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HomeMy WebLinkAbout0905 Borrower and Lender rnvenant and agree as follows: 1. Paymnat of Prilnelpal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and Tate charges as provided in the Note, and the principal otand interest on any Future Advances secured by this Mortgage. 2. Funds for Tares 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 '`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- twelfth ofyearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, a~ as reasonably estimated initially and from time to time 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, aeseasmenta, 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 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 fl+nds 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 Inds. 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 !hereof. Upon payment in full of all sums secured by this Mortgage, Lender 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 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 payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [.ender 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. Borrowershall pay all taxes, assessments and other ch:+rges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold pay menus or qn>und rent.4, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payer there•ed. Bc?rmwershall promptly furnish to Ixnder ' all notices of amounts due under this paragraph, :+nd in the went Borrower shall make p:+yment directly, liorn?wer shall promptly furnish to bender receipts evidencing such payments. Borrower shall promptly discharg?• any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien su long as Iic,rrower shall agree in writing to the paymen?of theobligation secured by such lien in a manner acceptable to Ixnder, ur shill in ge?exi G+ith eti,ntest such lien hy, ordefend enforcement of such lien in.legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'ncpe•rty or any part thereof. S. Hazard Insurance. Born?w er shall keep the improvements now existing or hereafter erected on the Property insured against loss by fi re• hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; proaided, that Ixnder shall nut require that the amuuni of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage- The insurance carrier providing the insurance shall t?e• chnse•n by Bnrruwi•r suhj+•e-t to approval b}• Lender, pnrvidecl, that such approval shall not be unreasonably withheld. All premium. un insuranct• policies shall Fx• paid in the manner pruvide•cl under paragraph `l hereof or, if not paid in such manner, by lic,rrower making p;+gment. when due, dire•c•th• b, the inwr.+nce carrier. All insurance policies and renewals thereof shall he in form accept:+Me G? Lender and shall include a standard mortgage clausein favorof ~ and in form acceptable to Lender-Lendershal) have the right to hold th+• p,licies and renewals therec,f, and Korroaa•ershall promptly furnish to I i,ender all renewal notices and all receipts of paid premiums. In the event of loss, lic?rruwer shall give prompt notice to the insurance carrier i and Lender. Lender may make proof of loos if not made promptly ht Burrower. _ Unless [.ender and Borrower otheraa•ise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is economicalh• feasible and the security of this Mortgage is not thereby impaired. If 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 Alortgage, with the' excess, if any, paid to Burrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Kurrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collErt and apply the insurance prc?cerds al Ixnder`s option either to restoration or repair of the I Property or the sums secured by this Mortgage. ' Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred d, in par:+graphs I and 'l hereof ur change the amount of such inst~•+llments. if under paragraph IS ~ hereof the Property is acquired by Ixnder, all right, title and interest of Burn?wer in and to any insurance pohc+es and ~n and to the proceeds iicrreuf resulting from damage to Property prior w the sale or acgwsition shall pass to !,ender to the extent of the sums secured by this t Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall nut 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 Mortgage ?s on a unit in a condominium or a planned unit development, ii<,rrower shall perform all of Borrower's obligations under the declaration i,r covenants cre:?Ungor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a c•onduminium or planned unit development rider is executed by Borrower and ree•ordcd together with this Mortgage, the covenants and :cgreement.R of such rider shall be incurpcrr.+teel into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails u, perform the covenants and agreements contained in this Mortgage, or if any I action or proceeding is commenced which materially affects Ixnder'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 Lender'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, 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 Mortgage, 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 Lenders ~ written agreement or applicable [.aw. 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 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 ra+x permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. 1+