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HomeMy WebLinkAbout0607 . . ' ! . ~ . . • Borrowe~ and l.ender cove~ant and a~ree aa folbws: 1. Psymeat ot Priacipal sad laterest. Borrower shall promptly pay when due the principal of end intereat ort the indebtedneea evidenced by the Note, prepayment a~d late charges as provided i~ t!?e Note, and the principal of and interest on any FLtun Advances secu~ed by this Mnrt~taQe. 2. F1tnd~ for Te~e~ and Inaurance. Subject W applicable law or to a writtea waiver by Lender, Rorrowrr eAaii puy w I.ender un the day monthly instaliments of principal and intcreat are pqyable under the Note, until the Note ia paid io full, a aum (herein "I~l~nde") equal to one twelfth of the yearly taxes and asae8.,rne~te which may attuin priority over this Mortgage, and ground rents on the Property, if any. plua on~ twelRh of yearly pmmium inatallmenfa for hazard insurance, plua onetwelRh ofyearly premium inatallmente for mortgageinsurance, if any. all as reasonably eatimated initially and from time to time by l.ender on the basie of asaesamenta und bille and reasonable eatimatea thereo! The Fltnds shsU be held in an institution the deposits or accounts of which are inaured or guaranteed by a Federal or Stete agency (including L.ender if Gendet ia euch an inatitution). [.ender ahali apply the Funds to pay said tax~, aesesaments, insurance premiume and ground nnta. I.ender may not charge for so holding and applying the ~nds, analyzing said account~ or verifying and compiling said assesa~aente and bills, unlesa Lender pays ~orrower intereet on the Funds and applicable law peanits Lender to make such a charge. Borrower and I.eader may agree in writing at the time of e:erutio~ of this Morigage thet intereat on the ~nde ahall be paid to Borrower, and unleae euch agreement is made or applicable law requires such i~tereat to be paid, Lender ehall not be required to pay Borrower any interest or eamings on the ~ndi. Lender ahall give to Borrower, without charge, an annual accounting of the Ftinde ahowing credita and debits to the Funds and the purpoee for which each debit to the Fl~nds wae made. The ~!n~s are pledge~+ as ~dditiuns! ~c+u~ty forthe e~me eecurec~ ~y thi• Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly inatallmenta of Funda payable prior to the due datea of tauee, aeeesaments, inewance premiuma and ground renta, ahall e:czed the amount required to pay aaid taxes, asaeeamente. inaurance premiums and ground rents as they fall due, auch eaoeas ahall be, et t3orrower s option. either prompdy repaid to Botrower or credited to Borrower on monthly installments of Flinds. If the amount of the Funds held by Lender ahall not be aufficient tc~ pay taxea, aeaeaementa, ineurance premiuma and ground renta aa they fall due, Borrower ahall pay to Lender any amount neceesary to make up 1he deficiency within 30 daye from the date notice ia mailed by I.ender to Borrower rPquesting payment thereof. Upon payment in fuU of aU auma eecured by thia Mortgage, Lender ehall promptly refund to Borrower any tunds held by Lender. If under paragraph 18 hereof the Property is aold or the Ptoperty is otherwiae acquired by Lender, I.ender shaU apply, no later then immediately prior . to the eale of the Property or ita aoquiaition by I.ender, any ~nds held by Lender at the time of application as a credit againet the sums eecured by thia Mortgage. 3. Appltcation of Paymeate. Unlese applicable law pmvidee otherwise, ap payoaents reoeived by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firet in payment of amounts payable io 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 Advances_ 4. C6arges; Liens. Borrower shal) pay all taxes, Assessments and other chargee, fines s~nd impositions attributable to the Property which mny altain a priority over this Mortgage, and leasehold paymenta orground rents, i[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 thereuf. Borrower shall promptly furniah to l.ender all noticea of amounta due under thia paragraph, and in the event Borro~v~. ~::a:; .:.ake payment directly, Borrower shall promptly furnish to Ixnder receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as f3orrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptuble to I.ender, or shall in good faith contest such lien by, ordefend enforczment of such lien in, legal p~oceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvements now ezisting or hereafter erected on the Hroperty insured againat loss by fire, hazarde included within the term "eztended coverage," and auch other hazards aa L.ender may require