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HomeMy WebLinkAbout1042 1 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 late charges as provided in the Note, and the principal of and interest on any F afore Advances secured by this Mortgage. 2 Funds for Taxes and insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to !.ender 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 W 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- tweltth ofyearly premium installments for hazard insurance, plusonetwelfth ofyearly premium installments for mortgage insurance, if any, dll as reasonably estimated initially and from time to time 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 !.ender if Lender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. I.ertder may not charge for so holding and applying the Fonda, 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 Funds sl+all be paid to Borrower, and unless such agreement is made or applicable law requires such interea/ to be paid, Lender shall i?ot be required to pay Borrower any interest or earnings on the Funds. Lender shalt 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 Fltnds held by Lender, together with the future monthly installments of F ands payable prior to the duedatea of taxes, 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 a option, either promptly repaid to Borrower or credited to >forrower on monthly installments of Funds. If ttre-amount of the Funds held by !.ender shall not be sufficient to pay taxes, asaesamenta, insurance premiums and ground rents as they fall due, Borrower shall pay b 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, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by !.ender, 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 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, asses_sment.4 and other e•harges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold payments or ground rents, if :+ny, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. 13r?rrower shall promptly furnish to (.ender all notices of amounts due under this paragraph, and in the event liorn,w•er shall make payment directly, Borrower shall promptly famish 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 to discharge any such lien so long as Bom,wer shall agree in writing to the payment ottheobligation secured by such lien in a manner acceptable to Lender, or shall in good faith n?ntest such lien by, ordefend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part therey,f. 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 ccn•erage,"and such +,ther h:+zards as Lender may require :+nd in such amounts and forauch periods as Ixnder may require; provided, that Lender shall not reyuim that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pnn•iding the insur,m+•e• shall he• chosen 1?y Borrower wbj+rt to appro.:+l by Ixnder; provided, that such approval shall not be unreas,mably withheld. All premiums on insur:mce t„?lici+•s shall 1,+• paid in the m:mner provid+•d under par.+graph'L hereof or, if not paid in such manner, by Borrower making p:+yment, when due. dinr•th• to. the insurance carrier. i A11 insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favorof and in form acceptable to (.ender. I,endershall have the right to hold the p„licies and renewals thereof, and Borrower shall promptly furnish to render all renewal notices and all receipts of paid premiums. In the event of loss, Born:wer shall give prompt notice to the insurance carrier and Lender. 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 damaged, provided such restoration c,r repair is economically feasible and the security of this Mortgage is rat 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 beapplied to the soma secured by this Mortgage, with the exces.4, if any, paid to Borrower. if the I'mperiy is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is mailed by Fender to Bornwer`that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance pn?ceeds at Lender's option either to restoration or repair of the { Property or the sums secured by this Mortgage. 3# 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 (.ender, all right, title and interest of Born,wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to !.ender 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 Unit Developments. Sorrower shall keep the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominiun~o~ 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 recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider 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 sction 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 proceedings involving a bankrupt or decedent, then Lender at Lender s option,upon notice to Borrower may make each appearances, disburse such soma 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 rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders 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 thereon, shall become additional indebtedness of Borrower 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 from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interes! 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 any expense or take any aMion hereunder. ~~ll~~(tll aooK~~ PGGE~VJV . • ~ ~ ~ R_