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HomeMy WebLinkAbout1259 Borrower and finder covenant and agree as tolbrrs: 1. E'ayateat of Prlactpal and Irrter~est. Borrowar shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. Prepayment and late charges a. provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgsge. 2. Ptitads for Ta:ea sad insurance. Subject to applicable law or to a written waiver by Lender, Botrower shall pay to Lender on the day monthly installments of principal and interest arc payable under the Note, un W the Note is paid in full, a sum (herein "Funds"? equal to one twelRh of the yearly to:es and assessments which inay attain priority over this Mortgage, and ground rents on the Property, if any, Plusone- +wdRh otyearly premium instalbaer?ts for hazard insurance. Plus one•tweltih ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an instiitution the deposits or accounts of which see insured or guaranteed by a Federal or Stale agency (including Lender if Leader is such an institution). Lender shall apply the Funds to pay said taxes, assesatnents. insurance premiums and ground rents. Lends may not charge for so holding and applying the Funds. analyzing said account, or veri[ying and compiling said assessments and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lendez miry agree in writing at the time of a:ecution of this Mortgage that interest on the Funds shag be paid w Borrower, and unless such agreement is made or applicable law requires sash interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Fender 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 soma secured by this Mortgage. If the amount of the Ftitrtds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of fazes, assessments, insurance premiums and ground rents, shaA a:cxd the amount required W pay said taxes, assessments, insurance premiums and ground rents as they fall due, such ezoess shall be, at Borrowers option, either pranptly repaid to Borrower or credited to Borrower on monthly installments of Funds. U the amount of the Fonds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay b Lender any amount necessary to make up the deficiency within :i0 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all wens secured by this Mortgage, [.ender shalt 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 Lent4r, Lender 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 Psyments. Unless applicable law provides otherwise, all pa}Tnents rrceived 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, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rent_c_ if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directh to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to tender receipts evidencing such payments. Borrower shall prompth discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequir+ed todischar~eam such lien so long ac tl~rrower shall a~reein writing to the payment ottheubligation secured by such lien in a manner acceptable to Lender, or shall in good faith cti?ntest such lien by, or defend enforcerr+ent of such lien in, legal proceedings - which operate to prevent the enforcement of the lien ur forfeiture of the Pn?perty or am part thenr?f. 5. Hazard insurance. Borrow er shall keep the improvements nuw• existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "e:tended coverage." and such other hazards as Lender may require and in such amounts and fur such periods as i.er+der 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 carver providing the insuranm stall hr rh?rc-n by l;,.rr..wer subjea~t u. appruv:+l by Ixnder, pnn•ided. that such approval shall not be unreasonabh withheld. All premiums un insurancf• 1?•.hcitr shall }x• p:+id in them:+nner pr+..~ided under paragraph L hereof or, if not paid in such manner, by Burrower making p:+ym+•nt, when due. d+r.•r-th to the insurance cameo ~ All insurance policies and renewals thereof shall be in form acceptable to Ixnder and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Ixnder shall have the right to hold the policies and renew als thereof. and &?rrower shall promptly furnish to Ixnder all renewal notices and all receipt- of paid premiums- In the event of lo~cc. Kurn?wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss it not made promptly by liurruwer. Unless Lender and Borrower otherwise agree in writing. insurance prrKreds shall t?e applied to restoration or repair o[ the Property damaged, provided such restoration or repair is en,nomicaily feasible and the saK-unty of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage w~wld be imparted. the insurance proceeds shall be applied ~ to the sums secured by this Mortgage, with the excess. if any, paid to Borrower- If the Property is abandoned by Borrower, or if Borrower fails W j respond to Lender within :10 days from the date notice is mailed by Lender to Borrower :hat the insurance carrier offers to settle a claim for t insurance benefits, [tender is authorized to collect and apply the insurance pnxeeds at Ixnder s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agrerin writing. any such applicationof proceeds to principal shall notextend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such installments. It under 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 acqursition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceolProperty;Leaseholds;Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease it this Mortgage is on a leasehold. iLthis Mortgage is un a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governrnq the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. It a condominium or planned unit development rider is esecuted by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorporated into and shall amend and supplement theeovenants and agreements of this Mortgage as if the rider were a part hereof. x 7. Protection of Lender's Security. If Borrower tails to perform the covenants and agreements rnntained in this Mortgage, or it any action or proceeding ie commenced which materially affects Lender 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 matte such appearances, disburse such soma and take such action as is necessary to protect Lender s interest, t including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaint. tf Lender required 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 tune 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 hereol. My amounts disbursed by Lender pereuant W 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 disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be coertrary 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 ezpense or take any action hereunder. 34fl p~i~?.~9 - _ ~ - T . ~ - _ _ ~ -