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HomeMy WebLinkAbout1523 v. 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. Funds for Taxes and Insurance. Subject to applicable law ur to a written waiver by Ixnder, Borruwershall pay to Ixnderon theday 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 assesamenta 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 one•twelfth of yearly premium installments fur mortg:+ge insurance, if any, at1 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 ur 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, insurtmce premiums and ground rents. Lender may not charge for eo 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 and Lender may agree in writing at the lime of execution of this Mortgage that interest on the Funds shall be paid to I3orroweY, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be reyuired to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an snout+l accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds w:+a made. The Funds :+re pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by (,ender, together with the future monthly installments utFunds 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 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 (.ender -shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up ihr drGciency within :30 days from the date notice is mailed by Ixnder to Borrower requesting payment thereof. Upon payment in full of all auma secured by this Mortgage, l xnder shall promptly refund to [iorower any funds held by (.ender. If under paragraph 18 hereof the Property is sold ar the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by I,c•nder at the time otapplication 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 Ilclrruwer under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the :Vote, 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 attrihutable to the Property which may attain a priority over this Mortgage, and leasehold payment. or ground rents, if any, in the manner provides( under paragraph'( hereofor, if not paid in such manner, by Burrower making payment. when due, dires•th• U+ the pays•s• thererrf. Borrower shall prompth• furnish to Ixnder all notices of amounts due under this par.+gr.+ph.:+nd in the event Burrower shall make p:+yment dinr•tly, Bormwer shall promptly furnish to Lender receipts evidencing such payments. IlClrnnver shall prompth• discharge any lien which h:+s priorih• ovt•r this Mortgage; provided, that Burrower shall not Ire required todisc•harge any such lit•n su loot; as Borrower shall agrsr in writing to the pa},meat of theoblig:+tion secured by such lien in a manner acceptable to Ixnder. ur h:dl in gu«I faith rnntrst such lien hy• ur ds•ft•nd enfon•f•mc•nt of sut•h lien in, legal pn?ceEdings which operate to prevent the enforcement of the lien or forfeitun• of the I'rfrlx•rty nr any part thertclf. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erectf•d on the Propertc insured against loss by fire, hazards included within the term "extended cuver.+gr•," and such other hazards as Ixnder may rectuire and in such amounts and for such periods as Ixnder may require; providtd, that Lf•nder shall not n•yuire that the amount of such syn•erage excs•td that amount of coverage rt•ctuired to pay the sums se•s•ured by this Mortg:ge. The insurance e-arrier providing the insurances shall IN• chosen by Burn~wer suhjf•c•t to approval by Lender. providf•fl, that such approval shall nut tx• unreasonably withheld. All premiuns un u+suru+ce t/•~iicies shall !w• p;lid in the manner pruvidwl under pa r,+graph l hereofor, if nut paid in such manner. by itrrrrowi r making payn+ent, wht•n due, directh• tr. the insurance carrier. All insurance policies and renewals thereof shall be in form :u•ceptahle to Iw•nds•r and sh:+ll include a standard mortgageclauae in favorof 'i and in form acceptable to Ixnder. l.f•ndt rshall h:.~•r the, right to hold tht• twlicies and renewals thercti~f, and Borrower shall promptly furnish to ~ :.ender all renewal notices and all rs•s•eipts of paid premiums. In the r'ct•nt of lass. Borrower shall give prompt notice to the insurance carrier and Ixnder. Ixnder may make prcwlf of ?oss if not made pnrmpth• by Burn/wer. f Unless Ixnder and Borrtr,~•er ntherwisf• at;rtY• in w•ritint;, incur:mre prfx•r•eds sh:+ll tx• applied to rfstoration or repair of the iroperty ( damaged, provided such restoration c.r repair rs s•f•onomicall}• feasible and the s+-s•urity of this Mortgage Is nut thereby impaired. If such restoration or repair is not economicalh• feasible or if the sfr•urity of this Mortgage would he impaired, the insurance proceeds shall beapplitd ~ u. the sums secured by this Mortgage, with the excess, if any, paid to Romlw-er. If the 1'rolx•rty is abandoned by Burrower, or if Burrower failsto respond to Lender within all days from the date notice is mailfd by I xnde•r to Burrower that the insurance carver offers to settle a claim for insurance benefits, Ixnder is authorizf•d to colh•f•t and app(}• thc• insurance pna•ceds at Ixnder•s option either to restoration or repair of the E'nlperty or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agrs•s• in writing. any such applicat+nn of proceeds to principal shall not extend or postponethedue date of the monthly installments referred to in paragraphs 1 and 'l hen•uf ur c•hange the amount of such inst.•+Ilments. If under paragraph 1R hereof the Property is acquired by Ixnder, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the, sale ur acywsitiun shall pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanreotProperty; Leaseholds;Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste ur tN•rnnt impairment or deterioration of the Property and shat! comply with the pruviaions of any lease if this Mortgage is en a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, Burrower shall perform all of fifrrnrwer's obligations under the df•c•laration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of tht• condominium or planned unit development, and constituent documents. If a undominium or planned unit development rider Is exs•s•utsd t»• liomiwer and n•curded together with this hlortgage, the covenants and agres•mentsofsuc•h rider shall be inc•ortioratc•d int~:uid shall anu•nd and supplenumt theco~•enantsandagrs•t•mentsofthisMortgageaaifthe rider were a part hereof. 7. Protection of Lender's Security. If Burrower fails to perform the crwenanta and agreements contained in this Mortgage, or if any s action or proceeding is commenced which materially affects Ixnder'a interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder at Ixndei a option,upon notice to Borrower may make such appearances, disburse such auma and take such action as is necessary to protect Lendei 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 asrursYl by thin Mortgage, Borrower shall pay the premiums required to maintain s such insurance in effect until such time as the requirement for aus•h 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 Ixnder persuant kr this paragraph i, with interest thereon, shall become additional indebtedness of Burrower secured by thin bortgage. Unless Burrower and Ixnder agree u~ other terms of payment, ouch amounts shall be payable upon notice from Lender to Bc/rrower 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 Dote 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 pennisaible under applicable law. tiothing contained in this paragraph 7, shall require Ixnder to incur any expense or take any action hereunder. a ~R 319 Pa~E 1520