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HomeMy WebLinkAbout1544 Borrower and Lender covenant and agree a• tolbws: 1. Payment of Principal and ]nterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Flutds for Taxes and Insurance. Subject b applicable law or W a written waiver by Lender, Borrower shall pay to lender on theday monthly inatallmenta of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Ftitnda'")equal to one twelfth of the 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 installments for hazard insurance, plus onetwelfth otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by Lender on the basis of assessments and bills and reasonable 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 such an institution). Lender shall 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 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 and Lender may agree in writing at the time of execution of this Mortgage that interest on the F unda 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 this Mortgage. if the amount of the Funds held by [.ender, together with the future monthly installments of Funds payable prior to the duedates oftaxea, assessments, 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 Borrower s option, either promptly repait# to Borrower or credited to Borrower on monthly installments of Funds. 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 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 I ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time otapplication 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 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 Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le.-isehold paymentsc or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pay ment, when due, directly to the payee therm[ Borrower shall promptly furnish to Lender ;ill notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. I3orn?wer shall promptly furnish to (.ender receipts evidencing such paymentsv_ Burrower 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 Born?wer shall agree in writing to the pay ment of the obligation secured by uch lien in a manner acceptable to Lender, or shall in Kood faith contest such lien by, or defend enforcement of such lien in, IeKal proceedings ~•hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thermf. 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 term "extended coverage,"and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall nut require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providinK the insurancec• shall Ix• chosen M Bnrrow•e•r subj+Y•t to aupn?val by Ixnder, provided, that such approval ,hall not be unreasonably withheld. All premiums on inwr.+nce tNdicies .hall I?c• paid in the manner pruvid+d under par.?Kraph 'l hermf or, it nut paid in such manner, by Borrower makinK p:+yment, when due, dtrcY•th to the ?n~urance r.+mer. All insurance policies and renewals thermf shall be in form acceptable tc? (.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thermf, and Borrowershall promptly 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 :+nd Lender. Lender may make proof of loss if not made pn?mptly by Korrower. Unless Lender and Borrower otherwise agree in writinK, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is rronomically 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 sums secured by this Mortgage, with the excess, if any, paid to &,rrower_ If the Property is abandoned by Borrower, or if Borrower fails to re,pond to Lender within 30 days from the date notice is mailed by Lender G? Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, [.ender is authorized to collect and apply the insurance proceeds 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 writinK, any such application of proceeds to principal shall not extend or postpone thedue ~ date of the monthly installments referred to in paragraphs 1 and `l !?ercY?f or change the amount of such installments. If under paragraph 18 j 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 acywsition 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; ixaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep 4 the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the E provisions of any lease if this Mortgage is on a leasehold_ If this MortKage is on a unit in a condominium or a planned unit development, j Borrower shall perform all of Borrower's obligations under the declaration or covenants creatinKor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~ ~ ~mdominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and a :+Kreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage asifthe rider were a part hereof. 7_ ProteMion 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 Lender's 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,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required S ! 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 such time as the requirement for such insurance terminates in accordance with Borrowers and [,ender e 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 perauant to this paragraph 7, with interest thermn, shall become additional indebtedness of Borrower secured by this Mortgage. Unieas Borrower and Lender agree b 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 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 applicable law. Nothing contained in this paragraph 7, shall i require Lender tv incur any expense or take any action hereunder. e~~s P~Ei54z