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HomeMy WebLinkAbout1458 fsot•rower 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. Finds 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 of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly 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 titre by lender on the basis of assessments4 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 tincluding Lender if Lender is such an institution). Lender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may net 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 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 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 as 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 sums secured by this Mortgage, Lender shall promptly refund to Korrower any funds held by Lender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, 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 payn+ent.4 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 paragrap¢ 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.:~ssessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, :f not paid in such manner, by Borrower making payment, H•hen due, directly to the payee lherw,f. Borrower shall promptly furnish to Lender a I1 notices of amuuntc due under this paragraph, and in the event Borrower shall make payment directly, Burn,wer shall promptly furnish to I .ender receipts evidencing such payments. li,~rrower shall pn,mpth• discharge any lien which has priority over this Mortgage; provided, that Iorrower shall not be required to discharge any such lien so long as !;<im,wer shall agree• in writing to the payment of the obligation secured by :uch lien in a manner acceptable to Ixnder, or shall in gcxxl f:+ith contest such lien by, urdefend enfon•ement of such lien in, legal proceedings hich operate to prevent the enforcement of the lien ur forfeiture of the 1'n.Fx•rty or any part them„f. 5. Hazard Insurance. Burrower shall keep the impn,vements now existing or hereafter erected un the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards :+s Ixnder may require and in such amounts and forsuch periods as lxnder may require-, provided. that Ixnder sh:+ll not require that the amount of such +vn•er.+ge exceed that amount of coverage required to pay the sums secured by this Murtgag?•. The insuranrn carrier providing th+• insurance shall tx• chosen by Itum,wer suhj+•+•t to approval by IA•nder, pn,vid+rl, that such approval shall not be unreaa,nabh• withheld. All pn•miems on insurance tM:lici+•..h:?ll Ix• paid in the manner provid+•+1 under par.?gr•.+ph'_' hereof or, if nut paid in such manner, M• Ki,rruH•rr m:+king pa~•ment, when due, dinrth• t., the insurance carrier. All insurance policies and renewals thereof shall be in (orm acceptable to Lender and shall include a standard mortgageclause in favorof and in form acceptable to Fender. !.ender shall have the right to hold the tx,licies and renewals thereof, and Borrowershall promptly furnish to ~ ?.ender all renewal notices and all receipts of paid premiums. In th+• event of loss, Borrower shall give prompt notice to the insurance carrier I and Lender. [.ender may make proof of loss if not made promptly by Rorrow•er. I Unless !.ender and Borrower otherwise agree in writing, insurance proteeds shall Ix• applied to restoration or repair of the Property j damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such f restoration or repair is not economically feasible or if the security of this Mortgage v~•ould be impaired, the insurance proceeds shall beapplied ` to the sums secured by this Mortgage, with the exe•rsc, if any. paid to l;r,rn,wer. If the Properly is abandoned by Borrower, or if Burrower fails to ~ re.;pond to Lender within :30 days from the date notice is mailed by Lender to Burrower that the insurance carrier offers to settle a claim for ~ insurance benefits, Lender is authorized t+? colt+•ct and apply the insurance pnxeeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Burrower otherwise agree in writing, an}• such application of proceeds to principal shall not extend or postpone thedue 1 date of the monthly installmentsg referred to in paragraphs t and'L hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest oLBurmwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or acymsition shall pass to [.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; leaseholds; ('ondominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or p+•rmit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is un a unit in a condominium or a planned unit development, _ ;urrower shall perform all of Il?,rruwer's obligations under the declaration or covenants creatingur governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, grid constituent documents- If a wmdominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shat! he incorporated into and shall amend and supple?nent thecovenants and agreements of this Mortgage as if the rider were a part hermf. 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 [.ender'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 Lender at [.ender'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, I including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowei a and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph l hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with interest there+,n, shall become additional indebtedness of Borrower secured b this Mo ' gees k, other terms of a ment, such amounts shall be a able u y rtgage. Lnless Korrower and Lender a p y P Y Pon 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 [.ender to incur any expense or take any action hereunder. 1~K321 ~~~E145?