Loading...
HomeMy WebLinkAbout0305 . ~ • . , . Fiorn,wer and l.ende~ covenanl and aQree a~ follows: ~ ~ I. Payment of Princlpal_ and Interest. E3orrowe~ ehall prc?mptly pay when due the principal of and interest on the indebtedneae evidenced by the Note. DrepaYment a~d late charges as provided in the Note, and the principal of a~d intereston any F uture Advancrx secured by this MortgaQe. - 2. I~tnds for Taxea a~d Insurance. Subject to applicable law or tu a written waiver by I.ender, Rorn,we~ ahall ~?y to l.enderon the day monthly inatallmenta of principa) and i~tr~eat are payable under the Nute, until the Note ie paid in full, u aum (he~ein "Funds") equal to one- tweltlh of the yearly taxes and asse8aments v?hich may attain priurity ove~ this ~lartgagc, an~ ~.-rcrnnd renta on Ihe f'niperty, if any, plus o~~ twelRh of yearly premium installmente [or haza[d inaurance, plus one~twelfih of yearly premium inatallmer~ta for murlgage inaurance, if any, al) as reaeonably estimated initially and from time to time by I.ende~ o~ the bpais ot'a$seasmenta und billn An~ -~::~~~ah!r ~lemA~es thermt. Tfie FLnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency lincluding I.ender if Lender is such an institution). Irnder shall apply the Funds to pay said taxes, aseesements, ineurance premiume and ground rents. l.ertder may not charge for so holding and applying the M'unda, analyzing eaid account, or verifying and compiling said asaessments and bills, unlees I.ender pays Borrower intereat on the Elinds and applicable law permite l.ender to make euch a charge. Eiorruwer and I.ender may egree in writing at the time of execution ot this Mortgage that interest on the Ftinda ahall be paid to Eiorrower, and unleas euch agreement is made or applicable law requiree auch intereat to be pa~d. t.ender ehali not be required to pay E3orrower any interest or earnings on the Flinds. Lender shall give to Bormwer, without charge, an annual accountinR of the Funda ahowing credita and debita tu the Funds and the purpose fo~ which each debit to the Funde wea made. The Funda are pledged as additional eecurity fo~ the eums secund by thie Murtgage. If the amount otthe Fl~nds held by I.ender, together with the [uture mo~thly installmenle olFunds pa;~able prior to theduedatee of taxea, aeaeasraente, inaurance premiums and ground rents, ahalt ex~ed lhe amount required to pay said taxea, asseoaments, ineurance premiume and ground rents ae they tall due, such e:ceas shall be, at F3orrower'a option, either promptly repr?id to I3orn,wer or credited to fiorrower on monthly inatallmente of Funde. If the amount of the Funde held by l.ender ehall not be aufficient to pay taxee, assesamenta, ineurance premiuma and ground renta ea they [all due, Borrower ehall pay to I.ender any amount neceaeary to make up lhe deficiency within 30 days from the date notice is mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of al! aurn~ secured by this Mortgage, I.ender ahall promptlv refund to Eiorrower any funda held by i.ender. If under ~aragraph 18 hereotthe Property ie eold or the Property is otherwiae acquired by LeAdeR, l.erxkr ahall~apply. no 181er than immediately prior to the sale of the Property or its acquieition by L.ender, any Ftinds held by I.ender at the time of application as a credit against the suma secured by thie Mortgage. - 3. Application ot Peyments. iJnless applicable law provides otherwise, sll_ paymente received by [~nder under the Note and paragraphs 1 and 2 her~of ehall be epplied by I.eader fimt in payment of amounts payat~e ty I.eader.by Borrower under paragraph 2 hereof, then to intereat payable on the jVote, then to the principal ot the Note. and then to intereaC and princi{?al on any Future Advancee. 4. Chargee; GienA. Eiormwer ahall pay all taxes, aaseasments and othercharges;flnea nn~ impositions altributt~ble u~ the Property which may attain a priority over this Mortgage, t~nd leasehold paymenta or ground renta, if any, in the manner providcd under paragraph 2 hereof or, if not paid in such manner, by Borrower makinq payment, when due, directly to the payee thereof. Burn,wershall prumptly furnish to I.ender all noticea of tunounta due under this paraqraph, and in the event E3orrower shaU make payment directly, Borrr~wer ahall pro~npdy furnish to I.ender receipta evidencing such paymenta. l3orrower shall promptly discharge any lien which h~s priority uver this Morlgage; provided, that Borrower shall not be required todischarge any such lien eo long as Borrowershall aqree in writing to the payment of theobligation secured by such lien in a manner acceptable to I.ender, or ehall in good faith contest such lien by, or defend enforcrment of such lirn in, legal pr~ceedinga w•hich operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part therev,f. 5. Hazard Insurance. Borrower ehall keep the impmvementa now eYiating or hereafter erected on thr Froperty insured against loss by fire, hazarde included within the term "extended coverage," and au~h other hazards se Lender may reqaire and in such amounts and forauch perioda se I.ender may require; provided, that Lender