Loading...
HomeMy WebLinkAbout0151 Borrower and Lender covenant and agree as follows: 1. Payment of Principal rood 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 Tries and Insurance. Subject to applicable law or to a written waiver by I.ender, Borrowerahall pay to I.enderon 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- twelfth otysarly premium installments for hazard insurance, plus one•tweltih ofyearly premium installments for mortgage insurance, if any, All as reasonably estimated initially and from time to time by !.ender on the basis of asaesamenta 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 it (.ender is such an institution). (.ender 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 rnmpiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to 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 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 was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the 1'tinds held by ixnder, 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of ~rnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender 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 sums secured by this Mortgage, (.ender 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, Ixnder shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by [.enderat 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 to (.ender 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 other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymentsorgmund rents, if any, in the manner provided under paragraph 2hereotor, it not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Iorrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event liorn-wer shall make payment directly, Borrower shall promptly furnish to lender receipts evidencing such payments. Borrower shall promptly disch::rge any lien which h;+s priority over this Mortg:+ge; provided, that Borrower shall not be required todischarge any such lien so long:rs Iiorrowershall agree in writing to the payment of theobtigation secured by such lien in a manner acceptable to Lender, or shall in good faith n-ntest such lien by, ordefend enfim•+•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture +-t the Property or any part thereof. 5. Hatard Insurance. Borrower shall keep the imprr,vements 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 forauch periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the incur.+nm shall tx• chosen by Bom-wer subje+•t to appnn al by Lender, pr+wided, that such :+pproval shall not be unreasonably withheld. All premiums..n insur.+nc+• iwlicies shall tx• paid in the m:+nner pnwid+rl under par.+graph'L hermfor, if not paid in such manner, by Borrower making p:+~ ment, when due, din•+•th• to the insuranc+• carrier. All insurance policies and renewals thereof shall he in form accept:+ble U, Lender:+nd shall include a standard mortgage clause in favor of and in form acceptableto Lender. I~endershall have the right t., hotel the policies and renew:+ls therer-f,:rnd F3orrowershall 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 carver and Lender. Lender may make proof of toss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insuranm pn,ceeds shall be applied to restoration or repair of the Property dama~e°~ provided such restoration +-r repair is ec+,numic:+lly feasible and the srr•urity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security r-f this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the 1'roperi~ is abandoned by Borrower, or if Burrower (ails to re~p+~od !o J.ender within a0 days from the date notice is mailed by Lender U, Burrower that the insurance carrier offers to settle a claim for insurance benet?ts. (ender is aa[heriz.~rt to r~r-lle-~t Ract .apply the insurance pn-ceeds at Lender's option either to restoration or repair of the Property or Q+e sums secured by this Mortgage- Unles:v ~ndPrand Rormvvec athecv«se aXtee irv:ri~irk.ar~ suefi application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred w in par:graphs 1 and `L I+ereof r-r change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borr.wer in and d, any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass t<- 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; ('ondominums; Planned Unit Developments. Borrower shall 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 leasehrld. It this Mortgage is r,n a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaratii-n or covenants cr+•:+tingor 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 rnvenants and agreements of such rider shall I-e incorporated into and ::hall amend and supplement the covenants and agreements of this bortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the a,venants and agreements rnntained in this Mortgage, or if any action or proceeding is commenced which materially affects [.ender'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 appearances, disburse such soma and take such action ae ie necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attorney i 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 Borrowers 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 disbureed 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 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 rnntained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. . __ e~*344 pacE 15i ~_, -~~ ~~ ~''~ ry ~~~. ~ n - Y _ =. -i h-_. i - -~ Nsi r i ~'~~~ v