Loading...
HomeMy WebLinkAbout0002 . t i Borrower sad Leader covenant sad agree as folbws: 1. Payment of Prlnelpal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedness wideacsd by the Nots, prepsymeat and late duvges u provided is the Note, and the principal of and interest on nay Future Advanoss secured by this Mortgage. Fltads for Taxes and Iusuranos. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fuads'7 equal to oae• twelfth of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plw ens twelRh of yearly premium installments for hazard insurance. plw one•twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and hom time b time by Lender on the basis of assessments and bills and reasonable estimates thereof. 'lUe Funds shall be held in an institution the depodts or accounts of which are iruured or guaranteed by a Federal or State agency (inducting Lender if Lender is such as irutitutioa). Lender shall apply the Funds to pay said takes, asseasmeata, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analysing said amount, or verifying and e~piling said assasmeats and biW, unless Lender pays Borrower ir?tesest on We Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of ezecutioa of this Mortgage that interest oa the Funds shall be paid to Borrower, sad unless such agreement is made or applicable law requires such interest to be paid. Leader shall not be required to pay Borrower any interest os earnings on the Funds. Leader shall give to Borrower. without charg0. an annual amounting of the Funds showing credits and debit to the Funds and the purpose for which each debit to the 1?timds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by I.ender, together with the future monthly installments of Funds payable prior to the due dates of fazes, asseesmeata, insurance premiums and ground rents, shall e:oted the amount required to pay said fazes. assessments. insurance premiums and ground rents as they fall due, such ezoess shall be, at Borrower's option, eiWer promptly repaid to Borrower or credited to Borroweron monthly installments of Funds. If the amount of the Funds held by Lender shall not be sut'Fcient to pay takes. assessments. insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount aeceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in roll of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender.ll under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the some secured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise. all payments received by Leader under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over thin Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof oY, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrowm ahali not be required to diec:harge any such lien sa long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement 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 Insurance. •Borrower shall keep the improvements now ezisting or hereaRer erected on the Property insured against loss by fire, hazards inducted within the term "eztended coverage; 'and such other hazards as Lender may require and in such amounts and for such t;eriods as Lender may require; provided, that Lender shall not require such coverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums 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 renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower aliall give prompt notice to the insurance carrier ''i and Lender. Lender may make proof of loos if not made promptly by Borrower. Unless Lender 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 is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if.Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lendei s option either to restoration or repair of the Property or the suriis secured by this Mortgage. Unleea Lender and 9orrower otherwise agree in writing, any such application of prooeeda to principal shall not eztend 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 insurance policies and in and to the proceeds thereof resulting from damage .to Property prior to the sale or acquisition shall pass to Lender to the eztent of the sums secured by this Mortgage immediately prior to such sale or sognisition. 6. Preservation and)Ylaintenance of Property; Leaseholds; Condomiauau; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of say lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shell perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. - 7. Protection of Lender's Security. If Borrower fails to pa form the oovenanM and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects bender's interest in the Property. inducting, but not limited to, eminent domain, insolvency, code eaforoemeat, or arrangements-or procxedings involving a bankrupt or decedent. they Lender at Lender's aption,npon notice to Borrower may make such appearances, dubnrse such sums and take such action as is neocesary to protect Lender's interest, inducting, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in aooordance with Borrower's and Leadds writtar agreement az applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuaat to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which evert such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall , require Lender to incur any expense or take any action hereunder. I - ~OG~ 300 PAGE 2 .r ~