Loading...
HomeMy WebLinkAbout0630 Borrower a~d Lender rnvenant and agree as follows: 1. Payment of I'rincipal and Intereat. Borrower ehall promptly pay when due the principal oi and intereel on the indebtedneea evidenced by the Note, prepayment and late chargee as pmvided in the Note, and the principa~uf and inteteston any Fliture Advancee eecured by thia Morigage. 2. F~tnds for Ta~tee and Ineurance. Subject Lo applicable law or to a written waiver by Lender, Bor~owe~ ahall pay to l.ender on the dqy monthly instaltmenta of principai and intereet are payable under the Note, uMil the Note ia paid in full, a sum (herein "Flinda") equal to one ~ twelfth of the yearly taxea and aseeasmente which may attain priority ove~ lhie Morlgage, and ground rents on the P~roperty, if any, plue onc twelRh of year!y prernium instalimente for hazard inaurat?ce, plua onetwelRh of yearly premium installments for mortgage insurance, if any, All aa reasonably estimated initielly and trom time to time by I.e~der on the hasia oi aeaeasme~ts and bitla and reasonable eatimatea thereof. The Fltnds shall be held in an inatitution the depoeite or accounta of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is auch an institution). Lender ehall apply the fi~nds to pay eaid taxea, assesame~ts, inauranoe premiums and gro~u?d rents. Lend~ may not charge for eo holding and applying the ~nds, analyzing eaid account, or verifying and compiling eaid aaeessments and billa, unlees Lender pays Borrower intereat on the ~nds and applicable law pe~naite Lender to make auch a charge. Borrower and Lendez may agree in writing at the time of ezecution of thia Mortgage that i~terest on the FLnds shall be paid to Borrower, and unless auch agreement is made or eppUcable law requires euch in~t to be paid. Lender ahall not be tequired to pay Borrower any intereet or , earnings on the Flinda. Lender ahall give to Borrower, without charge, an annual acoounting of the Fu~de showing eredite and debita to the Funds and the purpose for which each debit to the ~nda was made. The Funde are pledged as additional eecurity for the auma secured by thie Mortgege. If the amount of the ~Lnda held by Lender, together with the future monthly installmenta of l~nda payable pdor to the due dates of tazea, asaessmente. ineuranoe premiums and ground rents. ahall ezazed the amounf required to pay esid ta:es. aeaeasments. ineurance premiuma and ground rente as they fall due, auch ezcese ahall be. at Borrower e option, eithe; pmmptly repaid to Borrower or crcdited to Borrower on monthly installmente of F~inds. If the amount of the F~nds held by Lender shall not be eufficient to pay ta~ces, aeeesementa, inaurance premiame aad gmund rents ae they fall due, Borrower ahaU pay to Lender any a.anount neceseary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requesting pe~yment thereof. Upon payment in full of ail sums eecured by thia Mortgage, Lender ehall pmmptly refund to Borrower aay funde held by Lender. If under paragraph 18 hereof the Property is aold or the Property is othetwiee acquired by Lender, Lender ahall epply, no later than immediately prior to the sale of the Property or ite aoquieition by Lender, any Ftinds held by Lender at the time of epplication ae a cndit againat the auma secured by thie Mortgage. 3. Application of Paymente. Unlese applicable law providea otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be epplied by Lender firat in payment of amounta payable to I.ender 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 principai on any F~tare Advances. 4. Charges; Liene. Borrower shall pay all taxea, assessmenfs and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renta, it any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot. Borrower shall promptly fumiah to l.ender all noticea of amounta due under this paragraph, and in the event Borrower ehall make payment directly, Borrower ahall prompdy fu?z~iah to i.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower ahall not be required to dischatge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner aoceptable to Lender, or ahall in good faith contest such lien by, or defend entorcement 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. fiazard Iasurance. Borrower shall keep the unprovemenLs now euisting or hereafiter erected on the Propedy inaured against losa 6y fire, hazarda included within the term "e:tended rnverage; ' and auch other hazards as Lender may require and in such amounts and for auch periods as Lender may require; provided, that Lender ehall not require such eaverage amount exceeding the minimum, as may be required by state or federal regulatione governing activitiee of Lender, or that amount of coverage required to pay the auma