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HomeMy WebLinkAbout1834 Borrower and Lender covenant and agree as folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o[ and interest or, the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any F~rture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or b a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is Raid in full, a sum (herein "Funds")equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and•ground rents on the Property, itany, plus one twelfth of yearly premium installments for hasard insurance, plusone•twelfth ofyearly premium installments for mortgage insurance, ifany, - a tl as reasonably estimated initially and from time to tune by Lender on the ba8is of assessments and bills and reasonable estimates thereof The Fonda shall 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, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the ~rnds, analyzing said account, or verifying and compiling said - assessmentaand bilb,unlessLenderpays Borrower interest on the Fonda 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 Fundashall be paid-to Borrower. and unless such agreement is made or applicable law requires ouch 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 o[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 thesums secured by this Mortgage. If the amount of the Ftinda held by Lender, together with the future monthly installments otFunda payable prior to the due dates 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's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground ants 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 Ixnder 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 !.ender, Lender shall apply, no later than immed'ratelyprior - tothe sale of the Property or its acquisition by Lender, any Flrnds held by bender 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 bender 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 internal payable on the Note, then to the principal of the Note, and then to interest and principal on any Futyre Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and le<•rsehold payments or ground rents, if any, in the man nee provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly famish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, I3ormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:+s priority overthis Mortgage: provided, that Borrower shall not berequired todischarge any such lien so long :+s Borrower shall 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 Properly insured against lose by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as !.ender may require: provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage requited to pay the sums secured by this MortKaKe- The insurance carrier providing the insurance shall tx• ch,~en by. Born,wer subject to approval b}• Lender, provided. that such approval shall not be unreasonably withheld- All premiums on insuranrr poliric•s shall lx• paid in the manner pn?vidcd under paragraph 2 hereof or, if not paid in such manner, by liorrnwer making p:+ym,•nt. when due. dinc•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favor of and in form acceptable to !.ender. bender shall have the right tb hold the policies and renewals thereof, and Borrower shall promptly furnish to III d.ender all renewal notices and all receipts of paid premiums. !n the event of loss. &xmwer shall give prompt notice to the insurance carrier and (.ender. Lender may make proof of loss if not made promptly by 13arn,wer- Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall t?e 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 itthe security of this Mortgage would be impaired, the insurance proceeds shall beapplied to thesumsaecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by [ender tw Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and :+pply the insurance proceeds 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 application of proceeds to principal shall not extend orpoatponethedue date of the monthly installments referred to in paragraphs t and 'l hereof or change the amount otsurh installments. It under paragraph IS - hereof the Property is acquired by !.ender, 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 pas. to !.ender to the extent of the sums secured by this bortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: I.eseeholds; Condominuma; 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- It this Mortgage 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 c•reatinkor 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 Borrower :+nd recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecoven~nts and agreements of thisMortgageasifthe rider were a part hereof. + 7. Protection of Lender's Security. If $orrower fails to perform the rnvenants and agreements contained in this Mortgage, or itany € action or proceeding is commenced which materially affects Lender s interestin the Property, including, but not limited to, eminent domain, ? . 1 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, diebureement 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 effect 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 ail mortgage insurance premiums in the manner provided under ! paragraph 2 hereof. q Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become 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 [.ender to Borrower requesting payment thereof, and shall bear interest from the date of diabureement at lire 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 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 action hereunder. ' i pp~~ 4 4~-,