Loading...
HomeMy WebLinkAbout0197 Borrower and I.endec covenant and agree as follows: 1. Payment ot Principal and Intereet. Aorrower ehali promptly pay when due the principal ot And intereat on the indebtedneea evidenced by the Note, prepayment and late charqee us provided in the Note, and the principal of and intereat un sny Future Advunces secured by this Mortgage. _ 2. ~nda for Ta:es and Ineurance. Subject to applicable law or to a writlrn waiver by l.ender, Iiorn?wer shall pay to I.ender un the day monthly installmente of principal and interest are payable under the Note, until the Note is paid in full, a sum (he~ein "Funda") equ~l to une twelfth of the yearly taxes and naseaRmenta which muy attain priority aver this Mortqage, And ground mntx o~ the I'ruperty, if any, plus one- twelfth of yearly premium inatnllments for hazard insurance, ptus onPtwelfth of yearly premium inatnilmentu for mortgnge inaurt~nce, if uny, a!! as rexsonably estimated initially and from time to tirt~e by l.ender on the bnaia of usseasmenta nnd bills t~nd reusonable estimtites the~eof. The Flinds ehall be held in an inetitution the deposits or accounts ot which are insured o~ guaranteed by a Federal or State agency (including I.ender if I.ender is such an inatitution). Lender shall apply the Funda to pay said taxea, asaesaments, inaurance premiums and ground renta. [.ender may not charge for eo holding and applying the F~nda, analyzing eaid account, or verifying and compiling said assesamenta and bille, unlesa Lender paye Borrower interest on the ~nde and applicable law permite I.ender to make auch a charge. Borrower and I.eader may agree in writing at the time of execution ot thie Mortgage that intereet on the F'unda ahall be paid to Borrower, and unless such agreement ia made or applicable law requirea such intereat to be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the FLnde. l.ender ahall give to Borrower, without charge, an annual accounting of the Funda ehowing credits and debits to thc Funde and the purpose for which each debit to the Funde was made. The Funds are ptedRed as additional security for the su~na secured by this Mortgage. If the amount of the ~nds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxea, assessments, insurance premiuma and ground renta, ahall excxd the amount required to pay said taxes, assesamenta, insurance premiuma and ground renta as they fall due, auch excess ahall be, af Bo~TOwer's option, either promptly cepaid to Borrower or credited to Borrow~er on monthly installmenta of Funde. If the amount of the Funds held by Lender ahall not be aufficient to pay taxes, assessments, ineurance premiums and ground rents as they fall due, Borrower shall pay to [.ender any amount necesaary to make up the deficiency within 30 daya from the date notice ia mailed by Lender to Borrower rnquesting puyment thereof_ Upon payment in full of all sums secured by this Mortgage, I.ender shall promptly refund to Borrower any funda held by l.ender. If under paragraph 18 hereof the Yroperty is sutd or the Property is otherwise acquired by l.ender, Lender ahail apply, no later than immediately prinr to the sale of the Property or its acquisition by I.ender, any Funds held by I.ender at lhe time of application as a credit againat the sums secured by this Mortgage_ 3. Application of Payments. Uniess applicable law provides otherwise, all payments rei~eived by Lender under the Note and paragrapha 1 and 2 hereof shaU be applied by l.ender firnt in payment of amounts pAyable to_Lender by E3~rrower under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liena. Borrower shall pny all taxes, nssessmentrz and othercharKes, fines and impusitions attributable to the Property K hich may attain a priority over this Mortkage, and leasehold pa~•ments or gmund rents, if any, in the m~nner pruvided under par~graph 2 hereof or, if noYpaid in such manner, by Borrower making pa~ ment, when due, directl~• to the payee thereof. Borrow•er shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the e~ ent B~rmwer shall make payment directly, Borrower shall~promptly furnish to [.ender receipts e~ idencing such p~yment~4. E3orrower shall pro~nptly discharRr any lien which has priority over this Iltortgage; provided, that Borrower shall not be required to discharge any such lien so long as ~rrower shall aKree in writinR to the p~yment of theobligation secured by such lien in a manner acceptable to l.ender, or shall in Rcwd faith contest such lien by, or defend enfurcrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part there.?f. 5. Hazard Inaurance. Borrower shall keep the impmvements nuw existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage." and such other hazards as I.ender may require and in such amounta and for such periods as Lender may require; provided, that Lender shall not require such coverage amounf exceeding the minimum, as may be required by state or fede~al regulations governing activities of I.ender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall he chvsen by Borruwer subject to xppro~~al by I.ender: pro~~idEd, that such appro~•al shall not be unreasonably withheld. Ail premiums on insurance policies shall lx~ paid in the manner pm~~ided under p~raKraph `L hermf nr, if i not paid in such manner, b}• E3orrower making payment. N•hen due, direcd~ tu the insurance carrier ~ All inaurance policies nnd renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favor of ` and in form acceptable to Lender. Ixnder shall have the right to hold the policies and renewals thereof,: and Borrower shall promptly furnish to j i.ender ail renewal noricea and all receipts of paid premiums_ In the event of loss, Borrov?er shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made pmmptly by Borrower. ~ Unless Lender and I3orrov?er otherwise agree in writing, insurance proceecis shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the sQCUrity of this Nortgage is not thernby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage w ould be impaired, the insurance proceeds shall be applied to the aume aecured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if E3orrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to I3orrower that the insurance carrier offers to settle a claim for inaurance benefits, Lender is authorized to collect and apply th~ inaurance proceeds at Lendei s option either to restoration or repair of the Property or the sums secured by this Mortgage_ - ~ Unlese Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paraRrapha 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, aU right, title and interest of Borrower in and to any insurance policies and in and to the proceeda thereof resulting from damage to Property prior to the eale or acqu~sition shall pass to Lender to the extent of the sums secured by this ~ Mortgage immediately priur to such sale or aoquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominuma; Planned Unit Developments. Iiorrowersnall keep ~ the Property in good rnpair and shall not commit waste or permit impairment or deterioration of the Properiy and ahall comply with the ~ ~ provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower aha11 perform all of Borrower's obligationa under the declaration or covenanta creatinKor governing the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and rnnstituent documents. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage; the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgaqe as if the ' ~ rider wem a part hereof. Protection of Lender's 3ecurity. If Borrower fails to perform the covenante and agreemente contained in thie Mortgage, or if any ~ action or proceeding ia commenced which materially affecte Lendei e intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrengementa or proceedinga involving a bankrupt or decedent, then Lender at Lender e option,npon - aotice to Borrower may make euch appearancea, diaburse such eums and take euch actioa as ie neceasary to protect I.endei s intereet, ~fa including, but not limited to, diebureement of reaeonable attorney'a fees and entry upon the Property to make repeire. If Lender required ` mortgage inaurance ae a condition of making the loan aecured by thia Mortgage, Borrower ehall pay the premiucna required to maintain such ineurance in effect until such time ae the requirement for euch inaurance terminatea in accordance with Borrower e and l.ender e written agreement or applicable Law. Bormwer ehall pay the amount of a11 mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ; My amounte diebursed by Lender pereuant to thia pazagraph with intereat thereon, ahall bec.~ome additional indebtedneae of Borrower secured by this Mortgage. Unleae Borrower and Lender agree to other terma of payment, auch amounta eha11 be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fmm the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleas payment of intereat at such rate would be contrary to applicable law, in which k~ event such amounte ehall bear intereat at the highest rate permisaible under applicable law. Nolhing contained in thie paragraph 7, ehall r~ require I.ender to incur any expense or take any action hereunder. ~ aoo~ ~4 ~AC~ 197 ~ ~ , Y - - ~ _3 ~ w . : - { _ _ ~ ; ~~':i~, x~~,~~"~~~:`~.~ . w,. . V ~