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HomeMy WebLinkAbout2042 j i. Borrower and Lender rnvenant and agree as follows: 1. Payment of Principal and lntereat. 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. Finds 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 assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one• ~ twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by Lender on the basis of assessments and 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 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 Borrower, and unless j 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 forthe sums 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 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 Bo+rowei s option, either promptly repaid to Borrower or credited to Borrower on - ~ monthly installments of Fl+nds. 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 i 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. 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 Ixrder, 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 Lender under the Note and paragraphs 1 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 MortK:+ge, and le:sehold payments or Kround rents, if any, in the manner provided under paragraph 2 hereofor, r if not paid in such manner, by Borrower making payment, when due, directly to the pa}•ee thereof. Korrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bormwer shall promptly furnish to (.ender receipts evidencing such payments. Borrower shall pn,mpth• discharge any lien which has priurilyover this Mortgage; provided, that Borrower shall not be required to disc barge any such lien su IonK as Borrower shall agree in writinK to the p:+vment of the obligation secured by a such lien in a manner acceptable to (.ender, or shall in Kc,od faith contest such lien hy, ordefend enfim•ement of such lien in, IeKal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'n,prrty or am• part therc.,f. 5. Nazard Insurance. Korrower 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 periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver pn,viding the insur.+ner shall lw chosen by Borro«er subject to approval by I xnder; provided. that such approval i shall not be unreasc,nabh• withheld. All premiums on insurance policies shall i,e paid in the manner pnn•ide•cl under paragraph 'l here•c,f or, if { not paid in such manner, by Fi„rrow•er makinK payment, tchi•n due, dire•c•th• ter the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable G, I,c•nder and shall include a standard mortgage clause in favor of and in form acceptable to (.ender. lender shall have the right to hold the {wlicies and renewals thereof, and Borrower shall promptly furnish to +.ender all renewal notices and all receipts of paid premiums. In the event of I~ss, li„rn,wer shall Kia•e prompt notice to the insurance carver ~ and Lender. Lender may make pra,f of loss if not made promptly by Borrower. Unless Lender and Borrower otherv?•ise agree in writinK• insurance proceeds shall be applied to 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. If such ; restoration or repair is not economically feasible or if the security of this MortgaKe would be impaired, the insurance proceeds shall be applied to the sums secured by this MortKage, with the excess, if any, paid to Borrower. If the Property is abandoned by Burrower, or if Borrower fails to ~ respond to Lender within 30 days from the date notice is mailed by bender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to colter[ and apph• the insurance pnxeeds at Lender's option either to restoration or repair of the 1 Property or the sums secured by this MortgaKe. { Unless Lender and Borrower otherwise agree in writinK. any such application of pn,c•eeds to principal shall not extend or postpone the due 1 date of the monthly installments referred to in par.+Kraphs 1 and'L I+erts,f or change the amount of such inst.•+Ilments. If under paragraph 18 } 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 acquasition shall pass to Lender to the extent of the sums secured by this } Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; [xaaeholds; ('ondominums; 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. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants cn•atingor KoverninK the condominium or planned , unit development, the by-laws and regulations of the condominium or planner( unit development, and constttuent documents. If a rnndominium or planned unit development rider is executed by Born,wer and recorded together with this Mortgage, the covenants and ~ agreements of such rider shall be incorporated into and shall amend :md supplement the covenants and agreements of this Mortgage as ifthe rider were a part hereof. - 7. Protection of Lender's Security. If Borrower fails W 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, disburse such sums and take such action as is necessary to protect Lendei 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 Juan secured by this ;`fortgage, 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 [,aw. 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 par:+graph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and (.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Bormwer requesting payment thereof, and shall bear interest 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 Lender to incur any expense or take any action hereunder. ' 3,~K318 ~~~~1~36