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HomeMy WebLinkAbout0204 ' Borrower and Lender covenant and ague as folbws: 1. Payment of Prindpai and Interest. Borrower shall promptb? pay when due the principal of and interact oa the i:edebtedreess . evidenced by the Note, prepy?meat sad late charges as provided in the Note, sad the principal of and ir?tareetoa any Ftieture Advances secured by this Mortgtge. Fends for Taxes and Insntanoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly irtsWLovents of principal sad interest are payable under the Note, until the Note u paid in full, a sum (herein'•Funds'~ equal to one- twelfth of the yearly lases and assessments which may attain priority over this Mortgage, and ground rents on the Propmty. if aqy. Plus ow? rr twelfth of yearly peeaaium installments for hazard inansanee, plw one•twelRh of yearly premium installments for mortgage insurance, if arRy, o!; 4, *e••!~wl+ty aaimted initidly and tlnm tiros to titles by Lander on the basis of esseasments and bills and reasonable estimates thereo>+ The Phnds shall be heW in an institution the deposits or aooounts of which are insured os guaranteed Dy a ~ederai or :hate agency (including Lender if Leader is such an iustitution~. Lender shall apply the Fonds to pey said lases. assessments, insurance premiums and f ground r~aets. Lender may not charge for so hokHng and applying the Fonds, analysing said acoonnt. or veri$ring and compiling said asseersmenis and bells, nnlase Lender pays Borrower interest on the Funds and applicable taw permits Lender to make ouch a charge. Borrower and Leader may ogres in writing at the time of execution of this Mortgage that iatereat on the Funds sI1sU be paid to Borrower, and unless each agreement is made or applicable law requires such interest to bs paid, Leader shall not be required to pay Borrower any interest or earnings on the Flereds. Enacts: shall give to Borrower. without charge, an annual accounting of the Funds showipg cr~edi4 and debits to the )hods and the purpose for which each debit to the Ftiends was made. The Fonda are pledged as additional security for the soma secured by this Mortgage. If the aereonnt of the Funds held by Lender, together with the futon monthly installments of Femds payable prior to the due dates of lases, assessments, insurance preeniuiae and ground rents, ahaU e:oDed the amount required to pay said taxes, asaeeaments, insurance premiums and groand Hats as they fall doe, such esoess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installmea4 of Rends. If the amount of the Fonds held by Lender shall not be sufficient to pay taxes. assessments, insurance pnmiuma and ground rents as they fall doe, Borrower shall pay to Lender at~y amount necessary to make rep the deficiency within 30 days from the date notice is mailed by Lends to Borrower requesting payment thereof. - - Upon payrnant in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If undo paragraph its hereof use Property is so'rd ~ the Frvparty ie other~-ese acquired by Lender, Ler_der shall apply. no later than immediately prior to the sale of the Property or its acgoisition by Lender, any Fonda held by Lender at the time of appUcadon as a credit against We sums aecnred t by this Mortgage, - - 3. Application of Pe?yments. Unleea 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 Lender by Borrower ender 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 other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground ants, if any, in the manner provided under paragraph 2 hereof or, - ifnot paid in such manner, by Borrower making payment, when due, direMly to the payee thereof: Borrower shall promptly furnish to Lender all notices of amounts due Hader this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahsll 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 manner aooaptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien of forfeiture of the Property or any part thereof. 5. Hazard Irraurance. Borrower shalt keep the improvements now existing or hereafter erected on the Property insured against loss by fire;, hazards included within the term "eztended rnverage," and such other hazards as Lender may require and in such amounts and for arch periods as Lender may require; provided, that Lender shall not require that the amount of such coverage ezceed that amount of coverage required to pay the soma secured by this Mortgage. The inanrarrce 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 hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and 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. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to lender 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 promptly by Borrower, Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Properly 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 or if the security of this Mortgage would be impaired, the insurance prooeeda shall be applied to the sums secured by thin Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, orif Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offere to settle 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 Properly or the sums 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 ir~atallmenta referred to in paragraphs 1 and 2 hereof or change the amount of ouch installments. If under paragraph 18 hereof the Property isaequired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting frrom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums serur+ed by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and ldaintenance of Property; Leaseholds; Coadominuena; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahaU 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 perfolnr all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or ph?nned 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 covenanfa and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgagees if the rider were a part hereof. 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 c~ommerroed which materially affects Lender's interest in the Property, including, but not limited to, eaainent domaiq insolvency. code enforoanent, or arrangements or prooeedieegs involving a bankrupt or decedent, then Leader at Lender's optioa,npon notice to Barmwa may make arch appearances. disburse arch creme and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's foes and entry upon the Property to make repair. If Lender requiired mortgage insurance as s condition of making the loan secured by this Mortgage, Borrower shall pay the premiaens required to maintain such insurance in effect nntit sack time sa the requirement for such insurance terminates in aooordanoe with Borrowers and Lender's written agreement or applicable Law. Borrower ahaU pay the amount of all mortgage insurance premiums in the manner provided nodes paragraph 2 hereof. Aay amounts disbursed by Lender pereuant to this paragraph wiW interest thereon, shall become additional indebtednea of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon _ notice frrom Lender to Harrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable tom time to time on outstanding principal under the Note anless payment of interest at such rate would be contrary to applicable law, is which event such amounts shall bear interest st the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. _ ~ ~ ~ 900K 3~,6 PAGE