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HomeMy WebLinkAbout2224 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 lnsurance. Subject to applicable l:+w or to a written waiver by Lender, Borrowershal) pay to Ixnderon theday monthly installments of principal and interest are payable under th+• 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, if uny, plus one twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, al l na reasonably estimated initially and from time to tine by Lender on the b:+sis 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 (including Lender if Lender is such an institution>. Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge [or 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, !.ender shall not be required t<, pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual aerounting 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 as additional security for the sums 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 due dates ottaxea, assessments, insurance premiums and ground rents, shall exc •ed the amc;unt reyuind to pay said taxes, assessments4, insurance premiums and gmund rents as they fall due, such exceac shall be, at 13ormwer's option, either promptly repaid to Borrower or credited W Borrower on monthly installments of Funds. If the amount of the Fonda held 1?y Lender shall not t,e suff?cient to pay taxes, assessments, insurance premiums and ground rents as they [all due, Borrower shall pay t~ Ixnder any amount necessary to makeup the deficiency within 30 days from the date notice is mailed by Lender to Burrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Iic+rrower any funds held by !.ender. If under paragraph IS hereof the Property is sold or the Property is other•w•isc acquired by !.ender, !.ender shat! apply, no later than immediately prior to the sale of the Property or itc acquisition by Fender, any Funds held by Lender at the time of application as a credit ag:+inst the sums secured by this Mortgage. 3. Application of Payments. lJnless applicable law provides otherwise, all payments received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Ixnder first in payment of amounts payable to Fender by Itorruwer 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. Burn?wershall par all faze:., assessments and uthercharke•s, fines and imt,csitiuns attributable to the Property which may attain a priority over this Murtgake, and le;?schuld payme•ntsor kn,und rents, if any, in the manner pn,vided under paragraph 2 hereof or, if nut paid in such manner, by Bum,wer makink payment, when due, dire•c•tly to the pay.•e• thenr,f. Korruwer shall pmmpth furnish to Ixnder all notices of amuuntc due under this parakr•.+ph, and in the event Born,wer shah make payment dire•e•tly, Borrower shall pnnnpt}y furnish to !.ender receipts evidencink such payments. }ir,rrow~er shall prumpth• discharke am lien which has priority over this Murtkake: provided, that Borrower shall not t,e required to discharke any such lien su look as Itorn,wer shall aknr• in writing to the paynu•nt of theublikatiun secured by such lien in a manner acceptable to la•ndrr, ur shall in koral f:+ith contest such lien by• oniefend enfi,n•e•nu•nt of such lien in. Irkal prcrc•ee•eiinks bleb operate to prevent the enfi+rcernent of the lien nr forfe•iturc• rd the• Property „r am• part thereY,f. Hazard lnsurance. Borruw•er shall ke•e•p the improvements now existink or hereafter ere•c•ted on the 1'n,peny insured against loss by fire, hazards included within the teen "extended cuver.+ke.•' and such other hazards as 1•e•nde•r may rectuin• and in such amounts and fix such periods as Ixnder may reyuin•; pn,vided, that Lender shall not n•quire th:Jt the• amount of such n+ve•rake• exceed that amount of cuver.+ke ntituirerl to pay the sums see•urerl by this Mnrtkake•- The insurnner carrier pr+,cidink the insuran,~c• shall Iw• chosen h~~ Iorrower sulycY•t to approval by Lender; pn,cidwi. that such approval shall not t,e unreasonably w•ithhrld.:Vl premiums on insurance pohcu•x sh:el! 1•c• paid in the manner pn,vidwl under paragraph hereof ur, if n„t p;+id in such manner, b}• }ir,m,wer making pacmm~t. when du,•, din•ctlc to the irrsur:mce• c:+rrier_ All insurance policies and renewals thereof shall },e• in form acceptable to 1.e•nder and shall includ+• a standard mortkake clause in favurof and in form acceptable to Ixnder. I .ender shall have the right u, held the policies;uxi n•newals then•c,f, and Rom,~•er shall promptly furnish to , .