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HomeMy WebLinkAbout0217 ' Borrower and Lender covenant and agree as fotbws: 1. Payment of Principal sad later~est. 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 Flrture Advances secured by this Mortgage. 2. Ptiutds for Ta:ea and Iasurance. Subject to applicable law or to 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 paid in full, a sum (herein "Funds") equal to ono- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ono- twelfth of yearly premium installments for hazard insurance, plus onetweltth ofyearly premium installments for mortgage insurance, if any, aN as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'lire Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lends is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground Hats. Lender may not charge for eo holding and applying the F~rnda, analyzing said account, or verifying and compiling said assessments and bills, unless bender pays Botrrower interest on the Ftirnda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writung 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 b the Funds was made. 71re Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground rents, shall excxd 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 Pleads. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 34 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 shalt promptly refund to Borrower any funds held by i.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its aoq uiaition by Lender, any Funds held by fender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Untesa 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. Borrower shall pay all taxes, assessments and other charges, tints and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground 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 Borruwershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly,l3orrower shall promptly furnish 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 todischarge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to (.ender, or shall in good faith contest such li for ptacetdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thermf. 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 coverage," and such other hazards as Ixnder may require and in such amounts and forauch periods as Lender may require; provided, that Ixnder 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 insuranm shall be c•h+~ten t?y ft+rcrower subject to approval by Lender, provided, that such approval 1 shall not be unreasonably withheld. All premiums nn insurance t>,+licies shall be paid in the manner provided under paragraph 2 hermf or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. Al! 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. Lender shall have the right to hold the policies and renewals thereof, and Borrower shalt promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower- Unleas Lender and Borrower otherwise agree in writing, insuranrn protteds 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 theauma secured by this Mortgage, with the excess, if any, paid to Borrower. lfthe Property is abandoned by Borrower, or it Borrower fails to respond to Lender within 30 days from the date notim 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 l.endei s option either to restoration or repair of the Property or the sums secured by this Morlgage_ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and `l hereof or change the amount of such installments. Ifunder 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 Maintenanceof Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowershallkeep 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 condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants4 creatingor governing the condominium or planned unit development, the by-laws and regutaiions 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 oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements ofthis Mortgage as ifthe rider were a part hereof - 7. Protection of Lender's Security. If Borrower fails to perform the oovenanta and agreements rnntained in this Mortgage, or if any action or proceeding ie commenced which materially affects [xncler 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 such appearances, disburse such some and take such aMion as is necessary to protect Lender's interest, ~ including, but not limited to, disbursement of reasonable attorney a 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 such time as the requirement for such insurance terminates in accordance with Borrower 8 and Lendefe ( 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 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 du?bureement at the rate payable from time to time on outstanding principal under the Note anises 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 preragraph 7, shall require Lender to incur any expense or take any action hereunder. ~ 3 ( 8rAK340 PaGE 2i7 - ~r