.ender Lo incur any eapense or take any action hereunder_ ; ~ ~ . ~ . : _ ~.~.~ ~~~. . RR~K 348 ~~~E1891 ; _ ~ . _ ,:~