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HomeMy WebLinkAbout0324 Borrower and Lender covenant and agree v folbws: 1. Payment of Pritteipai and 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 [or Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower stall 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 "1ltnds") equal to one- tlrelfth ofthe yearly taxes and assessmenb which may attain priority over this Mortgage. and ground rents on the Property, if any, plus one• twelfth of yearly premium instalments for hazard insurance, plus one•twelfth of yearly premium installments [or mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereoL The Farads 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 Lender is such an institution). Lender shall apply the Funds to pay said texas, assessments, insurance premiums and ground tents. Leader may tat charge for so holding and applying the Funds, analyzing said account, or verifying and rnmpiling said asseawrtenta and bills, unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at We time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicabk 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 for the sutras secured by this Mortgage. I[the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, aeaeaamenta, insurance premiums and ground rrnbs, shall rxnred the amount required to pay !raid taxes, assessments, inaursncr premiums and ground rents as they, fall due, such a:seas shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly iaatallments of Funds. I[ the amount of the Funds held by Lender shall not be sufficient to pay ta:ea, assessments, insurance premiums and ground 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 Lends: 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 sak of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma 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, 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 furnish to :.ender re~oeipts evidencing such payments. Borrower 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 a.4 Borrower shall agree in writing to the payment of the obligation aerated by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforcement of such 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 term "extended coverage; 'and such other hazards as Ixnder may require and in such amounts a_ nd forsuch periods as Lender may require; provided, that Ixnder 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 be chosen by 13.?rruwer subject to approval by Ixnder, provided. that such approval shall not be unreasonably withheld. All premiums on instrr:+ncr policies ,hall be paid in the manner pn?vided under paragraph 2 hereof or, if 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 m Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Ixndershall have the right to hold the policies and renewals thereof, and Rorrowershall promptly furnish to Ixnder all renewal notices and all receipts of paid premiums. In the event of loss, 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 economically feasible or it 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. I[the Property is abandoned by Borrower, or i! Borrower fails to respond to Lender within 3U days from the date notice is mailed by !.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums securtid by this Mortgage. Unless Lender and Borrower otherwise agree in w riling, any such application of proceeds to principal shall not extend or postpone thedue } date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. I[ under paragraph 18 1 hereof the Property is acquired by [,ender, 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 Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowerahall 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, Borrbwer shall perform all of Borrower's obligations under the declaration or covenants rreatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. I[ 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 thecovenants and agreements o[this Mortgage aaitthe ~ rider veers s part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any f action or proceeding is rnmmeneed which materially affects Lender's interest in the Property, including, but not limited to, tminent domain, ~ insolvency, rnde enforcement, or arrangements or pra~eedings involving a bankrupt or decedent, then Lender _at Lender a option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, f including, brat not limited to, disbursement of reasonable attorney a tees and entry upon the Property to make repairs. If Lender required r mortgage insurance as a eondidon 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 [or such insurance terminates in accordance with Borrower's and Lenders s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Y- My amounts disbureed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ~ s Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon d notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable fiom time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which ff event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph shaA require Lender to incur any ezpensr or take any action hereunder. 80JK~2 PdCE t~4 a