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HomeMy WebLinkAbout1639 Borrower and Lender rnvenant and agree as follows: 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 latechargea as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. Funds for Taxes and lnaurance. Subject to applicable law or to a written waiver by !.ender, 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 Therein "Funds"? equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and from time to time by Ixnder on the basis o[ 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). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground yenta. Lender may not charge for so holding and applying the Funds, analyzing s:+id 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 otexecution 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 to the Funds was made. The Funds are pledged as additional security forthe sums secured by this Mortgage. If the amount of the Funds held by !.ender, together with the future monthly installments of F ands payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents ae they fall due, such excess shall be, at Bo+TOwer's 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 sufficient 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 !.ender 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. !f under paragraph 18 hereof the Property is sold or the Property is otherwise:+cquired by Lender, !.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 lime of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. tlnless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender first in payment r?f 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, :+ssessmenls and other charges, fines and imtx?sitions attributable to the Property which may attain a priority over this Mortgage, and le:+sehold payments or Rn?und rents, if any, in the manner pn?vidctl under paragraphs2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payees lhern?f. lir?rn?wer shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment dinrtly, Born~wer shall promptly furnish to Lender receipts evidencing such payments. i;,?rruwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge am• surh lien w, long as Borrower shall agrees in writing to the payment of theobligation secured by ,uch lien in a manner acceptahle to Ixnder, or shall in g?N?d f:?ith rti~nttxt such lien by. ordefi•nd enfi,n•ernent ofsuch lien in, legal pnx•eedings which operate to prevent the enforcement of the lien ur forfeitun• of the Property or am• part then~?f. Hazard I assurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended c??ver.+ge," and such other hazards as Lender may require and in such amounts and forsuch periods as Ixnder may require: provided, that Ixnder shall nut re•etuire that the amount of such rnverage exceed that amount of coverage required to pay the sums serund by this Mortgage. The insurance carver pn?vuling the insurance shall Les chus?•n by Borrower suhje•e•t to approval I?y 1 a•nder, provided, that such approval shall not be unre:+sunably withheld. All premiums.m insur-.?nce tN~bci?~~ .hall Iw• paid in the manner providwl under par:+{;r-,eph henr?f or, if nut paid in such manni•r, by li?irn~wer m:ekinK p:q•m?•nt. when du?•. direct!}• h. the imurance c:+rrder. I~ All insuranrn policies and renewals thereof shall be in form accept:+hle to 1 ~•nderand shall include a standard mortgagedause in favorof i and in form acceptable to Lender. Ixnder shall have the right to hold the twlicies:+nd n•new•als therr•+d. and Borrowershall promptly furnish to ~ ,.ender all renewal notices and all receipts of paid pn•miums. In the event of loss. Rnrn?wer shall {;ive prompt notice to the insurance carrier and Lender. Lender may make pnx?f of I?~tis if not made prompth• by Korn?wer. Unless Lender and &?rrv?wrr otherv?•ise agree in writing. insurance proce•tds shall Fx• applied to restoration or repair of the Property damaged, provided such restoration or repair is tronomically fr.+sible and the sec•urih• of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the stratify of this MortKagewould heimpaired, the insuranceprrxeedsshall beapplied to the sums secured by this Mortgage, with the excess. if any, paid to li??rrower. If the Properly is:abandontd by Borrower, orif Borrower fails to respond to Ixnder within a0 days from the date notice is mailed by Lender to I{,?rrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is :+uthorized to colk•t•t and apply the insurance pn?a•e•cds at Lender's option either to restoration or repair of the E'roperty or the sums secured by this Mortgage. Unless Ixnder and Borrowerotherwise agrtr• in wnting,any such application of pn?c•ecds to principal shall not extend or postpone; thedue date of the monthly installments referred. to in par.+Kr.+phs 1 and'L herea?f or change the amount of such inst:llments. If under paragraph 18 hereof the Property is acquired by (wander, :+II 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 s:+le or acquasition shall pass U? Fender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Ixase holds; ('ondominums; Planned Unit Uevelopmenta. I3c?rrowershall 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 Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration nr covenants rreatint;or 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 Br,rn,wer and rerordtd together with this Mortgage, the covenants and ~ aKreement.4 of such rider shall 1?e• incurpt?rated into :and shall amend and supplement thecovenants and agrtrmenlsof this Mortgagees ifthe rider were a part herer?L 7. Protection of Lender'e Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any } action or proceeding is commenced which materially affects Ixnder'e interest in the Property, including, but not limited to, eminent domain. } insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder at Ixnder's option,upon 3 notice to Borrower may make each appearances, disburse such sums and take ouch action ae is necessary to protect Lender's interest, I ( 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 ~ such insurance in effect until such time as the requirement fi,r such insurance terminates in accordance with Borrower's and Lender s written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in.the manner provided under 3 paragraph 2 hereof. Any amounts disbursed by Ixnder perauant to this par:+graph 7, 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 from Ixnder 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 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 !.ender to incur any expense or take any action hereunder. ` ariii3~Q PlGE~,~~