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HomeMy WebLinkAbout1190 Borrower and Lender covenant and agree as follows: 1. Payasent 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. Ftiutds forTa~es and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay to Ixnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein ''Funds'")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 twelRh of yearly premium installments for hazard insurance, plus one•twelfth otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Ixnder on the basis otassesaments and bills and reasonable estimates thereof. The Funds shall be held in ari 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 taxes, assessments, insurance premiums and ground yenta. 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 !.ender to rnake such 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 each agreement is made or applicable law requires such interest to be paid, Ixnde: shall not be required to pay Borrower any interest or earnings on the Funds. !.ender 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 F~rnds 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 Fonda payable prior to the due dates of taxes, asseaementa, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they Pali due, ouch excess shai) be, at Borrower's option, either promptly repaid to Borrower 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, aseeasmenta, 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 soma secured by this I?torigage, Lender shall promptly refund to Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, (a~nder shall apply, no later than immediately prior to the sale of the Property or its acquisition by !.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Ixnder 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,asses.4ments and othercharKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay moots ur ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Burrower making payment, when due. directly t~, the p:+yee thereof Berruwershall promptly fu:nish to Ixnder all notices of amounts due under this paragraph. and in the event &,rrower shall make payment directly, Burrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall prompth• discharge any lien which has priority over this Mortgage; provided, that . Borrower shall not be required todischarge any such lien su IonK as Iturrow•er shall uKree in writinK to the payment of theobligationsecured by such lien in a manner acceptable to Ixnder• or shall in Ke?ud faith contest such lien by, ordefend enforcement of wch lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfi•iture of the 1'rupertc or any part thenr,f. 5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereafterereMed on the Property insured againarlaasby fire, hazards included within the term "extended n,veraKe: 'and such other hazards as Ixnder may require :+nd in such amounts and for such periods as !.ender may require: provided, that Ixnder shall not re•etuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MuriKaKe•. The insurance carrier providinK the insur.+ner shall Iw• chosen by Born,wer subje•et d, appn,~•al by Lender, pn,vided, that such approval shall not be unreasonably withheld. All premiums un insur:uu•e tH,licie•s shall t,c• paid in the manner provide•el under paraKraph'L here•ofor, if nut paid in such manner, by Borrower making p:n•ment• when due'. din•e•tl~• to the insurance carrier. All insurance policies and renewals lhereotshall Ix• in firm acceptable to I~e•nder and shall include a standard murigageclause in favorof and in form acceptable to 1.ender. !.ender shall h:+ae the right to hold the-!,alleles and renewals thereof. and Borrower shall promptly furnish to e.ender all renewal notices and all receipts of paid premiums. In the eeeut of l~ss,l3„rn,wer sh:+il give prompt notice tc, the insurance carrier ~ and Lender_ Lender may make proof of loss it not made promptly by l;„rn,wer. ~ Unless Lender and Borrower otherwise agree in writinK, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration ur repair is eranornir.+lly feasible and the security of this Alorigage is not thereby impaired. If such restoration or repair is nM economically feasible ur if the security of this Mortgage would be impaired, the insurance proceedsshall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. lithe Property is abandoned by Borruwer,orif Borrower fails to j respond to Lender within a0 days from the date nutim is mai1M[ by mender to Borrower that the insuranrn carrier offers to settle a claim for [ insuranrn benefits, Fender is authorized to collect and apply the insurance pn,cee•ds at Lender's option either to restoration or repair of the Property or the soma secured by this Morig:+Ke. Unless Ixnder and Borrower otherwise :+gree in writinK. any such application of prexeeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:graphs 1 and'! l+erey,f or change the amount otsuch installments. If under paragraph 18 hereof the Property is acquired by Ixnder, all right. title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale ur 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. Borrowerahali keep the Property in good repair and shall not commit waste ur permit impairment or deterioratir,n of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this biurigage is on a unit in a condominium or a planned unit development, Borrower shall perform allot Borrower's ubliKations under the declaration urcovenants cn•atingor 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 rnvenanta and agreements of such rider shall be incorl,or.+ted into and shall amend and supplement thecm•enants and aKreementsofthis Mortgage asifthe ~ rider were a part hereof 7. Protection of Lender's Security. If Borrower tails to perform the rnvcnants and agreements contained in this Mortgage, or if any action 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 a option,upon x notice to Borrower may make each appearances, disburse such sums and take such action ae ie necessary to protect Lender's interest, ~ including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required :iiortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain f such insurance in effect•until such time se the requirement for auch~inaurance terminates in accordance with Borrower's 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. My amounts disbursed by !.ender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Korrower 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 Nole unless payment of interest al 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 ~ 60~K J4~ PdGEl~~ _r ~ - ~w