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HomeMy WebLinkAbout0385 -i t Z ' ~ Borrower and Lender covenant and agree as follows: 1. Payment of Prtacipal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidemeed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on amy Ptittun Advances secured by this Mortgage. 2. Ptitnds for Tsutes sand Insurance. Subject to applicable law or to a written waiver by I.ender, Boaower shall pay to Lender on the dqy monthly installnents of principal and interest an payable under the Note, until the Note is paid in full. a sum (herein "Funds")equal to ome- twelfth of the yearly tares and assessments which may attain priority over this I?lortgage. and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazadd insurance. plus onetwelfth ofyearly premium installments for mortgage insurance, ifany, - all as reasonably ptimated initially and from time to time by Lenderon the basis of assessments and bills and reaaonableestimatesthereof. - The Funds nltall be held in an institution the deposits or aeoounta of which are imeured or guaranteed by a Federal or State agency _ r (including Lender if Lender is such am institution). Lender shaA apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said accuurt, or verifying and compiling said assessments sad bills, umleas Lcnderpaya 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 Bortawer, and unless such agreetaent is made or applicable law requires such interest to be paid, Lender shall mot be required to pay Borrower any interest or earnings on the Famds. Lender ahaU give to Borrower. without charge, an annueJ accounting of the Funds showing credits and debits to the' Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums 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. assessments, insurance premiums and ground rents. shall ezored the amount required to pay said taxes, assessments, insurance premiums and ground ants as they fall due. such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall rat be $ufbcient to pay taxes, assessments; insurance premiums and ground rents sa Wey fall due, Borrower shall pay to Lender any amourit'riecessary'toroake up the deficiency within 30 days from the date notice is mailed by bender to Borrower requesting payment thereof:~~.°'~. ~ - Upon payment in fnU of all sums secured by this Mortgage, Lender ahaQ prasnptijc re~ltpct ~ Borroyyer•amy funds held by Lender. If under paragraph 18 hereof 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 sums secured by this Mortgage, t 3. Applksation 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 Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the psincipal of the Nate, 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 b the Property which may attain a 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; direMly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under 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 overthis Mortgage; provided, that Horrower 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 manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement ofsuch 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 existing or hereafter erected on the Property insured against foes by fire, hazards included within the term "extended 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 that the amount ofsuch rnverage exceed that amount of coverage ~ ; required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by lender, provided. that such approval shall not be unreasonably withheld. Ali 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. - Allinsurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender all renewal notices and ail 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 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 ernnomicalJy feasible or if the security of this :rortgage would be impaired, the insurance proceegs shall be applied t~ the soma 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 collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Harrower in and to any insurance policies and in and to the proceeds thereof resulting hem damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep • the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndo~ninium or a planned unit development, Borrower shall perform all of Borrower's obligations under the derlara~ss:n or rnvenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents. If a condominium or planned unit development rider is executed by Borrower 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. If Borrower tails to perform the wvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lendei a interest in the Property, including, but not United to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender a optiom,npon notice to Borrower may make such appearances, disburse each some and take each action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender regoired mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiurpe required to maintain such insurance in effect until such time ss the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under - paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terra of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the dare of disbursement at the rate payable lion time to time on outstanding principal under the Note 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 contained in this paragraph 7, shall requue Lender to incur any expense or take any action hereunder. - BOOK 317 PbGE JO~