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HomeMy WebLinkAbout1184 i Borrower and Lender covenant and agree as follows: t. l~aymeat o[ I=rincipai anti Iaic~oit. 8:,rrar.•cr 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. Funds for Ta:es and Insurance. SubjeR to applicable law or to a written waiver by !,ender, Aorrower shall pay tol.eodes on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "h'unds")equal to one twelfth of the yearly taxes and aesesamenta 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 one•twelfth otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tithe by !.ender on the basis of assesamrnta and bills and reasonable estimates thereof. 'Rte Funds shat! be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if !.ender is such an institution). !.ender shall apply the Funds to p,.y aa:3 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 aeaessmente and bills, unless Lenderpays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and L,..na.. !!+_4y °-8r!":t. 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 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 Lender, together with the future monthly inatallmenta of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, trasesamenta, insurance premiums and ground rents as they fall due, ouch excess shall be, of 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 bender b Borrower requesting payment thereof. Upon payment in full of all earns secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by !.ender. 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 !.ender 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 Advapcea. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymentsa or ground rents, iCany, in the manner provided underparagraph 2hertofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices otamounts due under this paragraph, and in the event Born?wer shall make payment directly, Borrower shall promptly furnish to i.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority aver this Mortgage; provide, that Borrower shall not be required to discharge any such lien so long as Borrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend 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 lass 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 not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranrr shall I,c chosen by l;<?rn~wer subject to approval by !.ender, provided, that such approval shall not be unreasonably withheld- All premiums on insuranm policies shall t,r paid in the manner pnwid~d under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dinrtly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to l.enderand shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lender shall have the right tc, hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender 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 rrsluraliun or repair is economically 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 soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, ar if Borrower fails to respond to Lender within :10 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 to collect and apply the insurance proceeds at !.ender 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 2lrereof or change the amount of such installments. It 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 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 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 leasehold. If 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 rreatingor 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 recorded together with this Mortgage, the covenants 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 hereoL 7. Protection of Lender's Security. If Borrower fails to perform the eovenanta and agreements contained in this Mortgage, or if any action or proceeding is rnmmenced which materially affects Lender a 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 earns and take such aMion as is necessary to protect Lender's interest, including, but not limited to, disburaeanent of reasonable attorney's fees and entry upon the Property to make regales. 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 effect until such time as the requirement for 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 hereoL My amounts disbursed by Lender perouant to this paragraph 7, with interest thereon, shall become additional indebtedness of I Borrower secured by this Mortgage. Unless Borrower and Lender agree to other tetTna 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 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. r • B~~K •~J~ P~GE ~1,~1 ,