eecured by this Mortgage, ~ whichever ie the greater. . The inaurance carrier providing the insurance shall be chosen by Borrower subject to appro~ al by Lender, p?nvided, that such approval - shall not be unteasonably withheld. All premiums on insurance policies shail be paid in the mannet provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ ' Ali inaurance policies and renewala theteof ehalt be in form acceptable to Lender and ahall include a atandard mortgage clauae in favor of and in form aoceptable to L.ender. I.ender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furnish to ~.ender all renewal notices and all receipt$ of paid premiums. In the event of loss, Borrower ahall give pmmpt notice b the insurance carrier ; and Lender. Lender may make proof of loss if not made pmmpdy by Borrower. i Unleea Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property ~ damaged, provided euch restoration or repair is economically feasible and the eecurity of thia Mortgage ie not thereby impaired. If such ~ restoration or repair ia not economically feasible or if the eecurity of thie Mortgage would be impaired, the inaurance proceeda ahall be applied to the euma eecured by thia Mortgage, with the e:cess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ; respond to I.ender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to eettle a claim for ~ inenrance benefits, Lender is authorized to collect and apply the insurance proceede at Lender's option either to reatoration or repair of the ~ Froperty or the sume eecured by this Mortgage. ~ ~ Unleas L.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not e~tend or poatpone the due. ~ date of the monthly installmenta referred to in paragraphe 1 and 2 hereof or change the amount of sach inetallmente. If under paragraph 18 f hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any inswance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or ac~quiaition ahall pasa to I.ender to the e:tent of the aums eecured by thi8 ~ htortgage immediately prior to such eale or acquieition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Coadominume; Planned Unit Developmenta. Borrower ahali keep : the Property in good repair and ahall not commit waste or permit impairment oi deterioration of the Property and ahall oomply with the ~ provisions of any leaee if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligationa under the declaration or co~ enanta creatingor governing the rnndominium or ptanned ~ unit development, the by-laws and regulations of the condominiwn or planned unit development, and oonatituent documents. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mottgage, the oovenante and agreementa of such rider ahall be incorporated into and shall amend and supplement tne covenants and agreements of this Mortgage as if the rider were a part hereof " 7. Protection of Lender'e 3ecurlty. If Borrower faile to perform the oovenante end agreements oontained in thie Mortgege, or if eny : action or prooeeding ia commenced which materially affecte Lender s intereet in the Property, including, bnt not limited to, eminent doma.in, ~ ineolvency, oode enforoement, or arrangemente or pra~edinge involving a benl~rnpt or deoedenk t6en Lender at I.ender's option.upon ~ notice to Borrower may make auch appearancee, diBburse auch aume end talce euch action as is necessary to protect Lender's interes~ . inclnding, but not limited to, diebureement of teasonable attorney'e feee and entry upon the Propedy to meke repairs. If I.enda required ~ - mortgage insurance ae s condition of making the loan sec~red by thie Mortgage, Borrower shall pay the premiums required to maintain euch inanrance in effect until auch time as the requirement for such ineurance terminatee in aocordance with Borrower's and Lender'e written agreement ot applicable I.aw. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided undez ~ paragraph 2 hereof. ~ Any amounte diabareed by Lendec pereuant to thie paragraph 7, with intereet thereon, ehall beoome additional indebtednees of - Borrower secured by thia Mortgage. Unleae Borrower and L.ender agree to other terme of payment, such amounts shall be payable npon ; notice from Lender to Borrower requeating payment thereof, and ehall bear intereet from the date of diebureement at the rate payabie ~om - time to time on outatanding principal under the Note unlesa payment of intereat at such rate wou}d be contrary to applicable law. in which - event euch amounts ehall bear interest at the higheet rate permieaible under applicable law. Nothing rnntained in this paragruph 7, ahall reqnire Lender to incur any eapense or take any action hereunder. ; ~ ~ ~ ~ 6o~K 3U1 PA~E 630 ~ ~ . ~ ~ - _ _ _ , ~ _ ~ ~ ~ _ _ ~ _ _ ~.Y _ _ . s ~ .