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HomeMy WebLinkAbout0196 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. Ftinds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day t monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F ands'")equal to one • twelfth of the 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 one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tine by Lender on the basis 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, asaesamenta, insurance 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 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 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 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property is sold or 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 [.ender, any Funds held by Lender 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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender 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.:+ssessments and other charges, fines :+nd impositions attributable W the Property which may attain a priority over this Mortgage, and leasehold payments frr gmunclrents, if:+ny, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thertr?f. Borrower shall promptly furnish to [.ender all notices of amounts ~uetrn~er this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lf•nder receipts eviaencin~uc}+ paymentss_ Borrower shall prompth• dischargf• arty lien which has priority oi•er this Mortgage; provided, that [lorrower shall not be requiref~to discharge any Bach lien so long as Ftc+rnrwer shall agree in writing to the p:+yment of the obligation secured by ;uch lien in a manner acceptable to Lender, or shall in gfxxl faith c-ontf•st such lien by. ordefend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propfrh• or :+ny part thereoG 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ereMed on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not require that the amount of such nn•erage exceed that amount of coverage required to pay the sums secured by this Mortgage. "Che insurance carrier providing the insur.?ncf• shall Fx• chosen b}' 1iurn~wer subjff•t to :+pproval h~• I xnder, providfd• that such approval shall not be unrea_sf?nabh• withheld. All premiums un insurance {x~lirie..hall Fx• paid in thf• manner providfd under paragraph 'L herf~c+f or, if nut paid in such manner, by Borrower makinK payment, when due. din•cth• to the inwrance carrier. All insurance policies and renewals thereof shall t?e in fi~rnt acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the pedicies and renewals thereof, and Borrower shall promptly furnish to i .ender all renewal notices and all receipts of paid premiums. In the scent of loss. Borrower shall Kive prompt notice to the insurance carver and Ixnder. Lender may make prcwf of loss if not made prompth• by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall tx• applied to restoration or repair of the Property j damaged, provided such restoration or repair is ff•onomically feasible and the security of this Mortgage is not thereby impaired. If such c restoration or repair is not economicalh• feasible or if the security of this Mirctgage would F+e impaired; the insurance proceeds shall be applied to the sums secured by this MortKage, with the excess, if any, paid to F3c,rrower. If the Property is abandoned by Borrower, or if Borrower fails to j re,pond to Lender within a0 days from the date nutter is mailfd by Lender to Borruw•er that the insurance carrier offers to settle a claim for r insurance benefits, Lender is authorized to rnllf•ct and apph• the insurance procfeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortKaKe. ~ Unless Lender and Bonrower otherwise agree in writing, any such application of pnx•eeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs I and •l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by (.ender, all right, title and interest of Kormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to Lender to the extent of the sums secured by this tilorigage immediately prior to such sale or acquisition. 6. Preservation and ;Maintenance otProperty; Leaseholds: ('ondominums; Planned Unit Developments. Borrowershall keep the Property in gfwd repair and shall not commit waste or permit impairment or deteroration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this ~lorigage is on a unit in a condominium or a planned unit development, e F~orrower shall perform all of Borrower's obligations under the declaration ornn•enants creatinKorgovermng thecondominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executfd by Korrcm•er and recorded together with this Mortgage, the covenants and :~~reements of such rider shall Fee incorporated into and shall amend and supplemf•nt thecovenants and agreements of this Mortgage asifthe 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 ie 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 do_redent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lendei a 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 secured by thin Aforigage, Borrower shall pay the premiums required to maintain ; such insurance in effect until such time as the requirement for ouch insurance terminates in accordance with Borrower'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 Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree to other terms of payment, such amounts shall be payable upon I notice frortr Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on ~utatanding 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. i\othing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. Ilk i ' BOOK 320 PAGE 195