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HomeMy WebLinkAbout0655 c t i, Borrower and Lender rnvenant and agree as follows: , 1. Paytaent of Principal and Interest. 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 otand interest on any Future Advances secured by this Mortgage. 2. Funds forT~es and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrowerahall 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 one- twelRh ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one• +we1Rh otyearly premium installments for hazard insurance, plus one•twelRh otyearly premium installments for mortgage insurance, if any, alt as reasonably estimated initially and from time to time 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 (including Lender if (.ender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, inatirt+nce premiums and ground rents. !.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and Lender may agree in 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, (.ender 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 Fonda was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount otthe Funds held by !.ender, together with the future monthly installments of F ands payable prior to the duedatesof 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 Bo+-rowe~ s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender any amount necrssary'to make up the deficiency within 30 days from the date notice is mailed by (.ender to Borrower requesting payment thereof. Upon payment in full otall soma secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by [.ender. !fonder 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 or its 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 feral 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 Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and othe•rrharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay menu orKrr,und rents, if any, in themannerprovided under paragraph 2 hereofor, if not paid in such manner, by Borrower makinK payment, when due, directly to the payer thereof. Bormwershall promptly furnish to Lender :ell notices of amounts due under this paragraph, and in the event Borrower shall make payment directly,l3ormwer shall promptly furnish to (.ender receipts evidencing such payments. l;t,rn,wer shall promptly discharge any lien which has priorih over this MortKage; provided, that Borrower shall not be required to discharge arty such lien so IunK as Borrower shall axrer in writinK to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in gr,rxl faith +•oMest ouch lien by, ordefend enforcr•rnent of such lien in, I+•y;al proceedings which operate to prevent the enforcement of the lien or forfeiture of the Prol,+•rty or any part thereof. :i. Hazard Insurance. Bonrow•er shall keep the imprrnements now• existinK or hereafter erecter! on the Property insured against loss by fire. hazards included within the term "extended coverzKe," and such other hazards as Lender may require and in such amount.S and forsuch periods as (,ender may require; provided, that Lender shall not n•ctuire that the :unount of such rnverage exceed that amount of coverage required to pay the sums accurst! by [his Mortgage. The insurance carrier prodding the insur.+ne-e• .hall 1,+• chosen by B„rn,N'Pr auh{r•ct U. appn,~:el by I.r•nder; pnn-idt•r1. the+t such approval shall not be unreasr,nably withheld- All premiums on inwrance tN,licies.hall Iw• paid in the manner provider! under paraKr,+ph her+v,for. if not paid in such manner, by liurrovrer making p:?yment. when due. dirrr•tlc to the• insurtnce c:+rider. All insurance policies and renewals thereof shall he in form acceptatde to Lender and shall include standard mortgage clause in favor of and in form acceptable to Lender, !.ender shall have the right to hold the policies and renew:+Is thereof, :+nd Borrower shall promptly furnish tq ,,ender all renewal notices and all receipts of paid premiums. In the event of (ass. Kurn,wer shall give prompt notice t., the insurance carrier and Lender. Lender may make prrx,f of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writinK. insurance prrx•ceds shall t,e• applied to restoration or repair of the Property damaged, provided such resG,ration or repair is er•om,micalh• feasibly and the securty of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasible or if the sc•c•urity of this i<lortgage would I,e• impaired, theinsurance proceedsshal) beapplied d, the sums secured by this Alortgage, with the excess. if any paid U, Itt,rn?wer. If the 1'mperty is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is m:+ilyd by (.ender a, I3r,rn,wer that the insuranm carrier offers to settle a claim for insurance benefits, Lender is authorized to cull+r•t and apph• the• insurance pn,c•erds at (rnder's option either to restoration or repair of the Property or the sums secured by this 11ortK:+Ke- Unless Lender and Borrower otherwise agree in v~•riting, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred lu in paragraphs 1 and 'L henr,f or change the amount of such installments. U under paragraph 18 hereof the Property is acquired by [ender, all right. title and interest of Borm~•er in and to any insurance policies and in and to the proceeds thereof resulting from damage tc, Property prior to the sale or acyu+sitiun shall pass to I~•nder to the extent of the sums secured b_v this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; leaseholds; Condominuma; Planned Unit Uevelopmente. Borrowershall keep the Property in good repair and shall not commit wane or permit impairment or deterioration of the Property and shall comply with the t provisions of any lease it this Mortgage is on a leasehold- If this Mortgage is on a unit in a condominium or a planned unit development, f Borrower shall perform all of Borniwer's obligations under the declaration or covenants crr:+tinKur governing the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by 13r,rrower and recorded together with this Mortgage, the covenants and agreements of such rider shall I,e incortx,r.+terl into :+nd shall amend and supplement thec•m•enants and agreements of this Mortgage asifthe nder were a part hereof. 7. ProteMion of Lender's Security. if•Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Fender's interest in the Property, including, but not limited to, eminent domain, i insolven code enforcement, or arran smarts or roceedin a involvin a bankru t or decedent, then Lender at Lender's o tton,u ~ g P K R P p eon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect (.ender a interest, including, but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. If (.ender required j mortgage insurance as 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 [or such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of al! mortg:+qe insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by !.ender perauant 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 froth 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 u~leas payment of interest at such rate would be contrary to applicab:e law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shalt require !.ender to incur any expense or take any action hereunder. g~340 PAGE 655 . ~ - -