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HomeMy WebLinkAbout0121 Borrower and Lender covenant and agree as follows: 1. Payment of Prlaclpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges aaprovided in /he Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds forTaxesand Insurance. Subject to applicable law or to a written waiver by Lender, Borrowershall pay to Lenderon theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fonda") 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- twelftkofyearly premium installments for hazard insurance, pluaone-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tune by !.ender 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 tincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. !.ender may not charge for so holding and applying the Fonda, 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 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 to pay Borrower any interest or t earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the , Funds and the purpose for which each debit to the Fonda 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 otFunds 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. It 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 !.ender any amount necessary to make up the deficiency within :i0 days from the date notice ie 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 !.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds 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 pmvidea 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 Ixnder 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 and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay menu or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direr fly to the payee thereof. Burrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event itc,rruwer shall make payment directly, Borr,?w•er shall promptly furnish to ! ,•ader receipts evidencir:g such payments Knrrnwer shall promptly discharge any lien which has priority over this Mortgage: provided, that Korrower shall not be required to discharge any such lien so long as l;<,mrwer shall agree in writing to the payment of lhe• obligation secured by ,uc•h lien in a manner accept:+ble to IA nd+•r, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the i'mperty or am• part thereof. Hazard Insurance. Borrower shall keep the• improvements now existing or hereafter erected on the Property insured against logs by fore, hazards included within the term "extended nn•erage," and such other hazards as 1 xnder may require and in such amounts and for such periods as Ixnder may require; provided, that Ixnder shall nut reyuire that the amount of such coverage exceed that amount of rnverage rc•yuired to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall l,e• chosen by Kurrowrr subje•c•t to appruv:+l by I.e•nder; provided, that such approval shall not be unreasonably withheld. All premiums on insurance lw~licie•s shall I,e• paid in the manner providevl under paragraph 2 hermf or, if n~~t paid in such manner. by Fi.,rruwer making payment, when due. direr•th• to the insurance carrier. All insurance policies and renewals thereof shall I,e• in G,rm aerept:+l,le to 1.e•nd+•r and shall include a standard mortgage clause in favor of b to Ixnder. Ixndershall have the ri ht to hold the ,licies and renewals thQreof, and Borrower shat! promptly furnish to and in form acre to le K 1„ P ~ ,,ender all renewal notices and all receipts of paid premiums. In the event of lass, licrrn,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made pmmptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insuranm proceeds shall he applied to restoration or repair of the Property damaged, provided such restoration or repair i. economically feasible and the strurity of this Aortgage is not thereby impaired. If such restoration or repair is not economically feasible orif 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 Itc,rrower. If the Property is abandoned by Borrower, or if Borrowei fails to respond to Lender within 30 days from the date notice is mailed by Lender to itorruwer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to culler[ and apply the insurance proceeds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise :+gree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+gr.+phs 1 and'! !rereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Louder, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acqursition shall pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty: Leaseholds: Condominums; Planned lJnit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wdth the provisions of any lease if this Mortgage is on a leasehold_ If this Mortgage is on a unit in a condominium or a planned unit development, Karrower shall perform all of Borrower's obligations under the declaration or covenants cre•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 condominium or planned unit development rider is executed by ItORON'er :+nd recorded together with this Mortgage, the covenant8 and agreements of such rider shall be incorporated into and shall amend :Ind supplement thecc,venants and agreements of this Mortgageas if the ~ rider were a part hereof 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, „ 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 sums and take such action as is necessary to protect Lender 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 this b'lortgage, 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 Lendei p "Titter agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. r Any amounts disbursed by Lender perauant to this par:+graph with interest thereon, shall become additional indebtedness of Korrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amount8 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 permiasihle under applicable law. Nothing contained in this paragraph shall require lender to incur any expense or take any action hereunder. ~ooK 322 P~~E 121