•nder all renewal notices ;end all nreipts of paid pre•rniums In theevent of bas, Bnrm?ver shall love prompt notice to the insurance carrier :+nd Ixnder_ Ixnder may make prc,nf of loss if not made promptly by Rorn,wer. l'nless Lender and I;c,rruwer otherN•ise• agreY• in w•ritink. incur:+nce pn,c•erds .hall tx• applied to restoration ur repair of the Property damaged, provided such re•stnration or repair is cY•unnmu•ally feasibl+• and the security of this Mortkake is nut thereby impaired. If such resdxatiun or repair is not ecunumically feasible nr if the security of this Mnrtgak+• would he impaired. the insurance pnx•eeds shall be applied to the sumssecured by this Mortkage•. with the excess, if am~. p:+id tc, Korn+wer. Ifthe I'n,pe•rty is abandoned by Kurrower, or if Borrower fails to n•:pund to Ixnder within :N? days from the date notice is maibd by 1.rndrr G, Borrower that the in,ur.+nce r<+rrier offers to settle a claim for insurance benefits, bender is authorizer} t., cnlbr•t and apply the insur,enc•e pr+,c-e•eVls at Lender's option Tither to restoration or repair of the Property ur the sums secured by this Murtgakr•. Unless Lender and Borrower ntherH'ise akrr• io writing, any such applic:tion of prcx•e•t•ds to principal shall not extend or p?stpcme thedue date of the monthly installments referred to in paragrephs 1 and' he•n•uf or c•h:+nke the amount of such installments. If under paragraph iH hereof the Property is acquired by Ixnder, all rikht, tith• :uul interest of Borrower in :end to at»• incur.+nm policies and in and to the prcxc•eds thereof resulting from damage to 1'rope•rh• print to the sale .,r acywsitiun shall pass to bender to the extent of the sums secured b_v this Mortgage immediately prior to such sale• ur acquisition. 6. Preservation and 17aintenanceof Property: Leaseholds; ('onduminums; Planned !'nit I)evelopmenta. 8orrowershall keep the Property in kc,crd repair and shall not commit waste or tx•rmit impairment c,r deterioration .,f the Property and shall comply with the ;,r„visions of ant lease if-this ~fi+rtkat;e is un le:+se•huld. If this ~tortk:+gc is on a unit in a condominium or a planned unit development, It„rruwer shall perform all of Borrower's oblskatiuns under the declaration or covenants cn•:ehngnr kovernink the condominium ur planned unit development, the by-laws and rekulatiuns of the condominium ur planned unit development. and constituent dcx•uments. If a ronduminium or planned unit development rider is e•xer•uteri by };.,mower and recnrderi together with this Mortgage, the rnvenantg and :,gn•ements of such rider shall i,e• inrorporaterl into and .hall amend and supplement the coce•n:?nts and akrer•ments of this Mortkake as if the nde•r were a part herc•nf. 7. Protection of Lender's Security. If Kurn,w•er fails to perform the rnvenant.~r and agreements contained in this Mortgage, or if any action c,r proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, rnde enforcement, or arrangements or pn!cer•dings involving a bankrupt or decedent, then Ixnder at Lender's option upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest, including, but not limited tu, disbursement of reasonable attorney's fees and entry upon the Property to make repairB. If Lender required mortgage insurance as a condition of making the loan secured by this Murtkage, Fiorn,wer shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accord:+nce with Borrower's and Lender's written agreement or applicable law. Burrower shall pav the amount of all mortkake insurance premiums in the manner provided under paragraph 'l hereof. Any amounts disbursed by Ixnder persuant to this paragraph with interest thereon, shall become additional indehtedne'es of Korrnwer secured by this Mortgage. Unless Borrower and !.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Burrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time tc, time on outstanding principal under the Nute unless payment r,f inte•rext at such rete would t,e contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable I:?w. \othing contained in this paragraph 7, shall require Ixnder tr, incur any expense or take any action hereunder. . ~~i~ PaGEZ2~?