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HomeMy WebLinkAbout0143,. . Borrower and Lender covenant and agree u follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o[ and interest on the indebtedness evidenced by the Note. prepayment and late charges u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonda for Tues and Insurance. Subject W applicable law or W a written waiver by Lender, Borrower shall pay W 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 "Funds") equal W 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 ofyearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to titre by [.ender on the basis of asseaementa and bills and rea8onable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or Strafe agency (including Lender if Lander is such an institution). Lender shall apply the Funds W pay said taxes, assessments, insurance premiums and ground rents. Lander may not charge for so holding and applying the Funds, analyzing said account, or verifying and rnmpiling said aeaeeaments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender W make 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 W Borrower, and unless each agreement is made or applicable law requires such interest W be paid, Lender shall nod be required to pay Borrower any interest or earnings on the i'ltnds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits W the Funds and the purpose for which each debit W the Fonda was made. The Funds are pledged as additional security for the sums aerated by this Mortgage. I[ the amount of the Funds held by Lender, together with the future monthly installments otFunda payable prior W the due dates of taxes, assessments, insurance premiums and ground rents, shall excrcd the amount required W pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower s option, either promptly repaid W Borrower or credited W Borrower on monthly installments of Funds. If the amount o! the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay W !.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender W Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph IS 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 (.ender, any Funds held by Ixnder 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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable W Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, god then W interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable W 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 hereo(or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as liorn,wer shall agree in writing W the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith n,ntest such lien by, ordefend enforcement of such lien in, legal proceedings which operate W prevent the enforcement of the lien or forfeiture of the 1'roperiy or any pari thereof- 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ereMed on the Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and torauch periods as Lender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage required W pay the sums secured by this Mortgage. The insurance carrier providing the insur.,nm shall~lx• chosen by 13t,m,wer subject to approval b~ Ixnder; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall t,e paid in the manner pnn ided under paragraph l hereof or, if not paid in such manner, by Borrower making p:+yment, when due, dirytly to the'insur,mm carrirr_ All insurance policies and renewals thereof shall be in form acceptable te- Ixnder and shall include a standard mortgageclause in favor of and in form acceptable W Lender. Ixndershall have the right t<, hold the tx,licies and renewals thereof, and Borrower shall promptly furnish W Ixnder all renewal notices and all receipts of paid premiums. In the event of loss, &,rn,wer shall give prompt notice W the insurance carrier and Lender. Lender may make proof of loss if not made promptly by [iorrower_ Unless Lender and Borrower otherwise agree in writing, insurance pn,ceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or 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 be applied to the soma secured by this Mortgage, with the excess, if any. paid to Borrower. Lithe Property is ah~ndoned by Borrower, or if Borrower tails W respond W Lender within 30 days from the date notim is mailed by Fender U, Borrower that the insurance carrier offers W settle a claim for insurance benefits. Lender is authorized to collect and :apply the insurance proceeds at Fender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds W principal shall not extend or postpone the due date of the monthly installments refer-ed W in paragraphs 1 and'L hereof 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 any insurance policies and in and to the proceeds thereof resulting from damage W Property prior to the sale or acqu,sition shall pass W bender to the extent of the sums secured by this Mortgage immediately prior W such sale or acquisition. • 6. Preservation and MaintenanceotProperty; f.easeholda; 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, Burrower shall perform all of Borrower's obligations under the declaration or covenants ere:+tinKor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit develop,ent, and constituent documents. It a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements otsuch rider shall he incorporated into and shall amend and supplement ther_ovenants and agreements of this Mortgage as ifthe rider were a pari hereof. 7. Protection of Lender's Security. If Borrower fails W perform the covenants and agreements rnntained in this Mortgage, or itany action or procceding 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 notice to Borrower may. make such appearances, disburse such sums and take such action as is necessary W protect Lender's interest. including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property W 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 ae the requirement for such insurance 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. Any amounts disbursed by Lender pereuant W this paragraph ?, with interest thereon, shall bernme additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree W other terms of payment, such amounts shall be payable upon notice from Lender W Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time W time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary W applicable few, 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 W incur any expense or take any action hereunder. eo(~ 344 P~~ 14~ ~, -lea ~_ - . ~~- I