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HomeMy WebLinkAbout2168 ~ ~ ~ ~ , 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 forTexes and Insurance. Subject to applicable law or to a written waiver by Ixnder, BoROwer 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 "Funds")equal to one twelfth ottee yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one twel[th of yearly premium installments for hazard insurance, plus onetwelfth ofyearly premium installments for mortgage insurance, if nny, all as reasonably estimated initially and from time to tine 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 Ixnder if [.ender is such an institution). Ixnder-shall apply the Funds 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 (.ender to make such a rharge. 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, (.ender shall not be required to pay Borrower any interest or earnings on the Fltnds. Ixnder 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 hti+nde was made, The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by lxnder, together with the future monthly installments of F ands payable prior to the duedates 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 Bo+Tawer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fat! due, Borrower shall pay to (.ender any amount necessary to make up the deficiency within 30 days foam the dale notice is mailed by Ixnder 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 Ixnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Ixnder, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Ixnder, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application o[ Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs I and 2 hereof shall be applied by Ixnder first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the priincipal 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, tints and impositions attributable to the Property which may attainapriorityoverthisMortKage,andleaseholdpaymentsurgn,undrents•ifany,inthemannerprovidedunderparagraph2hereofor, if nut paid in such manner, by Borrower m:+king p:»•ment• when due, directly to the payee, then~,f. Borr+,w•ershsll promptly furnish to Ixnder all notices of amounts due under this par:+Kraph• :rod in the event Itr,rruwer shall make payment directly. Borrower shall promptly furnish to (,ender receipts evidencing such payments. Burrower shall promptly discharKe sm• lien which has priority over this MurtgsKe; provided, that _ Borrower shall not berequired to discharge any such lien su IonK as l;„rruwershall agree in writing to the, p:+yment of theublixation secured by such lien in a manner acceptable to Lender, ur shall in g+N,el faith contest such lien by, urdefend enfun•euu•nt of wch lien in.IeKal proceedings which operate to prevent the enfurtrment of the lien or forfeitun• of the 1'rope•rt~• or :+m• part thtvt~:f. 5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereafter erected on the Property insured against loss by tire. hazards included within the term "exte•ndecl coverage,"and such other hazards ss (,ender may require and in such .+mounts and for such periods as Lender may require: provided, that Iw•nder shall nut require the+t the amount of such evwer.+Ke exc•red that amount of coverage required to pay the sums secured by this Mortgage. The insurance c•arric•r providing the inwranre• shall 1,+• chosen by Burrower subje•e•t t.. approval h~• Lender; provided(, that such approval shall nut be unress+,nsbly withheld. All pn•miun+s un insur:nce policie. shall Ix• paid in the manner pnn•idw.l under paragrph •L herer,for. if not paid in such manner, b~• li,rrruw•er m:+king p:n-me•nt. when due, dir+•e•th• to the insurnce c:+rrder. All insurance policies and renewals thereof shall t,e in form ac•ceptahle to 1.+•nder sod shs!! includes stand:+nl mortgageclause in favor of and in formaeceptabl~~otxnder.1.endershallh:+vr•theriy;httohuldthriNdicit•sandren+•walsth+•rt•+~f.andRorrowershallpromptlyfurnishto - :.ender alt renewal notices and all receipts of paid premiums. In the event of loss, Rorn,wer shall give prompt notice to the insurance carrier and Ixnder. Lender may make prrN,f of loss if not made promptly by Borrower- Unless Ixnder and BoRUwer otherwise aKre•e• in writing, insurance pr~x•eeds shall tx• applied to restoration or repair of the Property damaged, provided such resUuatiun or repair is economically feasible and the ururity of this Mortgage is not thereby impaired. If such restoration or repair is not economic:+Ily feasibly ur if the, security of this MortK:+Kewuuld be impaired, the insurance proceeds shall beapplied to the sums secured by this MurtKaKe, with th+• excess, if any. paid to Itom,wer. Ifthe E'ruperiy is abandoned by Burrower, or if Burrower fails io respond to [.ender within all days farm the date notin• is mailed by l.e•nder to Burrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authoriznl to calle•e•t and apply the, insurance pn,e•evds at Lender's option either to restoration or repair of the Property or the sums secured by this MurtKaKe. Unless Ixnder and Borrower otherwise agree in writing, any such :+pplicatiun of pre,e•ceds to principal shall not extend or pstpone the due date of the monthly installments refeRecl G, in paragraphs 1 and ~ hc•reuf or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all riKht, title and interest of Korn,wer in and to am• insuranm policies and in and to the proceeds thereof resulting from damage to Property prior to thc• sale ur :+cyu+sition shall pass G? Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and :Maintenance of Property; Ixuseholds; ('ondominums; Planned C'nit Uevelopmenta. Burrower shall keep the Property in good repair and sh:+ll not commit wane or permit impairment ur deteriorstion of the Property and shall comply with the provisions of any lease if this MurtKaKe is on a leasehold. (f this MurtKaKe is .•n a unit in a n,ndominium or a planned unit development, Borrower shall perform all of Iic,ROwer's obligations under the dee•lar.+tiun ur covenants cn•atingor KovermnK the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is exee•uteel by IioRUwt•r and recorded together with this Mortgage, the covenants and agreements of such rider shall t,r incurlmr-.+ted into and shall amend and supplenu•nt thec•ove•nants and agn•e•ments of this Mortgage as if the rider were a part hercY,f. 7. ProteMion of Lender's Security. If Borrower fails to perform the rnvenante and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder'8 interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or aRangements or proceedings involving a bankrupt or decedent, then Ixnder at Ixnder's option,upon notice to Borrower may make such appearances, disburse such sums ar+d take such action as is necessary to protect Lender's interest, including, but not limited ta, 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. BoROwer 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 Ixnder a written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. An amounts disbursed b Lender ~ y y perauant u, this paragraph with interest thereon, shall become additional indebtedness of BoROwer secured by this Mortgage. Unless Borrower and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from Ixnder W 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 T, shall require Ixnder to incur any expense or take any action hereunder. l~R soar 3~ ~acE21 f 1