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HomeMy WebLinkAbout1642. ~ i ~.' ~ t ~' Bormwe~ and I.ender oovenant and agree aa tollows: 1. Pay~nent ot Psincipal snd lateres~ Bosrower ahall promptly pay when due lhe pri~cipal of and intereat on the indebtednees evidenced by the Note. prepayment and late charges as pmvided in the Note, and the principal of and intereet on any F1~ture Advances secured by this Mortgage. 2. I~nda tor T~ea and Insurance. Subject to appiicable law or to a written waiver by [.e~de~, Borrower ahall pay to l.e~der on the dey monthly installmente of principal and ir-tereat an payable under the Note, until the Note is paid in full, a aum (herein "F1nda") equal to ont twelfth of the yearly taxes and aseeeamenta which may attain priority over this Morigage, and Rround renta on the Prope~ty, if any, plus ont twelfth of yearly premium installmenta [or hazard inaurance, plus onetwelfth of yearly premium installments for mortgage insu~ance, if any. all aa reaeonably eatimated initiaUy and from time to time by Lender on the basis of assessmenta and bills and reasonable eatimatea thereof. The P1~nds ahall be held in aa institution the depoaita or accounte o! which are ineured or guaranteed by a Federal or State agency (including L.ender if I.ender is auch an inatitution). Lender ahall apply the I~nds to pay said taxes, asseasments, inaurance premiume and grou~d rente. I.ender may not charge for eo holding and applying the Funda, analyzing said account, or verifying and compiling said seseaaments and bills. unless L.ender paye Borrower intereat on the Funda and applicable law permits l.ender to make euch a charge. Borrower and Lender may agree in writipg at the time of execution of thia Mortgage that intereet un the Funda shall be paid to Borrower, and unleaa euch agreement ia made or applicable law requiree auch intereat to be paid, I.ender ahall not be required to pay Horrower any interest or earnings on the ~nds. Lender shall give to Borrower, without eharge, an annual accounting of the Funds showing credits and debite to the Funda and the purpose for which each debit to the Funda was made. The Funda are pledged as additional aecurity [orthe auma secured by thia Mortgage. If the amount of the Ftinda held by Lender. together with the future monthly inetailmenta of Funda payable prior to the due datea of ta:ea. assesamente, inaurance premiums and ground renta. shall e:cxd the amount required W pay said taxea, asseasments, insurance premiuma and ground rente se they fall due. auch excees ahall be. at Borrower's option, either promptly repaid to Borrower or credited to Bormwrr on monthly inatallments of Funds. If the amount of the Funda held by Lender shall not be aufficient to pay taxea, aissessmenta, inew~ance premiume and ground rents as they fall due, Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30days from the date notice ia mailed by I.ender to Borrower requesting payment thereoL - Upon payment in full of all sums secured by this Mortgage, I.ender shall promptly rnfund to Borrower any funds held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender ahall apply. no late~ than immediately prior to the sale of the Property or its acquisition by l.ender, any Funds held by I.ender at the time of application as a credit against the aums aecured by this Mortgage. 3. Application of Paymenta. Unlesa applicable law provides otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by I.ender first in payment of amounts payable to l~ender by Borrower under paragraph 2 heteof. then to intereat payable on the Note, then to the principal of the Note, ~nd then to interest and principal on any Future Advancea. 4. Chargea; I.iena. Borrowershall pay all taxes, asses.sments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, i[any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower makinq payment, when due, directly to the payee therec-f. Rorrower shall promptly furnish to Lender aU notices of amounts due under this par:~graph, and in the event E3orrow•er shall make payment directly, Bormwer shall promptly fumish to Ixnder receipts evidencing such payments. I3orrower shall promptly di~chargr any lien v-hich hxs priority uver this Mortgage; provided, that Borrower shall not be required todischarge any such lien so IunK us F3orrov-er shall agree in writinK to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, orshall in g«xi faith contest surh lien by, ordefend enfurmmentofsuch lien in, lega) proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or ~ny part therc~f. 5_ Hazard Insurance. Bortower shall keep the impmvements now existinR or hereafter erected on the E'roperty insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounta and for such periods as [.ender may require; provided, that [xnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums