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HomeMy WebLinkAbout1716t -, Borrower and Lender rnvenant and agree as follows: 1. Paymettt of Principal and Interest. Borrower shall promptly pay when due the principal ut and interest on the indebtedness evidenced by the Note, prepayment and late charges ae provided in the Nute, and the principal of and interest on any Pltture Advances secured by this Mortgage. 2. Funds lorTaxes and Insurance. Subject to applicable low or to a written waiver by lender, Borrower shall pay to l.enderon the day mot.?hly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F unda'") equal to one twelfth otlhe yearly taxes and assessments 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 une•twelfih of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and renaonablr 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 Lender is such an institution). [.ender shall apply the Funds to pay said taxes, assesamenta, 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 F unda and applicable law permits Lender W make~uch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest un 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 Fonda held by Lender, together with the future monthly installments of F ands payable prior to the due dates oftaxea, assessments, insurance premiums and ground rents, shall exceed the :+muunt required to pay said taxes, assessments, insurance premiums and ground rents se they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments o[ Funds. If the amount of the Funds held by !.ender 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 :i0 days from the date notice is mailed by !.ender to Borrower requesting payment thereof. Upon payment in full otall auras secured by this Mortgage, i.ender shalt promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property is sold or the Properi> is otherwise acquired by !.ender, !.ender shall apply, nu later than immediately prior to the sale of the Property or its acquisition by Fender, any Funds held by Lender at the tune 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 pay meat 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. Borrower shall pay all taxes, :-.rsescmentssnd other charges, finES and impositions attributable t0 the Property which may attain a priority over this Mortgage, and Ie:rsehuld payments ur gn,und rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Born,wer making payment, when duE•, drrE•E•th tr, the payEr therE•E,f. Rormwershall promptly furnish to Lender all notices of amounts due under this para{,~raph, and in the event 1{~,rruwer shall make payment dirt•E•tly, Borrower shall promptly furnish to Lender receipt.S evidencing such payments. li+,rrower shall pnxnpth• discharge :+ny lien which has priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien su tun{; as lir,rrE,wer shall agree in writing to the payment of the ublig:+tion secured by such lien in a manner acreplable to Ixnder, or shall in gr,r,El 6+ith contE•st such lien by, ordefend enfi,rErrnent nfsuch lien in, IE•g:+l proceedings which operate to prevent the enforcement of the lien ur furG•iturE• of the 1'ro{,E•rty or am• part then•rd- 5. Hazard Insurance. Burrower shall keep the impnrvements now existing or hereafter ereMed on the Property insurErl against lossby fire, hazards included within the term "extended coverage," and wch other hazards as Lender may require and in such amounts and for such periods as Ixnder may require: pmvidEd, that Ixnder sh:+11 not n•r{uirr that the amount of such E•over.+ge exceEd that amount of coverage required to pay the sums secureEl by this Mortgage. The insuranm carrier providing the insurance shall Iw• chosen by Itorruwr•r wbjE•,•t to appn,~•ul by I xnder: providE•EI. th:+t such approval shall not be unreasrmabh• withheld. All premiums on inwrance {N,licir•s sh:+11 t,E• paid in the m:u+ner pnn•idr•rl under paragraph 'l hereof or, if not paid in such manner, by liom,wer making payment, when due, din•ctly N, the incur:+nce carriE•r. All insurance policies and renewals thereof shall be in fi+rm acceptable to 1.r•nder and shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lendershall have the right to hold the {,r,hcies and renewals thercr,f, and Borrower shall promptly furnish to render all renewal notices :+nd all rer•eipts of paid premiums. In the event of loss. Rurn,wer shall give prompt notice to the insurance carver and Lender. Lender may make proof of loss if nut made promptly by Born,wE•r. Unless Lender and &,rrower othervise agree in writing, insurance procE•E~ds shall t,E• apphed to restoration or repair of the Property damaged, providEd such resG,r.+tion or repair is Eronornically feasible and the str•urity of this Mortgage is not thereby impaired- If such restoration or repair is not economically feasible ur if the sE•E•urity of this MortgagE• would Ix• impaired, the insurance prExeedsshall beapplied to the sums secured by this Ainrigage, with the excE•ss, if any, paid to lir,rn,w•er. 1 f the 1'ropE•riy is abandoned by &,n ower,or if Burrower fails to respond to Lender within alt days from the date notice is mailed by Lender to Korrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorizE•EI to colb•c•t and apply the insurance prr,E•E•erls at Iw•nder's option Tither to restoration or repair of the Property or the sums secured by this Mortgage. llnleas !.ender and Borrower otherwise agree in writing, any such application of pnxeeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par.+gr.+phs I and 'l hereof or change the amount of such installments- If under paragraph 1K hereof the Property is acquirEd by Lender all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage G, Property prior to the sale ur acywsitiun shall pass to Fender to the extent of the sums secured by this btorigage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: Leasehold,+; Condominuma; Planned Unit Uevelopmrnta. Borrowershal! keep the Property in q«,d repair and shall not commit watite or permit unpairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of 13r,rrower's obligations under the deE•laration or covenants cn•atin{;or governing the condominium or planned unit development, the by-laws and regulations of thE• condominium nr planned unit development, and constituent documents. If a condominium or planned unit development rider is exE•E•uttd by Iir,rn,wer :end rErordEd together with this Mortgage, the covenants and agreements of such rider shall tee incur{,ur•,+trd into and shall amend and supplement thr•:„venants and agreements of this Mortgage as if the rider were a part hercr-L ?. Protection of Lender's Security. if Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any 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 option,upon notice to Borrower may make such appearances, disburse such sums and take such action as 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 repairs. If Lender required mortgage insurance aB 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 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 ., with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower 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 tram the date of disbursement at the rate payable from time t0 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 psi?i6