ehall not requtre auch coverage amount exceeding the minimum, as may be required by ~ Atate or federal regulationa governing activitiee of I,ender, or that amount of coverage required to pay the aume secured by this Mortgage. whichever is the greater. The ineurance carrier providing the insurance ahall be chusen by &,rr^::~~: subject to approval by I.ender; pmvided, that such approval ~hall nut be unreasonably withheld. All premiums on insurance policiex shall be paid in the manne~ pruvided under par~graph `L hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the inxutance carrier. All inaurance policiea and renewala thereof ahall be in form acceptable to Lenderand ahall include a atandard mortgage clause in favorof and in form acceptable to Lender. Lender shaU have the right to hold the policiea and renewala thereof, and Borrower shall promptly furniah to i.ender aA tenewal noticee and all receipts of paid prnmiums. In the event of lose, Borruwer ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loas if not made prompUy by Borrower. Unleae Lender and Borrower otherwiee agree in writing, ineurance proceeda shall be applied to restoration or repair of the Property ' damaged, provided such restoration or repair is eronomically feasible and the eecnrity of thie Mortgage ie not thereby impaired. If such i restoration or repair ie not economically feasible or if the security of thia Mortgage would be impaired, the inaurance proceeda ahal) be applied E to the aume secured by this Mortgage, with the e:cess, if any, paid to F3orrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to L,ender within 30 daye from the date notice ia mailed by Lender to Borrower that the inaurance carrier ofiere to eetde a claim for ~ inaurance benefite, Lender ia suthorized to collect and apply the insurance proceeda at I.ender's option either to reatoration or repair of the ; Property or the anme secund by thia Mortgage. ~ Unlese Lender snd Borrower otherwise agree in writing, any such application of proceeds to principal ehall not extend or poatpone the due ~ date of the monthly inetallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 . hereof the Property ia acquired by Lender. all right, title and interest of Borrower in and to any ineurance policiee and in and to the proceeda ~ ~ thereof reaulting from damage to Property prior to the eale or acquiaition ehall paea ui I.ender to the e:tent of the auma secured by thia ~ Mortgage immediately prior to euch eale or aoquiaition. . ~ 6. Preaervation end Maintenence of Property; I.easeholde; Condominume; Planned Unit Developmente. Borrowerahall keep the Property in good repair and sha11 not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the ~ provisione of any leaee if this Mortgage ia on a leaeehold. If thie Mortgage is on a unit in a condominium or a planned unit development, k fiorrower ahall perform all of I3orrower's obligationa under the declaration or covenants creatingor goveming the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and rnnatituent dceuments. If a ~ condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and agreementa of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreements of this Mortgage as if the ~ rider were a part hereof. g 7. Protection ot Lender'~ Security. If Borrower fails to perform the oovenants and agreements oontained in this Mortgage, or if any ~ action or proceeding ie commenced which materially af[ects Lender'a interest in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcemen~, or arrangementa or ptoceedings involving a bankrupt or decedent, then L.ender at Lender's option,upon ~ notice to Borrower may mal~e auch appearances, dietwree such sums and ta1~e suc6 action as is neceaaary to protect I.endei s intereat, including, but not limited to, disbursement of reaaonable attorney's fees and entry upon the Property to malce npaire. If I.ender required ~ mortgage inswence as e condition of ineking the loan eecured by lhia Mortgage, Borrower shall pay the premiums required to maintain r such insurance in eHect until such time es the requirement for such insurance terminatea in aooordance with Borrower s and Lender'e " ~ written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ; paragraph 2 hereoL ; My amounta disbnreed by Lender persuant to thie paragraph 7, with interest thereon, ehall beaome additional indebtednees of ` ; E3orrower secured by thie Mortgage. Unlees Borrower and I~ender agree to other terms of payment, auch amounts ehall be payable upon ~ notice from I.ender to Borrower requeating payment thereof, and ahell bear intereat from the date of diabursement at the rate payable from ~ time to time on outatanding principal under the Note unlese payment of interest at such rate would be oontrary to applicable law, in which ~ event such amounte shall bear intereat at the highea! rate permiesible under applicable law. Nothing contained in thia paragraph 7, aha11 ~ require I.ender w incur any e:penae or take any action hereunder. ~ . z ~ . . . ~296 F~ 305 ~ _ r . Y_ - ~ - _ _ ~ T .5•~-~'.' S a a;p~' ~.r,=` ~r~~ 1 y;a, ~"v^ ~ _s e.~w~~s?'.. . .