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HomeMy WebLinkAbout2350 f;orrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay whet[ 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 c,n any F uture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable I:tw or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are pay able under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelRh of yearly premium installments for hazard insurance, plusone`twelRh ofyearly premium installments fur mortgageinsurance, if any, all as reasonably estimated initially and from time to tirr,e by Ixnder on the basis of assessmenL+ 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 F unda 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 F unda 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 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 Fonda. 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 plfdgecl as additional security for the soma secured by this 'tlortgage. 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 sacred the amount requirfd to pay said taxes, assrssn+enls, insurance premiums and ground rents as they fall due, such excess shall be, at Botrower'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 :i0days from the date notice is mailed by (.ender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquirfd by Fender, 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 time of application as a crfrdit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments receivfd by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amount_ti payable to [.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Mute, :+nel then to interest :+nd principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments :u+d othen•hargfs: fin+>s and impositions attributable to the Pmperty which may attain a priority over this Mortgage, and leasehold payments or ground n•nts, if any, in the manner provided under paragraph'( hereof or, ~f not paid in such manner, by Burrower making p:+yment• when dus•. din•f•th• to the paysf• therf>uf. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Burrower shall make payment dirf•ctly, Borrower shall promptly furnish to I .ender receipts evidencing such payments lir+mrw•er shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not be requirfd to discharge arry such brn su lung as Itr,rruwer sh:+ll agref• in writing to the payment of the obligation secured by ~ur•h lien in a manner acceptable to Lender, ur shat! in grN,d f:+ith contest such lien by, ordf•ff•nd enforcement of such lien in, legal prr+cefdings bleb operate to prevent the enforcement of the lien or forfeiture of the l'roperh• or any part thenv~f. 5. Hazard Insurance. Borrower shall kf•f•p the improvements now existing or hereaftf•r erected on the Yroperh• insund against loss by fire, hazards ineludsd within the term "extrnd+d curer.+ge," and wch other hazards as Lender may rf>stuin• and in such amounts and for such pericxis as Ixnder may rf>quire; proridfd• that Ls•nds•r shall nut n•yuire that the amount of such cuver.+gf• excef•d that amount of coverage required to pay the sums sfr•urfd M• this 1~lurlgage. The insuranm r.+mc•r providing the insurance shall tx• chosen by Iturnrwer subjf•f•t to approval by Lender: pmrided, that such approval shall not be unrea~:rrnahh withheld. All pn•miums on inaur;uu•e pulicu~: ~h:+II iK• p:+id in the manner pnryidefl under p:+ragr.+ph 2 hert•rdor• if nut paid in such manner, hr IArm,wer making payment. ~chen due, din•cth to thr• insur.+nf•e carrier. All insurance policies and renewals thereof shall tx• in form acceptable to 1 w•nder and shall include a standard mortgage clause in favorof and in form acceptable to bender. Lender shall have the right to hold the policies and n•new:+ls thereof, and Borrowershall promptly furnish to ~ ~ xnder all renewal notices and all recsipts of paid premiums. In the scent of loss, Borrower shall give prompt notice to the insurance carrier E and (.ender. (.ender may make prcx+f of loss if nut made promptly by Korruwer. s Unless (.ender and Burrower otherw•isf• agn•f• in writing, insLr.+nce pnx•f•f>ds shall t+s• applied to restoration or repair of the Property d:+magsd, provided such restoration or repair is s•f•onomicalh• feasibly and the sf•r•urity of this Mortgage is not thereby impaired. If such restoration or repair is not ec•onomir,+lh• feasible ur•if the ss•curity of this Mortgage would be impaired, the insurance proceeds shall be applied t• ~ the sums secured by this Mortgage, with the s•xcf•ss, if am•, paid to Borrower If the 1'rolx•rty is abandoned by Borrower, or if Borrower fails to respond to [.ender within all days from the date notice is mailfd he I s•nder to Born+wer that the insurance carrier offers to settle a claim for ~ insurance benef?ts, (.ender is authorized to collc•f•t :u+d apply thf• insurance prrx•f•fds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Leader and Burrower otherwise agrfY• in w•riting•:+ny suc•happlicati~n of prrx-c•sds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and `L hers>r+f or change the amount of such inst:+llmentg. If under paragraph 1R hereof the Property is acquired by Fender, all right, title and interest of Rorrow-er in and to am• insurance policies and in and to the proceeds € thereof resulting from damage to Property prior to the sale ur acquisition shall pass b, (.ender to the eats nt of the sums secured by this ~ Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Ixascholds; ('ondominums; Planned (`nit Developments. Borrowershall keep the Property in good repair and shall nut commit waste or pf•nnit impairment or deterior.+tion 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 undf•r the dfe•lar.+tiun r.r cocenanis cre•atingor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur plannfd unit development, and constituent drx•uments. If a unduminium or planned unit development rider is s•xf•f uts•d by Itrrrn+wer and rf•s•urdfd together with ibis Mortgage, the rnvenants and ;~grerments of such rider shall he incortioratsd into and shall amend and supplement thrcm•enants and agn•f•mentsof this Mortgageasifthe rider were a part heref+f. 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, k insolvency, code enforcement, or arrangements or pn+ceedings 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 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 Mortgage, fiorrow•er shall pay the premiums required to maintain x such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowei a 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 [.ender persuant to ibis paragraph 7, with interest thers~rm, shall tsexome 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 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 (.ender to incur any expense or take any action hereunder. e :'~x 3~.8 P~~E 234 ~ •