Loading...
HomeMy WebLinkAbout0835 . Borrower and lender covenant and agme as followe: • 1. Payment ot Principel and Intereat. Borrower ehall promplly pay when due the principal of and~intereat on the indebtednee?e evidenced by the Note, prepayment and late charges na provided in the Note, and the principal of and inte~est on any F~ture Ad~•ancea secured by thie Mortgage. ~ 2. Etiutds for Taxes and Ineurance. Subjecl to applicflble law or to a written waiver by l.ender, E3orrow er shnll pay to l.ender on the day monthly installmenta of p~ncipal and interest arc payable under ihe Note, u~til the Note ia paid in full, u sum Ihe~ein "F unds") eyuul to one twelRh of the yearly taxes and assesaments which may attain priority over this Mortguge, und Ktruund rents an the !'roperty, if any, plus onP twelfth of yearly premium inatallments for hazard insurnnce, plusonetwelflh ofyrarly pmmium installments for mortg:+geinsurance, itany, all as masonably eatimated initially and from time to tiine by [.endrr on the txtsis of nssesxments nnd bills and reasonable estimates thereof. The FLnda shall be held in an inatitution the deposita or accounts of which are insured or guaranteed by a Federal or State agency (including l.ender if l.ender is such an inatitution). l.ender ahall apply the Funda to pay said taxes, assessme~te, i~surance premiuma and ground rents. L.ender may not charge for eo holding and applying the F~nde, analyzing said account, or verifying and compiling said asaeasmenta and biUs, unleas i.ender paya Borrower intereet oo the Funds and applicable law permite l.ender to make such a charge. Borrower and Lender may aRree in writing at the time of execution of thia Mortgage that interest on the FundB shaU be paid to Borrower, and unleels auch agreement is made or applicable law requirea such intere8t to be paid, l.ender shall not be required to pay Borrower any intereat or earninga on the Funda. l.ender shall give to Borrower, without charge, an annual accounting of the Ftinds ahowing creciits and debits to the Funda and the purpoae for which each debit to the Funds was made. The Funds are pledged as additional security far lhe auma secured by this Mortgage. if the amount of the ~nds held by Lender, togethe~ wilh the future monthly installments of N unds payable prior to the due dates of taxea, ~ assesaments, insurance premiums and ground renta, shall excred the amount required to pay said taxes, assesamenta, insurance premiums and ground renta as they fall due, auch exceas ahall be, at Bor[ower's option, either promptly repaid to Borrower or credited to Borrower on mon~hly installmente of ~nde. If the amount of the Funda held by Lender shall not be autficient to pay taxes, assessmenta, insurance premiums and ground rnnts as they fall due, Borrower aha11 pay to Lr.nder any amount necessary to muke up the deficiency within 30 days from the date notice is mailed by Lender to Eiorrower requeating puyment thereof. Upon payment in full of all auma secured by this MortgaKe. I.ender shall prompdy refund to $ore+ower any funds held by l.ender. If under paragraph 18 hereof the Property ia sold or the Property is othemise acquired by I.ender, l.ender shall apply, no later than immediately prior to the sale of the Property or its acquiaition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by thia Mortgage. 3. Applicetion of Peymenta. Unless applicuble law provides otherwise, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firxt in payment of amounts payable to I.ender by I3orrower under paragraph 2 hereof, then to interest payable on the Note, then to the prinripal of the Note, and then to interest and principal on any Future Advances. 9. Charges; Liens. I3orrower sha11 pay all taxes, ~ssessments and other char~es, fines and impositions attributable to the Property which may attain a priority o~ er this Atortgage, and leasehold pa}•menls or Kmund renis, if any, in the manner pro~•ided under pan~graph `L hereof or, if not paid in such manner, by Borrower making pa}~ment, when due, directly to the payee thereof. Borrower shall prumptly furnish to l.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment direcdy, I3orruwer shall promptly turnish tn t.ender rereipts evidencing such payments. Borrower shall prompdy discharge nny lien which has priority over this Mortgage; pmvided, that Sorrower shall not be required to discharge any such lien so long as Iiorrower shall agree in writinQ to the payment of theobliKation secured by ,uch lien in a manner acceptable to I.ender, or shall in good faith contest such lien b~, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereof. 