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HomeMy WebLinkAbout1815~ i' ! Borrower and Lender covenant sad agree u folbws: 1. Payment of Principal and Interest. BosTOwer shall promptljr pay when due tM print~al of and interest on the indebtednep svidenoed by the Note. prepayment sad late charges ss provided in the Note, and the principal otand interest on any Future Advances secured by this Mortgage. 2 Funds !or Tuq and Insurance. 3ubjed to applicable law or to a written waiver by Lender, Borrower 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 oae• twelfth of the yearly tares and assessmenb which may attain priority over this Mortgage, and ground rents on the Property, if any, plw onr twelfth otyeerly premium installments for hazard insurance, plw onetwelRh ofyearly 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 reasonable estimates thereof. Ths Funds shall be heW in as 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 Fonda to pay said taxes, assessmenh, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing 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 arch agreement is made or applicable law requires arch interest b be paid, Lender shall not be required to pay Borrows 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 vyas made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If We amount of the Fends held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments, insurance premiums and ground rent. shall exezcd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borroweron monthly installments of Ftirnda. If the. amount of the Funds heW by Lender shall not be sufficient to pay taxes, aasesaments, 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 b Borrower requesting payment thereof. Upon payment in fall of all sums 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 immediatelyprior to We sale of the Property er 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 recrived 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, if 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 shall make payment directly, Borrower shall promptly famish 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 obligatiop secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of ouch 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 improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in such amounts and forauch periods as Lender may require; provided, that Lender shall not require that the amount of such wverage 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 lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance Ixdicies shall be paid in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. -All inaun;rrce policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and inform acceptable to Lender. Lender shall have the night to hold the policies and renewals thereof, and Borrower shall promptly furnish 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 lava if not made promptly by Borrower. Unless Lender and Borrower otherwise agree•in writing, insurance prooeerir 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 arch restoration or reparr is not economically feasible or it the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess. if any, paid to Borrower. lithe Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to 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 a 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 proceeds 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. If under paragraph 18 hereof the Property is acgr}ind by Lender, all right, title and interest of Borrower in and to any insurance policies and in and W 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 this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; 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 it 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 creatingo: governing the condominium of planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement thecoven:rnts and agreementaof this Mortgage as itthe rider were a part hereof. 7. 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 Lendei s interest in the Property, including, but not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decadent, then Lender at bender's option,npon notice to Borrower may make such appearances. disburse such sums and take such action as is neeesaary b protect Lendds interest, including, bet not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaint. Ii Lender regnir'ed mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums regnired to maintain arch insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lendds written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounts diabnrsed 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 neon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbun+ement at the rate payable from tiros to time on outstanding principal under the Note unless payment of interest at such rate world be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph ?, shall require Lender to incur any expense or take any action heresndtr. X344 X1815