Loading...
HomeMy WebLinkAbout0876 . , • ' . ~ Borrower and Lender cove~ant end a~ree a~ foAows: l. P~yment ot Prlacipal and latere~t. Borrower shaU pmmptly pay when due the principal oi and interest on the indebtednesa evidenced by the Note, prepayment and lete charges aa provided in the Nats, and the principal of and interat on sny I~ture Advances secured by thi~ Mort;age. 2. Ftiad~ for Teutea snd la~uraaoe. Subject to applicabis law or to a written vraiver by l.ender, Borrower shall psy to l.ender on the day monthly inatallmertts of principal and intere~t are payable under the Note. until the Note i8 paid in fuU. a aum (herein "Funds") equal to oa~ twelRh of the yearly taxee and aseessments which may attain priority over this Mortgage, and gn~und renta on the Property, if any, plua on~ twelfth of yearly premium installmenta for hasard insurance. plue onetwelfth of yearly premium installmente for mortgage insurance, if any. etU as reasonebly t,etimated initial~y and from time to time by [.ender o~ the basia of asseasments and bills and reasonable estimates thereof. 'l~e F1~t~d~ shell be held ia an inatitution the deposita or aocounta of which are insured or ~uaranteed by a Federal or 3tate agency (including Lende: if Lender is such an institution). Lender ahaA apply the Funds to pay aaid taxes, ea~essmenta. ineurance premiums and gru~nd nnb. Lender may aot charge for eo holding and applying the PLnds. analyzing aaid account, or verifyi~g and compiling said as~essmente and bills, unless LBnder pays Bormwer interest on the Ftiu?da and appticable law petmits I.ender to make such a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the ~Lnds ahaA be paid to Borrower, and unleas such aQreement ia aaade or applicable law roquirea such intereat to be paid. Lender ehall not be required-to pay Borrower any intereat or earnings on the P1~nd~. I.ender shaU give to Borrower, without charge. an annual accounting of the Funds showing credita and debits to the F1mds aad the purpose for which each debit to the I~nds waa made. The Funds are pledged as additionel aecurity for the aume eecured by this Mortgege. - If the amount of the ~nds held by Lender, togethe: with the future monthly installmenta of Funds payable prior to the due dates of t~ea. . essesements. ineurance premiums and ground re~ta, shall e~[oaed the amount required to pay esid ta:es, aaeeeaments. insurance premiuma and Qround nnta as they fall due. such e~tceae shall be. at Borrower e optioa, either promptly repaid to ~Borrower or credited to Bormwer on monthly installmenta of I~nds. If the amonnt of Lhe Funds held by Lender shall not be sufficient to pay ta~ces. asseasments, ineurance pnmiums and ground nnte aa they fall due, Borrower shalt pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice ia mailed by I.endet to Bormwer eequeating payment thereof. " Upon payment in fuU of all sums secured by this Mortgage, Leader ahell prompdy refund to Borrower any fuada held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender ahall apply. no later than iwu~ediately prior to the eale of the Property ar its aoquisition by I.ender, any I~Lnds held by Lender at the time of application as a credit againat the sume secured by this Morfgage. ~ 3. Applicatioa of Payments. Unieaa applicable lew provides otherwise. all paymente received by I.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Nate, then to the principal of the Note, and then to intereat and principal on any Future Advancee. 4. Chargee; Liens. Borrower ahall pay al) tauea, asaeasmente and other chargee, fines and impusitiona attributable to the Property which may attain a priority over thie Mortgage, and leasehold payments or ground rents, itany, in the manner provided under paragraph 2 hereo[or, if not paid in auch manner. by Borrower making payment, when due. directly to the payee thereof. Borrower ahall promptly furniah to I.ender all noticee of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender receipta evidencing such payments. Borrower ahall promptly discharge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to diacharge any auch lien eo long ae Borrower shall agree in writing to the payment of the obligation aecured by auch lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, ordefend enforcrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuranoe. Borrower shall keep the impmvementa now existing or hereafter erected on the Property inaured againet lose by Sre. hezards included within the term "eutended coverage." and auch other hazarde aa Lender may require and in auch amounte and for such periods ae Lender mey require; provided, that Lender aha11 not requirn auch ooverage amount exceeding the minunum, sis may be required by atate or federal rEgulations governing activitiea of I.ender, or that amount of coverage required