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HomeMy WebLinkAbout0779 , , ~ ~ ~ a ~ harrower and Lender covenant and agrcr ns folbws: 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. Fonds torTaxesand Insurance. Subject to applicable law or to a written waiver by Lender, Borrowershal! pay tol.enderon 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 of the yearly taxes and assessments which mny 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 otyearly premium installments for mortgage insurance, ifany, all as reasonably estimated initially and from time to tit:.e by Lender on the basin 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 rents. Lender may not charge tar so holding and applying the Funds, analyzing said account, or verifying and compiling said aesesamenes and bills. unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge.l3orrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to $orrower, and unless such agreement is made or applicable law requires such interest to be paid, Leader shat( nat be required to pay Borravrer 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda 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 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 Lender shall not be sufficient to pay taxes, asaesamenta, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 3odays 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 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 of the Property or its acquisition by Lender, any Funds hetd by tender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender 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 Z 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, assessments and other charges, fines 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 hereof or, if not paid in such manner, by Bon; over making payment, when due, directly to the payee thereof Borrower shalt promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to i.rndrr receipts zvidencing such payments. Borrower steal! promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so long :L~ Borrower shah agree in writing to the payn+rnt of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien hy, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thern,t 5. Hazard lnsurance. Borrower shall keep the improvements now existing or hereafter ereMed on the Property insured against lose 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 [.ender 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 insurance shall he chosen by Burrower suhje+•t to approval by 1•endi•r, provided, that such approval shall not be unreasonably withheld. All pn•miums on lnsurance• p+dicies shall t,e paid in the manner pn,vided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direct!}• to the insurance carrier- - A1linsurance policies and renewals thereof shall be in form acceptably 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 to i.ender all renewal notices and all receipts of paid premiums- In the event of loss,. Born,wer steal! give prompt notice to the insurance carrier and Lender. bender may make proof of loss it not made promptly by Borrower- Unlesa Lender and Borrower otherwise agree in writing, insuranm proceeds shall be applied to restoration or repair of the Property damaged, provides aueh resi~.ration :sr repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is no: 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 Borrower. If the Property is abandoned by Borrower, or it Borrower tails to - respond to Lender within :i0 days from the date notice is mailed by (.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, (.ender is authorized to collect and apply the insurance proceeds at Lenders 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 2l,ereuf +,r change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, ail right, title and interest of 8orrow•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass t<, Lender to the extent of the sums.secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrawerahall 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 MorigaAe is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration 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 development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall he incorporated into and shall amend and supplement the covenants and agreements of this hlortgageasifthe 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 Lender'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 each appearances, disburse such sums and take such action sa 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. 1f 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 effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders 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 Lender perauant to this paragraph 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 Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable fiom time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary W applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph shall require Lender to incur any expense or take any action hereunder. BOOK N~?V PAGE ~ i