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HomeMy WebLinkAbout0466 V Borrower and Lender covenant and agree as follows: 1. Payment of Principal artd laterest. 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 Future Advances secured by this Mortgage. 2. I~tnds [or Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, 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 "Fti?ndn") equal to one• twelfth othhe yearly taxes and assessments 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 onetwelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tune 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 (:ncluding !.ender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground Hots. Lender may not charge for eo holding and applying the Funds, analyzing said account, or veritying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law pernita !.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 applicabk law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or earnings on the Fti?nds. 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. ([the amount ottee Fonda held by Lender, together with the future monthly installments of Funds 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 tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by !.ender shall not be sufficient to pay taxes, asaeasmente, insurance premiums and ground rents as they tall 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 o[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, !.ender shall apply, no later than immediately prior to the sale of the Property orita acquisition by !.ender, 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 !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to (render 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, assessments and othercharges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and leasehold payments or gn?und rents, i f any, in the man Her provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payer thermf. Bc?rn,wer shah promptly furnish to (.ender :+11 notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Itorn,wer shall promptly furnish to Lender receipts evidencing such paymrntw. l;„rn,wer shall prcxnptly discharge any lien which has priority over this Mortgage; provided, that Korrower shall not be required todischarge any such lien so long:~s Itc?rn,wer shall agree in writing to the payment of throbligation secured by such lien in a manner acceptable to !.ender, or shall in {food L•?ilh cti,ntest such lien by, ur defend e•nforcrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fi?rfeiture• ?d the• Property or any part thereof 5. Hazard Insurance. 13orrowrer shall keep the improvements now existing or hereafter erected on the Property insured against lose by i fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Lender xhall not require that the amount of such coverage exceed that amount otcoverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insur:+ne-c• shall Iw• ch?r:en by Borrower subjcc•t U, approval by Iw•nder; pn,vided, that such approval shall not be unreasonably withheld. All premiums un insuranrn IN?licie•. shall 1?c• paid in the manner pn?vid+•cl under par.+gr.?ph'L hercr,for, if not paid in such manner, by Borrower making payment, when due, dinvtly to thc• insurance c :+rider. All insurance policies and renewals thereof shall t?e in form accept:+hle G,1 render:+nd shall include a standard mortgageclause in favorof and in form acceptable to Lender. Irendershall have the right to hold the policies and r~nc•w:+ls thereof, and Borrower shall promptly furnish to i' +.ender all renewal notices and all receipts of p;?id premiums. In the event of loss. Korn?wer shall give prompt notice to the insurance carrier and Lender. Lender may make pnu?f of loss if not made pn?mptly by ltorn,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 serurih• of this Mortgage is not thereby impaired- 1[ such restoration or repair is not economically feasible or if the security of this Mortgage would be i.•npaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to &,rrower. l f the Property is abandoned by Borrower, or if Borrower fails b respond to Lender within ao days from the date notice is mailed by (,ender to Fiorn?we•r that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collc•et and apply the insurance proceeds at bender'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 application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred W in pargraphs 1 and `l hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of 13c?rrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Pmperiy prior to the sale or acquisition 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; I.easeholda;Condominums; Planned Unit Developments. Borrowerahall 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 c?n a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or n,venants rreatingur govern+ng 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 Burrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incurporatcd into and shall amend. and supplement thecovenunl4 and agreementsof this Mortgagees ifthe ~ rider were a part hereof. Protection of Lender's Security. if Borrower fails to perform the covemants and agreements rnntained in this Mortgage, or if any ~ _ action 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 (.ender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take each action ae +e necessaty to protect Lender's inttrest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance se a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain shch insurance in effect until such time as the requirement for each 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. ` a Any amounts disbursed by (render pereuant to this paragraph 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 (.ender 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 which event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require !.ender to incur any expense or take any action hereunder. . r ' i QR - 8001( PACE ~ . - s-_~ - -