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HomeMy WebLinkAbout0395Borrower and Lender covenant and agree ae 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 o[ and interest on any Future Advances secured by this Mortgage. 2. ~ttde for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, BoROwer shall pay to 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 to one twelfth of the yearly taxes and atl$esamente which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus one•twelfih ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender 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 (including Lender if !.ender is such an institution). Lender 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 compiling said assessments and bills, unless Lender pays BoROwer interest on the Funds and applicable law permits !.ender to make such a rharge. BoROwer 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 w:+s made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount ottee Funds held by Lender, together with the future monthly installments of F ands payable prior to the duedatea 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 W 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 ae they fall due, Borrower shall pay to !.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to BoROwer 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, !.ender shall apply, no later than immediately prior to the sale cf 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 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by IioROwer under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note• and then to interest and prinripal on any Future Advances. 4. Charges; Liens. Borrowershall pay all taxcs,:~~sessment_c and other charges, finE•s and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if :+ny, in the manner pnn•id+d under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payEr thern,f. Burrower shall promptly furnish to Ixnder all notices of amount.4 due under this paragraph, and in the event lioROwer shall make payment dirE•ctly, Korn,wer shall promptly furnish to I.E•nder receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not be required to discharge any such lien su lung as lir-RUwer shall agree in writing tr, the p:+yment of theubligaNon sPCUred by sac h lien in a manner acceptable to Lender, orshall in gr,rrd L•+ith contest such lien hy, ordefend enfon•ement of sur•h lien in. legal pruceE•dings which operate to prevent the enforcement of the lien or firrfeiture of the Pn,tx•rty or any part thereof. 5. Hazard insurance. Borrower shall keep the impnnements now existing or hereafter ereMed on the Property insured against loss by fire, hazards included within the term "extendE•d coverage," and such other hazards as LE•nder may require and in such amounts and forsuch periods as Lender may require; provided, that Lender shall nut rertuire that the amount of such coverage exceE•d that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providing the insuranr•r• sh:dl Irr• chosen h~• Burruwr•r wt-iw•t to appn-cal b}• I.+•nder; pnn•id+r1, that such approval shall not be unreasonably withheld. All premiums on imurance I,+~licir•s shall 1rE• p:+id in the manner pro~•idrvl router paragraph 'L herE•rdor, if not paid in such manner, by Bomrw-er making payment. when due. din•r•th• to the insur:+nE•e carrier. All insurance policies and renewals therer-f shall trE• in form acEeptable to Lender and shall include a standanl mortgageclausein favorof and in form acceptable to Lender. lender shall have the right to hold the policies and renewals therer,f, and Burrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the eeeut of lass, Born,w•er shall give prompt notice tt, the insurance carrier and Lender. !.ender may make proof of loss if not made promptly by lir,m,wer. Unless Lender and &rrruwer otherwisE• agree in writing, insurance prr,E•Erds shall t,E• applied to restoration or repair of the Property damaged, provided such restoration or repair is eE•onumically feasible and the sErurity of this Mortgage is not thereby impaired. If such restoration or repair is nut economically feasible ar if the sa•urity of this Mortgage would tee impaired, the insurance proceeds shall be applied to theaumssecured by this Mortgage, w•Ith thcexcess. if any, paid to IiuROwer. Ifthe 1'rr/pertv isabandoned b3 Borrower,orif BoROwer fails to re:rpond to Lender within a0 days from the date notirr is :nailed by 1~-•nder to liorn,wer that the insurance cagier offers to settle a claim for insurance benefits, Lender is authurizE•rl to collE•E•t and apply the insurance prr,cE•E•ds 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 N•riting,:+ny such application of prrx•r~erls to principal shall not extend or postpone thedue date of the monthly installmentsg refeRed to in paragraphs 1 and `L herw,f or change the amount of such inst<•+Ilments. If under paragraph 18 hereof the Property is acquired by bender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or antwsition shall pass G, Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned !Jolt Developments. Burrowershall keep the Property in good repair and shall not commit waste ur permit imp:+irment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this bortgage is on :+ unit in a Eondominium or a planned unit development, Borrower shall perform all of Fiortt,wer's obligations under the deE•lar.+tiun ur crn•enants cn eUngor governing the rnndominium 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 executE•d by &,rnrwer and reE•orded together with this Mortgage, the covenants and agreementsof such rider shall ire ineortu,ratEd into and shall amend and supplement thrcovenantsand agrE•E•ment_tiof this Mortgage asifthe rider were a part hercr-f. 7. ProteMion of Lender's Security. If BoRr,wer fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects 1 gender'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 e option,upon notice to Borrower may make such appearances, disburse such same and take such aMion as is 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 required mortgage insurance as a condition of making the loan secured by this Mortgage, BoROwer shall pay the premiums required to maintain such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lender e 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 persuant to this par:+graph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless BoROwer and !.ender 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 contrary 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 Lender to incur any expense or take any action hereunder. ~~.~~ 344 PEE -39.5 . - _ ~ -~- _ ~: