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HomeMy WebLinkAbout0093 ~ ~1 ~ Borrower and Lender covenant and agree as folbws: 1. Payment of Principal sad lnteres~ 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. Z. Fonds for Taxes and Insurance. 3ubjed b applicable law or to 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'ti equal to one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly 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 tune by Lender on the basis of assessments and bills and reasonable estimates thereof. The Iltnds 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 so holding and applying the Funds, analyzing said account, or verifying and rnmpiling 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 o[ 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 I'ltr+ds. 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 Ftinds held by Lender, together with the future monthly installments of Funds 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 Ko+TOwer's option, either promptly repaid to Borrower or credited b 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 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 [.ender 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 2 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 o[ the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, :+ssessments and other rharKes, 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 paragraphs) hereofor, if not paid in such manner, by Borrower making payment, when due, dircrth• to the payer thereof. Kormwer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Kormwer shall promptly furnish to bender receipts evidencing such payments. Kormwer shall promptly discharge any lien which has priorih• over this ;Mortgage; provided, that Kormwer shall not be required to discharge any such lien su IonK :+s liom,wer shall agree in wriiinK to the p:+yment of thcobliKation secured by such lien in a manner acceptable to lender, or shall in KcKxl faith contest wch lien by, or defend en forc•ement of such lien in, legal proceedings which operate to prevent the enforcement oC the lien or forfeiture of the 1'ropc•rh• or any part thereof. 5. Hazard Insurance. Kormwer shall keep the impma•ements now• exi3tinK or hereafter erected un the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that lender shall not rryuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Morigage- The insuranrn carver pmvidinK the insurance shall Iff• chosen i,}• Kormwer .ubjc•c•t to approval by 1.c•ncler; pmvidcd• that such approval shall not be unreasonably withheld. All premiums on insur-.+ncc• 1N,licir. shall ix paid in the manner providevi under paragr-,+ph 2 hereof or, if not paid in such manner, by &,rr+,w•er makinK payment, when due, direc•th• to the inwrance carrier. All insurance policies and renewals thereof shall be in fixm acceptable to bender and shall include a standard mortgage clause in favor of and in form acceptable to Lender Lender shall have the right to hold th+• 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, Kormwer shall Kier prompt notice to the insurance carrier and Lender. Lender may make pr«,f of loss if not made promptly by Borrower. Unless Lender and Kormwer otherwise agree in writinK, insurance prcxr~•c[s shall he 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 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 exmss, if any, paid to Kormwer. If the Property is abandoned by Kormwer, or if Borrower fails to respond W Lender within 3i1 days from the date notim is matt+d by 1.+•nder to Kormwer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to colltrt and apply the insurance pr«•crds 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 date of the monthly installments referred to in paragraphs I and 1 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 Kormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage u, Property prior to the sale ur acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 MortKage is on a leasehold- If this MortKage is on a unit in a condominium or a planned unit development, Kormwer shall perform all of Konrower's obligations under the declaration or covenants cre•atinKor 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 Kormwer and recorded together with this Mortgage, the covenants and :+greements of such rider shall Iw incorpc,r-.+trd into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. 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 I.ender'e 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 as is necessary to protect Lendei a interest, i 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 makinK the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain a such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender s m written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under u ~ paragraph 2 hereof. Any amounts disbursed by [.ender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Kormwer and Lender agree to other terms of payment, such amounts shall be payable upon notice from [.ender to Kormwer 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 Lender to incur any expense or take any action hereunder. ErnK PAGE ~ - _ ~ "