Loading...
HomeMy WebLinkAbout0431 Borrower and Lender covenant and aQree as follows: 1. Payaaent ot Principal and Intereet. Borrower shall prompdy pay when due the principal of and interest on the indebtednese evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any FLture Advances secund by this Mortgage. 2. ~tnds fos Tasea and I~surance. Subject to applicable law or to a written waiver by I.ender, Eiorruwer ehall pay to I.ender on the day monthly inatallme~te of principal and i~tereat an payable under the Note, until the Note is paid in full, a sum (herein "Ftinds") equal to one twelfth of the yearly taxee and aasesamenta which may attain priorily over this Morlgage, and qround-rente on the Property, if any. plus one twelRh of yearly premium installme~ta for hazard ineurance, plua one-twelfth ofyearly premium installments for mortgage insurance, if any. aU es reasonably eatimated ini?ially and from time to time by I.ender on the basie of aseesemenle a~d billa and masonable estimatea thereof. 'llie Fhnda ahall be held in an inetitution the deposits or accounts of which are ineured or gu~ranteed by a Federal or State agency (including Lender if I.ender ie such an inatitution). I.e~der ahall apply the Funds to pay eaid tsxee, easesamenta, insurance premiume and ground nnta. I.ender taay not charge tor eo holding and applying the ~nda, analyzing aaid account, or verifying and compiling aaid aeaeesmenta and bille. unless I.ender pays Borrower interest on the F~nds and applicable law permite I.ender to make euch a charge. Borrower and Lender may agree in writing at the time of eaecution of this Mortgage that intereat on the F~~da shall be paid to Borrower, and unlesa snch agreemen! ia made or applicable law requiree auch inteseat to be paid, Lender shall not be required to pay Borrower any intereat or earninga on the Fl~nda. I.endu shall give to Borrower, without charge, an annual accounting of the Funda showing credite and debits to the Ftinde and the purpoee for which each debit to the ~nde was made. The fi~nde are pledged as additional eecurity for the suma eecured by this Mortgage. ~ lf the amount of the ~Lnde held by Lender, together with the future monthly installmenta of Funda payable prior to the due dates of taxea, assesaments, ineurance premiums and ground renta, ehall exezed the amount required to pay eaid taxea, asseaementa. inaurance premiuma and ground rents as they fall due, such ra~ce8a ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly insfallwente of FLnda. If the amount of the Funde held by Lender shall not be aufficient to pay tazes, asseaementa, inaurance premiuma and ground renes as they fall due, Borrower ahall pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requesting payment thereof. ~ ~ Upon payment in full of all eums secured by thie Mortgage, Lender ahali promptly refund to Borrower any funds held by Lender. If under paragreph 18 hereof the Property is eold or the Property ie otherwiae acqaired by I.ender. l.ender ahall apply, no later than immediately prior to the eale of the Property or its acquiaition by I.e~der, any ~nds held by I.ender at the time of application as a credit against the sums sec~red by thie Mortgage. 3. Application of Paymente. Unless applicable law provides otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender first in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargee; Liens. Borrower shall pay all taxea, assessments and other charges, fines and impositions attributable to the Propetty which may attain a priority over this Mortgage, and leasehold payments or ground mnta, i[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. Borrowershall promptly famish to I.ender all noticee of amounta due under thia paragraph, and in the event Borrow er shall make payment directly, Borrower ahall promptly furniah to Ixnder receipts evidencing such paymente. Borrower ahall promptly dischargr any lien which has priority over this A1orlgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligaiion secured by such lien in a manner acceptable to Lender, or shall in good faiih contest such lien by, or defend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property ineured against loss by fire, hazards included within the term "e:tended rnverage; ' and ~uch other hazards ae Lender may require and in auch amounts and for such periode as Lender may require; provided, that Lender shall not require auch rnverage amount exceeding the minimum, as may be required by ' state or federal regulationa governing activitiee of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. The inaurance catrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approva! shall not be unteasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiea and renewala thereof ahall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lendershall have the right to hold the policiea and rnnewala thereof, and Borrower ahall promptly furniah to ; i.ender all mnewal notices and all receipts of paid premiuma. In the event of lose, Born~wer shall give prompt notice to the insurance carrier i and I.ender. Lender may make proof of loss if not made promptly by Borrower. ' ! Unlesa Lender and Borrower otherwise agree in writing, insurance proceede ahall be applied to reetoration or repair of the Property , . E dameged; provided auch restoration or repair is economically feasible and tt~e aecurity of this Mortgage is not thereby impaired. If auch ~ reatoration or repair ia not economically feasible or if the eecurity of this Mortgage would be impaired, the in"aurance proceeds shall be applied ° to the sume secure~ by thie Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower,or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by L.ender to Borrower that the insuran^eramef offers to settle a claim for inaurance benefits, Lender ia suthorized to collect and apply the inaurance proceeda at I.ender e option either to restoration or repair of the ~ Property or the sums eecured by this Mortgage. Unless Lender and Borrower otherwiae agree in writing, any such application of proceeds to prinripal ahall not extend or postpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquieition ahall pasa to Lender to the extent of the sums aecured by this Mortgage immediately prior to such sale or soquisition. 6. Preservation and Maintenance otProperty; Leseeholde; 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 ehall comply with the provieions of any lease if this Mottgage ia on a leasehold. If this Mortgage is on r. unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower e obligations vnder the declaration or covenan4+ creatingor governing the condominium or planned unit development, the by-lawe and regulationa of the condominium or planned unit development, and rnnatituent documents. If a condomini~ur? or planned unit development rider ia executed by Borrower and recorded together with thie Mortga,ge, the oovenants and agreement's of such rider shall be incorporated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrowet faile to perform the oovenante and agreementa rnntained in thia Morigage, or if any ` action or procee~ing is rnmmenced which meterially affecta Lende~e interest in the Property, including, but not limited to, eminent domain, ~ insolvency. oode enforaement, or errangements or pmocedinga involving a bankrnpt or deoedent, then Lender at Lender's option,upon ° notice to Borrower may make euch appearencee, diaburse auch aume and take anch action as is neoeaeary to protect Lender's interest, ~ includiag, but not limited to, diebureement of reasonable atLorney's fees and enbry upoa the Propedy to make repairs. If L.end~ reqaired mortgage ineurance as a rnndition of malring the loan eecured by this Mortgage, Borrower ehall pay the premiums reqnired to maintein snch ineurance in effect until ench time as the requirement for such inaurance terminates in aocordance with Borrower'e and I.ender's ' ~ written egrcement or applicable Law. Bormwer ahall pay the amount of all morlgege ineurance premiums in the manner provided under ~ Pa~ePh 2 hereof. Any amounte diebureed by Lender perauant to thie paragreph 7, with intereet thereon, ehall become additional indebtednese of ~ Borrower secured by thia Mortgage. Unleae Borrower and I.ender agree to other terms of payment, such amounte shall be payeble upon ~ notice from Lender to Borrower requeeting payment thereof, and ahall bear inLereat from the date of diaburaement at the rate payable from ~ time to time on ontatanding principal under the Note unless payment of interest at auch rate would be oontrary to applicable law, in whic6 event euch amounte ahall bear interest at the higheet rate permieaible under applicable law. Nothing contained in thie paragraph 7. ehall ~ reqnire Lender to incur any expense or take any action hereunder. ~ . ° ~o~ 291 f~~~ L 43~. ~ : y 3 - _ - ~k ~ -~'":~K..;~:.--''- .