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HomeMy WebLinkAbout0045 Borrower and Lender covenant and agree u follows: 1. Payment of Prlnclpal and Interest. Borrower shall promptly p.y when dw the principal of and interest on the indebtdnew avidenosd by the Note, prepayment and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. iP'tmds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to [.ender on the day monthly installments otprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal b one twelfth of the yearly taxes and asseument which may attain priority over this Mortgage, and ground rend on the Property, if any, plw ores twelfth of yearly premium installment for hazard inuurance. plus onstweltth ofyearly premium installment for mortgage insurance, iiany, all u reasonably estimated initially and tfan time to time by Lender on the bauis of_ assessment and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposit or aeoount of which are iruured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said t:es, assessment, insurance premiums and ground rant. Lender may not charge for so holding and applying the Funds, analyzing oaid asxount, or verifying and compiling said assessment and tilt, unleu Lender pays Borrower interest on the Funds and applicable law permit Lender b make ruck 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 unlew such agreement is made or applicable Isw requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual aeoounting of the Funds showing credit and debit b 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 o! the Funds held by Lender, together with the future monthly installment of Runde payable prior to the due dates ottxes, assessment, insurance premiums and ground rent, shall exceed the amount required to pay said taxes, assessment, insurance premiums and ground rent u they fall due. such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly inatllmeat of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessmert, insurance premiums and ground rent u 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 thin Mortgage. Lender shall promptly refund to Borrower any fund. held by Lender. If under paragraph 18 hereofthe Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the ask of the Property or it acquisition by Lender, any Funds held by Lenderat the time ofapplication u a credit against the sums secured by this Mortgage. 3. Applkation o! Payment. Unlew applicable law provides otherwise, all payment received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment o[ amount payable to i.ender by Borrower under paragraph 2 hereof, then to interest payable on the Not, then to the principal of the Not, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable tv the Property which may elfin a priority over this Mortgage, and leasehold payment or ground rents, if any, 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_ Iiorrowershall promptly furnish to Lender all notices of amount due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish k, Lender mxipt evidencing such payment. Borrower shall promptly discharge any lien which has priority aver this Mortgage; provided, that Borrower shall red be required to discharge any such lien so long as Borrower shall agree in writing to the paymen t ottee obI iKation secured by ouch lien in a manner acceptable to Lender, orshall in goad faith eonteat such lien_by, ordefend enforcement otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien m forfeiture of the Property or any part thereof. 5. Hazard Insueaace. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against loss by fire, hazards included within the teen "extended coverage." and such other hazards as Lender may require and in ouch amount and for such periods u Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carries providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval ' shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptble to Lender and shall include a standard mortgage clause in favor of and in form aceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipt of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, inswance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is economically te~asible and the security of this Mortgage ie 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, Jany, paid to Borrower. I[the Property is abandoned by Borrower, or J 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 benefit, Lender is authorized to collect and apply the inswance proceeds at Lender s option either to restoration or repair of the s 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 the due date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such instllment. U under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inswance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or 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 of Property; Leaseholds; Condonunums; 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 Mortgage ie on a leasehold. If this Mortgage is on a unit in a condominium or a planned snit development, a Borrower shall perform all of Borrower's obligations under the declaration or covenant creatingor governing the condominium or planned - unit development, the bylaws and regulations of the condominium or planned unit development, and constituent document. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the s rider were a part hereof. 7. Protection of Lender's Security. If Borrows fails to perform the covenant and agreement contained is this Mortgage, or if any ~ ~ action or proceeding is oommenoDd which materially affect Leadds interest in the Property. including. but not limited to, eminent domain, insolvency, code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at I.endds option.npon notice to Borrower may make such appearances, disburse such sums and take such action u is necessary to prated Leader's interest, including, but not limited to, disbursement of reasonable attorney's fees and aitry upon the Property to make repair. Ii Lender required ~ mortgage insurance as a condition of malting the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in effect until such time u the requirement for such insurance terminates in aeoordaace with Borrower's sad Lendds ! written agreemrnt or applicable Law. Borrower shall pay the amount of all mortgage inawence premiums is the manner provided render paragraph 2 hereof. i Any amount disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of f Borrower secured by this Mortgage. Unless Borrower sad Lender agree to other terms of payment, such amount shall be payable upon } notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable fi+om ~ Mme to time on outstanding principal under the Not unless payment of interest at such rate would be contrary to applicable law, in which r event such amount shall bear interest at the highest rate permissible ands applicable law. Nothing contained in this paragraph 7, shall 3 ~ require Lender to incur any asperse or take any action hereunder. a aaoK~S PacE 45 ~