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HomeMy WebLinkAbout1867 • 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 ae provided in the Note, and the principal of and intereaton any FutureAdvanre$secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to bender on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Ftitnds") 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 t a+elRh of yearly premium installments for hazard insurance, plus onetwelRh of yearly premium instal Invents for mortgage insurance, if any, all as reasonably estimated initially and from time to tithe by Lender 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 Lendet 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 Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower i 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 ahaU 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 Cor which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this E Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes, assessments, inswance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums r and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Fonda 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 date notice is mailed by lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Ixnder 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 of the Property or its acquisition by Lender, any Funds 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, al! payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lendet 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 othercharges. fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, itany, 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 Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to j [.ender receipts evidencing such payments. Borrower 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:+.~ 13.,rrowershall agree tnwriting tothe payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in ga,d faith contest such lien by, or defend enfunrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien ~,r forfe•iturea,f the Properh• or unv part thereof. 5. Nazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by tire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as Lender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurancee• shall ix• chosev+ by Bormwe•r subje•e•t to approval by Ixnder; provided, that such approval shall not be unreasonably withheld. All premiums on insurance twlicie•a shall tx• paid in the manner pnn•idc•cl under paragraph 2 hereof or, if not paid in such manner, by Borrower making pa~•ment, «•hen due. dinc•tly to the, insurance carrier. All insurance policies and renewalsthereofshallbeinformacreptaMPtolxnderandshallincludeastandardmortgageclauseinfavorof ' and in form acceptable to Ixnder. [.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipts4 of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. (.ender may make proof of loss if not made promptly by Borrower. Unless Lender and- Borrower otherwise agree in writing. insuranm proceeds shall be applied to restoration or repair of the Property damaged, pro~~ded 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 fe:?sil,le or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this btorigage; wtith the excess, if any, paid to Burrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lendet 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 collect and apply the insurance proceeds. at Ixnder's option either to restoration or repair of the Property or the sums secured by this klortK~?Ke- Unless Lender and Borrower otherwise a ree in writin r K g, an}• such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:graphs 1 and'L hereof or change the amount of such installments. If under paragraph 18 f hereof the Property is acquired by bender, 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 acgwsitiun shall pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds: Condomitiums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit iinp~?irment or deterioration of the Property and shall comply with the provisions 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, Borrower shall perform all of Borrower's obligations under the declaration or rncenants cmatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur 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 covenants and :~Kreements of such rider shall be incorporated into and shall amend and supplement thecuvenants and agreementsof this Morigageas ifthe rider were a part hereof. 7. ProteMion of Lender'8 Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Lender'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's option,upon notice to Borrower may make such appearances, disburse such sums and take such action ae is necessary to protect Lendei 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 such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowei a 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 persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment therm!, and shall 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 7, shall 3 require Lender to incur any expense or take any action hereunder. aoo~~~ PAGE1866 ~ i .