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HomeMy WebLinkAbout1254 Borrower and Lender covenant and agree as [olbws: , 1. Payment 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 of and interest on any Future Advances secured by this Mortgage. 2. Funds for Tases and Insurance. 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, anti! the Note is paid 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 hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably e~atimated initially and from time to liens 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, insurance premiums and ground rents. Lender 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 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 Funds sl+all 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 to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. if the amount of the Flrnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments. insurance premiums and ground rents, shall excced the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds_ If the amount of the Funds held by Lender shall not be autficient to pay taxes, assessments, insurance premiums and ground rents as they fall due. Borrower shall pay to !.ender 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 of all soma secured by this Mortgage, !.ender 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 or its acquisition by Lender, any Funds held by Lender 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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [xnder 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 p:+yments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinK pay merit, when due, directly to the payee thereof. Kormwershall promptly furnish to Lender all notices of amounts due under this p:+raKraph, and in the event Korrc?wer shall make payment directly, Iorrower shall promptly furnish to [,ender receipts evidencing such payments. Korrow•er shall promptly discharKe any lien which h:+s priority over this Mortgage; provided, that Korrower shall not berequired to d?scharge any such lien so IonK as Borrower shall aKree in writing to the payment of theobliKation secured by such lien in a manner acceptable to bender, or shall in Kood G+ith cc?nt+•st such lien by, ordefend enfi,rmment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or G,rfeiture of the Pn?perty or any part thereof. 5. Hazard Insurance. Borrower shall keep the iinpmvements now existinK or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended mverage." :+nd such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this MorigaKe. The insurance carrier providinK the insurance sh:+11 he e•hosen ht liorn,wer suhjed to approval by Lender. provided, that such approval shall not be unreasonably withheld. All premiums un insur:+nc-c• tHdicies .hall Ix• paid in the m:+nner provided under paragraph'Lhereof or, if not paid in such manner, by Borrower makinK payment, when due, die+•+•tlt- to the insurance carrier. All insurance policies and renewals thereof shall be in firm acceptable t.i !.ender and shall include a standard mortgageclause in favor of and in form acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and &?nrowershall promptly furnish to +.ender all renewal notices and all receipts nt paid premiums. In the event of loss, lhrrmwer shall Kive prompt notice to the insurance carrier and Lender_ Lender may make proof of losti if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise aKree in writinK, insurance pn,ceecls shall tx• 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 beapplied to the sums secured by this Mortgage, with the exmse, if any, paid to Borrower. l f the Property is abandoned by Borrower, or if Korrower tails to respond b Lender within :IQ days from the date notice 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 prcx-crds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Kon*ower otherwise :+Kree in writinK,:+ny such application of pr«•eeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'L I+erec,f or change the amc?unt of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right, title and interest of Itorn?wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgmsition shall pass to Fender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. I~r•eservation and Maintenance of Property; l.easeholda; Condominuma;Planned Unit Developments. Borrowershall 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 MortKage is on a unit in a n?ndominium or a planned unit development, Borrower shall perform all of Kormwer's obliKations under the declaration or covenants creatingor KoverninK 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 excruted by Korrower and ree•urded together with this Mortgage, the covenants and agreements of such rider shall Ix• incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageas if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any aMion or proceeding ie commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. ' i e 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 soma and take each action se ie 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 as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain ouch 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 all mortgage insurance premiums in the manner provided under paragraph 2 hereof. F Any amounts disbursed by Lender persuant to this paragraph 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 uestin merit thereof, and shall bear interest from the date of disbursement at the rate payable from ' ~ ieq g Pay time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which event each amounts shall bear interest at the highest rate permieaible under applicable law. Nothing contained in thin paragraph 7, shall require Lender to incur any expense or take any aMion hereunder. . $~~x340 ~~~f~4 - -