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HomeMy WebLinkAbout0821 . - , Borrower and Lender covenant and agree as folbws: 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 the principal of and interest on any Future Advances secured by this Mortgage. 2.1±1tnds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to l.enderon 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, itany, plus one- twelfth ofyearly premium installments for hazard insurance, plus one•twelflh of yearly prtimium installments for mortgage insurance, if any. all ae reasonably estimated initially and from time to time by lxnder on the basis of assessments and bills and reasonable estimates thereof. T+.., R.~.r~ X1,..)1 ~ I,el.r :w :.,~:+.,e:n.. ~t,s .rawna:l. n. o •..co i,f ,utii~•F+ ero ina~~rwt m~nronlmt tiv w Fatarn) Ceoca uoa~M. (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 Larder pays Bo;rowerintereat on the Funds and applicable law permits Lender to make such a charge. Borrower and Lettder 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. 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 I'ltnda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of to:es, assessments, inju~ancepremiuma 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 inatallmenta of Funds. 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 Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender b 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 !.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by !.ender at the time of application ae 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 !.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and there to interest and principal on any Future Advances. 4. Charges; Liens. Borrowershall p:+y all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay ments or ~;mund rents, i f any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this. paragraph, and in the event Borrower shall make pay ment directly, Borrower shall promptly furnish to i.ender receipts evidencing such payments. Burrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long :+s 13c,rrowershallagree inwriting tothe payment of theobligation secured by such lien in a manner acceptable to !.ender, or shall in good faith cy,ntest such lien by, or defend enforcrme•nt of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'roperh• or any part therec,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fi: e, hazards included within the term "extended coverage," :+nd such other h:+z:+rds as (.ender may require and in such amounts and for such periods aq !.ender may require; provided, that Lender shall not require that the amount of such cti,verage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall I,e chosen by Itom,wer subje•e•t to approval by Iw•nder, pnn•idcd, that such approval shall not be unreasonably withheld. All premiums on insurance p„lic•ies shall i,c pxid in the manner pm~•idcrl under pan+gr-.+ph l hereof or, if i nut paid in such manner, by Bc,rn,wer making payment. when due. dire•c•tly to the insurance carrie•r- Allinsurance policies and renewals thereof shat! be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lendershall have the right U, hold the policies and renewals thereof, and Borrower shall promptly furnish to III i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give-prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by 13orn,wer- j Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall br 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 it the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. Ifthe Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by bender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to coll+•c•t and apply the insurance pn,cecds at Lender's option either to restoration or repair of the ! Property or the sums secured by this Mortgage- Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue E date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance-policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; leaseholds; Condominums; Planned Unit Developments. Borrowerahall 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 Morigage is on a unit in a condominium or a planned unit development, { Borrower shall perform all of Borrower's obligations under the declaration or cmenantg creatingor 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 Borrower and recorded together with this Mortgage, the rnvenanta and agreements of such rider shall be incorporated into and sh:+11 amend and supplement thrcovenants and agreements of this Mortgage as ifthe 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 Lender's interest in the Property, rnclud+ng, but not limited to, eminent domain, insolvency, code enforcement, cr arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon g notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender a 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 G such insurance in effect until ouch 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 paragraph 2 hereof. t Any amounts disbursed by Lender persuant 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 l notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from j 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 7, shall require Lender to incur any expense or take any action hereunder. ~~.~K328 Pa~F $2~ -