Loading...
HomeMy WebLinkAbout0829 Borrower and l.ender covenant a~d agree as followe: 1. Payment of Priacipal and I~tereet. Borrower ehaU poomptly pay when due the principal of and intereet on the indebtedneas evidenced by the Note, prepayment and late chargea as provided it? the Note, and the principal of and intereat on any ~ture Advancea secured by thie Mortgage. 2. I~unds for T~ee and Insurence. Subject to applicable luw or to a writte~ waiver by l.ender, Borrower shall pay to l.ende~ on the day monthly inatallmenta otprincipal and inte~eat are pt~yable under the Note, until the Note is paid in full, a sum (herein "~nda") equal to o~e lweifth of the yearly ta~cee and aaseaementa which may attain priority over this Mortgage, and grou~d rents on the Prvperty, if any, plus one twelflh of yearly premium installmenta for hazarci insurance, plua onetwelRh ofyearly premium inalallments for mortgage inau~ance, if any, aU as reAeonably estimateci initiaUy and from time to time by I.ender o~; the basis of asseasmenta and bille and reasonAble cstimatea thereof. The Phnda shall be heW in an institution the depoaits o~ accounte of which are ineured or guaranteed by a Federal or State agency (including l.ender if Lender ia euch an inetitution). i.ender ehall apply the Funds to pay said taxea, aaseasments, inaurance pmmiuma and ground rents. Lender may not cha~ge for eo holding and applying the F~nda, analyzing said account, or veri[ying and compiling said aeaeasmenta and bille, unleae L.ender pays Bormwer intereet on the F unda and applicable law permite t.ender to make such a charge. Borrower and Lender may agree in writing at the time of eaecution of this Mortgage that intereat on the F unda ahall be paid to Borrower, and unleas euch agreement is made or applicable law requirea auch interest to be paid, I.ender ahall not be required to pay Borrower any intereat or earninge on the F~nds. L.ender ehall give to Borrower, without charge, an an~ual accounting of the Funda ahowing credite and debite to the Funda and the purpose for which each debit to the ~Lnde was made.l9~e Funde are pledged as additional eecurity for the euma eecured by this Mortgage. If the amount of the ~nda held by l.ender, together with the future monthly inetallmente of Funda payable prior to the due datee of ta:ee, aeeeeamente. inenrance premiuma and ground rents. ahall eaccxed the amount required to pay said texea, aeseasmenta, inaurance premiuma and ground rente aa they fall due. auch e:cese ehall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inatalimenta of Funde. If the amount of the Funds held by Lender ahaU not be eufficient to pay taxes, asseeamente, inaurance premiums and ground rente as they fa11 due, Borrower ahall pay tu Lender any amouat neceaeary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requesting payment thereoL f~ • Upon paywent in full of all sums aecured by thia Mortga~e. L.ender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiee acquired by Lender. I.ender aha(1 appty, no later than immediately prior to the eale of the Property or ite acquiaition by Lender, any ~~ds held by L.ender at the time of application sa a credit againat the sums secured by thie Mortgage. . 3. Application of Payments. Unless applicable law providea otherwiee, all paymente received by Lender under the Note and paragraphe 1 and 2 hereot shall be applied by Lender first in payment of amounta payable to Lender by Eiorrov?er under paragraph 2 hereof, then to interest ~ayable on the Note, then to the principal of the Note, and then to interest and principal on any Future~Advancea. 4. Chargea; Liene. E3orrowershall pay all taxes, asseasmente and othe~rhargea, fines and impositions uttributable to the Properly which may attain a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under pazagraph 2 hereof or, if not paid in such manner, by f3orrower making payment, when due, directly to the payee lhereof. E3ornower ahull promptiy furnish to I.ender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, E3orrower ahall promptly fumish to Lender reoeipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of theobligation secured by auch lien in•a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend 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 Inaurance. Borrower shal! keep the improvements now exiating or hernafter erected on the Property ineured againet losa by fite, hazarde included within the term "extended coverage; ' and such other hazards as Lender may require and in such amounte and for such periods as Lender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be required by atate or