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HomeMy WebLinkAbout1105 .a,.. Borrower and Lender rnvenant 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 latechargea 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 written waiver by Ixnder, $orrc?wer shall pay to I.enderon the day monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum (herein "Funds"i 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 otyearlypremium installments for hazard insurance, plus one,twelfth of yearly premium installments for mortgage insurance, if any, :+Il ae reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shat! 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, insuranrn 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 such agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or earnings on the I•ltnde. Lender shall give to Borrower, without charge, an annual afruunting 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 t+s additional security for the sums secured by this Mortgage. If the amount of the Funds held by I.endet, together with the future monthly installments of F unds 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 Boti•owei s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. it 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 Ixnder to Borrower requesting payment thermf. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Burrower any funds held by Lender. If under paragraph IS hereof the Property is sold or the Property is otherwise arquirf•cI by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any F unds 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 pn?vides otherwise, alt payments received by bender under the Note and paragraphs I and 2 hereof shall be applied by !.ender first in payment of amount.R 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, finf•s anct imtx?sitions attribut:+hle to the Property which m ay at4-+in a priority over this Mortgage, and leasehuht payments ur kround ren ts, i f any, in the man nee pn,vidfd under p:+r+graph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. dirf•c•tly (o the p;+yf•t• therfvd. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish lc? I.f•nder receipts evidencing such payments. {tc,rn,wer shall pn+mpth• discharge any lien which h;?s priorih• uverthis Murtkage; provided, that Burrower shall not t?ereyuirf•d todischarke any such lif•n su ton{; as It+,rrowershal! aR~rf•f• in writink to thepayment of theuhlikation secured by such lien in a manner acceptable to (,f•nder, or shall in K,Ntt1 faith cunt+•st wch lien hy, ur defend enfoncement of such lien in, legal proceedings which operate to prevent the enfon•ement of the lien or fort?•iturf• of thf• Prop~•rh• ur an~• part thfvf~,f. 5. Hazard Insurance. Bum,w•er shalt kelp the improvements now existink or hereaftererec•ted on the Property insurfd against loss by fire, hazards included v.•ithin the tem+ "extendfel c•ovrrat;e," and such other haz:?rds as I xnder may rfctuire and in such amounts and for such periods as Ixnder may require; pro~•idf•d, that Lender shall not nvtuirf• that [he amount of such cti,ver.+ge excff•d that amount of coverage r+•ctuirfYl to pay the sums sf•c•urcrl by this Murtkage. The insurance carrier pnn•idirtk the insurance .hall I,+• chu,en F,y t4+~rn+wer suh~+•f•t to appr.,~•al by I.ender• pruvidfrl. that such approval shall nut t,e unrr.+s+,nabh withimld. All premiwras un :nnurance policies shall t,+• paid in the m:u?ner pn,vid+vt under par,+kraph here„f ur• if nut paid in such manner, by Bum+w•er m;+kink paymera. when due, directly t++ the issue:+ncf• r•arri+•r. All insurance poiicif's and renewals therf•+,f shall t,f• in form acceptable to 1.+•nder and shall incuu+:e:,,~:u„1:,nf ui+,+i,t.:gc cl.:use in favorcf and in form acceptable to !.ender. Lender shall have thf• ri};ta to hold the I,+dicies and renewals therfvf. and Bor•n+w•er sh:+Il promptly furnish to :.ender all renewal notices and all receipts of paid prfmiums. In the eyent of loss. Burrower shall love prompt notice G? the insurance carrier :+nd Lender. Lender may make pn,of of toss if not made prumpth• by Born?w•er. Unless Lender and Borrower utherwisf• agrff• in uritink, insurance prrx-ee•cls shall t,f• applied to restoration or repair of the Property damaged, provided such resG,r•+hun nr r+•pair is f'lunumic:+Ily Ccasible and the sf•f•urity of this 1lortkake is not thereby impaired- If such restoration or repair is not erunumicalh• feasible +,r if the se•f•urity of this Mortkake would tx• impaired, the insurance pn,ef*eds shall t,e applied to the sums secured by this Mortkagf•, with the excess, if am•, paid to it„rrow•ez. If the Propfrty is abandonfd by &,rroN•er,or if f;<,rrouer fails to respond to (.ender within :10 days from the date, notice is mailf•fl by l.endf•r b, RorrowKr that the insurance carrier offers to settle a claim for insurance benefits. !.ender is authurizfrt tr, collf•f•t :+nd apple the insurance prvK•ceds at Lf•nder's option either to restoration or repair of the 1'ruperty or the sums secured by this Mnrtg:+ke. Unless Lender and Burrower ntherw•isf' agrf•f• in wriiink, any such application of pruc-ff•cls to principal shall no! extend or pf?stponethedue date of the monthly installments reterrf•d to in par:+kr.+phs . and L hf•reof ur f•hanke the amount of such installments. If under paragraph IK hereof the Property is acquired by lender, all right, title and inten•st of Rurrow•er in and to ;+ny insurance policit's and in and to the proceeds thereof resulting from damage to Pmperh• prior to the sale ur acquaitiun shall pas. to tender to the extent of the sums secured by this ~turtgage immediately prior to such sate o- acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('bndominums; Planned Unit Developments. Rorrowershall keep the Property in good repair and shall not commit waste ur pf•rmit impairment ur deterior.+tion of the Property and shall comply with the provisions of any lease if this ~1ung:+ke is on a leasehold. If this ~turtkake is +m a unit in a f,+ndominium or a planned unit development, Burrower shaft perform all of fk,rrower's oblikatiuns under the derlarrliun or cnyrnants f•r<:?tinkor kovcrntnk the condominium or planned unit development, the by-laws and regulahuns of the condominium ur plannf•fl unit d+•yelopmrnt, and constituent documents. It a condominium or planned unit deyelupmf•nt rider is ex,•+•utf•ft t/\' R+,rruw'er and rf•+•urdfd together with this Mortgage, the covenants and akreements of such rider shall F?f• incurf,uratf•f1 into and shall amend and supplenuv?t thecneen:+nts:md a{,~n•ementsof this Mortgagees if the rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails u, perform the a,venanty and agreement+9 contained in this Mortgage, or if any action or proceeding is commenced which materially affects lendei a interest in the Property. including, but not limited W, eminent domain, insolvency, rnde enforcement, or arrangements or proceedings involving a bankrupt or decedent, then bender at Lender e option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasc,nahle attorney's fees and entry upon the Property to make repairs. If !.ender required mortgage insurance as a condition of making the loan secured by this Mortgage, F3,muwer shall pay the premiums required to maintain such insurance in effect until ouch 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 `l hereof. Any amounts disbursed by Lender perauant tc? this paragraph r• with interest thrrf•on, shall t,ec-ome additional indebtedness of Korrower secured by this Mortgage. Unless Borrower acrd Lender agree b, other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall t?e:+r interest from the date of disbursement at the rate payable from time to time on outstanding principal undf*r the Note unless payment of interest at such rate would he contrary to applicable law, in which event such amount.4 shall bear interest at the highest rate permissible under applic•ahle law. Nothing contained in this paragraph 7, shall require [.ender to incur any expense or take any action hereunder. ~'k X19 p~~F 1103 $;iJX