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HomeMy WebLinkAbout0041 . ~ Borrower and (.ender covenant 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, prepayment and late charges as provided in the Note, and the principal of and interest on any F uture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable I:+w or to a written waiver by Ixnder, Itorrc?wer shall pay to (.ender 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•iwetflh of yearly premium insiuiiments fur mortgige itl~+iFa~+ec, if soy, ;+II as reasonably estimated initially and from time to tirr+e by Ixnder c?n the basis of assessments :+nd bills and re:sonable estimates thereof. The Funds 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 (.ender is such an institution). Lender shall 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 account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits (.ender to make such a charge. Borrower and (..ender may agree in writing at the time 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 such interest to 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 purpose for which each debit to the Funds w:+s made. 7'he Funds are pledged as additional security for the sums secured by this Mortgage. If the amount ottee Fonda held by (.ender, together with the future monthly installments of F unds payable prior to thedue dates ottaxea, assessments, insurance premiums and ground rents, shall excred the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds held by Lender sh:+ll not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to [.ender any amount necessary to make up the deficiency within :i0days from the date notice is mailed by Lender to Borrower rfquesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Bc?rrawer any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender sh:+Il apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the timt• 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 (.ender first in pay ment of amounts payable to [.ender 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, assfssments and other charges, finis and impositions attrihuk+ble to the Property which rosy attain a priority over this Mortgage, and leasehold payments or gmund 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 p:n•tt• therf•uf. Korrower shall promptly furnish to Ixnder a!I notices of amounts due under this paragraph, and in the event Korruwer shall m;+ke p:+yment dirtc•tly Korrower shall promptly furnish to Lender receipts evidencing such payments- IIC,rn,wer shat! promptly discharge am• lien ~ehich has priurit>• over this Mortgage: provided, that Borrower shall not be required to discharge any such lien su lung as BurroN•er sh:+11 a};rfr in writin}; to the payment of thf• obligation secured by .uch lien in a manner acceptable U? I xnder, or shall in Kuutl faith contf•st such lien hy, urdetend t>nforcement of such lien in, It•};al prcx•eedings which operate to prevent thf• enforcement of the tiro or forfeiture of the 1'rolx•rty nr :u+y part then~,f. Hazard Insurance. Burrower shall kt•t•p the imprucements now existing nr hereafter erected on the Property insured against loss by tire, hazards included within the term "extendt•cl c•uverage," and such other hazards as Ixnder may require and in such amounts and for such peric?ds~as Ixnder may require: pnn•idtd, that Lender shall nut require that tht• amount of such rnverage excetrl that amount of coverage r,•cluired to pay the sums secured by this Mort};age- The insurance cameeprnviding the insurancf• xhall be chosen h}- Burn~wer subject to apprr,~:+l by Lendf•r, pruvidfrl, that such approval shall not be unreasonablt• withheld. All premium. un insur:uu•e }",lisle. shall Iw• paid in thr m:uu+er provider( w+der par.+gr.+ph'L hertr?f ur. if nut paid in such manner, by lie,rrow•er nu+kin}; p:?yment. w•he•n due. dir}•stly h. the rt+~urence earner. All insurance policies and renewals thereof shall I,t• in form :?cc•eptahle to Lender and shall include a standard mortgaKeclause in favorof and in form acceptable to (wander-Ixnder shall have the, right to hold the policies and n•newals thereof.:+nd Borrower shall promptly furnish to render all renewal notices and all receipts of pard premiums. In the event of loss, Born,wer shat! give prompt notrce G, the insurance carrier ;+nd Ixnder. Ixnder may make prcwf of loss if not made promptly by Burrower. Unless Ixnder and Burrower otherwise agre>t• in writing, insur:+nct• prcx•ecds shall t,f• applied to restor.+don or repair of the Property ~ damaged, provided such restoration or n•pair i. esonomicalh• feasiblt> and the ser•utity of this Mortgage is not thereby impaired. If such I ~ rc•swration or repair is not economically fea.ihle• or if the sfrurity of this Atortgagt• would tx•impaired• the insurance prcx•eeds shall be applied to the sums secured by this Mortgage, with the excess. rf any, paid to Burruw•er. If the I'ropt•rty is abandoned by Bc,rruwer.or if Burrower fails to - respond to Ixnder within al) days from the date notice i. mai,e•tl by lw•nder to Rorn,we•r that the insurance carrier offers to settle a claim for I insurance benefits, Lender is authoriztd to culler•t and apply the insurance pn,cee>ds at lw>nder•s option Tither to restoration or repair of the ~ Property or the sums secured by this Mort}age. 3 Unless Ixnder and Borrower otherwise agrt•e• in w•ntinK. any such application of pre,f•eeds to principal shall not extend or postpone thedue date of the monthly installments rf ferrtd to in par:+kraphs 1 and 'L hereof ur chan};e the amount of sut•h installments. If under paragraph lA hereof the Property is acquired by 1 xnder, all nKht. title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Pn,pt•rty prior to the sale or acyursitu,n .hall pass to Iw•nder to the extent of the sums secured by this Mortgage immediately prior to such s:+le or acquisition. 6. Preservation and 1laintenance of I'ropt•rly; Ixast•hc?Idv; ('ondominums; Planned l?nil I)evelopments.l3urrowershallkeep the Property in good repair and shall not commit waste or permit impairment nr deterioration of the Property and shall comply with the pror•isions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ) Burrower shall perform all of Borrower's obligations under the df•e•laration or covenants smat+n}for govern+ng the condominium or planned unit development. the by-laws and regulations of the condominium or plannfd unit development, and constituent documents. If a undominium or planned unit development rider is extr•utfd by Fi,,rrower and recorded together with this Mortgage, the rnvenants and :+};reementcofsuchridershalltx•incorpuratedintoandshallanu•ndandsupple•mentthec•ncenantsandagrt•ementcofthisMortgageasifthe rider were a part hererof. 7. ProteMion of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pmctrdings involving a bankrupt or decedent, then Ixnder at Ixnder's 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 repaire. If Ixnder required mortgage insurance as a condition of making the loan se•curfd by this 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 wish Borrowei s and Lender's written agreement or applicable law. Borrower shat! pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ Any amcunts disbursed by Ixnder persuant tco this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree W other terms of payment, such amounts shall be payable upon notice from Ixnder to Borrower requesting payment thereof, and shall bear interPSt fmm the date of disbursement at the rate payable from 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 require Ixnder to incur any expense or take any action hereunder. r 3;~~~318 PaGE