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HomeMy WebLinkAbout0086 Borrower and Lender covenant and agree as folbwa: 1. Paytaeat of Priaclpal aAd 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 Ftiutds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to !xnder 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 twelfth of the yearly faxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. itany, plus ono- twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the basis of assessments and bills and reasonable estimates thereof. The flrnds 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 !.ender 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 !.ender 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, Ixnder 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 of F ands 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 as 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 sums secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by Ixnder. if under paragraph 1$ 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 timeof 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 Ixnder first in payment of amounts payable to bender by Bon: over under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and othere•h:rrges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and Iea.Sehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dire•c•tly to the payee lhererrf. Burrower shall promptly furnish to Ixnder all notices of amounts due under this par+graph, and in the event Borrower shall make payment directly, BormN•er shall promptly furnish to 1 xnder receipts evidencing such payments. lurrower shat l promptly discharge any lien which h:+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so look as l3e,rrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in g«xl faith contest such lien b}•• urdefe•nd enfon•ement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Prr,tx•rty or any part themcrf. 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 1 xnder may require and in such amounts and for such t~ . - _ a.. ..r ~ ,.ti ago P:rMVI that amount of coverage periods aslxnder may require; pn»icieu _ ~ - required to pay the sums secured by this Mortgage. - The insurance carver providing the insuramce shall tx• chosen h}• Borrower subject to appn,val by Lender, pn,vided, that such approval shall not be unreascmably withheld. All pn•miuors un insurance twlicie•s shall lx• paid in the manner pruvid+•d under paragraph `l hereof or, if nut paid in such manner, by F3urn,wer making pa}•me•nt, when due, din•c•th• to the insur:mce carrier. All insurance policies and renewals thereutshall be in form acceptabl?• to Lender and shall include a standard mortgagedausein favorof and in form acceptable to Lender. Ixnder shall have the right to hold the policies and renewals there•uf, and Borrower shall promptly furnish W i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carver and Ixnder. Ixnder may make proof of loss if not made promptly by Bom,w•er. l Unless [xnder and Burrower otherwise agree in writing, insurance pn,ceeds shall tre• applied G, restoration or repair of the Property damaged, provided such restoration ur repair is ec•unomicalh• feasible and the ururity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Mortgage would l,e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to lic,rrower. If the Property is abandoned by &,rrower, orif Borrower fails to respond to Lender within :30 days from the date notice is mailed by Lender to Korrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to collc•c•t and apph• the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this titortgage. Unless Lender and Borrower otherwise agree• in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragr.+phs 1 and'! hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acyuirerd by Lender, all right, title and interest of Rornmer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acqursition shall pass to Ixnder 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. Borrower shall keep the Property in good repair and shall not commit waste •,r permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a Ic•asehold. If this Mortgage is on a unit in a cnndominium or a planned unit development, Burrower shall perform all of Borrower's obligations under the dec-laralion or covenants creatingor 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 Fiom,wer and recorded together with this Mortgage,-the covenants and agreements of such rider shall Ire incorpor.+ted into and shall amend and supplement thecocenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in thin Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, - insolvency, code enforcement, or arrangements or prxeedinQs involving a bankrupt or decedent, then Lender at Ixnder s option,upon notice to Borrower may make each appearances, dibburse such sums and take such action as is necessary to protect Ixnder'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 • ri such insurance in effect until Buch time as the requirement for such insurance terminates in accordance with Borrower a and Lender e 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 Ixnder perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree tr, other terms of payment, such amounts e6a11 be payable upon notice from Lender to Borrower requesting payment thereof, 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 require Ixnder to incur any expense or take any action hereunder. ~ BOOK PAGF 8s r ~ - - _ - _ ~ ~T