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HomeMy WebLinkAbout2888 . 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 latecharges as provided in the Note, and the principal otand intereaton any Future Advances second by this Mortgage. 2. Funds !or Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Bonrower shall pay to bender 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, plusonatwelfth of yearly premium installments for mortgage insurance, if any, ill as reasonably estimated initially and from time to tirr+e by Lender on the basis of assessments and bills and zeasonable 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 [.ender 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 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 ppy 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 F ands 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 payableprior to the due dates ottaxee, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Bo~tower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Fender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender 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, !.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 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 acq uiaition 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 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 !,ender 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. Chargers; Liens. Borrower shall p:+y 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:+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 thereof Bormwer shall promptly furnish to lxnder all notices of amounts due under this paragraph, and in the event 13orn,wer shall make payment directly, Burrower shall promptly furnish to I .ender receipts evidencing such payments. Borrower shall promptly discharge am lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long :?s I(r?rn?wer shall agree in writing to the payment of theohligation secured by such lien in a manner acceptable t<? Lender, or shall in gorxl faith n,ntcst such li+•n by, urdefend enfun•c•ment ofsuch lien in, legal prr?ceedinga which operate to prevent the enforcemert of the lien ur forfeitun• of the• I'rop+•rtr or any part thereof. 5. Hazard Insurance. Borrower shall keep the impn?vements now existinK or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendtd coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; pru~•id+•d, that lxnder shall nut n•+tuim th:+t the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insuranrn carrier proeidinK the insurance shall tx• chosen h.• Bom,a•e•r sul,je•c•t to appro~•al by 1,+•nder: pm~•id+•d, that such approval shall not be unreasonabh• withheld. All pn•miums on inwruac+• twlicies shall t?+• paid in thr• m:umrr pru~•id+r1 under paragraaph hereof or, if not paid in such manner, by Itr,m,wer makint; p:q•ment, when due, din•ct1}• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lenderand shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lendershall harelhe right to hold the policiesand renewals thereof,and Borrower shall promptly furnish to +.ender all renewal notices and all receipts4 of paid premiums. In the e~•ent of loss, R+?rmwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Burrower. Unless Lender and Burrower otherwise agree in writing, insurance pn?ceeds shat! be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the securih of this Mortgage is not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the excess, if any, paid to Borrower. !f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 3(I days from the date nuticc• is mailed by Lender k, Borrower that the insurance carrier offers to settle a claim for insurance benefits, lxnder is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this 111ortg:+ge. Unless !.ender and Borrower otherwise agree in writing, any such application of prex•eeds to principal shall not extend or pc?stpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installmentsg. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Bormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acywsitiun shall pass to Lender to the extent of the sums secured by this titortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Morigagr is on a unit in a rnnduminium or a planned unit development, Borrower shall perform all of Borrower's obligations under the dec•iar.+tion orcocenants c•re:atingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ,•undominium or planned unit development rider is excxutcd by lirrm,wer and recorded together with this Mortgage, the covenants and agreements of such rider shall l?e ine•orprm+tcd into and sh:+Il :amend and supplement thecovenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenante 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, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action ae is necessary to protect Lender's interest, indudinq, 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 this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time ae the requirement for such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable l,aw. Borrower shat! pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by. Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this lltortgage. Unless Borrower and Lender agree io other terms of payment, such amounts shall be payable upon notice from [.ender 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 Lender to incur any expense or take any action hereunder. 8111K 321 PacE 2884