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HomeMy WebLinkAbout0664 Borrower and [.ender covenant and agree as follows: 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. Flurds CorTaxesand Insurance. Subject to applicable taw or to a written waiver by Lender, Borrowershall pay tol.enderon theday monthly installments of principal and interest arc payable under the Note, until the Note is paid in full, a sum (herein "h'oods'")equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents nn ?he Property, if any, plus one• twelfth otyearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all ae reasonably estimated initially and from time to time by Lender 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 tincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assesarnenta, insurance premiums and Kround rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaessmenta and bills, unless Lender pays Borrower in tereet on the Funds and applicable law permi is Lender to make such a cha rge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fundashall 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 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 wuamade-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 duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at BorTOwei 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, assessments, insurance premiums and ground rents as they fall due, Burrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Iorrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shell 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 [ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by !.ender at the time otapplication as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender 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 Nute, and then to interest and principal on any Future Advances. 4. Charges;Liens. Borrower shall pay all taxes, assessments and utherc•h:+rKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay menu or Kn?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 pay+•r• thereof. Born,wer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, liurmwer shall promptly furnish to !,ender receipts evidencing such payments. Burrower shalt promptly discharge any lien which ha. priority over this Mortgage; provided, that Korrower shall not be required W disrh:+rKeanysuch lien su lung as ft??rruwershall aKreeinwritinK to thc•paymemt of theubligationsecured by such lien in a manner acceptable to larder, or sh:+11 in K«xl faith c•ont+•st such lien by, ordefend e•nfon•c•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of th+• Property or any part thenc?f. 5. Hazard Insurance. Borrower shall keep the improvements now exist+nK or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cc?veraKc•,'• and such other hazards as !.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender sh:+Il not require that the amount of such n+verage exceed that amount of coverage required to pay the sums secured by this MortKaK+•• The insurance carrier providinK the insur.+n+Y• shall lx• chosen {t,~rn?wer subj+vt to approval by 1.c•mlcr, pn?vided: that such approval shall not be unreasonably withheld, AIF premiums un insurance t>,diciea shall FK• paid in the manner pruvidc•rf muter par.+Kraph 'L herc.?f or, if not paid in such manner, by Burrower makinK payment, t+•hen due, dirc•c•th• (u the insurance carrier. Alt insurance policies and renewals thereof shall be in firm accept:+blc• to 1.e•nderand shall include a standard mortgageclause in favorof and in form acceptable to (.ender- !.ender sh:+Il have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to +,ender all renewal notices and all receipts of paid premiums. In the, event of loss. Burn?wer shall Kive prompt notice to the insurance carrier and Lender. Lender may make prcx+f.of loss if nut made promptly by Burrower. Unless Lender and Borrower otherwise agree in writinK, insun+nce• proceeds shall M applied to restoration ur repair of the Property damaged, provided ouch resG,r+tion ur repair is cr•onomically feasible and the security of this hlurtgage is nut thereby impaired. If such restoration or repair is not ecc?nomicaily feasible or if the security of this Mortgage would F?e impaired, the insurance proceeds shall be applied to the sumasecured by this Mortgage, with the excess, if any, paid to Iturn,v?er- If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within :10 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Fender is authorized to collect and apply the insurance prcx•eeds at Lender's option either to restoration or repair of the Property or the sums secured by this AfurtK:+Ke. (finless Lender and Burrower otherwise agree in writinK, any such applic•atiun of pnxerds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:+Kr.+phs 1 and `L here+?f or change the amount of such inst<•+llments. Ifunder paragraph 18 hereof the Property is acquired by {ender, 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 or acyuisiti?•n shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale ur acquisition. 6. Preservation and Maintenanceof Property; Ixasehuldy; ('ondominuma;l'lanned !toil [ievelopments. $urrowerahall 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 Morigage is on a unit in a condominium or a planned unit development, Fbrrower shall perform all of Korrower's obligations under the declaration or covenants creatirgor KuvernmK 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 Burrower and recorded together with this Mortgage, the rnvenants and agreements4 otsuch rider shall F?e incorporated into and sh:+ll amend and supplement thecovenants and aKreementsof this Mortgage asifthe rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is rnmmenced 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 [.ender at I.ender'e option,upon notice to Borrower may make ouch appearances, disburse ouch soma and take such action as is 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 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 written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiunie in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant 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 outatamding principal under the Note unless payment of interest 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 contained in this paragraph 7, shall require !.ender to incur any expense or take any action hereunder. 3~3 ~~Gf f~;3 _