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HomeMy WebLinkAbout0225 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonda [or Taxes and Insurance. 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 are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal toone- twelfth ofthe yearly taxes and asseaementa which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tune by lxnder on the basis of assessments and bills and re<•+sonable estimates thereof. The Funds 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 ouch an institution). Lender shall apply the Fonda 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 Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing et the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless euch agreement is made or applicable law requires such interest to be paid, Lender shall not 6e required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an at+nual accounting of the F unds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The F unds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due dates of taxes, aasesamenta, 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 Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. 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 (.ender 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 Fonda 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 payments received by [.ender 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 of the Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Korrowershall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which +nay attain a priority over this Mortgage, and le:+sehold payments or gwund rents, if any, in the+nanner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Kormwershall promptly furnish to [.ender all notices otamounts due under this paragraph, and in the event Korrower shall make pay mast directly, Borrower shall promptly furnish to bender receipts evidencing such payments4. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Ft+,rn,wer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in g«,d G+ith c+,ntest such lien by, ordefend enforcementofsuch lien in.legal proceedings which operate to prevent the enforcement of the lien or fi,rfeiture of the Property or any part thereof. 5. Hazard Insurance. Korrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended.coverage," :+nd such other hazards :+s lxnder may require and in such amounts and for such periods as Lender may require; provided, that lxnder sh:+11 not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgag+•. The insurnnrn carrier providing the insurance shall Ix• rh~sen t?y Borrower subtcrt to approval by 1 xnder; pr+widc•d, that such approval shall not be unreasonably withheld. All premiums on insurance twliri++ shat) be paid in the manner pmvid+•+l under paragraph `L hereof or, if not paid in such manner, by Borrower making payment, when due, dirc•+•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable G, lxnder and shall include a standard mortgage clause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ?.ender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give prompt notice to theinsurance carrier and bender. 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 +?r 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, if any , paid to Korrower. [f the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 days from the date notice is mailed by Ixnder G, Borrower that the insurance carrier offers to settle a claim for insurance bQnefits, Lender is authorized to collect and apply the insurance proceeds at Ixnder'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 otproceeds to principal shall not extend or postpone thedue ~ date of the monthly installments referred w in paragraphs 1 and `l I+ereof or change the amount of such installments. If under paragraph 18 ¢ hereof the Property is acquired by lxnder, all right, title and interest of Korrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; [.easeholds; 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 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, lorrower shall perform all of Borrower's obligations under the declaration or covenants 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 &~rn?wer and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgagees if 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 ie commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, a insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon f notice to Borrower may make such appearances, disburse such sums and take such action as ie necessary to protect Lendei s interest, t including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property W make repairs. If Lender required ~ mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until euch time as the requirement for such insurance tenninatea in accordance with Borrower's and Lender's r 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 Lender persuant 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 [,ender 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 No sa Mdvment of interest at euch rate would be contrary to applicable law, in which event euch amounts shall bear interest at the hig permissible under applicable law. Nothing contained in this paragraph 7, shall _ require Lender to incur any expense or take an ti ereunder. - - r BI]OK Jc.~U PAGE - _ _