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HomeMy WebLinkAbout1109 Borrower and !,ender 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. ~utds 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, ifany, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth otyearly premium inst:+llments fur mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender 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 .ncluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. [.ender 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 !.ender to make such a charge. Borrower snd 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 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 r+s additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future mon thiy i nstall merle of F ands 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+TOwer'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 fail due, Borrower shall pay to Lender any amount necessary !o make up the deficiency within 30 days from the dale 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 !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherw ise acquired by bender, Lender shall apply, no later than immediately prior t:::iresxaieoi'u`,ciioyertyo:-iteacy-sisiQi.?,^.!:;;l~na~-•^ ;•~_::asl•_eldtivtp~d..r:atthptimrofapplicationaaacredita¢ainstthesumasecured 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 [.ender first in payment of amounts payable to bender by Borruw•er 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. Borrowershall pay all tuxes, assessments and other ch:+rges, fines and impositions attributable W the Property which may attain a priority over this Mortgage, and leasehold payments or gn+und rents, if any, in the manner provided under paragraph 2 hereofor, iC not paid in such manner, b}• Borrower making payment, w hen due. directly to the payer thc•rer+f. I3:un?w•er shall promptly furnish to bender all notices otamount_s due under this paragraph, and in the event lion over shall make payment directh, Borrower shall promptly famish to I .ender receipts evidencing such payments. &+rruwer shall promptly discharge am• lien which has priority over this Mortgage; provided, that Burrower shall not be required to discharge any such lien so long as liorrow•ersh:+11 agree in writing tothe payment oftheobligatiom secured by such lien in a manner acceptable to tender, or shall in gexKl faith rnntrst such lien by, ur d+•frnd enton•c•ment of such lien in, legal proceedings which operate to prevent the +•nforcement of the lien or forfeiture of the, 1'roperh• ur any part thereof. 7. Hazard Insurance. Borrower 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 amountsand forsuch perods as Lender may require: provided, chat !.ender shat! not r+•cluir+• that the amount of such an•erage exceed that amount of coverage r+•Guired to pay the sums secured by this Mortgage. The insurance c•arritr providing the insuranc+• sh:+il Ix• chosen b}• Kurro~eer subject to a{iprue:+1 by Ixnder: provid~l. ih:+t such approval shall not be unre:r_wnabh• withheld. All premiums un insurance Iwlu•ic•s shall IK• p:+id in the m:uu+er pnn•ide+t under paragraph'! hermf or, if nut paid in such manner, by llc,m~w•er making payment, when duc•. dir+•c•th• U. the insurance tamer. All insurance policies and renewals thereof shall be in form accept:+ble to 1~•nder and shall include a standard mortgageclausein favorof and in form acceptable to Lender. Lendershall have the right to hold the lx+licies and renewals thereof. and Borrower shall promptly furnish to render al! renewal notices and all receipts of p:+id premiums. In the e~•ent of loss, Burrower shall give prompt notice to the insurance carrier and Lender. Lender may make prcKrf of loss if not made promptly by Burrower. Unless (.ender and Bortower otherv+•isc• agree in writing, insurance proceeds shall be applied to restoration ~r repair of the Property damaged, provided such restoration or repair is c•cunumic•alh• feasible and the sc•c•urity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would bei:npaired, the insurance proceedsshall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Korrower_ If the Property is abandoned by Borrower, or if Borrower fails to respond to [.ender within all days from the date notic+• is mailed by Lender to Fimrrower that the insurance carrier offers to settle a claim for insurance benefits, i.ender is authorized to cu11.Y•t and apply the insurnce pnx•ceds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortg:+ge. Unless !.ender and Borrower otherwise agree in writing, any such application of parceeds to principal shall not extend or postpone thedue date of the monthly installmenf^c referred to in paragraphs 1 and'L !+enof or change the amount of such inst<•+llments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof ,resulting from damage G+ Property prior to the sale or acgwsitiun 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; !.e•aseholdK; Condominums; Planned Unit Developments. Borrower shall 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 l;.~rn+wer's obligations under the derlar-,+tion or c•uvenanls creatingur govern+ng the condominium or planned unit development, the bydaw•s and regulations of the eundnminium ur planned unit development, and constituent documents. if a condominium or planned unit development rider is exc•cutcd by liurruw•cr and recorded together with this Mortgage, the covenanti+ and agreements of such rider shall tw inc•urFHrr,+t+d into and shall amend :rod supplement thec•ocenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the mvenanta 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, en.inent domain, insolvency, code enforcement, or arrangements or prxeedings involving a bankrupt or decedent, then [.,ender at Lender a option,upon notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to protect Lender'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, 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 $orrowere and I.endera written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premium8 in the manner provided under paragraph 2 hereof. Any amounts disbursed by bender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Korrower secured by this Mortgage. Unieas Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from [.ender 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 uhlesa payment of interest at ouch 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. x - 3`;~KJ19 PaGE1107