and in snch amounta and for auch periods as Lender may require; pravided, that Lender ahall not require such coverage amount eaceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the aums eecured by thie Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by l.ender, pmvided, thal such approval shall not be unreasonably withheld_ All prnmiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lender ahall h ave the right to hold the policiea and renewala thereof, and Botrower shall promptly furnish to i.ender all renewal noticea and all receipta of paid premiums. In the event of loss, Iiorrower shall give prompt notice to the insurance carrier ' and Lender. Lender may make proof of loas if not made promptly by Borrower. ~ Unless Lender and Borrower otherwiae agree in. writing, insurance proceeds ehall be applied to restoration or repair of the Property damaged. pmvided such restoration or repair ia economicaily feasible and the aecurity of this Mortgage is not thereby impaired. If such reatoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the ineurance proceeds shall be applied ! to the euma eecured by thia Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to ~ reapond to I.ender within 30 days from the date notice is mailed by Lender Lo Borrower that the insurance carrier offera to settle a claim for ~ insurenee benefita, I.ender is authorized to collect and apply the inaurance proceeda at Lender s option either to reetoration or rnpair of the ~ Property or the suma eecured by this Mortgage. Unleas Lender and Borrower otherwiee agree in writing, any aueh application of proceeda to principal ah~ll not e:tend or poatpone the due ~ date of the monthly installmente referred to in paragragha 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda thereof reeulting from damage to Property prior to the eale or acquisition ahall paes to Lender to the e:tent of the aume secured by thie ~ Mortgage immediately prior to auch sale or aaquiaition. 6. Preeervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmenta. Borrower ahsll keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propedy and ehall comply with the proviaions of any leaee if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall petform all of Borrower's obligationa under the declaration or covenanta creating or governing the condominium or planned unit development, the by-laws and regulatione of the condominium or planned unit development, and rnnatituent documents_ If a condomini~un or planned unit development rider ia executed by Borrower and recorded together witti thia Mortgage, the oovenante and egreements of such rider ahall be incorporated into and ahall amend and aupplement the rnvenanta and agreements of thia Mortgage as if the rider were a part hereof. 7. Protection of I.ender's Security. If Borrower faile to perE'orm the oovenants and agreemente conteined in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interes! in the Property. including, but not limited to. eminent domain, insolvency. oode enforcement, or arrangemente or proceedinge involving a banl~rupt or deoedent, then Lender st L.ender a option,upon ~ notice to Borrower may make such appearanoee, disburse sach aume aad take such action as is neceseary to protect Lender's interes~ ~ inclnding, but not limited to, diabureement of reasonable atbrney's fees and entry upon the Property to make repairs. If I.ender required ~ mortgage insnrance ae a condition of making the loan secured by this Mortgage, Borrower shall pay fhe premiums required to maintain ~ snch insarance in effect unti) euch time as the requirement for auch insurance terminatea in accordance with Borrower's and Lende~s ~ written agreem~t or applicable IBw. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided nnder ~ paragraph 2 hereof. ~ Any amounte diabureed by I.ender pereuant to thie paragraph 7, with intereet thereon, ehell become additional indebtednees of ~ Borrower secured by thie Mortgage. Unleae Borrower and I.ender agree to other terms of payment, such amounte shall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear intereet from the date of disbursement at the rate payable from ~ time b time on outatanding principal under the Note unlees payment of interest at such ratx would be oontrary to applicable law, in which event such amounta aha11 bear interest at the higheat rate pera~ieeible under applicable law. Nothing contained in thia paragraph 7, ahall ~ r~quire Lender to incur any e:pense or take any action hereunder. ~ ~ ~ e~K 296 pA~f 605 ~ - . 3.. ~ - - .__r~ ~ .`~~'r ~ u . ~ , . _ < _ - ,..y - _ Y