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HomeMy WebLinkAbout0512 _ Borrower and Lender covenant and agree as follows: 1. Paytnent of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness vvidPnced 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. iltnda torTaxee and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid +n full, a sum (herein "Funds")equal toone- twelfth ofthe 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 installments for hazard insurance, plus one•twelfth ofyearty premium installments for mortgage insurance, ifany, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of 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. Lender may not charge for eo holding and applying the Funds,' analyzing acid amount, or verifying and rnmpiling said asaeasments and bills, unless !.ender pays $orrower in terser on the F~rnds and applicable law permits !.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda 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 Funds and the purpose for which each debit to the Funds was made. The F ands 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 insW Ilmenta otFunds payable prior to the due dates of taxes. assessments, inswance 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to [ender 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 soma secured by this Mortgage, Lender shall promptly refund to Borrower 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 to the sale cf the Property or its acquisition by [.ender, any Funds held by i.ender at the timeof application as a credit against thesumssecured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherv?•ise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of arnounts payable to Lender 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. Borrowershall pay all !axes, :+sseesments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold payments ur ground rents, iCany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, w hen due, directly to the payee tht•reof. Iturmw•er 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 i :ender receipts rvidrnring such paymentsa. Borrower sha!! promptly discharge arn• lien which has priority m•er this Mortgage: provided, that Borrower shall not be required to discharge any sash lien su long as Itorruwer shall agree in writing to the payment of the obligationsecured by such lien in a manner acceptable to Lender, or shall in gtxxl faith contest such lien by, urdefend en forcrnu•nt of such lien in, legal proceedings which operate W prevent the enforcement of the lien nr fi,rfeitum of the Pn,ptvty or any part therrtilf. 5. Hazard I nsurance. Borrower shall keep the impmvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," :+nd such other hazards as Ixnder may require and in such amounts and forsuch I:eriods as Lender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage _ required to pay the sums secured by this Mortgage. The insurance carrier providing the insurant•1• sh:+ll 1,t• chosen by Borrower subjt•t•t to approval by Ixnder, pry,vidt•d, that such approval shall not be unseasonably withheld. Alt premiums on insur:+nre Ixdicit•s shah 1,1• paid in the m:uu+er prrn•idwl under paragraph'? hereof or, if not paid in such manner, by liorruwer making payment. when dut•. din•t•tly to the insurance r.+rrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish W ;,ender all renewal notices and all receipts of paid premiums. In the event of loss, Rorn,wer shall give prompt notice to the insurance carver and Lender_ Lender may make proof of loss if not made promptly by l;„rruwer. Unless Lender and Borrower otherwise agree in writing, insurance prl,retds shall be applied to restoration or repair of the Property damaged, provided such resG,ratiun or repair is et•onumically feasible and the strurity of this Mortgage is not hereby impaired. If such restoration or repair is not economically feasible or if the strurity of this Mortgage would be+mpaired, the insurance proceeds shall be applied to thesumssecured 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 an days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle s claim for insurance benefits, Lender is authorize(! to colltrt and :+pph• the insuranm pnx•t~ ds 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 proct•~•ds to principal shall not extend or postpone thedue date of the monthly installments 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 Ixnder, 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 s;+le or a~Ytu+sitiun shall pass to Lender to the extent of the sums secured by this 1ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments.l3orrowershallkeep the Property in good repair and slu+ii nut con~mii xw•aste ur pcrrrli! impairment or deterioration of the Property and shall comply with the provisions of any )ease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the det•lar:+tiun or covenants creatingor 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 devekpment nder Is exet•uted by &,rrower and recorded together with this Mortgage, the covenants and ::;;regiments of such ri•iPr sh:+ll by incurlw~rated into and shall amend and suppien+rnt thecocenants and agreements of this !1lorigage as ifthe rider were a part hereof. 7. Protection 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 Ixnder's interest in the Properly, 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 sums and take such action as is necessary to protect bender'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 such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Ixnder e written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph Z hereof. 4 Any amounts disbursed by Lender perauant to this paragraph 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 Lender 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 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. _ ~~>~K 326 PAS 510 . .