Loading...
HomeMy WebLinkAbout0820 Bormwer and L.ender cove~ant and agree aa followa: 1. Payment ot Principal end Interest. E~orrower shall promptly pay when due the principal of and iaterest o~ the indebtedness evidenced by the Note, prepeyment and latecharges as provided in the Note, and the principal of and intereston any ~ture Adyances secured by this Mortgage. 2. Fltnde [or Taxes and Insurance. Subject to applicuble law or to e written waiver by l.c~der, Borrower sha11 pay to I.ender o~ 1he day mo~thly installmenta of principal and interest are pnyable unde~ Ihe Note, until Ihe Note ia paid in full, a aum (herein "Funda") equal to one twelfth of the yearly taxes and nsseeamenta which may attain priority over thia Mortgage, and ground renta un the Properly, if any, plua one twelfth of yearly premium inatallmenta for haznrd inaurance, plue onetwelBh of yearly premium instnllmente for mortga~ce ineurance, if nny, ali ae reasonably eatimated initiaUy and from time to time by I.ender on the basis of aseeaements and billa a~d reaeonable eatimates thereot. The F~nds shall be heid i~ an inetitution the depoeits or accounta of which are insu~ed or guaranteed by a Federal or State agency (including I.ender if I.ender is euch an inatitution). I.ender ehall apply the ~nde to pay said taYes, asaeasmente, insurance pmmiums and ground rents. Lendet may not cha~ge for so holding and applying the ~nda, analyzing eaid account, or verifying and compiling eaid asaessments and bille, unlesa [.ender pays Borrower interest on the Funde and applicable law permits Lender to make such a charge. Borrower and i.ender may agree in writing at the time of execution of thia Mortga~te that interest on the Funds ahall be paid to Borrower, and unless euch agreement ia made or applicabte law requires such interest to be paid, [.ender ehall not be required to pay Borrower any intereet or earnings on the FLnda. l.ende~ ahall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to the Funda and the purpose for which each debit to the Ftinde wae made. The Funda are pledged as additional security for the aums eecured by thie Mortgage. If the amount of the ~nda held by Lender, together with the future monthly inetallments of Funda payable prior to the due dates of taxea. aaeeasmente, inaurance premium+ and ground rente. ahall excaed the amount required to pay said taxea, nasessments, insurance premiuma and ground rents as they fall due. such eacess ehall be, at Bo~TOwer s option, either promptly repaid to Borrower or rredited to Borrower on monthly inatallmente of ~nde. If the amount of the Funds held by Lender ahall not be aufficient to pay ta~cea, asaeeuments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to meke up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sume eecured by thie Mortgage, Lender shall promptly refuna to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property ie otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite acquisition by Lender, any F~nds held by Lender at the time of application as a credit against the aums secured by thia Mortgage. 3. Application of Paymenta. Unleae applicable law providea otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lendet by. Borrower under paragraph 2 hereof, then W interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges: Liens. Borrower ahall pay all taxes, assesaments and other rharges, fines and impositions attributable to the Properiy which may attain a priority over this Morigage, and leasehold payments or ground rents, i[any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee theteoC. Borrower shall promptly furniah to Lender all notices of amounta due under thia paraqraph, and in the event Borrower shall make payment directly, E3orrower 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 E3orrower shall agree in writing to the payment of theobligation secured by such lien in u manner accepLable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, leqal proceedings which operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may requirn and in such amounta and for such periods as Lender may require; pro~~ded, that Lender shall not require such ooverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activities of Lender, or tha! amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall t?e chosen by Borrower subject to appro~ al by I.ender, pro~ ided, that such approval shall not be unreusoqably withheld. All premiums on inaurance policies shall be paid in the mAnnet provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, v?hen due, directly to the insurance carrier. All insurance policiee and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender ehall have the right to hold the policiea and rnnewale thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all reoeipts of paid prnmiuma. In the event otlaea, Borrower ahall qive prompt notice to the insurance carrier j and Lender. Lender may make proof of loss if not made prompdy by Borrower: ~ Unless I.ender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair is economically [eaeible and the aecurity of this Mortgage is not thereby impaired. If such € restoration or repair ia not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied ~ to the aums secured by thia Mortgage, with the excese, if any, paid to Botrower. If the Property is abandoned by Borrower, or if Borrower faila to f reapond to I.ender within 30 daya from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefits, Lender is suthorized to collect and apply the inaurance proceeda at Lender s option either to restoration or repair of the Ptoperty or the suma secured by this Mortgage. ~ Unlese Lender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not eztend or postpone thedue ~ date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof reaulting firom damage to Property prior to the sale or acquisition ahall pass to Lender to the eYtent of the sums secured by this Mortgage immediately prior to such sale or aoquisition - 6. Preeervetion and Maintenance of Property; Leaeeholds; Coadominume; Planned Unit Developments. Borrowerahall ~eep the Propetty in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahail comply with the provisions of any lease if thie Mortg~ge is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrowei s obligatione under the declaration or covenante creatingor goveming the condominium or planned unit development, the by-laws and regulations of the condominium or planned nnit development, and oonstituent dceumenta. If a ~ rnndominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. ' ~ 7. Protection o! Lender's Security. If Borrower fails to perform the covenanta and agreemente oontained in this Mortgage. or if any ~ action or proceeding is commenced which materially affecte Leader a interest in the Property, including. but not limited to, eminent domain, - ineolvency, oode enforcement, or anangements or proceedings involving a banlmipt or decedent, then L.ender at I.ender e option,upon ~ notice to Borrower may make euch appearancee, diaburee euch eums and take such action se is neceseary to protect Lender a interest, ~ inclnding, but not limited to, diebureement of reseonsble attorney'a feee and entry upon the Property to make repairs. If Lenda required ~ mortgage inaurance ae a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain snch insurance in effect until euch time ee the requirement for euch insurance terminatea in accordance with Borrower'e and Lender's ~ written agreement or applicabte I.aw. Borrower ehall pay the amonntof all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. ~ My amounta diebureed by Lender perauant to thia paragraph 7, with intereat thereon, shall beoome additional indebtedneas of ~ ~ Borrower eecured by this Mortgage_ Unleae Borrower and Lender agree to other terms of payment, auch amount8 shall be payable upon ~r notice from L.ender to Borrower requesting payment thereof, and ehall bear interest from the date of disbureement at the rate payable from time Lo time on outatanding principal under the Note unleae payment of intereet at auch rate would be oontrary to,applicable law, in which event auch amounte ehal) bear interest at the higheat rate permiseible under applicable law. Nothing oontained in this paragraph 7. ehall ~ require Lender to incur any e~cpenae or take any action herennder. . ~ . G it ~ ~ ~ ~ - ~ - ~ ~ - -