federal regulationa goveming activities of L.ender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. The insnrance cartier providing the insurance shall be choa~n by 13orrower subject to approva) bp [.ender, pro~ ided, that surh approval shall not be unreseonably withheld. All pmmiums on insurance poticies ~hall 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 insursnce policiee and renewala thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clauee in favor of and in form aoceptabie to Lender. Lender shall have the right to hold the policies and renewals thereof, and E3orrower shall promptly furniah to i.ender all renewal notices and all receipta of paid pmmiuma_ In the event of loas, Born~wer ahall give prompt notice to the insurance carrier ' and Lender. I.ender may make proof of loss if not made promptly by Borrower_ ~ Unleas I.ender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property ! damaged. provided such restoration or repair is economically feaaible and the security of this Mortgage is not thereby impaired_ If such ! reatoration or repair is not economicaliy feseible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the suma secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to rnepond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier offers to aettle a claim for ~ inaurance benefits, Lender is authorized to collect and apply the insurance proceeda at Lender s option either to restoration or repair of the ~ Property or the suma eerured by thie Mortgage. ~ Unleae Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eactend or poatpone the due ~ date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 ~ hereof the Propetty ie acquired by Lender, all right, tide and intereat of Borrower in and to any insurance policies and in and to the proceede ~ thereof resulting from damage to Property prior to the eale or aoquisition ehall pass to Lender to the e:tent of the euma secured by this ~ Mortgage immediately prior to auch sale or aoquisition. - 6. Preeervation and biaintenance of Property; Leaseholds; Condominuma; Planned Unit Developmeate. Borrower shall keep the Property in good mpair and shell not commit waste or pennit impa'vment or deterioration of the Property and shall comply with the proviaiona of any leaee if thiB Mortgage is on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unit devetopment, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenante creatingor governing the condominium or planned ~ unit devetopment, the by-laws and regulatione of the rnndominium or planned unit devetopment, and rnnatituent dceuroente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenante and agreements of such tider ahall be inrnrporated into and ahall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender'~ Security. If Borrower fails to perform the oovenantw and egreEments contained in this Mortgege, or if eny ~ action or proceeding ia commenoed which materially affecta I.endei s interest in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or errangemente or proceedinge involving a bankrupt or deoedent, then L.ender at I.ender's option,upon z notice to Borrower may make ench appearances, dieburee such aums and take auch action aa is neoeesary b protect Lender s interest, - inclnding, but not limited to, diab~usement of reasonable attorney'a fcee and entry upon the Property to meke repairs. If Lenda required mortgage inaurance ae a condition of making the loan aecured by thia Mortgage, Borrower shall pay the premiume required to maintain snch insnrance in effect until euch time aa the requirement for such insurance tenninates in accordance with Borrowei e and Lender'e ~ written agreement or applicable Law. Borrower shall pay the amoant of all mortgege inaurence premiums in the manner provided under ~ paragraph 2 hereof. Any amounte diebursed by Lender perauant to this paragraph 7, with interest thereon. ehall become additional indebtedneas of ~ Borrower secured by thia Mortgage. Unleea Borrower and Lender agree to othet terma of payment, auch amounts ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof. and shall bear interest from the date of diabureement at the rate payable from ~ time to time on outatanding principal under the Note unlese payment of interest at auch rate would be wntrary to applicable law, in which ~ ~ event such amounta ehall bear intereat at the highest rete permieaible under applicable law. Nothing rnntained in thie paragraph 7, ehall require Lender to incur any expense or take any action hereunder. ~ ~ ~ ~ t, R 2Q'~ PAGE V~ ~ . ~3~.x ~ri ; : ~ ~ ; _ , ~a ~ - ~ ~ ' _ ~ ~ . ~ ; ~ _ - - ~'~~';;:3