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HomeMy WebLinkAbout0006 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. F`tutda for Taxes 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, if any, plus one twelfth of yearly premium installments for hazard insurance, plus ont•twelfth of yearly premium installments for mortgage insurance, if any, :+II as reasonably estimated initially and from time to tine by lender 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 (.ender if Lender is such an institution). (.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground yenta. (.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills,+lnleea Lender pays Borrower interest on the F unds and applicable law permits Lender to makesuch 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 Fllnda. 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 /hesuma 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 excred 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 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 (.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 full of all sums secured by this htortgt+ge, (.ender shall promptly refund to Korrower any funds held by (.ender.lf under paragraph 18 hereotthe Property is sold or the Property is otherwise :+cquired by I,Pnder, (.ender shall apply, no later than immediately prior to the sale et the Property or its acquisition by bender, any Funds held by lender at the time of application as a credit against the sums secured br• this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by (.ender under the Note and paragraphs i and 2 hereof shall be applied by Lender first in payment flf amounts pay able to Fender 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, :rssf•ssments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if any, in the manner proeided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, diref•tly to the payee thereoL Borrowar shall prompth• furnish to lxnder oil notices of amounts due under this paragraph, and in the event Borrower shall make payment dirff•tly, Rorn+H•er shall promptly furnish to Lender receipts evidencing such payments. I3orruwer shall promptly disf•h:+rgf• any lien which has priority Deer this Mortgage; provided, that Burrower shall not be required todischarge any such lien su lank as Il++rruwer shall aKrec• in writink to the payment of theobliKation secured by such lien in a manner acceptable to Lf•nder. or shall in kIN+f1 f:+ith contf•St such lien hy• ordefend enfon•ement of such lien in• Ifgal pn+ceedings which operate to prevent the enforcement of thr lien ..r furfeiturf• rf t)u• Pn+lx•rty ur any part therfv+f. i. Hazard Insurance. Borrower shall kf•f•p the improvements now existing or hereafter erec•tefl un the Property insured against loss by tire, hazards included within the term "exlendf•f1 coverage." and such other haz:+rds as Lender may reyuirP and in such amounts and for such periods as Lender may rf•yuire; pn+vidcd, that Lender shall not require that the amount of such coverage exccf•d that amount of coverage rr•c{aired to pay the sums sef•urfrl by this Mortg;+ke. ~ The insur:+nf•P c:+mer pnn~idink thf• insuruu-e sh:+11 IN• chosen h}• Itorruwer ~uhjf•+•t to approval b.• Lendf•r• providf•f1, the+t such approval shall not be unreas+maMy withheld. All premiums on insurance policies shalt t~• paid in thf• manner pruvidfrl under par:+kraph L hert~+for, if n~+t paid in sash manner, by Fi++m+wt•r m:+kink p:+}•ment, when due. directly to the insuramce carrier. All insurance policies and renewals thereof shall be in form acceptable G, Lf•nder and shall include a standard murtgageclause in favorof and in form acceptable to Lender. Lender shall have thf• rikht to hold the 1x+hclPS and renewals therfy+f, and Borrower shall prompth• furnish to ~ ,ender all renewal notices and all rfceipts of paid premiums. In the event of loss, Rurn,wer ah:rll give prompt notice l0 the insurance carrier and Lender. (.ender may make prf„+f of Ifss if nut madf• promptly by Borrower. i lJnless Lender and Borrower otherwise agree in w•ritink• insurance pnrccf•ds shall bf• applied to restoration or repair of the Properly damaged, provided such mstoratiun or repair is +ronomically feasible and the sf•e•urity of this Mortgage is not thereby impaired. If such I restr~ration or repair is not economically feasible ur if thf• sP.•urity of this \turtkakr would he impaired, the insurance proceeds shall be applied a+ the sums secured by this Mortgage. with the excess, if any. paid to Kornrwer. If the F'ruperty is abandoned by Borrower, or if Borrower fails to respond to Lender within all days from thf• date notice is mailfd by (.ender to 13orn.wer that the insurance carver offers to settle a claim for # insurance benefits, Lender is authorizctil to c•ullf•f•t and apply the insurance prfx•f•f•ds at Lender's option either to restoration or repair of the € Property or the sums secured by this Mortgage. i iJnless Lender and Eorrower otherwise akn•f• in K•ritink• any such application of pr«•c•c•ds to principal shall not extrnd or postpone thedue date of the monthly installments refrrrfd to in paragraphs 1 and'l hereof or c•hankf• the amount of such installments. If under paragraph 18 hereof the Property is acquired h}• lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds F thereof resulting from damage to Property prior to the sale ur af•qulsitiun shall pass G. Lender to the extent of the sums secured by this ~ Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned ['nit Developments. Borrower shall keep the Property in ga/d repair and shall not commit waste ur permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Morikage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's oblikations under the df•e•laration ur covenants f•rf :+tinkor guverning the condominium or planned unit development, the by-laws and regulations of the cundominiurn or plannfd unit development, and constituent documents. if a Y ~•ondominium or planned unit devPlopmf•nt rider is exf•f•utefi by Ilom+wer and rfrurded together with this Mortgage, the covenants and akrf•ements of such rider shall Ix• incurpuratf•f1 into :+nd sh:+ll amend and supplement the crn•enants and agrfements of this 1lortgake as if the rider were a part hereof. 7. Protection of Lender's Security. If Korrower fails tfr 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 (.ender at Fender's option,upon ~ notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protecj 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 s mortgage insurance as a condition of making the loan securfd by this Mortgage, Borrower shall pay the premiums required to maintain s quch 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 [.ender persuant t0 this paragraph i, with interest thereon, shall become additional indebtedness of Borrower 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 Nute 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 shall require Lender to incur any expense or take any action hereunder. P~GE ~~r3~.9 ~!i~ ~ '