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HomeMy WebLinkAbout1984 Borrower and Lender covenant and agree as follows: I. 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 tatecharges as provided in the Note, and theprincipal otand intereston any Future Advances secured by this Mortgage. 2. Fttnda for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fl+nds"?equa) to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plusone twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by lxnder on the basis of assessments and bills and reasonable estimates thereof. The FLnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federa) or State agency lincluding Lender 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 end applying the il+nds, analyzing said account, or verifying and rnmpiling 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 F ands 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 serurrd by this Mortgage. If the amount of the F,tnds 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 ae they fall due, such excess shall be, at Bon•ower'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 ss 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, I.endershal) promptly refund to Borrower any funds held by Lender. If under paragraph I8 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 i.ender, any F ands 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 provides otherwise, all payments received by Lender under the Note and paragraphs I 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 Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes,assessment_s and otherrharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or grr+und rents, 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 payee there++f. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event IioROwer shall make payment directly, Borrower shalt promptly furnish to bender receipts evidencing such payments. Iturn+wer shall promptly discharge any lien which has priority aver this Mortgage: provided, that L o__.~___~..:..,,,+.,,a:..,.+,.,~...,~n.,~n.-htinncnlnnt!:+tiI~+RUV?erShallaKreeinwritingtothepaymentofthrobligationsecuredby iiurruwrt [luau ua,. uc • ayu..a • such lien in a manner acceptable to lxnder, or shall in good faith (•untest such lien b~•, urdefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or am• p:+rt ther(•r+f. 5. Hazard Insurance. RoRr+wer shall keep the improvements now• existing r?r hereafter erected on the Property insured against loss by fire, hazards included within the term "extemded coverage." and such other hazards as lxnder may require and in such amounts and for such periods as Ixnder may require; provided, that Lender shall nut n•rtuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurances carrier prvn•iding the insuran(•(• shall tx• chos(•n L~• Burrower suhj(rt to approval b~• Ixnder, provid(•(1, that such approval shall not be unreasonably withheld. All{+n•miwn. on incur:+nre policies shall lx• paid in th(• manner trruvid(•r1 under paragraph 'L herer+f or, if nut paid in such manner, by l;.+m+wer making payment, when due. dinvtl~• U. the insur.+nce carrier. All insurance policies and renewals thereof shall be in form an•eptable to Ixnder and shall include a standard mortgage clausein favorof and in form acceptable to Lender. Lender shall have the right to hold the txrlicies and renewals therer+f, and Borrower shall promptly furnish to +xnder all renewal notices and all receipts of p:+id premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make pnH+f of loss if not made promptly be Korrower. Unless Lender and Borrower othere•is(• agree in x•riting, insurance prtxeeds shall be applied to restoration or repair of the Property damaged, provided such restoration or rep:+ir is (ronomically feasible and the security of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurances proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is mailed by bender t(+ Rorn~wer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authoriz(•d to ndl(•(•t and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this hlortKaKe• Unless [.ender and Borrower otherwise agree in writing, any such application of pro(eeds to principal shall not extend or postpone thedue date of the monthly installments refeRed tr+ in paragraphs 1 and 2 !+ercr~f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Burn+wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit w:+~te or-p(•rmit 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 nn a unit in a cnndominium or a planned unit development, KoROwer shall perform all of Borrower's obligations under the declaration or covenants cn•:+tingor 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 I~:rn+wer and recorded together with this Mortgage, the eavenants and agreements of such rider shall tx• incorporated into and shall amend .rod supplement thecuvenants and agre•ementsof this hlortgageas if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the cvvenanta and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proce~edinga 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 ae is necessary to protect Lender's interest, including, but not limited to, dieburaement 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, BoROwer shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in•#+ccordance 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 Lender perauant to this paragraph 7• with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree W other terms of payment, such amounts shall be payable upon notice from bender to Borrower requesting payment there~uf, and shall hear interest from the date of diaburaement 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. 1~'othing contained in this paragraph shall require Lender to incur any expense or take any action hereunder. 60t1K ~ PaGE ~c7 f S