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HomeMy WebLinkAbout0945 Borrower and Lender covenant and agree a. follows: 1. Payment of Principal and Interest. Borrower shall prompdy pay when due the principal of and interest on the indebtedness evideneecl by the Note, prepayment and lateeherges as provided in the Note, and the principal of end interest on any F1~ture Advances secured by this Mortgage. 2 Funds 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, until theNote is paid in full, a sum (herein "Funds")equal to ono- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property, itany, plw ono- twelfth of yearly premium installments for hazard insurance, plus ono-tweltth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender 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 is such an inutitution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and rnmpiling said assessments and biW. 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 Funds 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, without charge, an annual accounting of the Funds showing credits and debits to the Fonda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessment, insurance premiums and ground rents. shall exoaed the amount required b pay said to:es, assessments, insurance premiums and ground rents as they fall due, such a:Dees shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Farads. If the amount of the Funds held by Lender shall not be sufficient to pay fazes, assessments, insurance premiums and ground rents as 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 tuA of all snore secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18liereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the some secured by this 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 of amounts payable to bender by Borrower under paragraph 2 hereof, then to intered 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 other charges, fines and impositions attributable to the Property which may attain s priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due ands this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidrncing such payments. Borrower shall pranptly 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 manna: acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcementof 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 ezisting or hereafter erected on the Property insured against loss by fire, 6asards included within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governirg activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, . whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies'snd renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. bender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to R i.ender all renewal notices and. all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. f Unless Lender and Borrower otherwise agree in writing, insurance 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 feasibk or 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 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to wllect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Propertyr or the snore secured by this Mortgage. _ Unless Lender and Borrower otherwise agree in writing, any 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 installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting floor damage to Property prior to the axle or acquisition shall pass to Lender to the a:tent of the some secured by Wiz Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 Mortgage is on a leasehold. If 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 eovenanta creatingor governing the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit. development, and constituent documents. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated 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 $ecarity. if Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, brat not limited to, eminent domain, ? insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, they Larder at Lender's optioa,apon notice to Borrower may make ouch appearances, disburse such sums and take such action as is necessary to ported Lender's interest, including. but not limited to, du?barsemeat of reesonabk attorney's fees and entry upon the Property to make repair. If Lender required mortgage iruarance ea 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 as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrowrer shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disba»ed by Lender persnant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgages Unless Borrower and Lender 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 dubursanent at the rate payable 5roon time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which s event such amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Linder to incur any expense or take any action hereunder. a>~314 PEE 942