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HomeMy WebLinkAbout0930 ot alt persons whomsoever. And the Borrower does hereby further covenant and agree with and promise to the Lender as foliows: t. Paymant. Borrower shall strictly bnd fully comply with all provisions of this Mortgage and oi the Note secured hereby and with the provisians of any other instrument securing the Note. Borrower shatf promptly pay Lender all sums of money evidenced by the Note as well as ali sums of money required by this Mortgage and in ~any other instrument securing the Note, on the days, respectively, the same severally become due. 2. Escrow for Taxes and lnsurance. The Lender may require at any time that escrow payments as to taxes, assessments and +nsurance be paid to it by the Borrawer, during the term of this Mortgage. In such event, the Borrower shall pay to Le~der, to the extent requested by the Lender, on dates upon which interest is payable or as otherwise directed by tho Lender such amounts as lender from time to time estimates is necessary to create and maintain a reserve fund from which to pay, before the same become due, all insurance premiums, taxes and governme~tal assessments reiating to the Property and as additional security for the debt secured by this Mortgage. Said payments may be, at the discretion of the Lender, a monthly sum and amount equat to one-twelfth (1/12) of the estimated annual insurance premiums and taxes and assessments upon the Property, as the amount thereoi is datermined from time to time by lender in its sole discretion. in the event such monthly escrow paymenis are insufficient to pay for said insurance premiums, taxes and assessments when due, Lender may demand of Borrower that the amount of such payments be increased and/or Lender may demand that the difference be paid to it by the Borrower, and Borrower shall immediately comply with such demands. There shall be no interest due to Bor~ower on such deposits. Payments from said reserve fund for said purposes may be made by the Lender at its discretion even though subsequent owners of the Property described herein may benefit thereby. In the event of any default under this Mortgage which is not cured within the curative period set forth herein Lender at +ts discretion and option may apply alt or any part of said reserve fund to the indebtedness hereby secured. In refunding any part of said reserve fund, ihe Lender may deal with whomsoever is represented to be the owner of the Property at that time. 3. Taxes. 8orrower shall, during the term of this Mortgage, pay all taxes, assessments and encumbrances of every nature that may fo? any and all purposes be payable, assessed or imposed on the Property, or any part thereof, or the ~ncome therefrom, and upon this Mortgage and the tdote, or the money secured and evidenced thereby, and shall pay them before tha delinquency thereof and receipts evidencing payment of said taxes, assessments, ievies and encumbrances shall be deposited with the Lender on or before February 28th of each succeeding year during the term of this Mortgage. Lender shali be the sole judge of any such tax, assessment, water rent, claim, tien or sncumbrance and of ihe amount necessary to be paid in satisfaction thereof. 4. insurance. Borrower shalt keep the buildings and oiher improvements, which are now, or which hereafter may be erected on the Property, including any personal property and fixtures described above, constantly insured against loss by iire with extended coverage in a sum not less than full insurable value so as to avoid any claim on the part of the insurers for co-insurance, and in addition shall kesp in full force and effect policiss of insurance insuring against such other hazards, casualties, and contingencies as Lender may require, including, but not limited to. Flood Insurance, Pro~erty Damage Insurance and Public Liabiliry Insurance. All insurance required by Lender hereunder shall be on such forms, for such periods, and in such amounts as Lender may require with loss payabte ta the Lender under a clause acceptable to Lender in its sole discretion (which shatl inciude a minimum of ttiirty (3Q) days advance notice of cancellation of such insurances). 8orrower shall deliver the poticy, or policies, to the lender, as additional security, and where renewal polic+es are necessary in the performance of this covenant to deliver them at least thirty (30) days before the expiration of the existing insurance. !n the event such policy or policies are a part of a master policy insuring properties in addition to the Property, then Borrower may submit to Lender a certified copy of such policy together with the original loss payabfe endorsement in lieu of the original policy as set forth above. In the event of loss, the Borrower shall give immediate notice by mail to the Lender; and in the event Borrower shall fail to agree with the insurance companies invalved as to the amount and terms of any loss within sixty (60) days of the happening of such loss, then the Lender may negotiate with and settle said loss with such insurance companies and neither the Lender nor the insurance companiss involved sha!!, upon such settlement being made, be liabte in any manner to the Borrower. The Lender shaA have the right to apply any funds received ~rom insurance poticies required under this Mortgage or under any other instrument securing the Note to the payment of this indebtedness or other sums hereby secured, or at its option may allow such monies to be used in restoring the Property on ierms and conditions acceptable to and prescribed by the Lender (and in which event the funds may be retained without interest). The right to any return premiums on any insurance policies covered by this Mortgage is hereby assigned to Lender as further security for the Note secured hereby. 5. Condemnation. In the event the Borrower is served with process or otherwise notified of a condemnation action or any other action which involves a taking of the Property or any part thereof, the Barrower shaN notify the Lender in writing of such within five (5) days from the date of service of pracess or such other notification (so as to be received by the Le~der within said period). Borrower hereby authorizes Lender as attorney-in-fact far Borrower to, at Lender's aption. commence, appear in and prosecute, in Lender's or Borrower's name, any action or proceeding relating to such taking ~f the Property and to settle or compromise any claim in connection with such condemnation or taking. The proceeds of any award or claim for damages, direct or consequen4ial, in connection with any condemnation or other taking of the Property, or any part thereof, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Lender shall not be held responsible for any failure to collect any award or awards, regardless of the cause of such faiture. Any such award or awards received by the Lender may, at its option, be used in restoring the Praperty on terms and conditions acceptable to and prescribeci by the Lender {and in which event the funds may be retained withaut interest), or t-,e applied as a creciit on any portion of the indebtedr~ess or sums secured hereby, whether then mat~red or subsequently to mature {provided that such does not exceed the amount necessary to pay in full all indebtednesses sec~~red by this Mortgage and alt other insiruments securing the Note). 6. Uss and Alteration of Pr9perty. Unless required by applicable law or unless Lender has otherwise agreed in writing, Borrower shall not aUow changes in the nature of the occupancy for which the Property was intended at the time this Mortgage was executed. Borrower shali not initiate or acquiesce in a change in the zoning classification of the Property without Lender's written consent. Borrower shall not make any change in the use of the Property which wiii create a tire or other hazard not in existence on the date hereof, nor shali Borrower in any way increase any hazard. Without the prior ~z-~3 P~~e z a e ~~~~x 4f ~ 9~'~ . : ~ ~ ri~~.