Loading...
HomeMy WebLinkAbout1673 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 ofand interea/on any Future Advances secured by this Mortgage. 2. i'lutds for Taxes and Ineurance. Subjeet to applicable law or W a written waiver by Ixnder, Borrower shall pay to lender on the day monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum (herein "Funds") equal to one twelfth ottee yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly piemiuminstallments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from time to tirr,e by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fltnds 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 Fonda to pay said taxes, assessments, 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 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda 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 tall due, Borrower shall pay to Ixnder any amount necessary to make up the deficiency within 3G 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 Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, bender 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 thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law pmvides otherwise, all payments received by Fender 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, assessments and other charges, fines and impositions attributable to the 1'roperiy which may attain a priority over this Mortgage, and leasehold payments or t;nwnd rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinK payme•nl, when due. directh to the payer th+•rer,f. Burmwershall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borruw•er shall make payment dincth•, liormwer shall promptly furnish to f Lender receipts evidencing such payments. Iiurn,wer shall promptly discharge any lien which has priority over this iortgage; provided, that ' :wrruwer snail not i,r reyuirrei iu eiisrir+rt;r am• suci+ iien su iur?ti as'ti.~rn?wer.haii aKre•e• in writinK to tt?c paymt•nt of throtritgatron secured by such lien in a manner acceptable to Ixnder, or shall in t;c,cK1 L•+ith contest wch lien by, ur defend enfi?rn•ment ofsuch lien in, legal proceedings which operate to prevent the enfurceme•nt of the lien ur furfeitun• of th+• Prupe•rh• or am• part therec,f. 5. Hazard Insurance. Borrow•cr shall keep the improvements now existing or hereafter erected nn the Property insured against loss by fire, hazards included within the term "extended cover:+Ke," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender m:+y require: provided, that Ixnder shill nut re•yuire that the amount of such nn•erage exceed that amount of coverage required to pay the sums secured by this MortKaKe. The insurance carrier pmvidint; the insurance shall Ire, chosen by Itomwvc•r suhje•c•t to approc:+l by Lender; provided. that such approval shall not be unreasonabh• withheld. All premiums un insurance IN~licics shall Iw• paid in the manner provided under paragraph 2 herer,f ur, if not paid in such manner, be lic?rn~wer makink payment, when due. dinr•tly to the insurance carrier. All insurance policies and renewals thereof shall t:e in form acceptable to Ixnder:+nd shall include a standard mortgageclause in favorof ~ and in form acceptable to 1.ender.Ixndershallhavethe•rit;httoholdtheprdiciesandrenewalstherec,f.andBomrwershallpmmptlyfurnishto I - Ixnder all renewal notices and all receipts of paid premiums. In the event of lays, Burrower shall Kive• prompt notice to the insurance carrier and Lender. Ixnder may make pn,of of loss if not made promptly by Rorn,w•er. Unless Ixnder and &,rn,wer otherwise agree in writing, insurance proceeds shall t,e applied to restoration or repair of the Property damaged, provided such resG?r:+tion or repair is ec•unumically feasible and the src•urity of this Mortgage is nut thereby impaired. If such restoration or repair is not econumicalh f?•asibls• ur if the sc•c•urity of this Vortgage would ix• impaired, the insurance procecdsshal) beapplied to the sums secured by this Mortgage, with the excess: if any, paid to I3om,wer. I f the Property is abandoned by Borrower, or if Burrower fails to respond to Lender within :~r days from the, date notice, is mailed by Ixnder b? Korrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to cullc•c•t and apph• the insuranc+• pn?+•e•eds at Lender's option either to restoration or repair of the Property or the sums secured by this :1orgage. Unless Ixnder and Borrower otherwise agree in v?•ritinK. any such application of prc,cercls to principal shall not extend or postponethedue date of the monthly inst~-+Ilmentg refereed to in par.+xraphs 1 :+nd'l hen•c,f or chanKe the amount of such installmentsg. If"under paragraph 18 ~ hereof the Property is acquired M• Ixnder, all right, title and interest of Burrower in and to am• insurance policies and in and to the proceeds thereof resulting from damage to Property prior G, the sale or ac•ymsitiun shill pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: Leaseholds; ('onduminums; Planned l~'nit Developments. Borrowershall keep the Property in ga,d repair and shall not commit waste or I,e•rmit imp:+irme•nt or deterioration of the Property and shall comply with the provisions of any lease if this hlortKage is on a leasehold. If this !llortg:+ge is on a unit in a condominium or a planned unit development, I Borrower shall perform all of l;.?rrower's obliKatiuns under the dee•laration or covenants +•rr:+tinkurgovernmg 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 excruted by Borrower and re•c•orded together with this Mortgage, the covenants and agreements of such rider shall I,e• inc•urporatcd tofu and shall amend and supplement the covenants and agreementsof this Uortgageas ifthe rider were a part here•cd. 7. Protection of Lender's Security. If Burrower tails to perform the cc?venanta and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Ixnder'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 [.ender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action ae 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 Ineurance in effect until such time as the requirement fur such insurance terminates in acrnrdance with Borrower's and Lender e 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 Ixnder persuant W this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unletes Borrower and Ixnder agree tc? other terms of payment, such amounts shall be payable upon notice from Ixnder to Borrower requesting payment thereof, and shall IWar 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 rnntained in this paragraph shall require Ixnder to incur any expense or take any action hereunder. 4 Ills flA('1 _ _