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HomeMy WebLinkAbout0159Borrower and Lender covenant and agree as folbws: 1. Payment o[ 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. Fonda for Ta:es and Insurance. Subject to applicable law or to a written waiver by [.ender, Borrower shall pay to Lender on theday monthly installments o[ principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one twelfth oithe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ore~- twelfth ofyearly premium installments for hazard insurance, plus one•twelRh otyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tithe by l.enderon the basis of aaseasmenta and bills and reasonable estimates thereoL The PLnds shall be held 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 taxes, assessments, insurance premiums and ground rents. Lender may not charge !or so holding and applying the Funds, analyzing said account, or verifying and wmpiling said assesamenta 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount ottee F,tnde held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount ieyuired to pay said taxes, assessments, insurance premiums and ground rents ae they fall due, such excess shall 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, asaesamenta, insurance premiums and ground rents as they tall due, Borrower shall pay to bender any amount necessary to make up the deficiency within 3(1 days from the date notice is mailed by !.ender to Bonnwer 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. I[under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, 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 !.ender under the Note and paragraphs 1 attd 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 othercharges, fines and impositions attributable to 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 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices otamounts due under this paragraph, and in the event Boree-wer shall make payment directly, Born,wer shall promptly furnish to Ixnder receipts evidencing such payments- Borrower shall promptly discharge any lien which h:+s priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien se, long as B+-ree,wer shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enfi,rmment of such lien in, legal proceedings which operate to prevent the enforcement of the lien e,r forfeiture e-f the Property ur any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose 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 Ixnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall h+• chus~n h~ Iorrower sutlJtY-t to appro\'aI by I A'Dder: prl,vlded, that such approval shall not be unreasonably withheld. All premiums un insurancr policies shall tK• paid in the manner pnn ideei under paragraph'L hereofor, if not paid in such manner, by Bureuwer making p:+yment, when duc, dir+ytly to the insuranm careier. All insurance policies and renewals thereof shall be in form acmpt:+l-le to Lender and shall include a standard mortgageclause in favorof and in form acceptable to Lender. I.endershall have the right k, hold the policies and renewals thereof, and I3oreuwer shall promptly furnish to i.ender all renewal notices and all remipts of paid premiums- In the event of loc.4, I{-,rn,wer shall give prompt notice to the insurance carrier and Lender- Lender may make proof of loss if not made promptly by lie-reower. Unless Lender and Borrower otherwi.e agree in writing, insuranm proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ee•i,nomically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible e,r if the security of this Morigagewuuld be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the exms.4, if any, paid to Fk,reower. If thr Property is abandoned by Bon ower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Fender t,- Borrower that the insuranm carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance pmcerds at bender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application c,f proceeds to principal shall not extend or postpone thedue date of the monthly installments refereed to in par:+graphs 1 and 'l liereuf or change the amount of such installments. It under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Burn,wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Properly prior to the sale nr acquisition shall p:ags; te, 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; ('ondominuma; 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 rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declar:+tia,n ur covenants cre:+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 Boreower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorporated into and sh:+ll :amend :+:,d supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. [f Borrower fails to perform the rnvenanta and agreements rnntained in this Mortgage, or if any action or proceeding ie 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 B option,upon notice to Borrower may make each appearances, disburse such sums and take such aMion ae ie necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender regnired mortgage insurance as a rnndition 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 terminatee 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 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, ouch 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 contrary to applicable law, in which event ouch 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. I _~ _ -,. .~~ Z~ g~344 P~~ 159 3 i