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HomeMy WebLinkAbout1715 s- Borrower and Lender covenant and agree as [ollows: 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 ae provided in the Note, and the principal of and intereston any Future Advancesaecured by this Mortgage. 2. Funds for Ta:ea and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Nute, 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 otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Ixnder 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 it Lender is such an institution)- !.ender shall apply the Fonda to pay said taxes, assessments, insurance premiutna 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 !.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid W 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 Fonda. 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 us additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates 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 Fonda. 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, Borrower shall pay to Lender any amount necessaq• to make up the deficiency within 30daya from the date notice is mailed by i.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 !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any F ands 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 Ixnder under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender 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 Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assecsmentc and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, ifany- in the manner provided under paragraph 2 hereof or, s-.. p :r,--~~:t ti;:rn:Wer h11 pro:sYt':y!':sr=:isl:to Iw-a>^r ii not paid in such manner, by BUrn,N'e[ Imi+1??UA j,:+ynit•ilt, R"het-i tlUr, dirri iii i~: iuc a ~:z-...r....... . all notices of amounts due under this paragraph, and in the event Borrower shall make payment dirt•t•th•, Rorn,wcr shall promptly furnish to Lender receipts evidencing such payments. ltr,rrmver shall prompth• discharge am• lien which has priurih• aver this Mortgage; provided, that Burrower shall not be required to discharge:ury such lien so lung as It„rn,wer shall agret• in writing to the payment of theoblig:+tion secured by wch lien in a manner acceptable to Lender, or shall in good faith ty,ntest such lien by- ordefend enfon•ement of such lien in, legal proceedings Which operate to prevent the enforcement of the lien ur forfeiture .,f the Property or am• part thert~,f. 5. Hazard Insurance. Borrower shall kt•t•p the improvements now, existing ur hereafter erected on the Property insured against loss by fire, hazards included within the teen "extendttl coverage," and such other hazards as Lender may require and in such amountsand for such I,eriods as Lender may require; provided, that !.ender shall not nyuin• that the amount of such ttiwerage exct•ed that amount of coverage rcyuired to pay the sums secumtl t»• this Mortgage. The insurance r.+rrier providing the insur:urce shall ht• chosen by B,~m,..-er suhjt•t•t to appn,c:?1 h.• I.t•nder. pru~•idt•t1• that such approval shall not be unreau,nably withheld. All premiums un insuram•e 1>,dit•it•s shall Iw• paid in the manner pnn•idwl under paragraph 2 hertr,f or, if not paid in such manner, by ti„rru~cer making p:?yment..chen due, dieecth- b, the insurance carrit•r. All insurance policies and renewals therm>f shall 1,e in form :u•ceptable to L?•nder and shall include a standard mortgage clause in favor of and in form acceptable to I ender. Lender shall hay a the right to hold tht• tH,licies and mnewals thertr,f, :+nd Borrower shall promptly furnish to k , ~•nder all renewal notices and all rtt•eipts of paid premiums. In the scent of loss, Borrower shall gi~•e prompt nutim to the insurance carrier :tnd Lender- !.ender may make prv,?,f of loss if not mode prompth• by Borrower. Unless !.ender and Borrower otherwise agn•c• in writing, insurmce pn,t•etds shall tx• applied to restoration or repair of the Property damaged, provided such restoration or repair is t•cunumically feasible and the stt•urity of this Mortgage is not thereby impaired. If such restoration or repair is not economiralh• feasible ur if the security of this Mortgage would tee impaired, the insurance proceeds shall tae applied t, ~ the sums secured by this Mortgagt•, with the excess. if any, paid to l~mn,wer. If the Property is abandoned by Borrower. or if Borrower fails to ~ respond to (.ender within a0 days from the date nutlet, is maih•d try I.rnder to Borrower that the insurance carver offers to settle a claim for E insurance benefits, Lender is authurizt•t1 to colh•c•t and apply the insurance pr„c•t•t•ds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless [.ender and Borrower otherwise agrtr• in writing, any such application of procet•tis coprincipal shall not extend or postpone thedue date of the monthly installment. referrt•d d, in paragraphs 1 and hereof or change 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 fmm damage W Property prior to the sale or :+cyursitiun sh:+11 pass d, Gender tc? the extent of the sums secured by this 1 Mortgage immediately prior to such sale or acquisition. G. Preservation and 141aintenance of Property; l.caseholds:!'srndnminums; Planned Unit Developments. Borrower shall keep the Property in gtx,d repair and shall not commit watite ur pt•nnit imp:+irment or deterioration of the Property and shall comply with the provisions of any lease if thin Mortg:+ge is on leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the dt•t•lar.?tiun or covenant., creatingor governrng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatiluent dtxumenta. If a ,•nndominium or planned unit development rider is t•xt•cvttd by liorrow•er and rt•c•ordtd together with this Mortgage, the rnvenanta and g :,y;ret•ment_cofsuchridershallt,t•inrv,rpurattdintuandshall:?mendandsupplementtht•covenantsandagreementsofthisMortgageasifthe rider were a part hereof. 7. Protection 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, 5 insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then !.ender at Lender's option,upon i! notice to Borrower may make such appearances, disburse such sums 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 3 mortgage insurance as a condition of making the loan secured by thin 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 Borrower's and Lender s written agreement or applicable Law. Burrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 'l hereof. Any amounts disbursed by Lender perauant u, thin paragraph 7, with interest thereon, shall t,ecome additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree da 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 shall require Lender to incur any expense or take any action hereunder. - ~ ~•:~~,,~J PaGE1700 _