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HomeMy WebLinkAbout0983 Mortgagor fails to respond to Lender within 30 days from the date notice is mailed by Lender to Mortgagor that the insurance carrier offers to set~le a claim for insurance benefits, Lender is autho- rized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to~the sums secured by this Mortgage. Unless Lender and Mortgagor otherwise agree in writing, a~y such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such install- ments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Mortgagor in and to any insurance volicies and in and to the_proceeds thereof resulting from damage to the Property prior to the sale or acquisition shall pass to Lender or to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Pro ert ; Leaseholds; Condominiums; Planned Unit Developments. Mortgagor shal keep the Property in good repair and shall not com,mit waste or permit impairment or deteri~oration 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, Mortgagor shall perform all of Mortgagor's obliga- tions under the declaration or covenants creating or governing the condominium or planned unit development, the bylaws and regula- tions of the condominium or planned unit development, and consti- tuent documents. If a condominium or planned unit development rider is executed by Mortgagor and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security; Mortgage Insurance. If Mortgagor fails to perform the coveaants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, I including, but not limited to, eminent domain, insolvency, code ! enforcement, or arrangements or proczedings involving a bankrupt ~ or decedent, then Lender at Lender's option, upon notice to Mort- ~ gagor, may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonabie attorneys' fees ~ and entry upon the Property to make repairs, the costs of which Mortgagor agrees to pay. Mortgagor agrees that Mortgagor shall be responsible for the cost of mortgage guaranty insurance in an amount not less than the principal amount due under the Note (the "Mortgage Insurance") untit the Note is fully paid and shall pay the premiums required to maintain such Mortgage Insurance in effect. Mortgagor shalt oay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender pursuant to this paragraph 7, with interest thereon, shall bec~me additional indebtedness of ~ Mortgagor secured by this Mortyage. Unless Mortgagor and Lender ~ • agree to other terms of payment, such amounts shall be payable ~ upon notice from Lender to Mortgagor requesting payment thereof, ~ and shall bear interest from the date of disbursement at the rate payable from time to time on outst~nding princi~al under the Note ~ r{ 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 con- ~ tained in this paragraph 7 shall require Lender to incur any expense or take any action hereunder. ~ ~ ~ ~ . ~ ~ ~ ~~`'n 4 nR ~p ~pA - ` SOOK~~i70 PAGE JO•~ ~ ~ ~ - - - ~ ~ ~ - : ~o-