Loading...
HomeMy WebLinkAbout0427 Borrower and [.ende~ covenant and a~ree a. loltowa: 1. Payment ot Principal snd Interea~ Eiorrower shall prompUy pay when due the principal of and intereet on the indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of a~d intereat on any F~ture Advancee secured by this Mort~age. ' 2. Ftiuida [oe T~es aad Insurance. Subject to applicable law or to a wriUen waive~ by l.ender. Borrower shall pay to I.ender on the day mo~thly inatallments of principal and intereat are payable under ihe Note, until Ehe Note is paid in full, a aum (herein '•Funde") equal to one twelfth of the yenrly taxes and eseeasments which may attain priority over thie Mortgage, and ground rents on the Property, i[any, plue one twelfth of yearly premium installmenLs for hazard inaurance, plua onetwelfth ofyearly premium installmenta for mortgage ineurance, if any, all aa reaeonably eatimated initially a~d from time to lime by I.ender on the baeie of aaeenamenta and billa nnd ceasonable eatimates thereof. The ~nds ehaU be held in an inatitution the depoeita or accounts of which an insured or guaranteed by a Federal or State agency f (including Lender it I.ender is such an inatitution). L,ender ahall apply the Funda to pay said taxes, asaesamenta, insurance premiume and ground rents. I.ender may not charge for so holding and applying the ~nds, analyzing said account, or verifying and compiling said esseesmenta and bills, ualeea Lender pays Borrower intereat on the Ftinds and applicable law permits Lender to make euch a charge. Borrower and Lender may.agree in writing at the time of execution of thia Mortgage that intereat on the Funde ahall be paid to Borrower, and unleea such agreement ia made or appliceble law requires auch intereet to be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the FLnds. I.ender ahal! give to Borrower, without charge, an annual aceounting of the Funda ahowing credita and debite to the ~nde and the purpoee for which each debit to the ~nda wae made. 77ie Funda are pledged as additional security tor the euma aecured by this Mortgage. If the amount of the Ftinda held by I.ender, together with the future monthly installments of Funda payable prior to tbe due dates of taxea, aeaessments, inaurance premiums and ground rents. shall eacc~zed the amount requind to pay said taxea. aseesamenta, ineurance premiuma and ground rent8 ae they fall due, euch e:c~s ehall be, at Bo~rower s option. either promptly repaid to Borrowier or credited to Borrower on monthly inatallments of F~nds. If the amount of the F~nde held by Lender ahall not be sufficient to pay t~ee;-ess~sdtii~tits, inaurance premiums and ground rents as they fall due, Borrower ehall pay to I.ender any amount necessary to wake.~tp t6s de~ck~tctwithin 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereoL Upon payment in fiill of all suans secured by thie Mortgage, Lender shali promptly refund to Borrower any funda held by ~Lender. If under paragraph 18 hereof the Property ia eold or the Property ie otherwiee acquired by I.ender, Lender shall apply, no later than immediately prior to the eale of the Property or ite aoquisition by Lender. any H~nds held by Lender at the time of application ae a credit againat the sums aecured by this Mortgage. 3. Application o! Payments. Unless applicable law pmvidea otherwiee, all paymenta received by Lender under Lhe.Note and paragrapha 1 and 2 hereof ahal) be applied by Lender firat in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note. then to the prinripal of the Note, and then to interest and principal on any Future Advances_ 4. Chargee; Liena. Borrower shall pay all taxea, assessmenfs and other charges, finea and impositions attributable Lo 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 ahall prompUy furnish to Lender all notices of funounta due under this paragraph, and in the event Borrower shall make payment directly. E3orrower shall promptly furnish to Lender reoeipta evidencing such paymente. Borrower shall promptly discharge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to discharge any snch lien so long as Borrower shatl agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or ahall in good itiith conteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Iaeurance. Borrower shali keep the improvements now e~ciating or hereafter erected on the Properiy insured againat losa by fire, hazarda included within the term "e:tended coverage," and auch other hazards as Lender may require and in surh amounts and tor auch periode ae I.ender may require; provided, that Lender ahall not requim auch rnverage amount e:ceeding the rainimum, as may be required by state or federal reguletions governing activities of Lender, or that amount of coverage