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HomeMy WebLinkAbout0725 ~ . Borrower and [i,nder covenant and agree u te>Ibws. 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 latecharges as provided in the Note, and the principal of and interest on any Ftitture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to Lender on the day monthly installments otprinciipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fonda") equal to one- twelflh ofthe yearly taxm and asaeasmenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth otyearty premium installments for haaard insurance, plus one-twelfth ofyearly premium installments for morigageinaurance, if any, al! reasonably estimated initially and from lime to /!leis by Lender on the basis of assessments and bills and reasonable estimates thereoL The Fonda 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 Lender is such an institution). !.ender shat! apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the F1nda, 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 such a charge. Borrower and !.ender may agree in writing at the time of exenltion of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made ar applicable law requires such interest to be paid, !.ender 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments. insurance premiums and ground rents, shall exceed the amount required te? pay said taxes, aaseasmenta, insurance premiums and ground rents ea 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 Funds held by !.ender shall not be sufficient to pay taxes, asaeuments, 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 Lender to Borrower requesting payment thereof. Upon payment in full of all aumB 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, !.ender shall apply, no later than immediately prior to the sale esf the Property or its acquisition by Lender, any Funds held by Lender at the time of application u a credit against the sums 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 paymes+t 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. Borrowershall pay all taxes, assessments and olherrharges, 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 hereofor, if not paid in such manner, by Borrower making payment, when due, direMly to the payee thereof I3ormwershall promptly furnish to !.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment direMly, Borrower shall promptly furnish to Lender receipts evidencing scch payments. Borrower shall promptly discharge any lien which h.+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long at Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enformment 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 Lender may require and in such amounts and forsuch periods as Lender may require: provided, that Lender 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 he chosen by Borrower subjetiK to approval by Lender: provided, that such approval shall not be unreasonably withheld. All premiums on insurance p,dii-ies.hall I,e paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by &,rnmer making p:eyment, when due, directly to the insur:mce carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morigageclauae in tavorof and in form acceptable to I.ender_ Lender shall have the right G, hold the policies and renewals thereof, and &,re?wer shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss. Itorn,wer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. f Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property f damaged, provided such restoration nr 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 beapplied t^ the s~_lns secssred by *.hls M^rigage, with the PX:'°ss, if any. paid to I?^rrnwer. If the PmgQ:ty ie ahas±d^meel by B^rr~?:ver, ur i_~I~rrowcr ihila to respond to Lender within 30 days from the date notice is mailed by Lender te, Borrower that the insurance carrier offers to settle a claim for insurance benefits, !.ender is authorized to rnllect and apply the insurance proceeds at [.ender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and P,orrowerotherwise agree inwriting. any such application of proceeds to principal shall notextend or postpone thedue date of the monthly installments referred te, in paragraphs 1 and `l hereof or change the amount of such installments. If under paragraph IS 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 Properly prior to the sale or acquisition shall pass to Lender 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. Sorrowerahall 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 111ortgage is on a leasehold. If this Mortgage is on a unit in a condominium qr a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants cre:etingor 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 executed by Borrower and recorded together with this Mortgage, the novenants and agreements otsuch rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageasifthe rider were a part hereof. ` R T. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements wntained in this Mortgage, or if any aMion or proceeding is commenced which materially affects Lender s 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 Lender's option,upon notice to Borrower may make such appearanexa, disburse such sums and take such action u is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's feEa and entry upon the Property to make repairs. If Lender required ! mortgage insurance as s 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 Borrowerb and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. 'E Any amounts disbursed by Lender pereuant to thin paragraph T, 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 udder 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. I e~ ; . BOOX3~ PAGE ~5 ~ ~ $ k