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HomeMy WebLinkAbout0796 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 pn,vided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable I:+w or to a written waiver by !.ender, Borrower shall pay to lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum Therein "Funds"? equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the 1'ruperty, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus onNtwelfth of yearly premium inst:+ll+nents for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The )•l+nda 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 [.ender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. !.ender 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 s+nd applicable law permits !.ender to make such a charge. Borrower and !.ender 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, !.ender shall not be required to pay Borrower any interest or earnings on the Funds. !,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 us additional security for the sums secured by this Mortgage. if the amount of the T•Lnda held by !.ender, together with the future monthly installments of F ands payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall sacred 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 Fender 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 :10 days from the date notice is mailed by Lender to Korrower requesting payment thereof. Upon payment in full of ail sums secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by !.ender. 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 held by Lender 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 !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to bender 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, assf•ssments:+nd othercharges, fines and impositions attributable to the Property which may attain a priority overthis bturtgage, and leasehold payments orgmund rents, if any, in the manner provided under paragraph `l hereofor, if not paid in such manner, by Burrower making payment, when due, directly b, the paye•f• thereof. Kurn,wer shall promptly furnish to Lender all notices of amounts due under this p:+ragr-.+ph. soil in the event Burrower shall make payment dinrtly, Itormwer shall promptly furnish to Lender receipts evidencing such payments. tiorruwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Korrower shall nut be rfyuired to discharge any such lien su lung as lic,rruwer shall agrfY• in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixndf•r, ur shrill in gc,od faith contest such lien by: ordefend enfonrment of such lien in, legal pr<,ceedings ~•hich operate to prevent the fnforcement of the lien or forfeiture of the Pr+.{,f•rty or any part then•uf. i. Hazard Insurance. Burrower shall kfrp the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards includfd within the term "cxtendfd f•over.+ge," and such other hazards as Lender may rf•c{uire and in such amounts and for such pf•riods as Lender may require; providfd, that Lender shall nut n•ctuire that the amount of such nrverage excf•fd that amount of coverage required to pay the sums sfc•urecl by this Mortgage. The insurance e:+mer providing ?he insur:mce shall iK• chosen by K..rmwf•r subjfrt to apprucat by I.f•nder, pr+n•idf•cl, that such approval shall not be unreasunabh• withheld. All premiums on insurance policies .hall I,f• paid in thf• manner providfvl wulf•r par:+graph'L henv,f ur, if not paid in such manner, by li~rrruwer making paymf•nt, when due, dinrth• to the insurance camf•r. All insurance policies and renewals thereof shall be in form accfptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the right to hold the Iwlicie.. and renewals thertrif, and Rum»ver shall promptly furnish to ,lender all renewal notices and all rfceipts of paid premiums. In the event of loss, Borr.,w-er shall give prompt notice to the insurance carrier and !.ender- bender may make pra,f of loss if nut made pn,mpth• b}- ti,irruwer. Unless (.ender and 13orn,wer otherwise agrf•f• in writing, insurance pruf•eeds sh:+ll be applied to restoration or repair of the Property ,lamaged, provided such restoration ..r repair is f•c•onomicalh• feasible :md the sf•c•urity of this ;Mortgage is not thereby impaired. If such resk,ration or repair is not economically feasiblf• or if the sf•c•urity of this Mortgage would I,f• impaired, the insurance prcxeedsshall beapplied t.. the sums secured by this Mortgage. with thf• excess, if am, paid to li..rrower. I f the I'rupf•rty is abandoned by Borrower, or if &,rrower fails k, respond to (.ender within a0 days from the date notice is mailf•d by I.e•nder to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Lender is authurizfri to collf•f-t and apph• the insurance pnK•f•f•ds a. Lender's option either to restoration or repair of the Property or the sums secured by this Murtg:+ge. , Unless [.ender and Borrower otherwise agn•f• in writing, any such application of prcx•ff•ds to principal shall nut extend or postpone thedue date of the monthly installments refPrrf•d to in par.fyraphs 1 and'! herfti.f or chance the amount of such installments- If under paragraph IS hereof the Property is acquirfYl by l.f•nder, all right, title and interest of Burrower in and tr. any insurance policies and in and to the proceeds therfrof resulting from damage to Property prior to the sale or af•yutsitiun shall pass G, Lender to the extent of the sums secured by this Jinrtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Lease .holds; ('ondominums; Planned !?nit Developments. Borrowershall keep the Property in ga,d repair and shall not commit waste ..r pf•rnut impairment ur deterior-,+tion of the Yr+,perty and shall comply with the provisions of any base if this Mortgage is nn a leasehold. If this Mortgage is on a unit in a condominium or a planned unit df velopment, Itorruwer shall perform all of l;„rruwer's obligations under the dec•laratiun ur covenants cnwtu+?; or governing the condominium or planned unit development, the by-laws and regulations of the condominium ur plannfcl unit development, and constituent documents. If a ' condominium or pla..nfd unit development rider is exf•c•utfcl by liorn,wer and rf•c•urdf•d together with this Mortgage, the covenants and .~Rreemenls of such rider shall I,c• incur{wratf•d into and sh:dl amend and supplement the coven:+ntsand agn•rmentsof this Mortgage as if the rider were a part hercc,f. Protection of Lender's Security. If Borrower fails to perform the r,venants 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, ,nsolvency, code enforcement, or arrangements or prcx•fedinga imoh•ing a bankrupt or decedent, then !.ender at Lender's option upon notice to Borrower may make each appearances, disburse such sums and take such action as 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 1liortgage, 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 Lendei s written agreement or applicable Iaw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof- - ~ Any amounts disbursed by Lender persuant to this par:graph 7, with intPrf•st thereon, shall become additional indebtedness of }torrower eecurfd by this Mortgage. Unieaa Burrower and [.ender agree U, other terms of payment, such amounts shall be payable upon notice from Lender to Bormwer requesting payment thereof, and shall bear interest fn,m the date of disbursement at the rate payable from time to time nn out,9tanding principal under the Note anles.4 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. LI1~~K327 ~~~E 795