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HomeMy WebLinkAbout2141 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 I•ti?ture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or w a written waiver by !.ender, 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 "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 inatallmrnta 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 !.ender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts o[ 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, assessments, insurance premiums and ground rents. !.ender 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 bender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the F ands shall be paid to Borrower, and unless such agreement is made or applicable law requires ouch interest to be paid, (.ender 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 Funds held by !.ender, together with the future monthly installments of Funds payable prior to the duedatea of taxes, asaeasmente, insurance premiums and ground rents, shall sacred 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 (.ender shall noL be suf'f dent to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Borrower shall pay to Ixnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by !.ender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Bonrower any funds held by (.ender. ![under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, (.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by (.ender, 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 pro~~des otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by !.ender first in payment n[ amounts payable to Fender 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,:+sses_timents :+nd other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if:+ny, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee there+?f. Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such payments. fi+?m,wer shall promptly disch:uge am• lien which h:+s priority over this Mortgage; provided, that Kerrower shall not be required to discharge any such lien su lung as l~+,rrower shrill agree in writing to the payment of theubligalion secured by such lien in a manner acceptable to Ixnder, or shall in g+rcxl faith cti?ntest such lien hy, urdefend enforcrm+•nt n(such lien in, ic•gal proceedings which operate to prevent the enformment ut the lien or fi,rfciture of the Prupc•rh• or any part thern,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cu~•er.+ge," and such other hazards as Ixnder may require and in such amuuntsand for such periods as Ixnder may require; provided, that !.ender shall nut nyuire that the amount of such cYn•er.+ge exceed that amount of coverage required to pay the sums secured by this Mortgage. i j The insurance c•amer pro~•iding the insurmr+• shall Iw• ch~~sen by Kurruwer subje•c•t to apprm•al by I.c•nd+•r; pru~•idecl, that such appru~•ai shall not be unre.-+s+mably withheld. All premiums un insurance twlicic~ shall 1,+• paid in the manner pruvid+d under paragrph L herec,f or, if not paid in such manner, by lic?rn,wer makint; p:+yment. when due, din•c•tl~- to the insuranc+• carrier. p~ All insurance policies and renewals thereof shall be in form accept:+ble G, Lenderand shall include a standard murtgageclausein favorof I and in form acceptable to Ixnder. Ixndershall base thc• right to hold the l?ulicies and renewals thereof, and Burrower shall promptly furnish to c.ender all renewal notices and all receipts of paid premiums. In the event of loss, (iurn,wer shall Kive prompt notice to the insurance carrier and Lender. Lender may make pnx?f of loss if not mad+• prompth• M• Burrower. 1 Unless Ixnder and F3c?rn,wer otherwise agree in writing, insurance prcxeeds shall be applied to restoration or repair of the Property damaged, provided such reaG?ration or repair is ec•unomically feasible and the s+rurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Murtgagewould be impaired, the insurance proceedsahall beapplied to the sums secured by this Mortgage, with th+• excess, if :+ny, paid to li+?rrower. Itthe Property is abandoned by Borrower, or if Borrower fails to respond to Ixnder within at1 days fr+,m the dale notice is mailed by (,ender to Borrower that the insurance carver offers to settle a claim for insurance benefits, Lender is authurizcd to colk•+•t and apph• the insurance pn?c•ec•ds at Lender's option either to restoration or repair of the Property or the sums secured by this MortK:+Ke Unless Ixnder and Borrower otherwise agree in writing, any such application of pnx•ceds to principal shall nut extend or postpone thedue date of the monthly installmentsg referred to in paragraphs 1 and l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Fender, all right, title and interest +,f Borrower 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 pats to !.ender to the extent of the sums secured by this :Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property: Lcaaeholda: Condominuma: Planned Unit Developments. fiorrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterior.+tion of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, It+?rrower shall perform all of Flc,rn,wer's obligations under the dec•laritiun or co~•enants creatingor governing the condominium ur planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. !f a condominium or planned unit dc•~•elopment rider is excruted by liurruwer :+nd rec•orded together with this Mortgage, the covenants and agreements of such rider shall bc• in+•nrpuratc•d into and shall amend and supplement thecovenants:+nd agreementsof this Mortgageas if the rider were a part hereof. 7. ProteMion of Lender's Security. If Burrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially aftecta Ixnder's interest in the Property, including. but not limited to, eminent domain, insolvency, code enforceme??t, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei a option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender a interest, including, but not limited b, 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 tc? maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender e ~ written agreement or applicable Law. Burrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Ixnder persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ~ Borrower secured by this Mortgage. Unless Borrower and !,ender agree to other terms of payment, such amounts shall be payable upon notice from Ixnder 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 unlesq 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 Ixnder to incur any expense or take any action hereunder. t,o [1An t;L n