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HomeMy WebLinkAbout1519 i Borrower and Lender covenant and agree as follows: 1. Payatent 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 otand 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 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 ofthe 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 onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from lime to tirr+e by Ixnder on the basis of assessments and bills and reasonable estimates thereoL The Fonda 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 lazes, 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 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, 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 Fonda was made. The Funds are pledged as additional security forthe sums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly inst,•+llments of Funds payable prior to the duedatea ottaxea, 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, al Borrower's option, either promptly repaid to Borrower or credited to Borrower ort monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground-rents ae 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 !,ender 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 Lender. If under ~a.av.anh to hewotthe Property is sold or the Properly is otherwise acquired by Lender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by bender, any Funds held by Lender at the time of application as a credit against the sums az~, urctil by 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 of amounts payable to !.ender by Horrower 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, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rants, if any, in the manner provided under paragraph'! hereof or, if not paid in such manner, by Borrower making payment, when due, dinrtly to the payee thereof. Horn,wer shall promptly furnish to !.ender all notices of amounts due under this par-.+graph. and in the event Borrower shall mike payment directly, Burn,wer shall promptly furnish to l.c•nder receipts evidencing such payments. ftC,rruwer shaft promptly discharge am• lien which has priorih• over this 1ortgage; provided, that Harrower shat! not be required to discharge any such lien su IonK as liarn,wer shall agrc•+• in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnde•r, or sh:+11 m gINRl faith cont+•st such lira by, ordef+•nd enforcement of such lien in, legal proceedings ~•hich operate to prevent the enforcement of the lien ur forR•iture of the I'n,l?e•rh• ur uny part therer,f. 5. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erected nn the Property insured against loss by fire- hazards included within the term "extended coverage," and such other hazards as lender may require and in such amounts and forsuch periods as [xnder may require; provided. that !.ender shall not require that the amount of such coverage exceed that amount of coverage n•quired to pay the sums secured by this Mortgage. The insurance carrier providing th+• insurance shall l,+• chosen by KarruK•e•r subj+•c•t to uppn»•ul by Lender: pnwidcd. that such approval shall not be unreasonably withheld. All premium. un incur;uu•e tN~licies shall 1N• paid in the m:mner pn,vid+Y1 and+•r paragr-,+ph'' here+,for, if nut paid in such manner, by fi+lrn,wer making payment. when due, dircrth• to the insurance c:+rric•e Ail insurance policies and renewals thereof shall be in form acceptable to I~•nder and shall include a standard mortgage clause in favor of and in form acceptable to fender. lender shall have the right to hold the ~wlicic•s and renewals thereof, and IIC,m,w•ershallproroptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Rorn,wer shall give prompt notim t0 the insurance carrier and Lender. [.ender may make pra,f of loss if not made promptly by Burrower. Unless Lender and Burrower otherwise agree in writing. insurance proc•erxls shall tle applied to restoration or repair of the Property damaged, provided such restoration or repair is economicalh• feasible and the sec•urih of this Aortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the sc•curih• of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sumssecured by this It1ortgage, Kith theexcess, if any, paid to I~,rrower. lfthe Property isabandoned by ~arrower,or if Borrower fails to respond to Lender within all days from the date notice is maihd by Lender to Hom,wer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to tollc•c•t and apple the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writin g• any such a pplication of prutceds to principal shall not extend or postpone the due date of the monthly installments referred d, in paragraphs 1 and `L hereof or change the amount otsuch installments. If under paragraph 18 hereof the Property is acquired by I.ender• all right, title and interest I,f fil,rn,+:•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or ac•qulsitiun shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale ur acquisition. 6. Preservation and Maintenance of Property; L+•ascholds;('ondominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit wa~tc• ur tN•rmit impairment or deterioration of the I'ruperty and shall comply with the pruvisiens of any lease if this bortgage is on a leasehold. If this ~lurlg:+Ke is on a unit in a condominium or a planned unit development, Burrower shall perform all of I3om,wer's obligations under the declar.+tion or covenants creatingor governing the condominium or planned unit development, the by-lava and regulations of the rnndominium ur planned unit development, and constituent documents. If a ~ undominium or planned unit development rider is executed by I~Irruw•er and recorded together with this Mortgage, the covenants and :IKreementg of such rider shall lx• incorporated into and shut! amend :+nd suppleme•ni the covenants and agreements of this Mortgage as if the rider were a part hereof. 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 [.ender'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 bender'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 fender required mortgage insurance as a condition of making the loan secured by thin Mortgage, Horruwer shall pay the premiums required to maintain such 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 fender perauant to this paragraph i, with interest thereon, shall become additional indebtedne~as 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 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. 319 r~~F 1516