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HomeMy WebLinkAbout0155.- Borrower and Lender covenant ar-d agree as follows: I. 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, sod the principal of and interest on any Future Advances secured by thin Mortgage. 2. Ftitttda for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to I.enderon theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fbnds") equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one twelfth of yearly premium installments for hazard insurance, plusone-twelfth ofyearly premium installments [or mortgage insurance, if any, all as reasonably estimated initially and from time to tirr+e by Lender un the basis of asaesamenta and bills and reasonuble estimates thereof. The Funds shall be hake in an 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 tuxes, assessments, insurance premiums and ground rents. 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 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 shat! 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 Funds held by Lender, together with the future monthly installmentsof Funds payable prior to theduedates oftaxea, asaeasmenta, insurance premiums and ground rents, shall exc~red the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds held by Lender shall not be sulficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :(0 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, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereotthe Property is sold or the Property is otherwise acquired by Bender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by i.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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment otamounts payable to Lender 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, :+ssessmynt.4 and othere•harges, fines and imp,~itions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments4 cir gn,und rents, if any , in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower m:+king payment, when due, directly to the p:+y~r theree-f. Ke,rn,wer shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Ite,rrowyr shall make payment directly, Kormwrr shall promptly furnish to Lender receipts.evidencing such payments. {ie,rrowyr shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not he required to discharge any such lien so long as I3t-rrower shall agree in writink to the pay myntof theubligation secured by such lien in a manner acceptable b, Iw•nder. or shall in geNxl faith n-nd•st such lien hy, ur dyfynd enfi,rerment of such liyn in, legal proceedings which operate to prevent the enfurcemynt of the lien or forfyitun• of the 1'ngx•rty or any part thyrer,f. 5. Hazard Insurance. Born-wyr shall keep the impn,vemynls now yxisting or hereafter erected on the Property insured against loss by fire, hazards included within the tens "extended coveragy," :rod wch other hazards :+s Ixnder may reyuiry and in surh amounts and forsuch periods as Lender may require; provided, that Ixnder shall not n•ctuire that the :,mount of such n,ver.+gy exrerd that amount of coverage required to pay the sums soured by this Mnrtt;aK+•_ The insurance carrier provident; thi• insurance, shall Iw• chosen h~• Iturn-wer subj,rt to approval by I.endyr• provider(, that such :,pproval shall not he unreasonably withheld. All premiums on insurance tNdicie~ .h:di tx• paid in the manner pmvide•el under paragr,+ph'L herenf or, if nut paid in such manner. by Ite-rn-wer making payment, when de:e, dire'e•tly te, the inwrance carrier. All insurance policies and renewals thereof shall t,y in form acceptable d- I,e•nder and shall include:+standard mortgagedause in favorof and in form acceptable to bender. Lendershall h:+ve the right to hold th+• peeliciys and renewals therenf, and Ite,m,wyr shall promptly furnish to -.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall give prompt notice te- the insurance carrier and Lender. [.ender may make proof of loss if not made promptly by I3„m,wer. Unless (.ender and &-rrower otherwise agree in writing, insurance prex•e•e•ds sh:+ll br applied to restoration or repair o[ the Property damaged, provided such restortion or repair is e•e•onomically feasil-le and the wrurity of this Mortgage is not thereby impaired. If such restoration or repair is not etionomically feasibly nr if the security of this Mortgagywould 1-yimpaired, the insur.+ncepre-ceedsahall beapplied to the aumasecured by this Mortgage, with lhy exces.+, if any, paid to Be,rn,wyr. If the Property is abandoned by Brrrower, or itBorrower fails to respond to Lender within aQ days from the dad, notin• is mailed by (.ender G, Ite,rn-wer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to c•e-Ilw•t and apply the insuranc•y pn,ce•eds at Iw•nder's option either to restoration or repair of the Property or the sums secured by this Mortg:ge•. 17nlerss Lender and Borrower otherwise, agre•e• in writing, any surh application of proceeds to principai shall not extend or postpone thedue date of the monthly installments referred to in pargraphs t and'L heree,f or changy thy amount of such installments. If under 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 Pmpe•rty prior to thy s:+le or ac•gwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; ('ondominums; Planned Unit I)evelopmenta. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterior.+tion of the Property and shall rnmply 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, Fiorrower shall perform all of B.ern-wer's obligations under the declaration ur coven:mt.4 e•n•atingor governing the condominium or planned unit development, the by-laws and regulations e,t the ee-nde-minium e-r planned unit devele-pmynt, and constituent documents. If a condominium or planned unit development rider is yxe•c•uted by &,m,wer and ree•orded together with this Mortgage, the covenants and agreemrnlq of such rider shall tee incurpe-r.+ted into and sh:dl :+mend :+nd supplement thycuvenants and agrermentsof this Mortgageas ifthe rider were a part hereroC T. Protection of Lender's Security. If Borrower fails k- perform the covenants and agreements containeei 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,npoa notice to Borrower may make such appearances, disburse such sums and take such action ae 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 repairo. It 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.euch insurance terminates in accordance with Borrowers and Lenders written agreement or applicable I~w. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this paragraph T, 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 [.ender 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 contrary 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 ~_ s, ,2 - 80flK ~ ~ PdCE 155 - . ~~'= r ..~ . r