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HomeMy WebLinkAbout1173 ..r Borrower and Lender 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 Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower 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 onetwelflh ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tia+e by Lender on the basis of assessments and bills and reasonable 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 Lender 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 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 Ilotrower,.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 was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Elands 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 sacred the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BotTOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds held by !.ender shall 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 30 days fmm 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 ra-agra~,h 23 hereof th a Property is sold or the P;ap<rty is t:thcr.•rirec ac:t::irrd by l:e^.der. lender ahsl! spp!•r, r:n l::•ert!:a.^. i:mediately 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 !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment 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, :assessments and other rharKes, fines and impositions attributable to the Property which :nay attain a priority over this tilortgaKe, and le.~sehald pay marts c+r Krourd rcnt,R, if any, in the manner provided ::rider paragraph? hereof or, if not paid in such manner, by Borrower making payment, when due• directh• to the payee thereof. Bormwer shall promptly furnish to Lender all notices otamounts due under this par.+Kraph, and in the event Burrower shall m:+ke payment directh•, Borrower shall promptly furnish to !.ender receipts evidencing such payments. I3<+rrower shall promptly discharge any lien which has priurih• over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Burrower shall agree in writinK to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in Kmd faith contest such lien by, ordefend enforcement of such lien in, IeKal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Prope•rh• or any part then•++f. 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 !.ender may require; provided, that Ixnder shall not require that the amount of such rnver.+ge exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pn+vidinK the insurance shall h+• c~hos+•n be Born+wer subject to appro~•:+1 by Lender, pn+vided, that such approval ~ ,hall not be unreasonably withheld. All premium. nn insurance ~Hdicies shall IK• paid in the manner provid+rl under paragr.+ph 2 herer+f or, if not paid in such manrrer, i»• liorro.ver makint: pa~•ment• ~~hen due, din•ctl~• to thc• insurance r+rrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Ixnderand shall include a standard mortgagedause in favorof and in form acceptable to Ixnder. Ixnder shall have the right to hold th+• policies and renewals thereof, and Borrower shall promptly furnish to +xnder all renewal notices and all receipts of paid premiums. In the event of loss, Kormwer shall give prompt notice to the insurance carrier ~f and Lender. Lender may make pnx+f of loss if nut made promptly by Borrower. II Unless Lender and Burrower otherwise agree in writinK, insurance pr+x•eeds shall be applied to restoration or repair of the Property F damaged, provided such restoration or repair is economically feasible and the sErurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this MortKage, with the excess, if arn•, paid. to Borrower. If the Property is abandoned by Borrower, or if Borrowerfails to respond to !.ender within a0 days from the date notice is mailed by Lender G+ Borrower that the insuranre carver offers to settle a claim for € insurance benefits, Ixnder 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 writinK• any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'L hercH+f or change the amount of such installmentsa. If under paragraph 18 1 hereof the Property is acquired by !.ender, 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 acymsitiun shall pass to !.ender to the extent of the sums secured by this t Mortgage immediately prior to such sale ur acquisition. 6. Preservation and Maintenance of Property; leaseholds; Condominums; Planned Unit Developments. Rorrowershall keep the Property in good repair and shall not commit waste or permit imp:+irment or deterioration of the Property and shall comply with the a provisions of any lease if this MortKage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, korrower shall perform all of Borrower's obligatie:+s under th+• declaration ur covenants crc•atinK or Kovernmg the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a u ~nndominium or planned unit development rider is executed by &+rruwer and recorded together with this Mortgage: the covenants and agreements of such rider shall be incorporated into andsh:+IlamendandsupplementthecovenantsandaKreementsofthisMortgageasifthe - 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 or-proceeding is commenced which materially affects 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 Lender's option,upon notice to Borrower may make such appearances, diebutree 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 this Aortgage, Borrower shall pay the premiums required to maintain s - such insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lendei e written agreement or applicable taw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under 5 paragraph 2 hereof. a Any amounts disbursed by Lender perauant k+ this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Bormwer 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 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 Lender to incur any expense or take any action hereunder. • r~;{~~V K ~ YaGE ~ ~ Fib