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HomeMy WebLinkAbout1555 Harrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower sl?all 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 Tazes and (neurones. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to (.ender 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 piths yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• w•elfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, :ell as reasonably estimated initially and from time to tine by I.enderon 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 ~ inc+uding [.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and around 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 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 Funds showing credits and debits to the F unda 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 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 as they fall due, such excess shall be, at Bo+YOwei s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by bender 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 Bonrower 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 r+~ the w?le rtf the Property orits acquisition by (.ender, 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 taw provides otherwise, all payments received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by bender first in payment of amounts payable to (.ender 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. •t. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which rr, a attain a priority over this Mortgage, and leasehold paymen is ar ground rents, if any, in the manner provided under paragraph 2 hereof or, if r*_~t paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Rorrowershall promptly furnish to IRnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Horn+wer shah promptly furnish to I .ender receipts evidencing such payments. Btrrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Kurrower shall not be required to discharge any such lien so long:+.c Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to lxnder, or shall in gcxxl faith cunt?•st wch lien by, ordefend enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Pn+tx•rh• or am part then•?+f. Hazard Insurance. Borrower shall keep the improvements now existing ar hereafterereMed on the Property insured against loss by fire. hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shalLnot require that the amount of such n+verage exceed that amount of coverage r+•rtuired to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall iw ?•hosen by Itorn+wer suhjtY•t to approves b}• I.c•nder; pnn•ided, that such approval .hall not be unreasonably withheld. All premiums un insurance policies shall IK• paid in the manner pnn•id?•?1 under par.?graph'~ hereof or, if n++t paid in such manner, b; Borrower making payment, when du?>, dir?•?•tl~• to the insurance carrier. All insurance policies and renewals thereof shall tee in form acceptable to l.enderand shall include a standard mortgageclause in favor of s nd in form acceptable to Ixnder_ (.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to +,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carver and (.ender. [.ender may make proof of loss if not made prompth• by Borrower. (finless i.ender and Borrower otherwise agree in writing, insurance proceeds shall tee applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this r4iortgage is notihereby impaired. if such restoration or repair is not 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 &+rrower. if the Property is abandoned by Borrower, or if Borrower fails to re,pond to [.ender within a0 days from the date notice is mailed by Lender to Borrower that the insurance carver offers to settle a claim for insurance benefits, Fender is authorized to collcY•t and apply the insurance proceeds 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 to in paragraphs 1 and'( here?+f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by (.ender, all right, title and interest r+f Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Properly prior to the sale or acquisition shall pass to [.ender to the extent of the suers secured by this ~turtgage 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 waste or 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 on a unit in a condominium or a planned unit development, Horrower shall perform all of Horrowcr's obligations under the declaration nr covenants cn atingor governinK the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~nndominium or planned unit development rider is exc>~•uted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall Ire incorp+m+ted into and :hall amend and supplement the covenants and agreements of this Mortgageas if the rider were a part hereof. 7. ProteMion of Lender's Security.'If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [.ender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving 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 ae 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 ouch insurance in effect unfit such time as the requirement for such insurance terminates in accordance with Borrower's and Lendei a µ-ritten 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 I.endet perauant to this paragraph with interest thereon, shall become additional indebtedness of Horrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of 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 b 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 perrnisaibte under applicable law. NothiTig contained in this paragraph 7, shall require i.ender to incur any expense or take any action hereunder. ~i1~1K "R 323 P~~E 1546