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HomeMy WebLinkAbout0075 Borrower and Lender covenant and agree e. tolbws: 1. Paymeat of Priaclpal and laterest. 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 intereston any Future Advances secured by this Mortgage. 2. Fonds for Ta:es said 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 full, a sum (herein "Funds")equal to one- tweltth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one, twelfth of yearly premium installments for hazard insurance, plus onetwelfth ofyearty premium installments for mortgage insurance, if any, all se reasonably estimated initially and from time to tune 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 Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asaesamenta, 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 Lenderpaya Borrower interest on the Funds and applicable law permits Lender to make such a charge. $orrower and Lender may agree in writing at tl::: M:ne 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 b pay Borrower any interest or earnings on the Funds. Lender shall give to Borrows*, 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 Lender, together with the future monthly installments of Funds payable prior to theduedates ottaxee, assessments, inawance premiums and ground rents, shall excxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall 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 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 sums 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 Properly 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, all payments received by Lender under the Note and paragraphs 1 and Z 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 or ground rents, itany, in the manner provided under paragraph 2hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormveershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly [urnish to Ixnder receipts evidencing such payments. Borrower shall promptly discharge any lien which h:?s priority over this Mortgage; provided, that $orrower shall not be required to discharge any such lien so long a:+ forrower shall agree in writing to the payment of theubligation secured by such lien in a manner acceptable to bender, or shall in good faith contest such lien by, or defend enforn ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 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 coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that !.ender 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 carrier pro~•iding the insurance shall i?e chose•n by 13urruwer subj+•+•t to appn?~•al by bender, provided, that such approval shall not be unreasonably withheld. All premiums un insurance policies shall ix paid in the manner pnn•ided under paragraph 'L herec?f or, if ' not paid in such manner, by &?rrower making p:?pment, when due, dinY•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to t.enderand shall includes standard mortgageclausein favorof and in form acceptable to Lender. I.endersha)1 have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss. Iiorn?wer shall give prompt notice to the insurance carrier and Lender. Lender may make N::~f of loss if not made promptly by I;,?n;ovrer. Unless Lender and Borrower otherwise agree in writing, insuranm proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically fe:+sible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if 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 , p:+id to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefit8, Lender is authorized to collect and apply the insurance proceeds 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 pmc•eeds Lo principal shall not extend or postpone thedue date of the monthly installments referred tr? in paragraphs 1 and'! F+ereuf or change the amount of such inslallments. 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 s:?le or acquisition shall piss to [.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition- 6. Preservation and MaintenanceotProperly;Ixaseholds;('ondominuma;PlannedUnitDevelopments.Borrowershallkeep the Property in good repair and shall not commit waste r?r permit impairment or deterir?r:+tion of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this :tortgage is on a unit in a condominium or a planned unit development, $orrower shall perform all of Borrower's obligations under the declaration or covenants cn•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 condominium or planned unit development rider is executed by I;r?m?wer and recorded together with this Mortgage, the covenants and :+greementsotsuch ridershatl be incorporated into: and shall amend and supplement thecovenantsandagreementsofthisMortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If $orrower 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 [.ender at Lender'e option,upon notice to Borrower may make such appearances, disburse such sums and take such aMion 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. [f Lender required mortgage inawance 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 paragraph 2 hereof. My amounts; dis6tu~dby I~pder perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower securj~ by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from L~irder to orrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time oti datstandirg 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 tape any action hereunder. Ztjf1K 332 PdGE 75 ~ . ,t