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HomeMy WebLinkAbout0026 Borrower and Fender covenant and agree as tolbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evideaeed by the Note. prepayment and late charges as provided in the Note, and the principal otand intereston any Future Advances secured by this Mortgage. 2 Ptiutds for Taxes sad Iasuraaee. 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 to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw one twelfth of yearly premium installments for hazard insurance, plus onetwelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to fleas by (.ender 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 Londe: i[ 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 eo 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 b make such a charge. Borrower and Lender may agrce in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless each agreement is made or applicable law requires such interest to be paid, (.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting o'1'the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fuada was made. The Runde are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said fazes, assessments, insurance premiums and ground Hots es they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by [.ender 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 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 [,ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by (.ender 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 Lender first in payment of amounts payable to bender 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 other charges, fines and impositions attributable to the Property which may attain a priorityoverthis Mortgage, and leasehold payments or gn,und rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make pay ment directly, Borrower shall prompt:y furnish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so long :ec &,rruwer shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith n,ntest such lien by, ordetend 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 term "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as (.ender may require; provided, that Ixnder shall not require that the amount of such croverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall M• chosen by li,~rn,wrr subjeei to appnn•al by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall t,e paid in the manner pn,vided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when du~•, dirccth• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable w Ixnder and shall include a standard mortgageclausein favorof and in form acceptable to Lender. Ixnder shall have the right to hold the lH,licies and renewals thereof, and Borrower shall promptly furnish to ixnder all renewal notices and all receipts of paid premiums. In the event of Ins, &,rrower shall give prompt notice to the insurance carrier and (,ender. 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 I damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such i 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 exces_g, if any, paid to &,rrower. if the Property is abandoned by Borrower, or if Borrower tails to respond to Lender within :30 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for insurance benefits. Ixnder is authorized to collect and apph• the insurance proceeds at Ixnder's option either to restoration or repair of the Property or the sums secured by this hlortgage- Unless Ixnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 Irerec?f or change the amount otsuch installments. If under paragraph 18 hereof the Property is acquired by Ixnder, 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned lrnit 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 aryr lease if this Mortgaqe is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. I[ a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgaqe, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement theco~enants aid agreementaof this Mortgageasifthe rider were a part hereof. - 1 7. Protection of Leader's Security. If Borrower fails to perform the wvenants and agreements rnntained in this Mortgage, or if any action or pix-girding is wmmenced which maferiaily affecia ixnder'a interest in the Properly, including, but not limited to, eminent domain, ~ insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower rosy make'euch appearances, disburse such soma and take such aMion 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 (:.ender required mortgage insurance 88 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 a and Lender's written agreemegt or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under r paragraph 2 hereof. My amounts disbursed by Lender perauant to thiq~paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder 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 [rom time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary 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 an~? expense or take any action hereunder. I ~ , ~ 80~lc)c) l PdGE ~j