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HomeMy WebLinkAbout1518 • 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 provided in the Note, and flee principal of and interest on any Future Advarcea secured by this Mortgage. 2. Frtnds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay tolxnder 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 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, tweltth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, :+11 as reasonably estimated initially and from time to fleets by Ixnder on the basis of assessments :end 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 ~.ncluding !.ender if !.ender is such an institution). !.ender 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 am,unt, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits !.ender 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 Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for theauma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of F ands payable prior to the duedatea 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 Fender 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 Ixnder W Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Hroperty is sold or the Property is otherwise acquired by Lender, bender shall apply , no later than immediately prior to the sale cf the Property or its acquisition by !.ender, any Funds held by Ixnder at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law prf?vides otherwise, all paymentsc received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender 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. Borrowershall pay all taxes, :~csessments and other charges, finis and im{a,sitiuns attrihutable tf? the Property which may attain a priority over this Mortgage, and leasehold payments or {hound rf•nts. if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinK payment, when due, dirfY•t!y to the payf•f• therfti?f. Born?wershall prompth• furnish to Ixnder all notices of amounts due under this par.+Kraph, and in the event Borrower shall make payment dirf•+•tly, Born?wer shall promptly furnish to Lender receipts evidencing such payments. It+,rrower shall prumpth• discharge am• lien which h:+s priority o~•er this Mortgage; provided, that Furrower shall not be required to discharge any such lien so luny; as Itom,wer shall agrf•f• in writing to the payment of the obligation secured by tiuch lien in a manner acceptable to Lf•nder, or shall in K,Kx1 Grith contest such lien hy, ordf•fend enfun-f•ment of such lien in, leg:+l pn?cef•dings ~t•hich operate to prevent the enforcement of the lien or furfeiiure of the I'ro{?i•rt}• or an}• part therfr,f. Hazard Insurance. Borrower shall kef•p the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendfYf coverage," and suf•h other hazards as Ixnder may require and in such amounts and forsuch periods as Ixnder may require: provided, that Ixnder shall nut require that the amount of such ftin•erage excfed that amount of coverage n•quired to pay the :+pms sef•urecl b}• this Mortgage. The insuranf•f• carrier pru~•iding the insurance shall 1?e• chosen by Born,+rer suh~ect to apprucal h~• Lender: pro~•id?rl, that such approval shall nut be unreawmably withheld. All premiums on imur:uu•,• {wlirie. shall tx• paid in the manner pr,,: id?vl under parry;raph herf~?f or, if not paid in such manner, by li.,m,wer makinK p:+yment. ti•hen due. dinr•th~ b, the inwrrnce carrier. All insurance policies and renewals thereof sh:+ll t?e in form acceptable to Lf•nder:?nd shall include a standard mortgageclause in favorof and in form acceptable to Lender. Ixnder shall have the right to hoFd the {wlif•ics and renewals thereof, and Borrower shallpeomptly furnish tf? ,.f•nder all renewal notices and all rf•f•eipts of paid premiums. In the event of loss, Borro~•er shall give prompt notice to the insurance carrier li and !.ender. Ixnder may make pns,f of loss if nut made promptly by Borrower. f Unless Ixnder and &,m,wer utherw•isf• agree in writinK. insurance pn,f•eeds shat! lx• applied to rf•sturation or repair of the Property ~ damaged, provided such restoration or repair is f•+•onomically feasible and the sff•urih• of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the ururih• of this Mortgage++•uuld ts> irnpaired,the insurance proceeds shall be applied t„ the sums secured t?y this Mortgage, with the excess, if am•. paid to Kf?rrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Ixnder within :q) days from the date nutir+• is mailed by Lender to Rorn,wer that the insurance carver afters to settle a claim for ursurance benefits, Lender is authorized to f•olbrt and apph• the insurance pre?fff•+Is at Lender's option Tither to restur+tiun or repair of the Property or the sums secured by this MortgaKe•. Unless Lender and &,rn,wer otherwise agrff• in writinK. an~• suf•h application of prxerds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+Kraphs t and hf•ny,f or change the amount of such installments. if under paragraph 1R Hereof lire Property is acyuiml l,y i.e•nd.•r, all right, :iLlc ::nrl interest ::f B:;rrr.::•e? s r:d !u any ir_surarrce {+nliris s and in and to the proceeds thereof resulting from damage to Pn~perty prier to the sale or acgwsition shall pass to bender to the extent of the sums secured by this Mortgage immediately prior Yo such sale or acquisition. 6. Preservation and Maintenance of Property; Ixaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in g«,d repair and shall not commit waste or pf•rmit impairment or deterior.+tion of the Property and shall comply with the prm•isions of any lease, if this.AtortKay;e is on a ?easehold. If this 1ortgage is un a uriit in a condominium or a planned unit development, Burrower shall perform all of li,?rrower's obligat?ons under the dfc•laration nr f•uvenants ere :rlinKor governing thecondominium or planned unit development, the by-laws and regulations of the f•unduminium nr planned unit development, and constituent document.•+. If a ,•ondominium or planned unit development rider is exe•e•utfd by &,rrort•cr :rod rf•f•orded together with this Mortgage, the covenants and ,,r;re•ements of suf•h rider shall hr i+u•orporate•el into :rod shall :upend and supptenu•nt the covenants and agreements of this 1ortgage as if the nder were a part hereof ' 7. Protection of Lender's Security. If Burrower fails G? perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, ,naolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Ixnder's option,upon notice to Borrower may make such 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 Mortgage, Borrower shall pay the premiums required to maintain , such insurance in effect until such time as the requirement for surh insurance terminates in accordance with Borrower's and Lender's xritten agreement or applicable law. isorrower airaii pav the au+oiiT?t of all m::rtgake i^.smra^^e pr~misma in rhP rnannPr {?rnVldwl under paragraph 2 hereof. Any amounts disbursed by Lender persuant tf? thin 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 Ixnder 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 ;Vote unless payment of interest at such rate would be contrary to applicable law, in which rcent such amounts shall tear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Ixnder to incur any expense or take any action hereunder. €r 32? P~~E 151?