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HomeMy WebLinkAbout1510 ~ 1.T ~ ' ~ , Borrower and Lender covenant and agree as follows: I. 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 latechargea as provided 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 law or to a written waiver by Lender,l3ormwer shall pay to lxnfler on the day monthly instalments 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 may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth otyearlypremium installments for hazard insurance, plus unetwelflh of yearly premium installments for mortgage insurance, i[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 Fonda 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 Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funde, analyzing said account, or verifying and compiling said asaesamenta and bi118, unless Lender pays Borrower interest on the F unds and applicable law permits lxnder 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 Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fonda and the putgpse for which each debit to the Funds wits made. The Funds are pledged us additional security for the sums secured by this Mortgage. ` If the amount of the Fonda held by Lender, together with the future monthly installments4 of F unds 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 tall due, such excess shall be, at BolTOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funde held by Lender 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 dale 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 by Lender, Lender shall apply, no later than immediately prior to the sale cf the Property or its acquisition by Lender, any Furids 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 Ixnder under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to [.ender by Borrower under paragraph 2 hereof, then W 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 alt 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 rants, if any, in the manner provided under par.+graph'L hereof or. iC nut paid in such manner, by Burrower making p:+yment, when due, directly to lhf• payer thereof Burrowershall promptly furnish to Ixnder ;111 notices of amounts due under this paragraph, and in the event Borrower shall make payment dirf•f•tly. Bornlwer shall promptly furnish to lender receipts evidencing such payments. l;,Irnlwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any su~•h lien so long as Rorru~+•r r shall agree in writing to the paymf•nt of theubligation secured by such lien in a manner acceptable to Iw•nder, or shall in gaud faith cuntf•st such lien bv, urdefend enfun•ement of such lien in, legal pn,feeflings which operate to prevent the enforcement of the lien ur forfeiture of the Property ur any part thenflf. • Hazard Insurance. Borrower shall keep the impr++vements now existing or hereafter erfrted on the Property insured against hss by fire, hazards included within the term "extended euverage," and such other hazards as Lender may rfquirf• and in such amounts and for such periods as Lender may require; provided, that Lender shall nut rf•yuire that the amount of such nn•erage excff•d that amount of coverage n•yuind to pay the sums sf•c•und by this Mortgage. The insurance r.+mer providing the insurance shall h+• chosen by Borrower suhjf•f•t to approval by Lender; providfYl, that such approval shall not tx• unreasunabh• withheld. All pn•miunls un insur:ulce policies sh:+l1 tN• paid in the manner providfrl under paragraph'! herf•I+for, if nut paid in such manner, by l;arnnver making payml•nt• .chf•n due, din•ctly to the insurance carrier. All insurance policies and renewals the real shall he in form acceptable to lrnder:md shall include a standard mortgageclause in favor of and in form acceptable to bender. Lender shall have the right to hold the policies and renewals thereof, and Kornlwershall promptly furnish to Lender all renewal notices and all refeipts of paid premiums. In the event of loss, Burrower shall givf• grump! notice to the insurance carrier and Lender- Lender may make prcN,f of loss if nut made promptly by Burrower. Unless Lender and Forrower otherwise agree in writing, insurance pnK•eeds shall Lf• applied tr. restoration or repair of the Property ~ I;amaged, provided such restoration ur repair is fti•onomically fe:+sible and the sff•urity of this Mortgage is nut thereby impaired- If such ~ restorativn or repair is nut economically fcasib;e or if the security of this Mortgage would t,f• impaired, the insurance prlxeeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to IlClm,w•er. If the Prv,pc•rty is abandoned by Krlrrower, or if 13urruwer fails to respond to Lender within 3U days from the date notice is m:+ibd by Lender tx. I;ornlwer that the insurance carver offers to settle a claim for insurance henefit_s, Lender is authorired to colh•t•t and apply the insurance pr«•ff•ds at Lfnder's option either to restoration or repair of the Property or the sums secured by this Mortgage. lJnless Lender and &,rrower otherwise agrff• in H•riting, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments refern•d to in paragraphs 1 and ? hen•of or change the amuunCof such installments. If under paragraph IA hereof the Property is acquired by bender, all right, titlf• and Interest of Burrower in and to any insurance policies and in and to the prex-erels thereof resulting from damage to Property prior tu.the sale or :+cgwsition shall pass to Lender to the extent of the sums secured by this 1ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 Mortgage is un a If•ase•hold. If this Mortgage is on a unit in a c•undominium or a planned unit development, Borrower shall perform all of Burru+.~f•r's obligations under the df•c•laration ur coven:mts creatint;or guvermng the nlnduminium or planned unit development, the by-laws and regulations of thf• condominium or planned unit development, :ind constituent documents. If a condominium or planned unit development rider Is exfruted by li++m,wer and nvurded together with this Mortgage, the covenants and It;reementsufsuchridershal_lb~incurpuratc•dintoand.ha~lanu•ndandsupplf•rnr•ntthf•r•u~•enantsandagrrementsofthis!4lortgageasifthe rider were a part hereof 7. ProteMion of Lender's Security. If Borrower fails to perform the rnvenanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [.ender'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 bender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest, i? including, but no! limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required F mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums ,;squired to maintain such insurance in effect until such time as the requirement for such insurance terminates m accordance with Borrower's and Lender's 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 un outstanding principal under the Note unlesq payment of interest at such rate would be n,ntrary 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 t ~I~;jlf '•327 PaGE~~ ~ ~ _y