Loading...
HomeMy WebLinkAbout0056 Borrower and Lender covenant and agree ae follows: 1. Payment of Principal end 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 F afore Advances secured •Dy this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, IioROwer shall pay tolxnderon theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Fundy'")equal to one twelfth of theyearly taxes and assessments which may attain priority over this Mortgage, and ground rentx on the Property, ifany, plusone• twelfth of yearly premium installments for hazard insurance, plus unrtwelfth ofyeurly premium instt+llmenls for mortgage insurance, if any, all as reasonably estimated initially and from time to time by lender on the basis of assessments and billx 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, insuranm premiums and ground mots. Lender may not charge for so holding and applying the Funds, analyzing said acct,unt, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. BoROwer and !.ender may agree in writing at the time of execution 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, !.ender shall not be required to pay BoROwer any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting ottee Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds wax made. The Funds are pledged as additional security forthe sums secured by this Mortgage. If the amount otthe ttitnds held by !.ender, together with the future monthly installments otFunds payable prior to the duedateaoftaxes, assessments, insurance premiums and ground mots, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer'a option, either promptly maaid to Borrower or credited to Borrower on monthlytnstallments of Finds. If the amount of the Funds held by (.ender shall not be sufficient to pay taxrx, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within:30 days from /he date notice is mailed by !.ender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to BoROwer any funds held by !.ender. ![under paragraph 18 hereotthe Property is sold or the Property is otherwise acquired by Lender; !.ender shall apply, no !afar than immediately prior to the sale of the Property or its acquisition by Fender, any Funds held by I.enderat the time of application as a credit against thesuma secured by this Mortgage. 3. Application of Payments. l?nleas applicable law provides otherwise, all paymentsg received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender firxt in payment of amounts payable to !.ender by BoROwer under paragraph 2 hereof, then to intemst 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, :~cctsments and other charges, fines and impositions attributable G, the Properly which may attain a priority over this Mortgage, and Ie:LSehuld payments orgmund rents, if any, in the manner provided under paragraph'! hereofor, if not paid in such manner, by Borrower making payment, when due, directly to tht• p:» tr thenr,f. Bni'n,wer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event IioROwer shall make payment directly, Borrower shall promptly furnish W Lender receipts evidencing such payments. lium,wer sh:+11 pn,mpth• discharge any lien which has priority over this Mortgage: provided, that l;<,rrower shall not t,e required to discharge any such hen so long as lioRUwer shall agrt•t• in writing to the payment of the obligation secured by such lien in a manner acceptable to iwmder, or shall in good faith t•+mtt•st verb lien by. ordefend enforcement ufsur•h lien in, legal prucet<lings which operate to prevent the enforct•ment of the lien or forfeiture of the 1'n,{?t•rh• or any part therty,f. Hazard Insurance. Borrower shall keep the improvements now existing ur hercaQer ert•t~ted on the Property insured against loss by fire, hazards included within the term "exiendt•t1 t•over.+ge.'• and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require+: pnn•idtt1, that Ixnder shall not rty{airs that the amount of such rnver:+ge ext•etd that amount otrnverage required to pay the sums seturetl by this Mortgage. The insurance carver providing tht• insun+ntr sh:dl tW Cho~1.11 t/\' B~,rruN7•f FUt,)IY'f b, appn,cal by I.t•nder, pn,vidt•tl• th:rt such approval shall not be unre:+sonably withheld. All pn•miums on insaru,ce IN,hci+•s sh:Jl Iw• paid in the manner providttt under par-.+graph'~ hertv,for, if not paid in such manner, by BI,ROwt•r m:rkii+g payment, when due. dire•r-th• t„ the insurance carrier. All insurance policies and renewals thereof shall tx• in firm acceptafde to I,t•nderand shall inrlude:+st:+nd:+rd mortgageclausrin favorof and in form acceptable to [.ender. Lendersh:dl havi• the nght to hold the {>„lit•ies and renewals thenti,f, and Kom,wer shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Born,wer shall give prompt notice to the insurance carrier and !.ender. !.ender may make prr,of of loss if not made pn,mptly by Borrower. Unless Lender and Ilornm•er otherwise agree in writing, insuranie prr,t•et•ds shat! t?i• applied to restoration or repair of the Property damaged, provided such restoration or repair is etonomically feasible and the security of this Mortgage is nr?t thereby impaired. If such j restoration or repair is not economically feasible or if the strunty otthis Mortgage would F?eimpaired, the insurance prtx'eedsshall beapplied to the sums secured by this Mortgage, with the extras, if any, paid to l;t,rn?wer. If the Property is abandoned by 13oROwer, or if KnROwer fails to respond to Lender within :311 days from the daft' notice is mailed by Lender G, 13orn,wer that the insurance cagier offers to settle a claim for insurance benefits, Lender is authorized to cullet•t and apply the insurantr pn,ct•t•ds :d Lender's option either to restoration or rep.-?ir..f the Property or the sums secured by this Mortgage. Unless i.ender and Ilorrower otherwist• agn•t• in venting, any such application of pn,t•tt•tls to principal shall ni,t extend or postpone thedue date of the monthly installments refeRed to in partgr.+phs I and `L hentidor change the amount of such inst:llments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and inten•st of Borrower in and to any insuranm policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or at•gmsition shall pas.. G, bender to the extent of the sums secured by this Mortgage immediately prior to such x:+le or acquisition. 6. Preservation and Maintenanceof Property; Leaxeholds: Condominums; Planned Unit Developments.l3oROwershallkeep the 1'roperty'in good repair and-shall not commit watite or permit impairment or dt•terior.+tion of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is un a unit in a rnndominium or a planned unit development, l;<,ROwer shall perform all of Itorn,wer's obligations under the declaration or rnvrnants creatingor governing 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 extruted by IioROwer :+nd rcrorded together with this Mortgage, the oovenanfs and agreements of such rider shall l,e incur{>„ratt•d into and shall :unend and supplement thecovenants and agrcementxof this Mortgageas ifthe 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 action or proceeding is commenced which materially affects I.ender'B 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 I.ender'e option,upon notice to Borrower may make such appearances, disburse each sums and take such action as is necessary to protect Lender's interest. including, but not limited fo, diaburaement of reasonable attorney 8 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 effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender s ` written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. 3 Any amounts disbursed by Lender perauant W this paragraph with interest thereon, shall become additional indebtedness of F3oROwer secured by this Mortgage- Unless I3oROwer and Lender agree to other terms of payment, such amounts shall be payable upon 3 notice from Lender to Borrower r uestin eq g payment thereof, and shall bear interest from the date of dixburaement 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 permixaible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any aMion hereunder- c+ • an~lkc~42 PlGE ~ij ~ E! ~ ~J