5. Hazaed Ineurance. Borrower shall keep the impmvements now existing or hereafter erected on the Property insured againat loss by firn, hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and for such ~ periods as Lender may require; providcd, that I.ender shall not require such rnverage amount exceeding the minimum, as may be required by ; state or federal regulations governing adivities of Lender, oT that nmount of coverage required to pay the suma secured by this Mort{;age, ; whichever is the greater_ , • The insurance carrier providinK the insurance shall be chosen by Borrower subject to appro~•:?I ht> Ixnder; pro~•ided, that such appro~•al ? shall not be unreasonably withheld. All premiums on insurance p~dicies shall 1~e paid in the manner pmvidecl under paraKraph 2 hereof or, if r.ot paid in such manner, by E3orrow~er making payment, when due, directly to the insurance carrier. j All inaurance policies and renew als thereof shall be in form acceptabte to Lender and shall include a standard mortgaqe dause in favor of ' and in form acceptable to I.ender. Lender shali have the righL to hold the policies and rnnewals thereof, and Borroveer shall promptly furnish to ; i.ender all renewal notices and all receipts of paid prnmiums. In the event of loss, Borruwer shall qive prompt notice to the insurance carrier • s and Lender. Lender may make proof of loss if not m:tde pmmptly by Borrower. '`s Unlesa L.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair•of the Property ~ damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired_ If such K restoration or repair is not economically feasible or if the security ot this Mortgage would be impaired, the insurance proceeda shall be applied t to the aums secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property ia abandoned by Eionow er, or it Borrower fails to respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier ofTers to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either to reatoratian or mpair of the ~ Property or the sums aecured by this Mortgage. ` Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any inaurance policiee and in and to the proceeda ° thereof reaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the aums secured by thia f Mo a e immediatel rtg g y prior to such sale or acquisition. n 6. Preaervation and Maintenance of Property; I.easeholde; Condominums; Planned Unit Developmente. Borrower shall keep ; the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall compiy with the = provisiona of any lease if this ~iortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants creatinRor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documents. If a - condominium or planned unit.development rider is executed by Borrbwer and recorded together with thie Mortgage, the rnvenante and _ agmements of such rider shall be incorporated into and shall amend and supplement the covenants and ngreements af this Mortgage as if the rider were a part hereof. T. Protection of I.ender'e 3ecurity. If Borrower fails to perform the oovenanta and agreemente contained in thie Mortgage, or if any attion oi proceeding ie commenced which materially affecte Lender's interest in the Ptoperty, including, but not limited to, eminent domain, ineolvency, oode enforoement, or arrangementa or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make auch appearances, diebnree euch sums and take auch action aa is neceeeary to protect Lender'e intereet. s including, but not limited to, diabureement of reaaonable attorney's fees and entry upon the Property to malice repaire. If Lender required mortgage inaurance as a condition of making the loan aecured by thia Mortgage, Borrower ehali pay the premiume required to maintain ~ euch ineurance in effect until such time ae the requirement for auch ineurance teriminatee in accordance with Borrower'a and Lender'e written agreement or applicable Lew. Borrower ahall pay the amount of all mortgage insurance premiuma in the manner provided under paregraph 2 hereof. ~ My amounte diebureed by Lender pereuant to thie paragraph 7, with interest thereon, ehall be~.~ome additional indebtednese of Borrower eecured by thie Murtgage. Unleae Borrower and Lender agree to other terma of payment, euch amounte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of diaburaement at the rate payeble from time to time cm outatnnding principal under the Note unlese payment of interest at such rate would be oontrary to applicable law, in which _ event euch amounts ahall bear interest at the highest rate permiseible under applicable law. Nothing contained in thia paragrapl~ 7, ahall ~ require Lender to incur any eapenae or tal~e any action hereunder. ~ R 294 ~'35 . ~ut,K r.tic~ _ f - - . . - - _ ~ - L... = , = _ ~ _ -