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HomeMy WebLinkAbout0510 1 iiT Borrower and Lender rnvenant 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 Future Advances secures) by this Mortgage. 2. Funds !or Tattea and Insurance. Subject to applicable law or to a written waiver by Lender, 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 "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 ofyearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments for morigageinsurance, ifany, - all as reasonably estimated initially and from time to tirrae by Lender 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, asaesamenta, inauram~e premiums and ground yenta. Lender 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 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 Pltnds. Lender shall give to $orrower, 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 hiorigage. If the amount of the Funds held by !.ender, together with the future monthly installments of Fundspayable 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 !.ender 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 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 b~• Lender, Lender shall apply, no laterthan immediately prior to the sale of the Property or its acq uisition by Lender, any Funds held by !.ender at the lime 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 bender 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 principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, :assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay menu or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to !.ender all notices of amounts due under this paragraph, and in the event borrower shall make payment directly, Borrower shall promptly turnish.to Ixnder receipts evidencing such payment,4- Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that lionrower shall not be required to discharge any such lien so tong as ItC,rrower shall agree in writing to the payment of theobhgation secured by such lien in a manner acceptable to Ixnder, orshaU in good faith contest such lien by, ordefend enfont•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereuf- 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tve, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Ixnder may require; provided, that Lender shall nut 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 insur.ancer shall he chosen by born,w•er subjt•c•t to approval by Lender-, provided, that such approval shall not be unreasonably withheld. All premiums un insurance Iwlicie. shall Ix• paid in the mamaer pnrvidc•ci under paragraph hereof or, if not paid in such manner, by Borrower making payment, when due, din•cth• to the insurance rarrier- Allinsurance policies and renewals thereof shall be in form acceptable to Lenderand shall include a standard mortgagedause in tavorof and in form acceptable to !.ender. Ixndershall have the right G? hold the policies and renewals thereof, and Borrower shall promptly furnish to Ixnder all renewal notices and all receiptsS of paid premiums- In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender- Ixnder may make proof of loss if not made promptly by Burrower- • Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall t,e applied to restoration or repair of the Property damaged, pro~~ded such restoration ur repair is ec•unomically feasible and the security of this Mortgage is not thereby 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 co the auma aea:ura~' by dais ;Lortgage, x:t!: ti:: cxc:•~:s, if ,any. mid t~ Rorrnwer. If the Property is abandoned by Borrower, or if Borrower fail8 to respond to Lender within 3(1 days from the date notice is mailed by bender 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 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 otproceeds 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 to hereof the Property is acquired by !.ender, 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 ac•quasition shall pass to !.ender 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. Borrowershall keep the Property in good repair and shall not commit waste or permit impai*ment 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, Korrower shall perform all of Borrower's obligations under the dec•lar:ation 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 rnvenanta and agreementsg of such rider shall be inc•orpunated into :and shall amend and supplement thecuvenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails W 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 a option,upon notice to Borrower may make such appearances, disburse such auma 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 such insurance in effect until ouch time as the requirement for such insurance terminates in accordance with Borrower a and !.ender a 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 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 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 !.ender to incur any expense or take any action hereunder. ~~,s~x 327 P~~F 509 _ - ~ - - ~t _