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HomeMy WebLinkAbout0754 - _ ~ ~ ~1 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 Fltture Advances secured by this Mortgage. 2. Ftitnde for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder, Borrower shall pay to Ixnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "I•tirnds") tqual to one- 1 twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one, twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from limp to tine by bender 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 Lender if Lender is such an institution;. Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rests bender may not charge for so 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 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 blinds. !.ender 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 Lender, together with the future monthly installments of Funds payableprior to the duedates ottaxes, 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 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 not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender any amoun! necessary to make up the deficiency within 30 days from the date notice is mailed by Lender W Borrower requesting payment thereof. Upon payment in full of ail sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. !fonder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, Lender shall apply, no later than immediately prior to the sale of the Property orits acquisition by !.ender, any Funds held by Ixnderat the timeof application as a credit against the sums secured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise, all payments received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender Crst in payment of amounts payable to i.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. 4. Charges; Liens. Borrowershall pay all taxes, assesement.S and other charges, ~ nes and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, dire<tly to the payt~t• thereof. Rorrow•er shall promptly furnish to Lender :111 notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to ~ ~•ader recelpt.c PVIdPTMhq RUl`h p.9YmentS- IturrUwer shall promptly discharge any lien which has priority o~•er this blartgage; provided, that Borrower shall not be required to discharge any such lien so long as Iorrower shalt agree in writing to the payment of tht•obligation secured by such lien in a manner acceptable to Ixndt•r, or shall in gt+ud faith contt:a such lien by, or defend enfonrment of such lien in, hgal proceedings which operate to prevent the enforcement of the lien or forfeilun• of the Property or any part thert~,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 co~•Prage,"and such other hazards as Ixnder may require and in such amounts and forsuch periods :rs !.ender may require; proridetl, that Ixnder shall not reltuire that the amount of sut•h rncenlKe excites that amount of coverage required to pay the sums secured by this MurtgaKt'- The insurance carrier pro~•idinK the insurance shalt bt• chosen by Borrma•ersubjt•t•t fx+apprural by Ixnder: provided, that such approval shall not be unreasonably withheld. x111 premiums un insur:?nce IN+licit•s shall t,t• paid in the manner pro~•ided under paragraph 2 hereof or, if not paid in such manner, by Forrower makinK payment. when due, din•t•tl~~ to the insurance carrier. All insurance policies and renewals thereof shall Ile in form acceptable to Lender and shall include a standard mortgage clause in favor of and in ~ r;r_1 acceptable to !.ender. Ixndershatl ha~•e the right to hold the tN+licies and renewals thereof, and KorroKershall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. Born,wer shall gi~•e prompt notice to the insurance carrier and Lender. [.ender may make pralf of loss if not made promath• by Rurroveer- lJnless [.ender and forrower otherwise agree in writinK, insurance pn,ceeds shall tx• applied to restoration or repair of the Property dama¢ed, provided such restoration or repair is et•onumically feasible and the security of this btortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would t,e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage. Kith the excess. if am•, paid to Borrower, If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within aQ days from the date notice is mailed by Ixnder G, Korn,wer that the insurance carrier offers to settle a claim for insurance benefits, bender is authorized to colh•t•t and apph• the insurance pn+ctrds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless (.ender and Borrower otherwise agree in writinK, any such application of pn,teeds to principal shall notextend or postponethedue date of the monthly installments referred G, in paragraphs t and `l hertof ur t•hange rho amount ~rf sut•h inst<~Ilments. If under paragraph 18 hereof the Property is acquired by !.ender, all right. title anti intert•z :,f Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s;lle or acquisition shall pass d, Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property: Leaseholds; C'ondonlinums; Planned Unit Uevelopmenta. Borrowershall keep the Property in good repair and shall not commit waste ur 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, Borrower shall perform all of Iiorn,wer's obligations under the derlaratiun ++r rnvenants cn•atirlKor go~•erninK the condominium or planned unit development, the by-laws and regulations of the condt>minium or planned unit development, and constituent documents- If a condominium or planned unit development rider is executed by Borrower and ret•urded together with this Mortgage, the covenants and agreements of such rider shall tx in. orp,r:ttt•d int+r and shall :!mend :Ind supplement theco~•enants and aKre•ements of this Mortgageasifthe 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 ie commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, s insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender 8 option,upon f notice to Barrozver may make such appearances, disburse such soma and k+ke such action ss is necessary Lo protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's fens and entry upon the-Property to make repairs. If LenderYequired mortgage insurance ae 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 fur such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable Law. Borrower shall pay the amount of a!I mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by !,ender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender 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 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 I.epder to incur any expense or take any action hereunder. aooK PacE TJZ