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HomeMy WebLinkAbout2445 ~ . 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 late charges ae provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to !.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in foil, a sum (herein "FLnda'")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 ofyearly premium installments for hazard insurance, plus one-twelfth otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by !.ender on the basis of assessments and bills and reasonable estimates thereof. The ~+nds 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 verifying and compiling said assessments and bills, unless !.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Bormwer end 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 the sums secured by this Mortgage. If the amount of the Funds held by !.ender, together with the future monthly installments otFunds 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 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Borrower shall pay to !.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by [.ender 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 !.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 !.ender, any Funds held by !.ender 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 Lender 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 payments orground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormwer shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shalt promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to lxnder, or shall in gc?od faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Pn?peny or any part thereti,f. 7. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as lxnder may require and in such amounts and fur such periods as lxnder may require; provided, that lxnder shall not require that the amount of such coverage exceed that amount of coverage n•quired to pay the sums secured by this Alorigage. The insurance carrier pn?viding the insuranrn shall Ix• chosen BorroH•er subj+Y•t tr? appnn•al by Lender; pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~licies shall 1?e paid in rho manner pruvid+rl under par.+g~aph 'l hercr?f or, if not paid in such manner, by Borrower making payment, when due. directly tr. the insurance carrier. Ali insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morigageciause in favorof a nd in form acceptable to !.ender. !.ender shall have the right d? hold the policies and renewals thereof, and Borrower shall promptly furnish to c.ender all renewal notices and all receipts of paid premiums. In the event of loss, f;,?rnrwer shall give prompt notice to the insurance carrier and Lender. lxnder may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security c?f this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, itany, paid to Borrower. If the Property is abandoned by Borrower,or if Bormwer fails to respond to Lender within 30 days from the dale notice is maih•d by Lender G? Korn?wer that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to collect and :+pply the insurance pn?ceeds at Lender's option either to restoration or repair othee Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pnxeeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and `l here+?f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by !.ender, all right, title and interest of Bormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sate or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such salenr acquisition. 6. Preservation and Maintenance otf'roperty:Leaseholds: ('ondominums; Planned !Jolt Developments. Borrowershall keep the Property in good repair and shall not commit waste or Ix•rmit impairment or deterioration of the Property and shall comply with the pro~•isions 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 declaration or covenants e•n•atingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ondominium or planned unit development rider is executed by Rc?rrower .+nd recorded together with this Mortgage, the covenants and .cKreements of such rider shall be incorporated into and shall amend and supplement thecovenantsand agreements of this Mortgage as if the rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [xnder'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 Bums 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 ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect anti) such time aB the requirement for such insurance terminates in accordance with Borrower's and Lendei a written agreement or applicable l,aw. 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 with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and !.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Bormwer requesting payment thereof, and Bhall 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 Ixnder to incur any expense or take any action hereunder. ~~~K32? F4GE2444 .