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HomeMy WebLinkAbout1707 ..i _ - • - • ~ t ~~,i~: ~ Boaower and Leader covenant and agew a. Ioliows: 1. Paysaeat of Priat:ipal sad Interest. Borrower shall prompt~j? pay when due the principal of and intered on the indebtednew evidenced by the Note. prepayment sad late charges es provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. - 2. fitnds for Taxes sad Iasuraaoe. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest ~ payable under the Note, until the Note is paid in full. a sum (herein"Funds'7equal toone- twelith ofthe yearly taxeiand assessmenb which may attain priority over this Mortgage. and ground rents on the Property, if any. plw one• twelRh o[yearly premium installmenb for hazard insurance, plw one•twelRh ofyearly premium installments [or mortgage insurance, tf any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall bs held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State ageacy (including I.~rdee it Lender is such as institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and ground rents. Lender may not charge [or so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and biW. unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make wch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fundr 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 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 thin Mortgage. If the amount ottee Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates of taxes, assessments, inswance premiums and ground rents, shall e:cied the amount required to pay said taxes. aseessmenta, insurance premiums and ground rents as they fall due, such exoESS shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ponds. If the amount of the Funds held by Lender shall not be sufficient to pay fazes, 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 E to the sale of the Property or its acquisition by Leader, any Funds held by Lender at the time of application as a credit against the sums secured j 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 b interest payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. 4. Charges; Liana. Borrower shall pay all taxes, aasewmenta and other rlrargea, 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 paragraph 2 hereof or, if not paid in such manner, by BolTOwer making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to [.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrows shall not be required to discharge any such lien so long as Borrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement 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 faun "eztepded rnverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require: provided, that Lender shall nest require that the amount of such coverage exceed that amount of rnverage required to pay the sums secured by this Mortgage. The insurance carrier 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 insuranm 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 acceptable to tender and shall include a standard mortgage clause in favor of ~ and in form acceptable to Lender. Lendershall 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 kw, Borrower shall give prompt notice to the insurance carrier 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 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 arms secured by this Mortgage, with the excess, it any, paid 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 otters to settle a claim for insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender a 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 eztend or postpone the due date of the monthly installments refen-ed to in paragraphs 1 and 2 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 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 eztent of the soma secured by this Mortgage immediately prior to such sale or aoquisiton. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply 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 Borrowers obligations under the declaration orcovenanta creatingor 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 Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgageasif the rider were a part hereof. 7. 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 Lenders 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,upoa notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's face 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 each 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 disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable lion 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 pansgraph 7, shall require Lender to incur any a:pause or take any action hereunder. , ~ f s: ' , s , _ ~~35 P~~1?I~0 . .