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HomeMy WebLinkAbout2341 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 wrilten waiver by !.ender, Borrower shall pay to !.ender on the day ,~,unthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F ands")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- tw•elfth ofyearly premium installments for hazard insurance, plus one-twelfth otyearly premium institllmentafor mortgage insurance, i[any, all as reasonably estimated initially and from time to tune by (.ender nn the basis o[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 iincluding 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 :+ssesaments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits (.ender to make such a charge. Borrower :?nd (.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, (.ender shall not be required to pay Borrower any interest or t•arnings on the Funds. !.ender shall give to Borrower, without charge, an annual accounting of the F ands 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 Funds held by !.ender, together with the future monthly installments otFunds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums - :+nd ground rents as they fall due, such excess shall be, at Bor•row•er'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 p*emiuma 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 (.ender to Borrower requesting payment thereof. Upon payment in full of al! sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender- If under •aor?ph l A herPnf the Pmlwrty is sold ur the Property is otherwise acquired br Lender. Lender shall apply, no later than immediately prior t„ the sale of the Property or its acquisition by (.ender, any Funds held by (.ender 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 !.ender tint 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. a. Charges: Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributabletu the Property which may attain a priority over this Mortgage, and leasehold pat menu ur {;round rents, if any, in the manner provided under paragraph 2 hereof or, ,f nut paid in such manner, by Borrower making payment, when duc•, dinrtly to the payt•e ther?v,f. Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment dirt•c•th•, Burrower shall promptly furnish to !.e•nder receipts evidencing such payments. 13orn,wer shall pn+mptly discharge any lien which has priorih• aver this Mortgage; pmrided, that 4i. grower shall not tx• rt•ctuirtd to discharge any such lien so look as Borrower shall agrtt• in writing b. the payment of theobligatiun secured by -.~ch lien in a manner ac•ceptahh• to Ixndrr, or shall in gisN} G?ith contest such lien by, or dt•fend enfonrrnent of such lien in, legal proe•ttdings bleb operate to prevent tht• enfurcemt•nt of the lien or forfeitun• of the 1'n,pt•rt>• or :?m• part thercti,f. Hazard Insurance. Borrower shall kt•t•p the imprt?vements now t•xisting ur hereafter erected on the Property insured against loss by fire, hazards included within the term "extended c•uver.?ge," :+nd such othty hazards as Ixndc•r mar require and in such amounts and for such periods as Lender may rt•ctuire; proridc•cl- that Lender shall nut require that the amount of such nn•t•rage exct•t•d that amount of coverage rc-ctuired to pay the sums st•t•urt•ti by this llorlgagt•. The insurance c•amer providing the incur:u+ce shall la• chosen h~• liorn,wer subject to approval h~• Lender, providcti}, that sue•h approval <hall not be unreas?mahh• w•ithhe•Id. All pn•nuum: oo rnwr:uu-e puLcu•: shall ta• p;?id u+ the manner prnvidwl under paragraph 2 hert•of or, if j nut paid in such mannt•r, by It,~rruwt•r m:+king pa>~m,•nt. when due•, din•ctic to the insurance carrier. All insurance policies and renew:?Is thereof shall tx• in form acceptable to I.t•ndt•r and shall include:? standard mortgage clause in favorof nd inform acceptable to !.ender. (.ender shall hate the right tc, hold the p„Gcies and renewals thereof, and Burrower shall promptly furnish G? i , ~•nder all renewal notices and all rt•c•eipta of paid premiums. In the event of loss, Burrower shall give prompt notice G. the insurance comer and Lender. Lender may make proof of loss if nut made prnmpth• by Iorrower. Unless Lender and Iicrrrowc•r otherwise agret• in venting. insurance prvrct•t•ds shall tx• :+pplied to restoration ur repair of the Property j damaged, provided such resdttation or repair is ?•c•unomically feasible and the stc•urity of this Mortgage is nut thereby impaired. If such restoration or repair is not ecunumic•ally G•asihle :.r if the sc•c•unh• of this Murtgagt• would t?e impaired, the insurance pn?ceeds shall beapplied u ~ the sums secured by this Mortgage, with theexcess, if :my, paid to Korrower. if the Property is abandoned by Borrower,or if Burrower fails to s re.;pond to Lender within :S(? days from the d:?te nuhce is mailed by I,t•nder to Borrnwt•r that the insurance comer offers to settle a claim for insurance benefits, Lender is authorized to collc~•t and apply thc~ insurnce pns•t•t•cis at It•nder•s option either to restoration or repair of the i'roperty or the sums secured by this Murtgagt•. Unless Lender and Burrower otherwise agree +n writu:h, any such application of prca-t•eds to principal shall not extend or postpone thedue date of the monthly inst.•+Ilmenlc referred to in p:+ragraphs 1 and ht•n•uf or change the amount of such inst<-?llments. If under paragraph 18 a hereof the Property is acquired by Lender, :+II right, title and interest of Burruw•er in and to am• insurance policies and in and to the proceeds s thereof resulting from damage to Pro{x•rty prior to the sale ur acqursition sh:?11 p:+ss d, It•nder to the extent of the sums secured by this s Mortgage immediately prior to such sale ur acquisition. fi. Preservation and Maintenance of Property; l.t•asehulds; ('ondominums; Planned Unit Developments. Borrower shall keep the Property in gaud repair and shall not commit waste .,r permrt impairmt•nt ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Murtgagt• is c.n a unit in a condominium or a planned unit development, Burrower shall perform all of Borrower's ublig:?tiuns under the dt•c•laration ur covenanLti c•n :?tingur guvermng the condominium ur planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a „ndominium or planned unit development rider is :•xt•c•utai h.• l;t,rrow-t•r and recorded together wish this Mortgage, the rnvenants and "r3 ,greementsofsuchridershalli,emcurpuratedint~:;endsh:+llarnendandsupplementthecoveWants andagrmmentsufthis111ortgageasifthe rsdrr were a part hereof. ~Y 7. 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 or proceedings involving a bankrupt or decedent, then !.ender at Lender's option upon notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protect Lender a interest, :ncluding, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Ixnder requited - mortgage insurance as a condition of making the loan secured by this Mortgage, Burn,wer shall pay the premiums required to maintain - such insurance in effect until such time as the requirement fur 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 persuant to this paragraph with interest thereon, shall betrome additional indebtedness of ~ Forrower secured by this Mortgage. Unless Burrower and Lender agree ur 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 r?ie would tee contrary to applicable law, in which :•rent such amounts shall bear interest at the highest rate permissible under applicable law. tiothing contained in this paragraph 7, shall require }.ender to incur any expense or take any action hereunder. - p _ ~ ~ t3~0 Part ~.35 -