serured by this MortKaRe. The insurance carrier providinK the insuranm shall t-c• chosen by li~~rruaer subj~rt tu appro~•al by I.ender; pnwided, that such approval shaU not be unreasonably withhel~. All premiums un incuranrc p~~licirs ~haU {K paid in the manner pm~•idecl under paraQraph 'L hereofor, if not paid in such manner, by ~rrower makinK pa~ ment, when due, din~•th• to the insurance carrier_ All insurance policies and renewals therenf shall be in form accept~~bie to I.ender and shall inclnde a standard mortgage clause in tavor ot and in form acceptable to I.ender. I.ender shall have the right t~~ h~~ld the ~x~licies and renewals thermt, and Rorrowershall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Born-wer shall Qive prompt notice to the insurance carrier and Lender. Lender may make pmof of loss if not made promptly by E3nrrower_ Unless Lender and E3orrower otherwise agree in writing, insurance pmceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or mpair is econumically feasible and the security of this 111ortgage is not thereby impaired. If such reatoration or repair is not economically feasible or if the security of this Mortgage would t-e impaired, the insurance prceeeda shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Rorrower. lf the f'roperty is abandoned by Borrower, or if t3orrower faila to respond to Lender within 30 days from the date notice is mailPd by I.ender to E3orrower that the insurance carrier offers to settle a claim for insurance benefits. I~ender is authurized to collect and apply the insurance proceeds at I.ender's option either to rnstoration or cepair of the Property or the sums secured by this MortKaKe. Unless Lender and Borrower otherwise agree in writinK, any auch application of proceeds to principal shall not eztend or postpone lhedue date of the monthly installments referred to in paragraphs 1 and 2 l~ereof or change the amo~nt of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, al) right, title and interest of Burmwer in and to any insurance policies and in and to the proceeda thereof resulting fiom damage to F'roperty prior to the sale or acquisition shall pass to Lender to the extent of the aums secured by this Mortgage immediately prior to such sale or acquisition. - 6. Preservetion and Maintenance of Property; I.easeholds; Condominuma: Ylanned Unit Developmenta. Borrower shall keep the Property in good repair and shall not commit waste or pennit impairmrnt or deterioration of the Property and shall comply with the provisiona of any lease if this Mortgage is on a leasehold. 1f this MortKaQe is on a unit in a condominium or a planned unit development, E3orrower aha11 perform all of Eiorrower's obliKatiuns under the declaration orcovenants creatinKor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documenta. If a condominium or planned unit dPVelopment rider ia executed by i3~-rrower and recorded together with this Mortgage, the ouvenants and agreements of such rider shall be incorporafed into and shall amend and supplement thecovenants and agreementsofthis Mortgageasif the rider were a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the rnvenante and agreemente contained in this Mortgage, or if any aMion or proceeding ie commenced which materially affecte I.ender'e interest in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender at Lender 8 option,npoa notice to Borrower mey make auch appearances, diaburee auch aume and take auch action ae is neceaeary to protect Lender's interest, including, but not limited to, disbureement of reaeonable attorney'a feee and entry upon the Property to make repaira. If Lender reqnired mortgage ineurance as a condition of making the loan secured by this Mortgage, E3orrower ahal) pay the premiume required to maintain euch ineurance in effect until euch time ae the requirement for euch inaurance terminatea in accordance with Borrowei s and Lender's written agreement or applicable I.aw. Borrower shall pay the amount ot all mortgaqe inaurance premiume in the manner provided under paragraph 2 hereof_ My emounte diebureed by I.ender persuant to this paragraph ?, with intereat thereon, ahal) become additional indebtedneae of f3orrower eecured by thie Mortgage. Unlesa Borrower and I.ender agree to other terme of payment, auch amounta ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ahal) bear intereet from the date of dinbureement at the rate payable irom time to time on outetanding principal under the Note unleas payment of interest at auch rate would be rnntrary to applicable law~ in which event euch amounts ahall bear intereet at the highest rate permiasible under applicable law_ Nothing contained in this paragraph ?, shall require [.ender to incur any expense or take any action hereunder. ,- - g~ 3~5 Pa~E if40 - .