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HomeMy WebLinkAbout1595 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shalt promptly Pay when due the principal of and it?terest on the ini3ebtedncss evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal otand intereaton any Future Advances secured by this Mortgage. 2. Ftirtds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installmettta 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 pnonty over th+s Mortgage, and ground rents on the i'ruPeny, ii any, plus our twelfth of yearly premium installments for hazard insurance, plus one-twelfth o[yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tirr?e by Ixnder 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 ouch 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 Borrower, and unless such agreement is made or applicable law requires such interest to be paid, !.ender 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 F ands arc pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by !.ender, together with the future monthly installments of Funds payable prior to the due dates 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 Fltnds. 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 from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in lull of all sums secured by this Mortgage, lender shall promptly refund to Borrower any funds held by I,endcr. 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 sale of the Property or its acquisition by Lender, any Funds held by Lender at the timeof 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 paymrnt of amounts payable to I,cnder 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; Liana. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributabletc?the Property which may attain a priority over this Mortgage, and leasehold payments or gn,und rents, if am•, in the manner provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making payment, when dae, dirrc•tly to the payer thereof Rorrc,wer shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the e~•ent Borrower shall make payment directly, Kornrw•er shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that torrower shall not he required to disc harge any such lien su long :+s ltr?rn,wer shall agree in writing to the paymrnt of throhligation secured by such lien in a manner acceptable to Lender, or shall in grxxl faith contest such lien M•, ur defend enforcement otsurh lien in, legal pn?ceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or :u» part thrre:?f. 5. Hazard Insurance. Borrower shall keep the improvements novc existing ur herraftererected on the Property insured against loss by fire, hazards included within the term "extended rnverage," and such other hazard. as Lender may require and in such amounts and for such periods as Lender may reyuire; provided, th:+t I.r•ndyr shall not require that the amount of such coverage exceed that amount of coverage reyuired to pay the sums secured by this Mortgage. The insurance carrier providing the insurancy shall tx• chosen by Borrower sutjr•c•t to approval by I.c•ndyr; pnrv+d+•r1, that such approval shall not t?e unreasonably withheld. All pn•miums un incur:u?cy policies sh:+Il Ix• paid in the manner procidr•et under paragraph'L herec?f or, if not paid in such manner, by Iir?rrower making p:+ymynt, when due. dirycth• to the insurance carrier. All insurance policies and renewals thereof shall tx• in form acceptable tc? I,r•nder and shall include a standard mortgageclause in favorof and in form acceptable to !.ender. I.endershall have the right to hold the pofic•ies and renewals thererrf, and Borrower shall promptly furnish to +,ender all renewal notices and all receipts of paid preriums_ In the rvynt of loss. 14o?rower shall give prompt notice to the insurar_re carver i and Lender- Lender may make prcxrf of loss if not made promptly by Kom,wer. j Unless l~endrr and &rrrower otherwise• aKnr in writinK, insurance prcx•erds shall he applied to restoration or repair of the Property damaged, provided such resU?ration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasibly ur if the security of this Mortg:+ge would treimpaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, with the excess. if am•, paid to I;.?rruwer. if the Property is abandoned by Borrower, or if Borrower fails to 's respond to Lender within :{0 days from the date notice is mailed by bender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorizc•c1 to collc•c•t and apph• thy insurance prcx•e•ecls at Lender's option either to restoration or repair of the Property or the sums secured by this h1ortK:+Ke Unless Lender and Borrower otherwise agree in writinK, any such :+pplication of prr?ceed~ to principal shall not extend ur postpone thedue date of the monthly installments referred to in paragraphs 1 and'! hereof or c•hangr the amount of such inst~~llments. if under paragraph 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 ihr sale or acywsition shall pass d? !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: leaseholds; ('ondominums; Planned Unit Uevelopmenta. Borrowershalt keep the Property in good repair and shall not commit w•a~te 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 a unit in a condominium or a planned unit development, Burrower shall perform all of I;<?rrower's obligations under thy dyc•lar.+tion or c•m~enants crratingor governing the condominium or planned unit development, the by-laws and regulations of the condomimum ur planned unit development, and constituent documents. If a condominium or planned unit development rider is exc•c•uted by Iirrrnr+cer and recorded together with this Mortgage, the covenants and agreements of such rider shall tee incorporated into and sh:?II amend and supplement theco~•enants and agrcrmentsof this Mortgageasifthe rider were a part hereof. Protection 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 Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements ur proceedings involving a bankrupt or decedent, then !.ender at Lendei s option upon ~ notice to Borrower may make such appearances, disburse such sums 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 such time as the requirement for such insurance terminates 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. i'- Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ~ gees to other terms u[ P Y Pon Borrower secured by this Mortgage. Unless Borrower and Lender a payment, such amounts shall be a able u notice from Lender to Borrower requesting payment thereof, and shall brat interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Nate unless payment of interest at such rate would t?e rnntrary 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 nr take any action hereunder. x ~ 3^7K~1~ 'ra~E~S~