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HomeMy WebLinkAbout0721 • Borrower and Lender covenant and agree as folbws: 1. Payment of Principal 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 for Ta:ei and Insurance. Subject to applicable law or to a written waiver by !.ender, 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 "Fltnda'"? equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments [or mortgage insurance, if any, all as reasonably estimated initially and from time to lime by !.ender on the basis of assessments and bills 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). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make ouch a charge. Borrower and Lender 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, Lender shall not be required to pay Borrower any interest or earnings on the Ftinds. 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 sums secured by this Mortgage. It the amount of the Funds held by [.ender, together with the future monthly installments of Funds payable prior to the due dates of taxes, ' asaesamenta, inauranoe premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance prrmiuma and ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Botrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days from the date notice is mailed by Lender b 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 parnsgsaph 18 hereolthe 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 orita acquisition by Lender, any Funds held by !.ender at the time of application as a credit against the sums secured by this Maregage. 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 i mpositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gn+und rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event Burrower shall make p:+yn+ent directly, Borrower shall promptly furnish to 1 xnder receipts evidencing such payments- Borrower shall promptly discharge any lien v~•hich h:+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as l;<+rrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith eY+ntest such lien by, ordefend enforcement ofsuch 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 team "extended coverage; ' :+nd such other hazards as Lender may require and in such amounts and for such periods as !.ender may require; provided, that Lender shall not require that the amount of such roverage exceed that amount of coverage required to pay the sumx secured by this MortK:+Ke• The insurance carrier providing the insuranm shall Ix• chue•n h~• Bom,wer subj+ct to approval by Lender. provided, that such approval shall not be unreasonably withheld. All premiums on insuranc+• pidici+•s shall i+c paid in the manner pnwidetil under paragr.+ph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. A!1 insurance policies and renewals thereof shall be in form acceptable G+ Lenderand shall include a standanl mortgage clause in favorot and in form acceptable to Lender. Lendershall have the right to hold the p+dicies and renewals thermf, and Borrowerahall promptly furnish to +,ender all renewal notices and all receipts of paid premiums. In the event of loss, Iiurn+wer shall give prompt notice to theinaurance carrier and Lender. Lender may m:eke proof of loss if not made promptly by Borrower. j Unless Lender and Borrower otherwise agree in writing, insuranm proceeds shall be applied to restoration or repair of the Property _ damaged, provided such restoration ur repair is economically feasibly 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 exn:YS, if auy, paid to Borrower. If the Property is abandoned by Bonrower, or if Borrower fails to ~ respond to !.ender within :;U days from the date notice is ma+ied by i.ender w 13orn+wrr that the insurance Gamer offers to Bettie a claim for insurance benefits, Lender is authorized to collect and apply the insurance pn+ceeds at I~nder's option either to restoration or repair of the Property or the sums secured by this Mortgage. II Unless !.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or postpone thedue ! date of the monthly installments referred to in paragraphs 1 and 2 I+ireof 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 anyinsurance poliriea 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 sums secured by this R Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; 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, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants ere:+tinKor governing the condominium or planned i unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a $ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and agreements ofsuch rider shall beinrnrporatedintoandshallamendandsupplementthecovenantsandagreementaofthisMortgageasifthe rider were a part hereof. - 7. ProteMion 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 Lender a interest in the Property, including, but not limited to, eminent domain, +nsoivency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a fEea and entry upon the Property to make repairs. tf 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 effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's s written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall bernme 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 intere:t at such rate would be rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. e~ Ae~ ~ ~ B[jOK342 PAGE - ,