Loading...
HomeMy WebLinkAbout0804 Boirrowe~ and l,ender covenant and agree as follows: 1. Payment ot Principal and lnterest. Eiorrower shall promptly pay when due the pri~cipal of and interest on the indebtedneae evidenced by the Note, pnpayment and late chargea aa pravided in the No!e, and the principal of and interest on any Ftiture Advances secured by this Mort~a~e. 2. PLnds for Teu~es and Ittsurance. Subject to applicuble law or to a written waive~ by I.ender, I3orrower ehal! pay to l.ender on lhe day monthly inatallme~ta of principal a~d intereat are payable under the Note, until the Note ie paid in tull, a sum (herein "HLnds") equal to one twelfth of the yearly taxea and asseasments which may attain priority ovec thia Mortgage, and ground ~eMe on the Property, i[any, plus one lwelfth of yeariy premium inetallmenta for hazard iasurance, plua onetwelRh otyearty p~emium instalimente for mortgage inaurance, if any, all ae reaeo~ably eetimated initially and from time to tirr.e by l.ender on the baais of aasessmenta and bills and reasonable estimute~a thereof. The F~nde ahall be held in an institution the deposits or accounta of which are inaured or guaranteed by a Federal or State agency (including Le~der i! Lender is auch an inatitution). I.ender ehell apply the Funda to pay said taxea, assesame~te, inaurance pmmiuma and ground rents. I.ender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling said aseeaemente and bills, unlesa Lender paya Botrower interest on the ~nde and applicable law permits I.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of e:ecution ot thia Mor?gage that intereat on the Funda ahall be paid to Borrower, and unleae euch agreement is made or applicable ;aw requires such interest to be paid, I.ender ehall not be required w pay Borrawer any intereat or earnings on the ~nds. Lender ahall give to Borrower. without charge, an annual accounting of the Funds ahowi~g credita and debite to the ~nde and the purpose for which each debit to the Funda wae made.l'he Funda are pledged as additional eecurity for the eume eecnred by this . ~ Mortgage. If the amount of the FLnde held by l.ender. together with the future munthly inatallments of Funds payable prior to the due datee of taxea, aeaeasmente, inaurance premiums and ground rents, shall exc~ed the amount required to pay said taxee, asseaements, inaurance premiums and ground rents as they tall due. such eacese shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monehly inataUmenta of Ftinde. If the amount of the ~nde held by Lender ahall not be eufficient to pay taxee, aseeesments, ineurance premiums and ground rente as they [all due, Borrower shall pay to I.ender any amonnt necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Rorrower requeating payment thereof. Upon payment in full of all aume eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the ProperLy is sold or the Property is otherwiee acquired by L.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ite aoquieition by Lender, any ~nda held by Lender at the time of application as a c~edit against the sums secured by this Mortgage. 3. Appllcation of Paymeats. Unlees applicable law providea otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender ficat in payment ot amounts payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; I.iena. Borrower shall pay all tnxes, assesaments and other charges, fines and impositiona attributable to the Properiy which - snay attain a priority over thie Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereaf. Borrower shall promptly furniah to Lender all notices of amounfs due under this paragraph, and in the event $orrower shall make payment direcily. Borrower ahall promptly furnish to [.ender rec:eipts evidencing such payments. Borrower shall promptly diacharge any lien which has priority over this Mortgage; provided, that E3orrower ahall not be required to diacharge any such lien so lonR as E3orrower ahall agree in writing to the payment of the obligation sec~red by such lien in a manner aceeptable to Lender, or ahall in good faith contest such lien by, ordefend entorcementotsuch lien in, legal proc~eedings which operate to prevent the en(orcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Ineuraace. Borrower ahall keep the improvements now e:isting or hereafter erected on the Property insured againet loss by ~ire, hazarde included within the term "extended rnverage,° and auch other hazards as Lender may require and in auch amounts and for such periods as I.ender may require; pmvided, that Lender ehall not require such ooverage amount e:ceeding the minimum, as may be required by stat~ or federal regulationa goveming.activitiea of Lender, or that amount of rnverage required to pay the auma secured by this Mortgage. whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject W approval by [.ender, pmvided, that such approval Fhall not be unreasonably withheld. All premiums on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if ` not paid in such manner, by f3orrower making p:iyment, when due, directly to the insurance carrier. All ineurance policiea and renewale thereof ehall be in form acceptable to Lender and shall include a atandard mortgage clauae in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all receipts of paid premiuma. In the event of loss. Born~wer shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. ; Unless Lender and Borrower otherwiae agree in writing, inaurance procecds ahall be applied to restoration or repair of the Property { damaged, provided such restoration or repair ie economically feaaible and the aecurity of thie Mortgage ia not thereby impaired. If such ~ restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the sume secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Bortower faila to f reapond to Lender within 3(1 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to setde a claim for ~ inautance benefita, Lender ia authorized to collect and apply the insurance proceeds at Lender a option either to reatoration or tepair of the ~ Property or the aums secured by this Mortgage. a Unlesa I.ender and Borrower otherwiae agree in writing, any auch application of procecda to principal shall not extend or poatpone the due ~ date of the monthly instalimente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 . hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance poticies and in and to the proceede thereof resulting from damage to Property prior to the sale on acquisition shall pass to Lender to the eatent of the suma secured by thia Mortgage immediately prior to auch sale or acquisition. . 6. Preaervation and Maintenance of Property; I.easeholda; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaiona of any lease if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower'e obligations under the declaration or covenante creatingor goveming the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent documenta If a ~ rnndominium or planned unit development rider is execnted by Borrower and recorded !ogether with thie Mortgage, the oovenante and i agreements of such rideT shall be incorporated into and ahall amend and supplement the rnvenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower faila to perform the oovenante and agreemente oonteined in this Mortgage. or if any ~ action or prooeeding is commenced wbich materially affecte Lender a intereat in the Property, including, bnt not limited to; eminent domain. insolvency. oode enforcement, or arrangementa or proceedin8s involving a bankrupt or decedent, Wea Lender at Lender'e option,upon notice to Borrower may make auch appearances, dieburee euch sume and take euch action as is ncoeeeary to protect Lender's in~t, s~ including, but no! limited to, diebureement of reasonable attorney'e fees and entry upon the Property to make repairs. If I.ender required ~ mortgage ineurance ae a condition of mal~ing the loan eec~red by this Mortgege, Borrower shall pay the premiums required to maintain ench insurance in effect until euch tune as the requirement for euch ineurance terminates in accordance with Borrower's and I.ender's - writLen e~rcement or applicable Law. Borrower shall pay the emount of a11 mortgage insurance premiuma in the manner provided under ~ PareBraPh 2 hereoL Any amo~u?ts diebursed by Lender persuant to thia paragraph 7, with intereet thereon, ahall beoome additional indebtednees of Borrower securvd by this Mortgage. Unlese Borrower xnd I.ender agree to other terme of payment, euch amounte shall be payable upon ~ notice from I.ender to Borrower requeeting payment thereof, and ahall bear intereat from the date of dieburaement at the rate payable from time to time on oatatanding principel under the Note unleae payment of interest at such rate would be oontra~y to applicable law, in which event euch amounte ehall bear intereat at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph 7, ehaU ~ require Lender to incvr any eupense or teke any action hereunder. aF - ~ fJ R ~ - 6U;~?~ QAGE ~ ~ ~ , ~ " i . . ;:~"~x' - - - - ~ ; . , " _ , _