Loading...
HomeMy WebLinkAbout0115 Borrower and l.ender covenat?t and agree as follows. 1. Payment ot Pri~cipal and Inter.;st. Borrowe~ shall prompUy pay when due the principal of and interest on the indebtednesa evid;;nced by ~he Noce. prepayment and late chargee as provided in the Note, and the principel of and interest on any ~turc Advances aecured by thia Mort~age. 2, bltnds for Tases and Insurance. Subject to applicable law o~ b a writte~ waiver by I.ender, l3orrovver ahall pay to Lende~ on the day monthly installments of principal and interest are payable under the Note, until the Note ia paid ia full, a aum (he~ein "~nda") equal to one iwelRh of the yearly taxes and asaeasmenta which may attai~ priority over thia Mortgage, and ground renta on the Properiy, if any, plua ono- ?welRh o[yearly prnmium installments for hazard inaurance, plua onetwelfth ofyearly premium inatalimenta tor mortgage iueurance, if any, all ea masonably estimated initially and trom time to ti~rie by I.ender on the baaie ot asseasments and billa und reasonabte estimates /hereot. The I~nds ahall be held in an inatitution the deponita or ac~ounta of which are insured or guaranteed by a Federal or State ageACy (including I.ender it I.ender is such an inetitution). Lender ehall apply the Funda to pay said taxee, asaesaments. inaurance premiuma and ground rents. I.ender may not charge for so holding and applying the ~nda, analyzing said account, or v~rifying and compiling eaid asseeaments and bills, unleea I.ender pays Borrower intereet on the ~nds and applicable law pernAits [.ender to malce auch a charge. Borrower and Lender may egree in writing at the time of execution of this Mortgage that intereat on the Ftinde shall be paid to Borrower, and unlees such agreement is made or applicable law requires such interest to be paid, Lender ahall not be required to pay Borrower any interest or earninga on the ~nds. Lende~ ahall give to Borrower, withouL charge, an annual accounting of the Funds showing credits and debita to the Funde and the purpoee for which each debit to the Funde wse made. The Funde are pledged as additional aecurity for the aums secured by this Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly inatallmente of Fbnde payable prior to the due datea of t~uces, aseessmente, ineurance premiuma and ground renfs. shall excaed the amount required to pay eaid ta~ces, esseasmente, inaurance p~emiuane and ground rents ea they fa11 due, euch e:ceea ahall be, at Borrower e option, either promptly repaid to Borrower or credited to Borrower on mo~thly installments of I~nde. lf the amount of the ~nda held by Lender ahall not be aufficient to pay taxes, asaeasmente, insurance premi~une and graund rents ae they fail due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ie mailed by l.ender to Borrower requeating payment thereof. Upon payment in full of all auma eecured by this Mortgage. I.ender ahall prompUy refund to Borrower any funda held by l.ender. If under paragreph 18 hereof the Property ia eold or the Property is otherwiee acquired by I.en~er, Lender ahall apply. no later than immediately prior to the sale of the Property or ita aequisition by I.ender, any Funds held by I.ender at the time of application as a rredit against the sums eecured by thie Mortgage. • 3. Application of Payments. Unlesa applicable law p[ovides otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender fuat in payment of amounta 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; Liene. Borrower ahaU pay all taaes, asseasments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ~ound 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 prompUy furniah to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing such paymenfs. Botrower shall promptly diacharge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to discharge any such lien eo long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ghall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enfotcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep ihe improvementa ncw eaisting or hereafter erected on the Property insured againat loas by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in auch amounts and for such periode aa Lender may require; pmvided, that Lender shall not require such ooverage amount eaceeding the minunum, as may be required by ~ state or federal regulations governing activities of Lender, or that amount of rnverage required to pay the euma secured by this Mortgage, whichever ia the greatrr. The insuranee carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that auch approval shall not be unreasonably withheld Ail premiums on inaurance policies shall be paid in the manner provided under paraqraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ ~ All inau:ance policies and renewals thereaf shal~ be in form acceptable to I.ender and ahall include a etandard mortgage clause in favor of and in form aeceptable to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall pro~npdy furnish to i.ender all renewal noticee and all receipia of paid premiuma. In the event of loea, Borrnwer shall give pmmpt notice to the inaurance carrier ' and Lender. Lender may make proof of loss if not made promptly by Borrower. Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided euch restoration or repair is ecoaomically feasible and the eecurity of this Mortgage ia not theteby impaired. If auch F restoration or repair is not economically feasible or-if the eecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the eumaaecured by thia Mortgage, with the e:cess, if any. paid to Boriower. If the Property ie abandoned by Borrower, or if Borrower faila to f reapond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the inaurance carrier ogers to setde a claim for ; ineurance benefits, Lender is authorized to collect and apply the insurance proceeds at L.endei s option either to testoration or repair of the ~ Property or the auma secured by this Mortgage. ~ Unless Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not eatend or poatpone thedue date of the monthly installmenta referred to in paragraphs 1 and 2 hernof or change the amount of anch inatallmenta. If under paragraph 18 * hereof the Property ie aoquired by Lender, all right, tide and interest of Borrower in and to any ineurance policies and in and to the proceeda ~ thereof resulting firom damage to Property prior to the sale or soquiaition ehall paes to Lender to the e:tent of the euma secured by thie Mortgage immediately prior to such sale or acqnieition. 6. Preservation and blaiatenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and shail not commit waste or permit impairment or deterioration of the Property and shall comply with the provisione of any leaee if thie Mortgage ie on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower ehall perform all of Botrowei s obligatione under the declaration or covenanta creatingor governing the condomininm or planned ~ unit developme~t, the by-laws and regulationa of the condoruinium or planned unit development, and constituent dacumenta. If a ~ rnndominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage, the oovenanta and agreementa of auch rider ahall be incorporated into and ahall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ T. Protection of I.ender's Security. If Borrower faila to paform the oovenante and agreemente oontained in this Mortgage, or if any ~ action or proceeding is oommenoed which materially affecte Lendefs intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enforcemeat, or srrangamente or pmoeedinge involving a bankrupt or decedent, then Lender at Lender's option,upon ~ notice to Borrower may make such appearanoes, disburse auch sums and lake such ection as ia necessary to proted I.ender's interest, inclading, bnt not limited to, disbarsement of reaaonable attorney's fees and entry upon the Property to make repaire. If Lender required mortgage insarence ae a condition of making the loan secured by thie Mortgage, Borrower ehall pay the preiniums reqnired to maintain ~ anch insurance in eEfect nntil such time ae the reqnirement for sach insurance terminatea in aocordance with Borrowei s and Lender's ~ writLw agrcement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided undez ~ paragraph 2 hereof. ~ Any amonnts disbursed by Lender persuant to thie paragraph 7, with interest thereon, shall become additional indebtedneae of ~ Borrower eecured by this Mortgage. Unleas Borrower and Lendez agree to other terms of payment, euch amounte ahall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date of diebureement at the rate payable from ~ time to time on outetanding principal under the Note unleee payment of interest at such rate would be watrary to applicable law, in which ~ event ench amounte aha11 bear intereat at the higheat rate permiesible under applicable law. Nothing rnntained in this paragraph shall ~ reqaire Lender to incur any e:penee or take any action hereunder. ~ ~ , ~ 600K ~ PA6E 11~ ~ . ~ ~ . . ' ~ ~ - - - _ ~ r~_. _ , - s - ~ ~%3„-~ - " - - r ~ a -~r . ~ . : '".~~u ^,~-'t^ - - '~"e ~i3;i.z ~a ~ ~ ~,.R'" _ - -~s~ t^~:: „4 " ~