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HomeMy WebLinkAbout1980 1 i ~r , + 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 of and interest on any Future Advances secured by this Mortgage. 2. Funds for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to lxnder on the day monthly installments otprincipal and interest are payable under the Notet 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 of yearly 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 time 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 bender if Lender ie 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 Ixnder 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 F ands 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. Itthe amount of the Finds held by Lender, together with the future monthly installments otFunds payable prior to the duedatea 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 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 bender 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. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which m:+y attain a priority over this Mortgage, and le:+sehuld payments err gerund rents, itany, 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 Botmwer shall promptly furnish to l.ender a!1 notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrow•cr shall promptly furnish to Lender receipts evidencing such payments. !;<rrruwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not be required to drsrharge any such lien so funk as IG.++r.~ t~r ~t:;a r~ i.^. ~ it ia;; !a ttie;. ~yms.n~ ..f t hn nhlivation secured by such lien in a manner aceept:+ble to Lender, or shall in good faith runtest Bach lien by, ordefend enforcement of such lien in, legal proeedings which operate to prevent the enforcement of the lien nr forfeiture of the Pnrtx•rty or any part thererrf. 5. Hazard Insurance. Borrower shall keep the iri+pn?vements now existing or hemafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage."and such other hazards as ! xnder may require and in such amounts and for such periods as Lender rosy, n•quire; pnn•idcd, that Iw•nder shall nut n•etuire that the amount of such coverage exceed that amount of rnverage rc=quired to pay the sums secured by this Mortgage. ,The insurance carver providing the insur.+ne•e• shall Ire, e•husen be kum,++•e•rsubje•e•t to appnoval by Lender: provided, that such approval ,hall not be unreasonably withheld. Ali premiums un insurance trrdicirs shall tx• paid in the manner pruvide•el under paragraph 'L hereof or, if not paid in such manner, by l;,rrruwer making payme•nt• when due, dinvtl~- to the insurance carrier. All insurance policies and renewals thereof shall be in firrm acceptable to tender.+nd shall include a st:+ndard mortgageelausein favorof and in form acceptable to Lender. Lender sh:+li have the right to hold the policies and renewals thercrrf• and Borrower shall promptly furnish to :,ender all renewal notices and all receipts of paid premiums. In the event of loss. Kornrwer shall give prompt notice to the insurance carver and Lender_ [.ender may make proof of loss if not made promptly by Borrower. Unless Lender and Bumrwer otherwise agree in writing, incur.+nce proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. It such restoration or repair is nut 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 Itrrrrower. If the Froperty is abandoned by Borrower, or if Borrower fails to respond to Lender within aO days from the date notice, is mailed by bender to 13rrrn,wer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorize•e! w collect and apply the incur:+nce pnre•eeds at Lender's option either to restoration or repair of the 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 ter in paragr.+phs 1 and l hereof or change the amount of such installments. If under paragraph 18 herevrf the Property is acquired by bender. all right, title and interest ut Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage ttr Property prior to the sale or acgwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and !Maintenanceof Property: Leaseholds; ('onduminums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall nut commit waste ur 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 is un a unit in a condominium or a planned unit development, Borrower shall perform all of fiurnrwer's obligations under the dcc•laratiun ur rnvenanis creaUngor governing the condominium or planned unit development, the by-laws and regulations of the condominium or pl:+nned unit development, and constituent documents. If a ~•unduminium or planned unit development rider is exee•uted by Firrrnre•er and n•rorded together with this Mortgage, the covenants and agreements of such rider shall be incurporateYl into and steal{ amend and supplement the covenants and agreementsofthis Mortgageas ifthe rider were a part hereof. 7. ProteMion of Lender's Security. It Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Fender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt ur decedent, then Lender at Lender's option,upon notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to prottirt 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 B and Lendei s written agreement or applicable f.aw. Borrower shall 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 Mortgage. Unless Borrower and Lender 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 rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ontirR.1/~ p11CF~ 9?d