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HomeMy WebLinkAbout2706 i 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 latecharges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds forTaxee and Insurance. Subject to applicable law or W a written waiver by Lender, 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 (herein "Funds")equal to one, twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelRh of yearly premium installments for hazard insurance, plus onelwelRh of yearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and tirom time to tirr+e by (.ender 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 eo holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender 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 secut?ty,forthesums secured by this Mortgage. ' If the amount of the Funds held by Lender, together with the future monthly installments of Funds payableprior to the duedates of taxes, assessments, insurance premiums and ground rents, shall excxd the amount required to pay said taxes, asaesstpents, insurance premiums and ground rents sa they fall due, such excess shall be, at Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funda• If 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 (.ender any amount necessary to make up the deficiency within 30days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all some secured by this Mortgage, (.ender 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 (.ender, !.ender 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 lime 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 (.ender first in payme»t of amounts payable to [.ender 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 or ground 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 p:+ycr therec,f. Bormwer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the e~•ent l;.,rn,wer shall m:+ke payment directly, Borrower shall promptly furnish to lender receipts evidencing such payments. lie,rrower shall promptly discharge :?m lien whie•h has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Ite,rrow•er shat l agree in writing to the payment of the obligation secured by such lien in a manner acceptable to (.ender, or sh:+11 in gex,d faith contest such lien by, ur defend enfun•ement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'ro{x•rty or any part therer,f. 5. 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 cu~•erage," and such other hazards :+s Ixnder may reyuire and in such amounts and for such periods as (.ender may require; prodded, that Ixnder shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver pro~•iding the insuranc+• shall I,e• chosen h~• Itorrow•er subje•e•t to appro~•al by Lender: pn,~•iderl, that such approval shall not be unreasonably withheld. All pn•miun+s nn insur:uu•e• {Ndic•ie. shall l,c• p:+id in the, manner pro~•ide•ei under par.+gr:+ph hermf or, if not paid in such manner, by liurn,w•er making p:p•me•nt, ~chen due. din•c•th• t.. the insurance carrier. • .All insurance policies and renewals thereof shall he in form acceptable to Lender and shall include a standard mortgage dausein favorof and in form acceptable to [.ender. Lender shall have the right to hold the policies and renewals thereof. and Borrowershall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of loss, lle,rn,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly M• Borrower. lJnless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ' damaged, pro~~ded such restor.+tion or repair is e•e•unomie:+lh• feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically fr,+sible or if the security of this Mortgage would Ix• impaired, the insurance proceeds shall beapplied to the sums secured by this Aortgage•, with the excess, if any, paidto {orruwer. if the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within a0 day s from the date notie•e is m:+iled by Lender to Borrower that the insurance carver offers to settle a claim for ~ insurance benefits. [.ender is authorized to collect :+nd :+pply the insurance proceeds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. ~ Unless Ixnder and Borrower othemise agree in writing. am• such application of prc,ceeds to principal shall not extend or postpone thedue y date of the monthly installments referred to in paragraphs 1 and'( hereof or change the amount of such installments. If under paragraph 1R hereof the Property is acquired by Lender, all right, title and interest of BorrUWPr in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the lair nr acquisition shall pas to [.ender to the extent of the sums secured by this ~torigage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otI'roperty: Ixaseholds: ('ondominums; Planned Unit IJevelopments. Borrowershall 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 on a leasehold. If this 1ortgage is un a unit in a condominium or a planned unit development, + Borrower shall perform all of Borrower's obligations under the declaration or covenants creahngor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by lie,rruw•e•r and ree•orde•d together with this Mortgage, the covenants and :+ggerments of such rider shall be incorporated into and shell amend and sup{drme•nt thecocenants and agre•ementsofthis Morlgageasifthe rider were a part hereof. 7. Protection 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 bender'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 Ixnder's option upon notice to Borrower may make such appearances, diabunie such soma 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 such insurance terminates in 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 r paragraph 2 hereof. ) Any amounts disbursed by Ixnder perauant to this paragraph 7, 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 [,ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at file 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 each 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. 't , x E~~ox327 ~~~E27 05