Loading...
HomeMy WebLinkAbout0515 Bor[ower and I.ender covenant and agre~e ae foUowe: 1. Payment of Prl~cipal and Interest. E3orrower ehall promptly pay when due the principal of and interest on the indebtedneae evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal of and intereat on any Future Advancc~ eecured by thie Mortgage. 2. ~ut~ds for TaxeB and I~surance. Subject to applicable law or to a written waiver by l.ender, Born?wer shaU pay to l.ender on the day monthly inatallments of principal and interest are payable under the Note, until the Note ia paid in full, a su~m (herei~ "Funda") equal to one twelfth of the yearly taxee und asseasmenta which may attain priority over this 1liortgage, und gruund rents on the I'roperiy, if any, plus one twelfth of yearly premium inatallments for hazard insurance, plus onetwelfth of yearly premium inatallmenta for mortgage insurance, if any, all ae reasonably eatimated initially and from time to tia~e by Ixnder on the baais of ~saeasmenta t?nd biiis and reusunuble eslimates lhereuf. The 61nde shall be held in an institution the depoaite or acconnta ot which are inaured or guaranteed by a Federal or State agency (iacluding [.ender if Lender ia euch an institution). l.ender ahall apply the Funds to pay said taxes, assesamente, insurance premiuma and ground rente. l.ender may not charge for so holding and applying the ~nde, analyzing eaid account, or verifying and compiling said aeseaamente and bille, unleas Lender paya Borrower intereat on the Ftinds and applicable law permits Lender to make auch a charge. E3orrower and Lender may agree in writing at the time of execution ot 'thia Mortgage that internal on the ~nda ahall be paid to Borrower, and unleae ~ euch agreement ie made or applicable law requirns euch intereet to be paid, Lender ahall not be required to pay Borrower any interest or earninga on the ~nde. I.ender ehall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debita to the Funds and the purpose for which each debit to the Funds wae made. The Funda are pledged as additional security for the auma secured by thia Mortgage. If the amounl of the ~nda held by I.ender, together with the future monthly installmenta of Funds payable prior to the due datea of taxes, aeaesamenta, ineurance premiume and ground rents, ahall excxd the amount required to pay said taxea, asaessments, inaurance premiuma and ground rente as they fall due, euch excesa shall be, at Borrower e option, either pmmptly repaid to Iiorrower or credited to Borrower on monthly inetallmer.te of FLnde. If the amount of the Funde held by Lender shaU not be sufficient to pay taxes, assesaments, inaurance premiutns and ground renta aa they fall due, Borrower shail pay to Lender any amount necessary to make up the deficiency w~thin 30 days from the date notice ia mailed by I,ender to Borrower requesting payment thereof. Upon payment in full of all eums secured by this Mortgage, Lender ahail prompdy rnfund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiae acquired by l.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita aoquieition by Lender, any Ftinds held by I.ender at the time of application as a credit against the auma secured by thie Mortgage. 3_ Appltcation of Paymente. Unlesa applicable law provides otherv?~se, all payments received by L.ender under the Note and paragraphs 1 and 2 heteof shall be applied by Lender firxt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. C6argea; Liens. Borrower shall pay al) taxes, assessments and other charges, fines and impositions attributable to the I'roperty w~hich may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if not Raid in such manner, by Borrower making payment, N hen due, directly to the ptiyee thereot. Bormwer shall promptly furnish ta Lender a11 notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borro~rer ahal! promptly furnish to Lender receipts evidencing such paymenta_ Borrower shall promptly discharge any lien which has priority over this lllortgage; provided, that Borrower shall not be required to discharge any such lien so long as ~3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good taith contest such lien by, ordefend enforcement of ~uch lien in, tegal proceedings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property inaured againat losa by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may requim and in such amounts and for such petiods as Lender may require; provided, that Lender ahall not require euch coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of LendPr, or that amount of coverage required to pay the aums secured by this 1liortgage, j whichever is lhe greater. The insurance carrier providing the inaurance shall be.chusen by fiorrower subjeci to approvnl by [.ender, pru~•ided, that such approvai ~ shall not be unreasonably withheld. All prnmiums on insurance 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 camer. ! All insurance policies and renewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ ixnder all renewal notices and all receipta of paid premiums. In the event of losa, Borrower shall give pmmpt notice to the insurance carrier and Lender. Lender may make proof of loas if not made pmmptly by Borrower. ; Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch reatoration or rnpair is economically feaeible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied to the aums secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to : reapond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the anms aecured by this Mortgage. ~ Unless L.ender and Borrower otherwiae agree in writing, any such application of proeeeda to principal ahall not extend or postpone the due date of the monthly inatallments referred to in paragraphs I and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof resulting from damage to Property prior to the eale or acquisition ahall paes to Lender to the extent of the suma eecured by this Mortgage immediately prior to such sale or acquiaition. 6. Preeervation and Maintenanceof Property; Leaeeholds; Coadominume; Planned Unit Developmenta. Borrowerahall keep the Propetty ia good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower sha11 perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and regulationa of the rnndominium or planned unit development, and conatituent dceumenta_ If a condominium or planned unit development rider ia ezecuted by Borrower and recorded together with this Mortgage, the oovenante and ~ agreements of such rider ahall be incorporated into and shall amend and supplement the covenants and agreements of thia Mortgage aaaf the rider were a part hereof. "i 7. Protection of I.ender's 3ecuri If Bonower faile to rform the oovenants and a ty. pe greementa contained in thie Mortgage, or if any action or proceeding is rnmmenced which materially affecte Lendei e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then I.ender at I.endrr'e option,upon ~ notice to Borrower may make euch appearances, diaburae such aume and take euch action as ie neceeeary to prolect L.ender'e interest, ~ including, but not limited to, diebursement of reaaonable attorney's feee and entey upon the Property to make repaire. If I.ender required mortgage inaurance as a condition of maldng the loan eecured by thie Mortgage, Borrower ahall pay the premiume required to maintain ~ auch insurance in effect until such tune as the requirement for such ineurance terminatea in accordance with Borrower'e and L.ender'e 3 written agreement or applicable Law. Borrower ahall pay the amount of all mortgage iasurance premiuma in the manner provided under '3 paragreph 2 hereof. My -amonnte disbureed by Lender peieuant to thie paragraph 7, with interest thereon, ahall become additional indebtedneee of Borrower aecured by thie Ilfortgage. Unleas Borrower and I.ender agree to other terma of payment, Such amounts aheil be payable upon ~ ~ notice from Lender to Borrnwer requeeting payment thereof, and ahall bear intereat from the date of diBbureement at the rate payable from time to time on outstanding principal under the Note unleas payment of interest at auch rate would be contrary to applicable law, in which event such amounts ahall bear intereat at the higheat rate permiesible under applicable law. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any e~cpenae or talce any action hereunder. '3 - ~ _y , ~ 294 515 , . ~ : _ - - - - ~ ~ _ ~ ~ . _ ~ _ k~ ~ ~ y ~ ~ ~ , ~ ~ u~~~-'~S.'~.~ ..'~r .r~'~`~~m~~'?~:~-.,~`,~'-ea:>-~' . - - ~ ,~,a~ `T'~.`a~"~