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HomeMy WebLinkAbout0027 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o! and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Burrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, if any, j all ae reasonably estimated initially and from time to tirr+e by Lender on the basis of assessments and bills and reatsonable estimates thereof. The 1•tinds 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 institution). Lender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ¢round rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, 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 exea-ution of this Mortgage that interest on the F unda shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest w 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 ~ Funds and the puzpose [or which each debit to the Fonda was made. The F unda 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 F ands payable prior to the duedates of taxes, 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 Fonda. If the amount of the Funds held by bender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Fender 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 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 otherw•i.Re 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. ' 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 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 ch:+rges, 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 l hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the payfr there+rf. Rorrow•ershall promptly furnish to Lender all notices fyf amounts due under this paragraph, and in the event Borrower shall make payment din•~•th•, Borrower shall promptly furnish to Lender receipts evidencing such payments. lkrn-over shall promptly discharge any lien which has priority Deer this Mortgage: provided, that Burrower shall not be required to discharge any such lien su long as Rorruw•er shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to 1.+•nder, or shall in gaxl faith contest such lien by, ordefend enfun•f•ment of such lien in, legal prrceedings which operate to prevent the enforcement of the lien or forfeiture of the Pn,perty or any part therf•of. 5. Hazard Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured against loss by fire, hazards included within the term "extrndfd coverage," and such other hazards as I xnder may reyuire and in such amounts and for such periods ag [.ender may require: prrvidfd, that !.ender shall not reyuin• that the amount of such nwer.+ge exceed that amount of coverage required to pay the sums secured by this Mortgagf•. The insurance camf•r prra•iding the insur.+ncf- shall Iw• chosen by liomracer sub{f•+•t to apprua•al by Lender; providf•fl• that wch approval shall not be unreasunahh• withheld :Vl premiums un insurance policies shall Iw• p:+id in the manner prnvidf•fl under paragruph'L henr,f or, if nut paid in such manner, h>• Bornna•er making payment. arhen due• din•cth to the insurance carver. All insurance policies and renewals thereof shall tee in forn accept. hle to 1.f•nder and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the ril;ht to hold the policies:+nd renewals thereof, and Borrower shall promptly furnish to ''i ,.ender all renewal notices and all receipts of paid premiums. In the eeent of loss, Burrower shall give prompt notice w the insurance carver ~ and Lender. Lender may make pr>,rf of loss if nut made prompth• h>• Bom,w•er. ~ lTnless Lender and Burrower otherwise agree in writing, insurance prx•eeds shall tx• applied to restoration or repair of the Property damaged, provided such restoration or repair is eronomicall>• feasible and the see•uri!y of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically ff•asilrle.rr if the se•+•urih• of this Mortgage would be• impaired, the insurance proceedsshall be applied to the sums secured by this Mortgage, with the excess, if :+n}•. paid to li+,nower. If the Property is abandoned by Borrower, or if Borrower fails to f respond to Lender within 311 days from the date notice is mailed by Lender U. Bornowrr that the insuranm carrier offers to settle a claim for insurance benefits, Lender is authorized to collect soil apply the insurance prK•eeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless I ender and l;nrrower otheroise agar in writing, any such application of proceeds to principal shall not extend or postponethedue date of the monthly installments referred to in paragraphs 1 and Y hereof or change the amount of such inst:llments. If under paragraph IA hereof the Property is acquired by Lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to.the sale or acyursitiun shall puss to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or af•quisitiun. 6. Preservation and Maintenance of Property: Ixaseholds; ('ondominums; Planned Unit Developments. Bonowershall keep the Property in good repair and shall not commit wastf• 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 unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the dee•lardion or covenants ere:+tinr;or governing thecondominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is exf•cuted by lirornrwer and nrordeel together with this Mortgage, the cwenanta and - agre•e•ments ofsuch rider shall ire inrnrpe,rate•d into and shall amend and supplemf•nt thecovenants and agreementsof this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perfurin 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, but not limited to, eminent domain, insolvency, rnde enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender a 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 each time as the requirement f:,r such insurance terninatea 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. Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. CJnlesa Borrower and [.ender agree ter other terms of payment, such amounts shall be payable upon notice from [.ender to Borrower requesting payment thereof, and shall be:#r interest from the date of disbursement at the rate payable from time to time on outstanding principal under the IV'ote unless payment of interest at such rate would be contrary to applicable law, in which e.ent such amounts shall bear interest at 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. +':',x 318 PaGE 2? . , '