Loading...
HomeMy WebLinkAbout0527 Borrower and I.ender covenant and aqree aa fotlowa: 1. Peyment ot Principal a~d I~terest. BoRUwe~ ahall promptly pay when due the principal of and intereat on the indebtedneae evidenced by the Note, prepayment end late charge8 as provided in the Note, and the principal of and intereaton any Future Advancea aecured by thie Mortgage. 2 F1nde [or Tazee at~d I~surance. Subject to applicable law or to a written waiver by l.e~de~, Born~wer sh+?11 pa~ to I.cndcr on the day monthly installmenta of principal and intereat are payable under the Note, until the Note ia paid in full, n aum.(herein "Funde") equal to one- twelfth of the yearly tnxr~s and asaeasments which may attnin priority over this Mortgage, and ground rents on the E'rope~ty, if any, plua one- tweifth of yearly premium installmenta for hazard ineurance, plus onetwelfih of yearly premium installments tor morigage insurance, if any, all as reasonably estimated initially and from time to tirne by l.ender on the basis of aeseasmenta and billa and ~etisonable estimates thereof. The Ftinds ahall be held in an inatitutio~ the depoeits or accounts of which are inaured or gua~anteed by a Federal or State agency (including I.ender if L.ender is euch an inatitution). L.ender ahall apply the Funda to pay said taxes, assesamenta, inaurance premiums and ground rente. Lender may not charge for eo holding and applying the ~nds, analyzing eaid account, or verifying and compiling eaid asee8aments and bills, uniesa I.ender paye Borrowe~ interest on lhe Funds and applicable law permita Ixnder to make such a charge. Borrower and Leader may agree in writing at the time of execution of thia Mortgage that intereat. on the F~nds shaU be paid to Borrower, and unleae auch agreement ia made or applicable law requires such intereat to be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the ~nda. Lender shall give to Borrower, withuut charge, an annual accounting of the Funds ahowing credits and debits to the Funda and the purpase for which each debit to the Funds w~ made. The Funda are pledged as additional security for the aums eecured by thia Mortgage_ If the amount of the Funda held by Lender, together with the future monthly inataUmenta of Funda payable prior to the due dates of ta~cee, aseeaements, ineurance premiume and graund renta, shall exczed the amount required to pay eaid ta:ee, agsesaments, inaurance premiums and g~ound rents as they fall due, euch exceaa shall be, at Bo~rower s option, either prompUy repaid to Borrower or credited to Borrower on monthly inetalimenta of ~nda. If the amount of the Funds held by Lender ehall not be aufficient to'pay taxea, asseaementa, insurance premiwna and ground rents as they fall due, Borrower ahaU pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to ~3orrower requesting payment thereof_ ~ Upbn payment in full of all suma seci~red by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, Lender ehall apply, no later than immediately prior ta the sale a!' the Property or ita acquisition by Lender, any ~nda held by Lender at the time of applicAtion as a credit against the aums secured by thie Mortgage. 3. Applieation of Paymente. Unlesa applicable law provides otherwise, all payments received by l,ender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firat 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 intereat and principal on any Future Advances. 9. Chacges; Liene. Borrower shall pay all taxes, s~ssessments and other charges, fines and impositions attributable to the Property whieh may attain A priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnishto I.ender all notices of amounts due under this paragraph, and.in the event Borrower shall make payment directty, Borrower shall promptly furnish to I.ender receipts evidencinq such payments. Borrower shall promptly discharge any lien which has priority o~ er this Mortgage; pro~ ided, that Borrower shall not be required to diecharge any such lien so long as E3orrower shall agree in writinR to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or shal) in good faith contest such lien by, ordefend enforcement of such lien in, leRa1 proceedings which operate to pmvent the enforcement of the lien or forfeitum of the Property or any part thereof. 