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HomeMy WebLinkAbout0031 Borrower and Lender rnvenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, pregavment and latechargea as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. T'lutda 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 the Note is paid in full, a sum (herein '`Funds"1 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 otyearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, :e:i 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 accuuntr+ of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and around rents. Lender msy no! charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lenderpays 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 F unda shall be paid to Borrower, and unless such aercement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower ariy interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual acMunting 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 security for thesums 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 duedates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground yenta as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited W Bonoweron monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall 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 full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Ixnder. If under paragraph IS hereof the Property is sold or the Property is other?ti•ise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property oritsaequisition by I.erider, 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, aEl payments received by lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lewder first in payment of amounts payable to Lender 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 tuxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground rents, if any, in the mannerprovided underparagraph 2hereofor, if not paid in such manner, by Borrower making payment, when due' din•c•tly to the payee thereof. Rormwershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event li?rrrower shall make payment directly, Burrower shall promptly furnish to Lender receipts evidencing such p:+yments. Burrower shall promptly discharg?• any lien w•hie•h has priority over this Mortgage; provided, that Burrower shall not be required to discharge any sue•h lien so long as Borrowershall agre'e' in N•ritinK to the payment of the oblikation secured by such lien in a manner acceptable to (,ender, or shall in K?Krd faith contest such lien by. urdefend enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien nr forfeiture of the 1'rotx•rh• or any part there~+f. a. 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 Ixnder may require' and in such amounts and forsuch ;:E•riods as bender may require: provided, that Ixnder shall not r?•yuirn that the amount of such cen•erage exceed that amount of coverage rE•ctuirtd to pay the sums secured by this MurtK:?K?'~ The insurance carrier provident; the insur.?ne•e• shall 1>t• chosen by Kurrow•t•r suhje•e•t to :+pprov:?I by I.c•nder; provided, the+t such approval ~hal1 not be unreasonabh• withheld. All premiwns ..n insurance I>,~licies sh:?I l iw• paid in the rnar?ne•r pmvidwl under paragraph hereof or, if nit paid in such manner, by Burrower makinK payment, when due, d?n•ctly to the inwrance carrier. All insurance policies and renewals thereof shall t?e in form acc•rptaMe to I,enderand shall includes standard mortgageclause in favorof and in form acceptable to Lender. Lendershall have the right to held the policies and renewals thereof, and Bornrw•ershall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the eve•ut of loss. Korrower shall give prompt notice to the insurance carrier and (.ender. (.ender may make prcwf of loss if not made promptly by Rorrow•er. Unless [.ender and Rurrow•er otherwise agree in writing, insuranm proceeds shall be applied to nsturation or repair of the Property damaged, provided such restoration or repair is a•onomically feasible and the security of this Mortgage is not thereby impaired. I[ such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied u, the sums secured by this Mortgage, with theexcess, if any, paid to Fiornrwer. Ifthe Property is abandoned by Borrower, or if Borrower fails kr respond to i.ender within a0 days from the date notice is mailed by !.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to colta•t and apply the insurance prrrc?•e•ds at [.ender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower Mherw•ise agree in writing, any such appiic•atiun ofprcK•eeds to principal shall nut extend orpostpone thedue date of the monthly installments referral G+ in par:?gr<?phs 1 and l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by (.ender :?11 right, title and interest of Burrower in and to am• insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acyursitiun shall pass to I,e•nder to the extent of the sums secured by this \lortgage immediately prior to such sale ur acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this MortgaK?• is un a unit in a n?ndominium or a planned unit development, Borrower shall perform ail of Borrower's obligations under the da•lar-.?tion urcoven:?nts rreatingor governing the condominium or planned unit development, the by-laws and regulations of the c•undominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is exe•c•uted by liurrnwer and rec•urdexl together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend :?nd suppiernent the' covenants and agreements of this Mortgage as if the rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially afGacta Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei a option,upon notice to Borrower may make such appearances, disburse such sums and take such 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 required mortgage insurance as a condition of making the loan secured by thin 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 Lendei 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, shalt become additional indebtedness of Borrower secured by this Mortgage. Uniesa 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 disbursement at the rate payable from time to time on outstanding principal under the (Vote 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 Eaw. Nothing contained in this paragraph 7, shall Y require Lender to incur any expense or take any action hereunder. a ~?r;K X18 PacE ~1