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HomeMy WebLinkAbout0362 Borrower and Lender covenant and agree as follows: 1. Payment of Priueipal apd 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 Tares and lnsusance. Subject to applicable law or b a written waiver by Lender, Borrower shall pay to !.ender on the day monthly installments of principal and interest are payable under the Nate. until the Note is paid in full, a sum (herein "Funds")equal to one twelfth othee yearly taxes and assessments which may attain priority over this Mortgage, and ground yenta on the Property, if any, plot one- twelfth ofyearly premium installments for hazard insurance. plus onetweltih of yearly premium installments for mortgage insurance, itany. al! as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is tuck an institution). Lender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Fiends, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower intereaton the Funds and applicable law permits Lender to make each a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shalt be paid to Borrower, and unless such agreement is made or applicable law requires such interest b be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual accounting of the Fonda 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 sums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior to the due dates ottaxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground yenta 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 Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and gronnd rents as they fall 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 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. 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 or its acquisition by bender, any Funds held by Lender al 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 bender 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. Harrower shalt pay all taxes, assessments and other charges, fines and irripositiona 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 hereofor, if not paid in such manner, by Borrower making payment, when sue, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event HorrowFr shall make payment directly, Borrower shall promptly furnish to ' Lender receipts evidencing such payments. Horrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Ibrrower shall agree in writing to the payment of the obligation secured by _ such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement otsuch 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 /erm "extended coverage; ' and surh other hazards as Ixnder may require and in such amounts and torauch periods as Lender may require; provided, that [xnder 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 carrier providing the insurance shall 1?e ch~esen by 13r~rn~wer subject to approval ht Ixnder, provided, that such approval shat! not be unreasonably withheld. All premiums on insurance policies shat! be paid in the manner provided under paragraph's hereof or, if not paid in such manner, by Korrower making payment, when due, dircti•tly to the insurance• carrier- All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclauae in favorof and inform acceptable to Lender. Lendershall have the right W hold the policies and renewals thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In f he event of loss, Borrower shall give prompt notice to the insurance carrier ~ and !.ender. Lender may make proof of loss it not made promptly by Horrower. Unless Lender and-Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property C 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 be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Horrower, or if Borrower tails to l respond to Lender within :i0 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 proceeds at I.endei a option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and `L hereof or change the amount of such installments. If under paragraph I8 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 acgwsition shall pass.to Lender to the extent_ of the toms secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit DPVelopmenta. Borrower shall 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, t3orrower shall perform all of Borrower s obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and requl>~tioga of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Horrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated iota and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. i 7. Protection of Lender's Security. If Horrower tails to perform the covenants and agreements contained in this 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, j insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon g notice to Borrower may make such appearances, disburse such sums-arid take such action as is necessary to protect Lender's interest, including, bnt not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by thin Mortgage. Borrower shall pay the premiums regnired to maintain ~ such insurance in effect until ouch time as the requirement for such insurance terminates in accordance with Borrower's and Lendels ~ written agreement or applicable Law. Borrower shall pay the amount of all'rwrtgage insurance premiums in the manner~rovided under j paragraph 2 hereof. - } ( Any 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 i.ender 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 order 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 Lender to incur any expense or take any action hereunder. BsmK 3Z.~ PAGE . - -