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HomeMy WebLinkAbout1811 Borrower and Lender covenant and agree as iolbws: 1. Payment of Principal and Interest. Borrower shalt 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 Oland interest on any Future Advances secured by this Mortgage. 2 Fonder for Tarter and Insurance. Subject to applicable law or to a written waiver by Lender, Burrower 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 "Funds") equal to ores. twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one twelfth otyearly premium installments for hazard insurance, plus one•twelfih of yearly premium installments for mortgage insurance, if any, . all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof 'lt+e Funds shalt be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender i! Lender is such an institution). Lender shall apply the Funds to pay said taxes, asseaamenta, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or veri[ying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make each a charge. $orrower and Leader may agree in writing at the time of exscution of this Mortgage that interest on the Funds shall be paid b Borrower, and unless such. agreement is made or applicable law requires such interest b 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 Fonda 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 installments of Fonda payable prior to the due dates ottaxes, aaaeasmenta, insurance premiums and ground rents, shall sacred 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 b 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 30daya from the date notice is mailed by Lender to Borrower requesting payment thereof Upon payment in full of all auras secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by bender. 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 Lender at the time of application as a credit against theaums secured by this Mortgage. 3. Application of Payments. Urtlesa 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, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, 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. Borrowershall promptly furnish to larder all notices of amounts due under this paragraph, and in the event Borrower shall make p:+yment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so lonq:+s I;unn,wer shall agree in writing to the payment ottheobligation seca+red by such lien in a manner acceptable to Inc nder, ur shall in good faith rnntest such lien by, ordefend enforcement ofsuch lien in. legal proceedings which operate to prevent the enformment of the lien or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against toes by fire, hazards included within the team "extended coverage," and such other hazards as Lender may require and in such amounts and forauch 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 insur,+nrc• shalt be chosen by Borrower subjtrt to approval by Lender pnn ided, that such approval shall not be unreasonably withheld- All premiums on insurm+r politic:, shall 6e paid in the manner provided under paragraph 2 hercr,f or, if _ not paid in such manner, by lic?nrower making paym+•nt, when due. dircc•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form accept:+t,le to bender and shall include a standard mortgageelause in favorof and in form acceptable to Lender. I.endershall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to i.ender all renewal notices and all receipts of p.•+id premiums. In the event of loss, &rrn,wer shall give prompt notice W 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 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 sums secured by this Mortgage, with the ex+•es_S, if any, paid to Borrower. Itthe Property is abandoned by Borrower, or if Borrower fails W respond to Lender within :i0 days from the date nntirn is mailed by Lender in Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnllect :+nd :+pply the insuranre proxeeds at Lender's option either to restoration or repair otthe Property or the sums secured by this Mort~a~e- Unleas Lender and Borrower otherwise agree in writing, any each applies lion of proceeds to principal shall not ex tend or postpone thedue date of the monthly installments referred to in par:+qr:+phs l and 2l+enti?f or change the amount of such installments. If undei paragraph IS 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 (.ender to the extent of the some secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; 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 rnmply with the provisions of any lease if this Mortgage is on a (easehold_ If this Mortgage is c,n a unit in condominium or a planned unit development, Borrower shah 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 Bom,wer and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into :rod shall amend :rod supplement thecovenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the rnvenanta and agreements rnntained in this Mortgage, or if any aMion or proceeding is commenced which materially affects I.enderb 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 such 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 ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time se 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 hereof. Any amounts disbursed by Lender persuan4 to Lhis paragraph 7, with interest thereon, shall bernme additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender 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 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 Lender to incur any expense or take any action hereunder. . - ~ El,~~`339 Pa~E1809