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HomeMy WebLinkAbout0459 Borrower and Lender covenant and agree as follows: 1. Payment ut Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal otand interest on any F aloes Advances Secured by this Mortgage. 'l. finds for Ta:es and Insurance. Subject to applic:ble law or W a written w:+iver by Lender, lir?rrower shall pay to la•nder on the day monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, a sum (herein "F unda'")equal tc, one- twel(th ofthe yearly t:aces and aaseasmenta which may attain priority over this Mortgage, and ground rents un the Property, if any, plus one twelfth of yearly premium inatal?mente for hazard insurance, plus one•twelfih of yearly premium installments fur mortgage insurance, if nny, all ae reasonably estimated initially and from time to time by 1 A•nder on the basis of assessments and bills and reasonable eslimatcn+ thereof. The I•l+nds 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 shrill 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 ncc•uunt, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds t+nd applicable law penmita Lender w make such a ch:+rge. Borrower and Lender may agree in writing at the time of execution c,f this Mortgage that interest on the Funds shot( 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 Burrower 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 F unda and the purpose for which each debit to the Funds w:+s made. The Funds are piedgcd as udclitiunal security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly inst:llments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exrxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at I;om?we~ S option, either promptly repaid to lionower or credited to Borrower on monthly installments of Fonda. I[ the amount of the Fonda 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 30daya from the date notice is mailed by Lender to Bontower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, (,ender shall promptly refund to lic,rrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquimd by Lender, (.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by I A nder 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 (.ender first in payment of amr,unts payable to bender by forrower 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. a. Charges; Liens. Borrower shall pay all taxes, :w,tic?•ssm+•ntssnd other el?arges, fines and impositions attributable G, 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 Borrower making payment, when due, din•c•tly to the, payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this p:vagraph, and in the event Borrower shall make payment dircc•tly, Borrower shall promptly furnish tc, I .tender receipts evidencing such p:+ym+•nts. Borrower shall promptly discharge any lien which has priority over this btortgage; pmvided, that Borrower shall not be required todischarge any such lien so long as Iton•ower shall :?gree• in writing to the payment of thc•~blig~tion secured by such lien in a manner acceptable to Lender, or shall in ge,rxl G•+ith rontr•st such lien h}•, urdefend enforcement otsuch lire in, Icgal pruc•c•~dings which operate to prevent the enforcement of the lien or G,rfeiturc• of the I'rul?r•rh• ur am• part thenr,f. 5. Hazard Insurance. Borrower shall keep the improvememts now existing or hereaftereree•ted on the Property insured against lussby fire, hazards included within the term "extendc•rl cuvrr<+ge," and such other hazards as Ixnder may reyuin• and in such amounts and for such periods as Lender may require; provided, that Lender shall nut nxtuire that the amount of such cti,verage exc•ecd that amount of coverage required to pay the sums- secured by this Murtg:+Ke- The insurance earner providing the inwr.+ncr• shall Iw chosen by Borrower subjc•r•t to approval by 1 a•nder; provider(, that such approval shall not be unre:+sr,nabh• w•ithhr•Id. All premiums nn insurance I,olicir•s shall t,c• paid in the manner pn,vidc•rl under paragraph hereof or, if not paid in such manner, by lir,m,wer maki+ig pavmr•nt• when due, din•r•tl~• to the insurance carrier. All insurance policies and renewals thereof shall be in firm acc-e•ptable G~ !.ender and shall include a standard mortgage clausein favorof and in form acceptableto [~ender_ Lendershall have the right to hold thr• Iwlie•ies and renewals thereof, and Korrower shall pmmptly furnish to ?.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall give prompt notice to the insurance carrier f and Lender_ [.ender may make pns,f of loss if not made pmmptly h~• Borrower. lTnless Lender and Borrower otherwise agree in writing, insurance pn,ceeds shall tx• applied to restoration or repair of the Property damaged, pro~~ded such restoration or repair is economically feasible, and the security of this Mortgage is not thereby impaired. If such 6 restoration or repair is not economically feasible ur if the security of this 1ortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Kr,rrower. If the Property is abandoned by Borrower, or if Korrower fails to respond to (.ender withinit0 days from the date notice is mailed by Lender to $urn,wer that the insurance carrier offers to settle a claim for insuranm benefits, Lender is authorized to collect and apply the insurance pn,ceeds 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 pnx•eeds to principal shall nut extend or postpone the due date of the monthly installments referred tc, in paragraphs 1 and 'L hereof or change the amount of such installments. If under paragraph 1R 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 aegwsition 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; Condomimums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, Borrower shall perform all of Bonower'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 rnndominium or planned unit development rider is executed by Burrower and recorded together with this Mortgage, the covenants and I agreements of such rider shall bee inc•orpor.+ted into and shall amend and supplement thec•ovenants and agreements of this Mortgage as if the I sider 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 bender's interest in the Property, including, but not limited to, eminent domain, F insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei a option,upon y ppearances, disburse such sums and take such action as is necesaa to rotect Lender's interest, notice to Borrower ma make such a rY P 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 making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminatee in accordance with Borrower's and Lendei a 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 diabuned by Lender perauant to this paragraph 7, with interest thereom, shall become additional indebtedness of ~ Korrower secured by this Mortgage. Unless Borrower and bender agree to other terns of payment, such amounts shall be payable upon ~ notice from Lender tc? 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 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 applic:+ble law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. t"s `r ' 1~~ 458 8~01(~~ PdGE ;