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HomeMy WebLinkAbout1546 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 ae provided in the Note, and the principal of and intereaton any Future Advances secured by this Mortgage. 2. Ftitnds for Taxes and Insurance. Subject k+ applicable law or to a written waiver by lxnder, Borrower shalt pay to lxnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, r+ sum (herein "Funds")equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents r+n the Property, if any, plus one• twelRh of yearly premium installments for hazard insuranrn, plus one-twelfth otyearly premium lost:+Ilments for morlg:+ge insurance, if any, Il as reasonably estimated initially and from time to tine by 1 xnder 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 gu:+ranteed by a Federal or State agency !including [.ender if (.ender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. (.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless (.ender pays Borrower interest on the Funds++nd applicable law permits Lender W make such a charge. Borrower and (.ender 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 tv be paid, (.ender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borroaer, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the F unds w:+s made. The Funds :+re 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 duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums :+nd ground rents as they fall due, such excess shall be, at Borrower's option, either promptly rep:+id to Burrower or credited to Borrower on monthly installments of Fonda. It the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Fender any :+mount necessary to make up the deficiency within :!0 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 Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, !.ender shall apply, no later than immediately prior - 6..+.....~.._...,..c...,.7..1...td1...t.,..d.,_..•++...+:....,..fa....IL...?:...,,aaa.,....1:+,. o,,;nc+rt.oc...n~ca-n.nv1 by this Mortgage. 3. Application of Payments. Unless applic:+ble law provides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the princip:+l of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, asascmenls and other charKcs, fines and impositions attributable to the Property which cosy attain a priorih• over this Mortgage, and leasehold payments or I;mund rent., if any, in the manner provided under paragraph 2 hereof or, if nui paid iu sua•h un++u+rr, L~• 1' +----F ~ u•h r;rc: •ryl:• the •:r:rlhen•++f. 1;•:rr•~•a•e.rgh~.ll hr~.n,rrly fi.rnichio (!Porter •ui-++ih rr iliiiniu •ii~mi',ia, dui•, p• - - - all notices of amounts due under this par.+{,rraph, and in the ea•ent Rorn+wer shall mak+• payment din•c•tly. Burnncer shall promptly furnish to Lender receipts evidencing such payments. Borrower shall pn,mptly disr•har{:r• any lien which has priurih• oa•er this Mortgage; proaided, that lorrower shall nut he rerluir+•rl to discharge any such liens++ton{; x It++rn+wer shall agr+r in writing to t he p:+~•ment of theubligxtion secured by .uch lien in a manner acceptable to Le•nder• or shall in g+Nxl G+ith confect wct+ lien by• urdrfend enfun•enu•nt of wch lien in• legal pnxe+>dings which operate to prevent the enfumenu•nt of the lien ur furfeitun• of the 1'n+{x•rh• ur am• part therrr+f. 5. Hazard Insurance. Borrower shall k+•+•p the impn+vements now existing ur hereafter erected on the Properly insured against loss by fire, hazards included within the term "extend+•d cuycr.+ge," and such other hazards as Lender may require and in such amounts and forsuch pericxls as Iw>nder may rectuire; proyidc•r1, that lender shall nut n•ctuire that the amount of such coa•erage excc>+d that amount of coverage n•duired to pay the sums src•und ba• this 1lurtgage. The insurance carrier pruy+ding the insur:uu•c• shall !x• chosen by B++rn+acer suhjrr•t to approval b}• Lender; pruyidr•+1, that wch approaal shall not be unn•as++nably withheld. x111 premiums oa inwrance p++li+•i+•s shall Ix• p:+id in the manner procidwl under paragr,+ph'L hercv+fur, if nut paid in wch manner, by li++rruwer m:+king paynu•nt- when due. din•c•th• t++ the inwr:mce carrier. All insurance policies and n•newals then•uf shall tx• in form acr•eptahle to 1 ender and shall include a standard mortgageclausein favor of and in form acceptable b+Lender. l endershall hays, the right to hold thc• {++dicies and n•newals thereof, and Burrower shall promptly furnish to i ender all renewal notices and all receipts of paid premiums. In the c•ec•ut of loss, Borrower shall give prompt notice G+ the insurance carrier and Lender. Lender may make prcM+f of loss if nut mad+• prompth• by Borrower. Unless Lender and Fic+rn+wer utheraa•ise agre+• in writinK, insuranc•r• prcx•+•r•ds shall Ix• applied to restoration or repair of the Property ~ damaged, proa~ded such restoration ur repair is c-c•unumicallr feasible and the sr•c•urih• of this Mortgage is not thereby impaired. If such i n•storatior. or repair is not econ~mi~•ally f+•asihl+• ur if thf• sr•r•urity of this Mortgage would tx• impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. with the esces- if an>•. paid to Burrower. if the Property is abandoned by Burrower- or if Borrower fails to respond to !.ender within all days from the date notice is mailed by l ender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefits, lender is authorizc•ri to collw•t and apph• the insurance pr++cae•ds at lender's option either to restoration or repair of the j Property or the sums secured by this Mortgage. 1 Unless Lender and Borrower otherwise agrc•r• rn w•riting.:+ny such application of prrx•eeds to principal shall not extend or pcs.pone thedue date of the monthh• installments referred to in paragraphs I and 'l hereof ur change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acywsitiun stall pass to Lender to the extent of the sums secured by this + ~lurtgage immediately prior to such sale or acquisition. 1 6. Preservation and Naintenanceof Property;l.+•++sr•holds; Condominums; Planned Unit Developments. Borrower shall keep 1 the Property in good repair and shall nut commit wast+• ur )x•rmil imp:+irment +.r detenon+hon of the Property and shall comply w•+th the provisions of any lease if this Murtg:+ge is un a leasehold. If this Mortgage is un a unit in a n+nduminium or a planned unit development, Borrower shall perform all of liurn+wer's obligations under the d+•cdaration +.r cua•en:+nts cn•atingor goa•ernrng the condominium ur planned • unit development, the hylaw•s and regulations of th+• condominium ur plannc•e) unit deaelopment, :+nd constituent drtcumentg. If a +•undominium or planned unit dr>a-elupmr•nt rider is r•x+rutcd by It++rruw+•r and nrnrded tu{;ether with this Mortgage, the covenants and +greementsufwchridershalllx•inc•urpuratcdint~and.hallamendandsupplenu•ntthecoa-enantsandagreementsufthisMortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Korrower fails U+ perform the cua•enantg and agreements contained in this Mortgage, or if any action ur proceeding is commenced which materially affects bender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements ur prr+ceedings invoh•ing a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action as 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 ~ yuch insurance in effect until ouch time as the requirement for such insurance terminates in accordance with Borrower's and Lendei s 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 (,ender persuant tr+ this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Burrower and !.ender agree to other terms ut payment, such amounts shall be payable upon notice from !.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time un out4tanding 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. } ~1,~~323 P~~E~537