5. Hazard Ineuraqce. Borrower shall keep the improvements now existing or hernafter erected on the Property insured against ?oss by fire, hazarda included within the term "eatended coverage," and euch other hazards as Lender may require and in such amounts and for auch periode as I.ender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as mny be required by state or federal regnlationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by thia Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shail be paid in the manner pmvidecl under paragraph 'L hereof or, if not paid in such manner, by Borruwer making payment, when due, airectly to the insurance earrier_ i All inaurance policiea and renewala thereof sha11 be in form acceptable to Lender and ahall indude a standard mortgage clause in favor of ~ and in form acceptable to Ixnder. Lender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all receipts of paid prnmiums. In the event of loss, Bonuwer shall give prompt notice to the inaurance carrier i and L.ender. Lender may make proof of losa if not made prompdy by Borrower. ' Unless Lender and Borrower otherwise agree in writing, insurance procecda shall be applied to restoration or repair of the Property ~ damaged, pmvided euch restoration or repair is economically feaeible and the security of this Mortgage is not thereby impaired. If such ~ restoration oT tepair is not economically feasible or if the aec~uity of this Mortgage would be impaired, the insurance proceeds shall be applied to the auma eecured by this Mortgage, with the eacesa, if any, paid to Bortower. If the Property is abandoned by Borrov~ er, or if Borrower faila to ' reapond to L.ender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offe~s to setde a claim for ~ inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ur repair of the ~ Property or the sume secur~ed by thie Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of prooeeds to principal ahall not extend or postpone the due date of the monthly inatallmente rnferred to in paragraphs 1 and 2 hereof or change the amount of such instaliments. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and interest of Borro:wer in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquiaitioq ahall pase to Lender to the extent of the auma secured by this ; blortgage immediately prior to euch sale or aoquieition. ~ 6. Preservation and Maiatenance of Property; Leaseholde; Condominume; Planned Unit Developmenta. Borrowerahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the :,y pmvisions of any lease if thia btortgage ia on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned usit development, r~ f3orrower ehall perform all of Borrower a obligationa under the declaration or covenante creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia hlortgage, the oovenants and ;.y agreemente of auch rider shall be incorporated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the - rider were a part hereo~. " 7. Protection of I.ender'e Security. If Borrower feile to perform the oovenants and agreemente contained in thie Mortgage, or if any action or proceeding ia commenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon ~ notice to Borrower may malce euch appearanoes, disburee euch aums ~and take auch action as ie aecesaary to protect I.ender's interest, , including, but not limited to, dieburaement of reaeonable attomey'e fees and entry upon the Property to make repaira. If Lenda required _ mortgage inaurance as a oondition of inel~ing the loan aecured by thiB Mortgege, Borrower shall pay f.he premiuma required to maintain ~ ench ineurance in effect until ench time ae the requirement for auch inaurance terminatea in accordence with Borrower'e and Lende~r's written agreement or applicable Lew. Borrower ahall pay the amount of all mortgage insurance premiums in the manner provided under ' paregraph 2 hereof. My amounte diebursed by Lender pereuant to thia paragreph 7, with intereet thereon, shall become additional indebtedneae of Borrower eecured by thie Mortgage. Unleae Borrower and Lender agree to other terms of payment, euch amounte shall be payable upon _ notice from Lender to Borrower requesting payment thereof, and ehall bear intereat from the date of diebuteement at the rate payable from = time to time on outatanding principal under the Note unleas payment of interest at euch rate would be contrary to applicab;e law, in which event such amounte shall bear interest at the highest rate pernuseible under applicable 1aw. Nothing contained in thie paragraph 7, ehaU require Lender to incur any expenae or take any action hereunder. ~ ~ _ - - ~'~~K 294 f~~u~ 527 . ~ -r~ +F ~ :r,..._ t , - ~ . . - . _ ~ ' . . ~ _ i~. - _ . - _ >~~3 Y - t _ - 3-~"v 'i` J.. __-.`"~ry ~~.d'~~.rt9C~`^x.~'~"~".~,i `k._~. ~~~~`.~.asu.+t..s ~.-r , . T~`~,x.~ ~~r~~~