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HomeMy WebLinkAbout0843 I - .rr - Borrower and Lender covenant sad agree as follows: - 1. Payment of Priaclpel sad Interest. Borrower shallyromptly pay when due the principal of and interest on the indebtedness avidenoed by the Note, prepayment and la:s charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2 Ftitnds [or Taws end Insurance. Stibjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lenderon the day monthijr inatalhaents of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Fonda")equal to one- twelRh ofthe yearly taxes and aaseeaments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth of yearly premium installments for hasard insurance, plus one-twelRh o[yearly premium installments for mortgageinaurance, ifany, sal as reasonably estimated initially and from time to time by Lender on the basis of aasesamenta and bills and reasonable estimates thereof. ~ The Funds shall be held in an institution the deposits or accounts of which are insured or gaaranteed by a Federal or State agency (including bender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground Hate. Lender may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Fends and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at rho tune 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 arch interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Fends. Lender shall gi~~e to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional secwrity !or the sums secured by this Mortgage. ~ . If the amount of the Fonda held by Lender, together with the futuremonthly installments of Funds payable prior to the due dates of tares, assessments. insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents 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 heYd by~Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae they fall due,'Borrower shall pay to Lender any amount necessary to make rep thedeficiency within 30daye from the date notice is mailed by Lender b Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any 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 eak of the Property or its aequisition by Lender, any Fends held by Lender at the time of application as a credit against the sums secured by this Mortgage. _ 3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender 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 intenait 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 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. Borrowershall 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 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 manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of 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 existing or hereafter erected on the Property insured against loss 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 of such coverage exceed that amount of coverage y required to pay the sums secured by this Mortgage. 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 insuranm policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner; by Borrower making payment, xhen due, directly to the insurance carrier. All insurance policies and renewals thereotshall 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 Borrowershall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall gve 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 io 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 feasible 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 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 18 hereof the Property isacquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale~or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. ,r 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower8ha11 keep the Property in good repair and shall not commit waste or permit impairment or deterio-ation 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 uniC in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominiun•, or planned unit development, and rnnstituent docaments. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta 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 fails to perform the covenants and agreements contained in this Mortgage, or if any action at proceeding is commenced which materially affects Lender's interest in the Property, including, bat not limited to, eminent domain, inaalverscy, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender a option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect I,ender'e interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as 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 terminat~ea in accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. - Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shrill become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree b other terms of payment, such amounts shall be payable apon notice from Lender to Borrower requesting payment thereof, and shall bear interest fro-n the date of disbursement at the rate payable fiom 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 each amounts shall bear interest at the highest rate permissible render applicable law. Nothing rnntained in this paragraph 7, shall require Lender to inear any expense or take any action hereunder. . ~ ~ soox 317 ~~F 842