to pay the aume secured by thia Mortgage, whichever ia the greater. The insurance carrier providing the inaurance sha11 be chosen by Borrower aubject to approval by I.ender, provided, that such approval ahall not be unreaeonably withheld All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by BoTrower making payment, when due, directly to the ineurance carrier. All ineurance policies and renewala thereof ahall be in form acoeptable to Lender and ahall include a standard mortgage clauae in favor of and in form aoceptable to I.ender. Lender shall have the right to hold the policiea and renewale thereof, and Borrower ahall promptly fumiah to i.ender all renewal notices and all receipte of paid premiuma In the event of loee. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loee if not made prompUy by Borrower. f Unleas Lender and Borrower otherwise agree in writing, ineurance proceede ahall be applied to reatoration or repair of the Property ~ damaged, provided auch reetoration or repair is economicaUy [easible and the eecurity of thie Mortgage ie not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeda shall be app6ed ~ to the suma secured by thia Mortgage, with the eucess, if any, paid to Borrower. If the Propetty is abandoned by Borrower. or if Borrower faila to reapond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier offere to eettle a claim for inaurance benefits, Lender ie authorized to collect and apply the ineurance proceede at Lendei e option either to reatoration or repair of the Property or the euma eecured by this Mortgage. Unleas Lender and Borrower othetwiee agree in writing, any auch application of proc~eede to p:incipal ahall not e~tend or poetpone the due date.of the monthly instaUmEntB referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Property is aoqnired by Lender. all right. tide and interes! of Borrower in and to any insurance policies and in and to the proceeda ; thereof resulting from damage to Propaty prior to the sale or soquisition ahall pass to Lender to the eatent of the aume eecured by thie Mortgage immediatety prior to such sale or aoquieitioa. 6. Preservation sad Yaiatenance of Property; Leaeeholda; Condominums; Planned Unit Developments. Borrower ehall tcep the Property in good repair and eha11 not commit waeLe or permit impairment or deterioration of the Propedy and ahall rnmply with the proviseone of any lease if thie Mortgage is on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrowrr'e obligeGona under the declaration or covenants creatingor governing the condominiam or planned unit development, the by-laws and regulationa of the rnndominiam or planned unit development. and conetitnent dceumente. If a candominiam or planned unit development rider is Pacecuted by Borrower and recorded together with thia Mortgage, the aovenants and agreementa of euch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. 7. Protection ot Lender'~ Securitp. If Borrower faila to perfo~ the aovenants and agreemenb oontained in thi~ Moitgage, or if any ~ ~ action or prooeeding ia oommenced which matesially affects I.ender's interest in the ProPertY. including. but not limited to, eminent domain, S ~ insolvency. oode enforcemen~ or arrangemente or pmc~edings involving a bankrupt or deoedent, th~ I.ender at Lendtr'e option,apon ~ notice to Bormwer may make such appearances. disburse such sums and take such action aa is neoeesary to protect Leadds interest, ~ ~ incloding. but not limited to, disbnnement of reasonable attomey's feee and entry upoa the Property to make npeirs. If I.ender reqnired ~ ~ mortgage insurance as a onndition of making the loan secnred by this Mortgage. Borrower ehall pay the premiuws required to maintain ~ snch inanranoe in ef[ect until sach time as the requirement for such inaurance terminatea in aocordanoe with Borrower's and I.endds ~ written agreement ot applicable Law. Borrower shall pay the amount of all mortgage insurance pr~iume in the manner provided under ~ paragraph 2 hereof. My awounta diabarsed by Lender persuaat to this paragraph 7, with inte~st thereon, shall beoome additional indebtedness of ~ ~ Borrower secured by this Mortgege. Unless Borrower and Lender agree to other terms of payment, auch amounts shall be payable upon ~ ~ notice ~om Lender to Borrower requesting payment thereof, and shell beer interest from the date of diebareement at the rate payable from time to time on outstanding principal under the Note unlees payment of interest at such rate would be oontrary to applicable law, in which ~ event snch amoants shall beas inttetis! at the higheat rate permissible under applicable lew. Nothing contained in this paragraph 7, shall ~ requin I,ender to incur any ~penee or talce any action he~reunder. { ~ ~ " _ 80~1t ~:`7U P~If~ ~ ~ - tt ~ . ~ ~ . _ - ~ . _.a_ ~ ~ . . ~ ~ . , _ .