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HomeMy WebLinkAbout0421 . , Borrower and Lender covenant and agree as folbws: 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 late charges as provided in the Note. and the principal of and interest on any Ititture Advances secured by this Mortgage. • 2. Elands for Taxes and lnaurance. Subject to applicable law or to a written waiver by Lender, Borrower shalt pay to Lender on the day monthly installments otprincipal 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 asaeasmenta 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, plusonetwelfth ofyearly premium installments for mortgage insurance, i[any, all as reasonably estimated initially and from time to tine by [.ender on the basis of assessments and bills and reasonable estimates theteof. 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 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 !.ender to make such a charge. Borrower and lender may agree in writing at the time of execution o[ 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, (.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 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 oI the Funds held by !.ender, together with the future monthly installments of F unda payable prior to the due dates of taxes, assessments, insurance premiums and ground•renta, shall excred 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 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 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 Lender, Fender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Fender 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 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. Borrowershall pay all taxes, :?.asccsments and other charges, fines and impoxitions attributable to the Property which may attain a priority over this Mortgage, and le:+sehold payments or gmun?1 mots, if :+ny, in the manner provided under par:+graph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bornm•er shall promptly furnish to Lender receipts evidencing such payments. Itorn+wer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired to discharge any such lien so long :?s Iorrower xhall agree in writing to the payment of theoMigation secured by such lien in a manner acceptable to Ixnder, or shall in gcxxl faith protest such tiro hy, urdefend enfonrment ofsuch lien in, legal proceedings K•hich operate to prevent the rnforcrment of the lien or for[?•iture of the Prutmrh• ur any part there?+f. 5. Hazard Insurance. Borrower shall keep the improvements n??w existing or hereafter erected,on the Properfy insured against loss by fire, hazards included within the teen "extended coverage," and such other h:+zards as Ixnder may require :+nd in such amuuntsand for such periods as Ixnder may require; provided, that !.ender shall not reyuire that the amount of such rnver+ge exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providing the insurnnc•+• shall M• chosen by BnrrowersubjtYi to appn+v;?I by I.c•nder; pryn•idcvl, that such approval shall not be unre.~u,m+bly withheld. All premiums on insurance ih+lici?•s shall I+?• paid in the m:u+ner pmvid?•d under paragr.?ph'L here+?for, if I'~ not paid in such manner, by Borrower making p:?yment. when due, directly to th+• insurance Barrier. - i All insurance policies and renewals thereof shall be in form acceptable to lxnderand shall includes standard mortgageclausein favorof ~ and in form acceptable to Lender. Lender shall have the right to hold the p~~licies and renewals therc~?f, and Burrower shall promptly furnish to i ?.ender all renewal notices and all receipts of paid premiums- In the event of (+us, Burniwer shall give prompt notice to the insurance carrier and Lender. (.ender may make proof of loss if not made promptly by Iiorn+w•er. 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 Mortgage is not thereby impaired. If such _ restoration or repair is not economically feaxible or if the security of thix Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, p:+id to Borrower. If the Property is abandoned by Burrower, or if Borrower fails W respond to Lender within a0 days from the date notim ix mailed by !.ender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefits, Lender is authorized to collect and apph the insuranm pr?x•eeds 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 applic•:+tiun of pn++•eeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+graphx 1 and'L here++f or change the amount of such installments. If under paragraph 18 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 acquisition shall pars 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; I.eaaeholds; ('ondominums; Planned Unit Developments. Borrower shall 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 leaseh?+Id. If this Mortg:+ge is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower'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 condominium or planned unit development rider is executed by Borrower and ren+rded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecc?venantsand agreements of this Mortgageasifthe nder 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 I.ender'e interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender s option,upon notice to Borrower may make such appearances. disburse such sums and take such action as is necr8sary 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 rnndition of making the loan secured by this Mortgage, Borrower shat! pay the premiums required to maintain 1 such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender e written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under € paragraph 2 hereof. t Any amounts disbursed by Lender persuant tz+ this paragraph with interest thereon, shall become additional indebtedness o[ Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teens 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 v?~hich event such amounts shall bear'intereat at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall - require Lender to incur any expense or take any aMion hereunder. 600K~~ PdGE ~ -