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HomeMy WebLinkAbout0530 Borrower and Lender covenant and agree ae follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due she principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and lnaurance. 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 ate payable under the Note, until the Note ie paid in full, a sum (herein "Funds")equal toone- twelfth ottheyearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the Property, if any, plusone- ;welfth ofyearly premium installments for hazard insurance, plus one•twelflh of yearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from time to time by Ixr+der 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 rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or ventying and compiling said asseasmen is and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Ixnder 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 iltnds. 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 Funds are pledged as additional security for the sums secured by this hortgage. If the amount of the Funds held by Fender, together with the future monthly installments otFunds payable prior to the duedates 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. I[ 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 30daya from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, [.ender shall promptly refund to Borrower any funds held by Ixnder. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Ixnder shall apply, no later than immediately prior to the sale of the Property or its acquisition by Ixnder, any Funds held by Lender at the timeof application as a credit against thesumasecured 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 Ixnder first in payment of amounts payable to mender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. Charges; Liana. Borrowershall pay all taxes, :~ssessmrnts 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 hereofor, if not paid in such manner, by Borrower making payment, N•hrn due, directly to the payee thereof. BormwershaU promptly furnish to Lender xll notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Burrower shall promptly furnish to bender receipts evidencing such payments. BoROwrr shall promptly discharge any lien which has priority over this Mortgage; provided, that fiorrower shall not be required to discharge am such lien sn long as Ii+,RUN•er sh:+11 agree in writin g to the payment of the obligation secured by such lien in a manner acceptable to Lender, ur shall in gcx,d faith conttst such lien b}•, ordc•feud enf?,nrment ofsuch lien in, legal proceedings which operate to present the enfi,rcemeut of the lien nr forfeiture of the I'ru{,c•rty ur am• part thercuf. Hazard Insurance, Borrower shall keep the improvements now existing or hereafter erected un the Property insured against loss by fire, hazards included within the term "extruded coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as Ixnder may require; pnwidrd, that Ixnder shall not require that the amouut of such n,ver•.+ge exceed that amount of coverage requirtd to pay the sums sec•urecl by this Mortgage. The insur,+ntr carrier pn,vidirg the• insurance shall tx• chosen by Born,wer subjtc•t to approval by Lender; pruvidc•d, that such approval shall not be ones:?si,nab:y withheld. All pn•miums un insurance tx,lii•ic:. shall Ix• paid in the manner pn,vid+d under paragraphs herrc?f or, if not paid in such manner. by Bc,ROwrr m:+king payment, when due, dinr•tly to the• insurance carrier. All insurance policies and reneN•als thereof shall be in form acceptable G, Ixnderand shall include a standard mortgagedause in favorof and in form acceptable to Ixnder. Ixndershall have theright to hold the policies and reneN•als thereof, and Rorrawershall promptly furnish to i,ender alt renewal notices and all receipts of paid premiums. In the event of Inns, Rorn,wer shall give prompt not_irn to the insurance carrier and (.ender. Ixnder may make pnwf of loss if nut made promptly by Burrower. Unless Ixnder and BoRUwer otherwise agree in writing, insurance proc•+•c•ds shall be• applied to restoration o: repair of the Property damaged, provided such rest,ration or repair is e•c•onomically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible nr if the security of this Mortgage would he impaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, N•rth the excess, if any, paru to B„RUN'er. I f tLr Fru}ra-riy" is dbar..a.:.;,Fr3 by SoRC:vcr, or if 3.^.rroser fails ie respond to Lender within 30 days from the date notice is mailed by Lender to Burrower that the insurance carrier offers to settle a claim for insurance benefits, bender is authorized to cultc•c•t and apply the insurance prrxetds at lxnciei s optioi+ either to restoration or repair of the Property or the sums secured by this MortgaKe. , Unless Lender and Borrower otherwise agrrc• in writing. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments rrfrRed to in paragraphs 1 and s hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, xll right, title and interest of B„rmwer in and to any insurance policies and in and to lh+, pri,ctixie thereof resulting from damage to I?ruperty prior to the sate ur ac•gwsition sliall pass to Ixnder to the extent of the sums secured by this tilortgage immediately prior to such sale or acquisition. 6. Preaervatiun and ~iainienance trf I'ropcrty; I.c•asrholds;Condominums; I'lannPr! ()nit Developments. Borrowerahall keep the Property in good repair and shalt not commit waste ur permit impairment ur 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, 1;urrower shall perform all of I3oROwer's obligations under the dec-lar,+tion ur covenants creatint; or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condomiuium or planned unit development rider is exc•c•uted by !ii?ROwrr and recorded together with this Mortgage, the covenants and agreements of such rider shall lx• incorpnratid info :rod shall amend and supplement the covenants and agreementsof this Mortgage as ifthe rider were a part hertrof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action nr 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 Ixnder at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender a 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's written agreement or applicable I,aw, Borrower shall pay the amount c?f ali mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any arnuunta disbursed by Ixnder perauant to this paragraph with interewt thereon, shall become additional indebtedness of Borrower secured, by this Mortgage. Unless BoROwer and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from Ixnder to Burrower 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 shall require [.ender to incur any expense or take any action hereunder. tiF(327 PAGE 5 3f?~lK ~ 29