required to pay the $uma secured by this Mortgage, whichever ie the grenter. The insurance carrier providing the insurance shall be chosen by Borrower subject to appruval by I.ender, provided, that such approval shall not be unreasonably withheld. All pmmiums un insurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. . All inaurance policiee and renewala thereof shall be in form acceptable to Lender and ahall inciude a atandard mortgage clauee in favor of and in form aoceptable to Lender. Lender ehaU have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all receipta of paid premiuma. In the event of loas, Bornower shall give prompt notice to the ineurance carrier j and Lender. Lender may make proof of lasa if not made prompUy by Borrower. ~ Unleas Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ; - damaged, provided euch reatoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired. If auch { reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied ` to the eums secured by this Mortgage, with the e:cesa, if any. paid to Borrower. If the Property is abandoned by Boaower, or if Borrower faile to i reapond to Lender virithin 30 daye from the daLe notice ia mailed by I.ender to Borrower that the inaurance carrier ofiers to settle a claim for ~ insurance benefite. Lender is aathorized to collect and apply the inaurance proceeda at Lender's option either to restoration or repair of the ~ Pmperty or the sums secured by thia Mortgage. Unless Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal shall not eatend or poetpone the due date of the monthly installmente referred to in paragraphs 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 hereof the Property is aoquired by Lender, all right, tille and intereat of Borrower in and to any inaurance policies and in and to the proceeda thereof reaulting from damage Lo Property prior to the sale or acquisition ahall paae to Lender to the eztent of the aums aecured by thie Mortgage immediately prior to anch eale or aoquieition. 6. Preservadoa and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmente. Borrower shall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahaU comply with the provisione of any leaee if this Mortgage ie on a leasehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, Borrower shall perfotm all of Borrower's obligations under the declaration or covenanta creatingor governing the condomininm or planned unit developmeat, the by-lawe and regulationa of the condominium or planned unit development, and constituent documenta. If a oondominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Moitgage, the oovenante and agreeinents of auch rider shall be incorporated into and ahall amend and supplement the covenanfs and agreementa of this Mortgage as if the rider were a part hereof. ~ Protection of Lender's Security. If Borrower faila to perform the aovenants and agreementa oontained in thie Mortgage, or if any action or prooeeding ie oommenced which materielly affecta Lender B interest in the Property, including. but not limited to. eminent domain. ~ insolvency, oode enforoement, or arrangements or pmceedinge involving a baniQUpt or dei~edent, thea L.ender at Lenda's option,upon notice to Borrower ma ma1~e auch a y ppearances. dieburee euch eums and take such action as is neceesary to protect Lender's interest, ~ inclnding, but not limited to, disbarsement ot reasonable attorney'e feee and entry upon the Property to melce repairs. If Lender required E' mortgage inaurance as a condition of making the loan eecured by this Mortgage, Borrower ahall pey the premiums required to maintain wch ineiuance in dfect until such time as the requiremeai for such ineurance terminatea in aocordance with Borrowa'a and Lender's ~ written ag~~eement or applicable I~w. Borrower shali pay the amonnt of all mortgage ineurance premiame in the menner provided under ~ paragraph 2 hereof. ~ My amounta diebnraed by Lender pereuant to this paragraph 7, with intereat thereon, shell beoome additional indebtedneae of ' Borrower secnred by this Mortgage. Unlese Borrower and Lender agree to other terma of payment, auch amounte ahall be payable upon notice firom Lender to Borrower requesting payment thereof, and ehall bear interest from the daLe of diabnreement at the rate payable from ~ time to time on ontatanding principal under the Note unleas payment of interest at euch rate would be oontrary to applicable law, in which event euch amounte ehall bear intereet at the highest rate permissible under applicable law. Nothing rnntained in this paragraph 7, ehall ~ require Lender to incur any expense or talce any action hereunder. ~ ~ rp ~ ;•uc "r~L: . . . - . : - . ~ _ _ _ r x~ ~;.~y~ _ ,:`~.p. - ' i.s~S. ~ ~-£y x ~ ' - ~ s ~ ~ ~"t~~.~ ~a. '