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HomeMy WebLinkAbout0475 Borrower and Lender covenant and agree as follows: 1. Payment of Prittcipat 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 pmvided in the Note, and the principal of and interest on any F uture Advances secured by this Mortgage. 1. finds forTa:esand Insurance. Subject to applicable law or to n written waiver by Lender, Ib,rrowershall pay tol.enderon theday mc,nlhty installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly taxes and asaeasmenle which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth o[yearly premium installments for hazard inaun+nce, plux c,netwelfth of yearly premium inxtt+llmc•nts for mortgage insurance, if any, all as reasonably estimated initially and from lime to titre by Lender on the basix of t+xaeq,cments and bills and re:+sonahle estimatex thereof. The Funds shall be held in an institution the deposits or accounts +?f which are insured ,?r guar:+nteed by a Federal or State agency [including Lender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, asaexxments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing Raid account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower nd Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Burrower, and unless such agreement ie made or applicable law requires such interest to be paid, Lender shall not be required to pay Burn,wer any interest or ' e:+rnings on the I'Lnds. Lender shall give to Borrower, without charge, an annual accc,unting of the Funds showing credits and debits to the 1•'unds and the purpose for which each debit k, the Funds was made. The Funds are pledged:+s additional security for the sums secured by this Mortgage. Itthe amount of the F'unda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and grc?und yenta, shall excrnl the amount required to pay said taxes, assessments, insurance premiums and ground rents ae they tall due, such excess xhall be, at Bo+TOwer's option, either pmmptly repaid to Borrower or credited to Borrower on monthly installments of Fltnda. if 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 [.ender any amount necessary to make up the deficiency within :)0 days from the date notice is mailed by Lender to Bormwer requesting payment thereof. upon payment in full of all sums secured by this Mortgage, Lender shall pmmptly refund to Borrower any funds held by bender. If under • paragraph IS hereof the Property is sold or the Property is otherwise acquired by Fender, lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lc•nderat the timeuf application as a credit against thesums xecured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and pa ragrapha 1 and 2 hereof shall be applied by Lender first in payment of amount,4 payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nc,te, :+nd then to interest and principal on any Future Advances. 4. Charges; Liens. Bormwersh:+ll pay:+11 texts, assc•scments and otherchargex, fine•s:+nd imp,xitiuns attributable tc?the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the m:+nner provided under paragraph 2 hereofor, if nut paid in such manner, by Borrower making p:+yment, when due, directh to the payer therec,f. Bormwershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Itom+v.•er shall make payment die+•c•tly, Borrower shall promptly furnish to I .ender receipts evidencing such paymentsc. Itorn,wer shall promptly discharge :my lien which has priority over this Mortgage; provided, that i~urrower shall not be reyuired to discharge any such lien so long as Itc,rn,wer shall ogre+• in writing to the payment uftheobligation secured by such lien in a manner acceptable to Lender, or shah in gc,c,d f:+ith contest such lien by, ordet+•nd enfon•em+•nt of such lien in. legal pn,ceedings N hich operate to prevent the enforcement of the lien or forfeiture of the Property or any p:?rt thcrcr,f. 5. Hazard Insurance. Korroarer shall keep the improvements now existing or hereafter ereMed on the Property insured against loss by fire, hazards included within the term "extended cover.+Ke,"and such other hazards as Lender may rc•yuire and in such amount.'; and forsuch periods as Ixnder may require; providc•cl, that lxnder shall not n•ctuire that the amount of such coverage exceed that amount of coverage n•ctuired to pay the sums secured bj• this Mortgage. The insuramm cam+•r providing the imurance shah i,c• chusc•n by Borrower subjer•t to appro+:+) by lender, provided, that such approval sh;+I1 not be unreasonably K•ithheld_ All premiums un insurance tNdi+•i,•. shall Irc• p;ud iu the manner pmvidwl under paragraph L hen•c,f or, if not paid in such manner, by li+,m,wer making p:p•tnent. when due, dirc•c•tly t.+ the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favorof ;,nd in form acceptable to Lender. Lendershall have the right G, hold the t«+licies and yen+•wals thereof, and Bc,m,wer shall promptly furnish to : •nder all renewal notices and all receipts of paid premiums- In the event of loss, Rorn,wer shall give prompt notice to the insurance carrier and Fender. Lender may make proof of loss if not made promptly by Burrower. Unless [.ender and Borrower otherwise agree in writing, insuranre• proccrds sh;+Il be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the sErurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur 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 lu Borrower. if the Property is abandoned by Borrower, or it Bormwer fails to respond to [.ender within 30 days from the date notice is mailed by !,ender t<, Borrower that the insurance carrier offers to settle a claim for insurance benefits, !,ender is authorized to collect and apply the insurance prcx•eeds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Rorrowerotherwise agree in writing, any such application of proceeds to principal shall notextend or postpone thedue date of the monthly installments referred to in paragr•+phs 1 and 2 hertti,f or change the amount of such inst<311ments. (f under paragraph l8 hereof the Pmperty is acquired by bender, all right, title and interest of Iturruwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or aeymsition shall pass to Lender to the extent of the sums secured b_v this Mortgage immediately prior to such sale or acquisition. 6. Preservation and 1laintenance olProperty: Leaseholds; ('ondominums: Planned Cnit 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, }trrower shall perform all of Borrower's obligations under the declaration ur covenants ~•reatingor govern,ng the condominium or planned ui;it development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ondominium or planned unit development rider is executed by Ifc,rn,wer and recorded together with this Mortgage, the covenants and ,,Kreements of such rider shall be inc•urporated into and shall amend and supplement theroven;+nts and agreements of this AtoKgageas if the nder were a part hereof. 7. Protection of Lender•e Security. If Borrower faits to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or pmceedinga involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make such appearances, disburse ouch sums and take such action as is necessary to protect Lender's interest, 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, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender s µ•ritten 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 bender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of forrower secured by this Mortgage. Unless Borrower and [.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fmm the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment c,f interest at such rate would I,e contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~u~}K336 ~~GE 47'4 = _ - 5. _ ~~,~~F ~ a