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HomeMy WebLinkAbout1113 Borrower and Lender covenant and agree as follows: 1. Payment o! 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. 2.61tttds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to !.ender 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 ofthe yearly taxes and assessments which may attain priority over this Morig:+ge, and ground rents on the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfih ofyearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fonda 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 !.ender 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 !.ender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and !.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, Lender shall not be required to pay Borrower any interest or earnings on the ilrnda. !.ender 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 F ands was made. The Funds are pledged as additional security forthe sums secured by this Mortgage. If the amount of the Funds held by !.ender, together with the future monthly installments of Funds payable prior to the duedatea 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 Borrower's op/ion, 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, 1R*~rrower shall pay to lender any amount necessary to make up the deficiency within 3U days 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 Bon ower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, !.ender shall apple, no later than immediately prior u~~r Zlil' a:fiC +:f i.~ie Iiu--ts'-vr iic ui" ^d~r, ~r+.~ F~•rndc 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 Lender first in payment of amounts payable to !.ender 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 rharKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kmund rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directh• to the payee then~crf. Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Iturrow•er shall make payment direc-th•, Born~wer shall promptly furnish to [.ender receipts evidencing such payments. Burrower shall promptly disch:+rKe any lien which has priority over this Mortgage; provided, that ?;orrower shall not be required to discharge any such lien so IonK ;+s liorruwer shall agree in writinK to the payment of theobligation secured by such Tien in a manner acceptable to !.ender, orshall in Kond faith soot+_st such lien hy, urdefc•nd enfon•ementofsuchlien in,legal proceedings which operate to prevent the enforcement of the lien or forfeitur+• of the Properh• or am• part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereafter ereMed on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as !.ender may require and in such amounts and for such periods as i.ender may require; provided, that Lender shall not reyuirr that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MortKaKe. The insurance carrier providonK the insurance shall lx• c•husen be Iurrower suhjc•e•! to approval by !,ender; pnwidc•d, that such approval shall not be unreascm;+bh• withheld. All premiums on insurance twlieies shall fK• paid in the m:u+ner provided under paraKr,+ph 'L hereof or, if not paid in such manner, M• Fiumewer makinK payment. when due, ilin•c11~• to the insurance carrier. All insurance policies and renewals thereof shall be in form accept:+hle to [.ender.+nd shall include a standard mortgaKe clause in favorof and in form acceptable to I~cnder. Lender shall hace t he riKh t to hold the policies and n•newals thereof. and Burrower shall promptly furnish to render all renewal notices and all receipts of paid premiums. In the event of loss, Kurrower shall Kive prompt notice to the insurance carver and Lender. Lender may make prcx+f of fuss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writinK, insurance ,proceeds shall he applied to restoration or repair of the Property damaged, provided such restoration qr repair is e•e•onomir+lly feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically fe:+sihle or if the security of this illortgaKe would be impaired, the insurance proceeds shall beapplied - to the sums secured by this MortKaKe, with the excess, it any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to !.ender within :;<l days from the date notice is mailed by !.ender Gr Borrower that the insurance carrier offers to settle a claim for insurance benefits, !.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortKaKe. Unless !.ender and Borrower otherwise agree in writinK. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+Kraphs 1 and ?hereof or chanKe the amount of such installments- If under paragraph 18 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 to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this ?lorigage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; Leaseholds; t'ondominums; Planned Unit Developments. Borrowershallkeep the Property in good repair and shall not commit waste or permit impairment cir deterioration of the Property and shall comply with the provisions of any lease if this MortgaKe is on a leasehold. If this MortKaKe is on a unit in a condominium or a planned unit development, Korrower shall perform all of Borrower's obligations under the declar,?tiun urcavenants cm:+tinKorgoverning the condominium or planned :;.:it uc:c.apms-~t, the by-laws and reKulations of the condominium or planned unit development. and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall Ire incorporated into and .hall amend and supplement thecuvenunts and agreements of this Mortgage as ifthe rider were a part hereof. ProteMion of Lender's Security. If Borrower fails to 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 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 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 ae 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 $orrawer's and Lender a 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 this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. llnleas 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 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 Lender to incur any expense or take any action hereunder. b,~x3~9 pa~E~.i11