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HomeMy WebLinkAbout0894. i , ~• ~ ~ Borrower and Lender covenant and agree a. tolbws: 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 chuges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2 Funds for Taxes and Insurance. Subject b applicable law or to a written waiver by Lender, Ibrrowerahall pay to I.enderon the day monthly installments of principal and interest are payable under the Note, until the Nate is paid in full, a sum (herein "Funds") equal toone- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- tweltth of yeuly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to tune by Lender on the basis of assessments and bills and reasonable estimates /hereof. 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 Lender 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 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 Larder may agree in writing at the time of execution of this Mortgage that interest on the Fonda 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 vyaa 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 installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, asaeasmenta, insurance premiuau and ground Teats as Way fall due, such excess shall be, at Bmrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of 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 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 soma secured by this Mortgage, Lender 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, Lender shall apply, no later than immediately prior to the sak of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma 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 Lender 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. Borrower shall pay all taxes, assessments and other charges, 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, i[ 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 she{I 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 Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvement.R now existing or hereafter erected on the Property insured against lass by fire, hazards included within the teen "extended coverage," and such other hazards as !.ender may require and in such amounts and forauch periods as Lender may require; provided, that Lender 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 insurance shall be chosen by Borrower subject to approval by [.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance polic•irs shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to [.ender and shall include a standard mortgageclausein favoro! and in form acceptable to Lender. Lendershall have the right ix~ hold the policies and renewals thereof, and Borrowerahall promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompth• by Borrower. Unless Lender and Borrower otherwise agree-in writing, insurance proceed: 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 beimpaired, the inauranceproceeda shall beapplied to the sums secured by this 1ltortgage,with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower tails to respond to Lender within :30 days from the date notice is mailed by Fender w Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender'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 of prnceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'2 Hereof or change the amount of such installments. Itunder paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of 13ormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by thin Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; ixaseholds;('ondominums; Planned Unit Developments. Borrowershall 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development. the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents. If a. rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the eovenanta and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementaofthis Mortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower [ails to perforni the covenants and agreements contained in this Mortgage, or if say action or proceeding 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 s optioa,npoa notice to Borrower may make such appearances, disburse such sums and take such aMion as is necessary to protect Lender's interest, including, but not I~mited to, disbursement of reasonable attorney's fee~a and entry upon the Property to make repai». 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 a and [,alders written agreement or applicable I~w. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 ha~eof. My amounts disbursed by Lender persuant 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, 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 contained in this paragraph T, shall require Lender to incur any expense or take any aMion hereunder. $~ 344 P~ ~ X94