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HomeMy WebLinkAbout1603 f 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 latecharges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Ta:es 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")equal to one twelfth of the yearly taxes and asaesamenta 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, all as reasonably estimated initially and from time to time by larder 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 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 execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless ouch 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 F~+nds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asaeasmenta, insurance preaiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents ae they fall due, such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall 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 Lender. Itunder paragraph 18 hereof the Property is ~^!d ^r the Property is otherwise acquired b}• Lender, lender shall apply, no later than immediately prior to the sale of the Property orita acquisition by Lender, any Funds held by Lender at the time of application as a credit against thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law pro~~des otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Lender 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 taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold 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, directh• to the payee thereof. Born,w•ershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Burrower shall make payment directh•, Borrower shall promptly furnish to (.ender receipts evidencing such payments. Burrower shall promptly discharg?• any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so long as It~,rrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest Bach lien by, ur defend enfun•e•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part thereof. ' 5. Nazard Insurance. Borrower shall keep the impren•ements 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 forsuch periods as Lender may require: provided, that Lender shall not require that the amount of such rnverage exccrd that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver pnn•iding the incur.+nce shall t,?• chosen b}• Itorn,wer suhjee•t to appro~•al by I xnder: provide•e1, that such approval shall not be unreasonably withheld. r111 prrmiwns un insur:un•e policies sha{1 I,e- p:?id in the manner pru~•id?•cl under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, din•?•tly to th?• insurance, carrier. All insurance policies and renewals thereof shall be in form acceptable to lender and shall include a standard mortgageclause in favorof li and in form acceptable to Lender. Lender shall haee the right to hold the policies and renewals thereof, and I;orn,wer shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Korn,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of toss if not made prumpth• by Borrower. Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied U, restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. It such ( restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Rorrower_ If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is mailed by ?knder to Burrower that the insurance carrier offers to settle a claim for a insurance benefits, Lender is authorized to colle•c•t and apply the insurance pr?x~eeds at ?.ender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pmc•eeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs t and'L hereof or change the amount of such installments. 1f under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Born,wer in and to any insurance policies and ir. and to the proceeds thereof resulting from damage to Property prior to the sale or acywsitiun shall pass to bender to the extent of the sums secured by this _ 3ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the dee•laration or nn•enants cn•atingor governing the condominium or planned unit development, the by-laws and regulations of .the condominium or punned unit development, and constituent documents. If a condominium or planned unit development rider is executed by li„rrower and recorded together with this Mortgage, the covenants and agreements of such rider shall t,e incorporated into :?nd shall amend and .upplrment thecuvenants and agre•ementsufthis Mortgageasifthe - rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails k, perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects bender'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 each appearances, disburse such sums and take such action as is necessary to protect Lender's interest, ~s 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. Any amounts disbursed by Lender perauant G, this paragraph 7, with interest thereon, shall I?ecome additional indebtedness of F3orrower secured by this Mortgage. Unless 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 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. a.",;318 YaGE1~9Q