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HomeMy WebLinkAbout0623 d t Borrower and Lender covenant and agree a. folbwa: 1. Payment of Principal sod Interest. Borrower shall promptly pay when due the principal o[ end interest on the indebtedness evidenced by the Note, prepayment and late charger as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2. Thtrtds for Tatter and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shat l pay to Lender on the day monthly iruta!lment oiprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds[') equal to one- twelfth ottee 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 installment for hazard inuurance, plus onetwelflh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated iniliaUy and from time to tune by Lender on the basis of assessment and bills and reasonable estimates thereof. The Funds shall be held in sn institution the depwit or account of which are insured or guaranteed by a Federal or ~itate! agency ,including Lender it Lender is such an institution). Lender shall apply the F unds to pay said taxes, assessment, insurance premiums and ground rent. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessment and bills. unless Lender pays Borrower interest on the Funds and applicable law permit Lender 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 agreetttent is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Ftiunde. Lender shed) give to Borrower, without charge, an annual accounting of the Funds showing credit and debit to the Funds and the purpose [or which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. I[the amount of the Funds held by Lender. together with the future monthly installment of Funds payable prior to the due dates of taxes, aasessmen4. insurance premiums and ground rent, shall exceed the amount required to pay said taxes, assessment, insurance premiuau and ground rent as they fat) due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly instalment of Funds. If the amount of the Funds held by Lender shall not be sufficient to paytaxes, assessment, insurance premiums and ground rent as they fall due, Borrower shall pay b Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thtreot. Upon payment in lull of all sums secured by this Mortgage, Lender shall promptly refund to Borrower soy 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 it 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 payment received by Lender under the Not and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount 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, assessment and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payment orground rent, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, direMly to the payee thereof. Borrrwer shall promptly furnish to Lender all notices of amount due under this paragraph, and in the event Borrower shall make payment direMly, Borrower shall promptly furnish to lxnder receipt evidencing such payment. Borrower shall promptly discharge any lien which has priority overtfiis Mortgage; provided, that Borrower shall not be required todiacharge any ouch lien so long as Borrower shall agree inwriting to /he payment of theobligation secured by such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, ordcfend enforcementof such lien in, legal proceedings which operate to prevent the enforcement of the lien or forleilure of the Property or spy part thereof. 5. Hazard I nsurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against toes by fire, hazards included within the term "extended coverage," and such other hazards as !.ender may require and in such amount and for such periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the soma secured by this Mortgage. . The insurance carrier providing the insurance shall t,e chosen by liorr~wer subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums un insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to-thc insurance carrier. All insurance policies and renewals thereof shall be in form acceptable W Lender and shall include a standard mortgageclause in favorof and in form acceptable to Lender. [.ender shall have the right L<, 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 lose,l3orn,wer~hall give prompt notice to the insurance carrier I ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security o[ 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-beapplied ` to the soma secured by this Mortgage, with the excess, if any, paid to Burrower. if the Property is abandoned by Borrower, or if Borrower fails to E respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance cattier offers to settle a claim for insurance benefit, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or repair of the Property or the soma secured by this Mortgage. { Unless Lender and Borrower otherwise agree in writing, any such application otproceeda to principal shall not extend or postpone thedue date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such installment. If under paragraph IS 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 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 Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall 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 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 covenant creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent 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 thecovenants and agreement otthis Mortgageas if the rider were a part hereof 7. Protection of Lender's $ecurity. If Borrower fails to perform the covenant and agreement contained in this Mortgage, or if any action or proceeding is commenced which materially affect Lender s 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 Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, bnt not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Ltnde: required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regnired to maintain such insurance in effect until such time ae the requirement for such insurance terminates in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under 1 paragraph 2 hereof. ' Any amount disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of I Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amount shall be payabk upon notice from Lender to Borrower requeednq payment thereof, and shall bear interest from the date of disbursement at the rate payable from tune 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 amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph T, shall require Lender to incur any expense or take any action hereunder. _ zl~~~ 335 P~~E 622 ~