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HomeMy WebLinkAbout0076 . Borrower and Lender covenant sad agra w folbws: 1. Pwymeat of Principwl wad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Nots, prepayment sad late charges as provided is the Note, and the principal of and interest on any Future Advances secured by this Mortgage. g. Ftiadw for Ta:es wad Insurwaoe. 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 one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground yenta on the Property, itany, plw one- twelfth ofyearly premium installments fo: hasard insurance. plw one•twelfth of ymrly premium installments for mortgage insurance, itany, ell as reasonably estimated initially and [rom tune to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the depwits or accounts of which are insured or gwranteed by a Federal or State agency (including bender if Lender is such an institution). Lender shall apply the Fonda to pay said taxes, assessments. insurance premiums and ground rents. Lender may not charge for w holding and applying the Fonda, analyzing said account. or verifying and compiling said assessments and bills, ualep Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borroww and Leader may agree is writing at We time of execution of this Mortgage that interest on the Flrads shall be paid to Borrower, and unless such agreement is made or applicable Isw requires such interest to be paid, Lender shall not be required to pay Borrower any iaterM or earnings on the Funds. Leader shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to We ' Funds and the purpose for which each debit to the Funds was made. The Funds an pledged as additional security for the soma secured by this Mortgage. - If the amount of the Fundi held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, aesesamenta, insurance premiums and ground rents. shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground ants as they fall due. such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the I~rnds held by Lender shall not be sut'ficient to pay taxes, assessments. insurance. premiums sad ground rents as they tall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender b Borrower requesting payment thereof. - Upon payment in full of all supra secured by this Mortgage, Lender 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 Lender, Lender shall apply, no later than immediately prior to the sale of the Property tx 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 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 rents, if any, in the manner provided under paragraph 2 hereof or, i if not paid in such manner, by Borrower making payment, when due, directly 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 famish to Lender receipts evidencing ouch paymenta.•Borrowershsll promptly discharge any lien which has priority over this Mortgage; provided, that { F3orrawer shall not be required to discharge any such lien so long as Ilorrowershall agree in writing to the payment of theobligation secured by ' such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcementofsurh lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property. or any part thereof. _ 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 tens "extended rnverage; 'and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount o[ such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ~ i The insurance carrier providing the insurance shall be chosen by forrower subject toapproval by Ixnder, provided, that such approval shat! not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if t not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. - ~ All 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 Ixnder. Lender shall have the right to hold the policies and renewals thereof and Bon: ower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event otloss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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 ernnomically feasible or if the security of this Mortgagewould be impaired, the insurance proceeds shall be applied to the auras secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, ar if Borrower tails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for f insurance benefits Lender is authorized to collect and apply the insurance proceeds at Lender s op_ lion either to restoration or repair of the E Property or the soma secured by this Mortgage. 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 2 hereof or change the amount of such installments. If 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 acquisition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. -Preservation and MaintenanceotPropeHy; Leaseholds; Condominums; Planned Unit Developments. Borrowerehall 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 rnndominium or a planned unit development, ! Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned s ~ unit development, the by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreements ofthis Mortgageaa-ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in thu Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender s option,upon r notice to Borrower may make such appearances, disburse such sums and take such action as is neeasary to protect Lender's interest, including, but not limited to. disbursement of reasonable attorney's foes and entry upon the Property to make repairs. If Lender required e 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 for such insurance terminates in accordance with Borrower's and Lenders written agreement cr applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under E paragraph 2 hereof. - - ~ My amounts disbursed by Lender persuant 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 disbursement at the rate payable irwo time to time on outstanding principal undo the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at thehigheat rate permissible under applicable law. Nothing contained in this paragraph 7. shall regain Lender to incur any expense or take any action hereunder. • ~ BQOK PdGE - , - _ - .M . - _ - ~ a,:.?