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HomeMy WebLinkAbout0699 Burrower and [.ender covenant and agree as folloirs: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest an 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 torTaxes and Insurance. Subject to applicable law or to a written waiver by Lender, Horrower 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 •'Mtirnda'")equal to one twelfth of the yearly taxes and asaesamente which may attain priority over this Mortgage, and ground rents on the I'raperty, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one•twelfth otyearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and from time to time by Lender on the basis of assessm~ ntx and bills and reasonable estimates thereof. The I•lrnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including !,ender if (.ender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and Kround rents. (.ender may not charge for ao holding and applying the Fonda, analyzing said aexrount, or verifying and compiling said assessments and bills, unless (.ender pays Borrower interest on the Fonda and applicable law permits (.ender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of this Mortgage that interest on the Fonda 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 Borrower any interest or earnings on the Plrnds. Lender shall give~o Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fonda and the purpose for which each debit to the hl+nda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. !f the amount of the Y~rnda held by !.ender, together with the future monthly installments of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall excreci the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at HorTOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by (.ender 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 soma secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by (.ender. !f under par•graph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by (.ender, any Funds held by (.ender at the timeof application as a credit against thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to (,ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note• :+nd then to interest and principal on any Future Advances. ' 4. Charges; Liens. Horrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and Ic:+schuld payments or Kround rents, if any, in the manner provided under paragraph'! hereof or, if not paid in such manner, by Harrower making payment, when due, directly to the p:+yer thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make pat mart dire•ct!y, Born?wer shall promptly furnish to (,ender receipts evidencing such payments. Itorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so lung ;+s Burrower shall agree in writing tc, the pay mart of theohligalion secured by such lien in a manner acceptable to Ixnder, or shall in gocxl faith contest such lien hy, ordc•f+•nd enfonrment ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or fi?rfeitur+• of the Property ur any pi+rt therer?f. 5. Hazard Insurance. Borrower shall keep the impnn•ements; now existing or hereafter erected un the Property insured against loss by fire, hazards included within the term "extruded coverage,"and such other hazards as Lender may require, and in such amounts and for such {x•riods as Lender may require; pmvidtd, that Lender shall not rer{uire that the amount of such ccn•eraKe exceed that amount of rnverage required to pay the sums secured by this MortKe+Ke• The insuranrn carrier providing the insaranm shall 1??• ch~ren by It,?rruwer subje•e•t d? approval by I.e•nder; proms ideal. that such approval shall not be unre.•+se?nably witi+held. rill premiums un insur:mce {N~licies shall t?e paid in the manner pr,?vidcd under par,+gr,+ph hercr,f or, if ~i nut paid in such manner, by li??rrower making payment. when due, din•c•tl} b. the insur:mc•e carrier. All insurance policies and renewals therec?f shall be in form acceptably to l.e•nder and shall include a standard mortgagedause in favorof and in form acceptable to !.ender. !.ender shall have the right G? hold the {sdicies and renewals thereof, and Burrower shall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of loss, li??rn?wer shall give prompt notim G? the insur+nm carver and Lender. Lender may make pr«?f of los.4 if not made promptly by Borrower. Unless [.ender and Borrower otherwise agree in writing, insurance prcx•reils shall bc• applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is ecrrnomicalh• feasible and the security of this Mortgage is not thereby impaired. if such restoration or repair is not economically feasible or if the serurity of this Mortgage would be impaired, the insurance proceeds shat{ be applied t:: the gums aci'ured by this Stcrigagr, R-iih theriiii:..;, +f ai,y°, Ik+iu to fk,tcowrr. If ti+e Properly is uir.+ndoned by Horrower, or if Borrower fails to ~ respond to !.ender within 3U days from the date notice is mailed by !.ender te. 13e?rrower that the insurance carrier offers to settle a claim for insurance benefits, i.ender is authorized to collect and apply the insurance pnx•e•eds at Lender's option either to restoration or repair of the Property or the sums secured by this MortKaKe• i Unless Lender and Borrower otherwise, agree in writing, any such application of prrKeeds to principal shall not extend or postpone thedue i date of the monthly installments refen•ed G, ire paragraphs 1 and'! hereof ur change the amount of such installmentx. If under paragraph 18 . hereof the Property is acquired by (.ender, all right, title and interest of licxrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the s:+le or ac-c{uisition shall puss to Lender to the extent of the sums secured by this 1~lortgage immediately prior to such sale or acquisition. 6. Preservation and Mainlenanceof Property; Ixaseholds; ('ondominuma; Planned Unit Developments. Borrowershall 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 it this Mortgage is on a leasehold- If this Mortgage is on a unit in a n?ndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium c?r planned unit development, and constituent dceuments. If a c•undominium or planned unit development rider is executed by Bom,wer and recorded together with this Mortgage, the covenants and :ikrermentsofsuch rider shall F?e• inc•~~r{?~?rate•ct into and sh::ll amend and supplemrrat thcco~•e•nants and agrecmenfsafthisMortgageasifthe ~ 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 itany + r action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, I insolvency, code enforcement, or arrangements of proceedings involving a bankrupt or decedent, then (.ender at Lender's option upon notice to Borrower may make such appearances, disburse such soma and take such action ae is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. If Lender required a mortgage insurance as a rnndilion of making the loan secured by this Martgage, Borrower shall pay the premiums required ta maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowerb and I.ender'a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ Any amounts disbursed by (.ender 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 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 4 ~ event ouch 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. j s I B~t~ ~t t