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HomeMy WebLinkAbout0201 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 latecharges as provided in the Note. and the principal otand interest on any Future Advances secured by this Mortgage. 2. Fltttds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt 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 taxce and asaesamenta which may attain priority over this Mortgage, and ground rents on the Property, itany, plw one twelfth of yearly premium installments for hazard insurance, plus onetwelfth ofyearly premium installments for mortgage insurance, i[any, all as reasonably estimated initially and from time to tune by Ixnder on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lends if Lender ie 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 1•tinds, analyzing aaid.account, or verifying and compiling said. assessments and bills. unless Lender pays Borrower interest oh 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 Funds 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to the duedatea of taxes, asaeasmenta, insurance premiums and ground rents, shall excxd the amount required to pap said taxes, aaaeasmer+ts, insurance premiums and ground rents as they fall due, such excess shall be, at BaTOwer's option, either promptly repaid 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 fail due, Borrower shall pay to Lender any amount necessary i'o make rip the deficiency within 30days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by Lender. Itunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Ixnder shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Ixnder 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 fimt in payment of amounts payable to Ixnder 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 , map attain a priority overthis Morteaee, and leasehold payments orgmund rents, if any, in Ihp manner provid~l under p:+ragrTph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Ixnder :+II notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I .ender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:+s priority over this Mortgage; provided, that Borrower shall not berequired todischarge any such lien so long a.R Borrower shall agree in writing to the payment+?f theubligation secured by such lien in a manner acceptable to Lender, or shell in good faith +y,ntest such lien by,or defend 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 Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage_ The insurance carrier-providing the incur.+n+e shall Ix• chosen by li:~rn,w•er subje+t to appn,eal by Ixnder, pn?vided. that such approval shall not be unre•+sonably withheld. All premium. on insurance policies shall M• paid in the manner pmvide+l under par,+Kr.+ph'l hermf or, if not paid in such manner, by Borrower making p:+yment. when due, dinrth• to the insurance carrier. All insurance policies and renewals thereof shall be in form accep4-+ble to Lender and shall include a standard mortgageclause in favorof and in form acceptable to Ixnder. Ixnder shall have the right i<, hold the policies and renewals thereof, and &?m,wer shall promptly furnish tc, ~ :.ender all renewal notices and all receipts of paid premiums. In the event of loss, Itorr?wer shall give prompt notice to the insurance carrier and Ixnder. Lender may make proof of loss if not made promptly by Itorn,wer. 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 I1lorigage 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 soma secured by this Mortgage, with the excess, if any, paid to Borrower. I 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 Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized G? collect and apply the insurance pr+x+•cds at bender s option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender 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 `l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, all right, title and interest of Borrower in and t+i any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or acquisition shall pass to Ixnder to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and Maintensnceof Property; Leaseholds; Condominuma: Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste +?r permit impairment or deterioration of the Property and shall comply with the E,rovisions 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, Borrower shall perform all of Korrower's obligations under the declar.+tion 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 Borrower and recti,rded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this ~lortgageas if the 3 rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements rnntained 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, node 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 e interest, including, but not limited to, disbursement of reasonable attomey'e fees and entry upon the Property to make repairs. I! Lender regnired mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain Buch insurance in effect until such time as the requirement [or such insurance terminates in accordance with Borrower's and Lender's 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 pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree to othe[ 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 diabuteement at the rate payable from 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 Ixnder to incur any expense or take any aMion hereunder. Bfll)K PdGE ~.Ul