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HomeMy WebLinkAbout0860 Borrower and l.ender covenant and agree se follows: . 1. Payment oi Principal sad InteresR Borrower ehall prompUy pay when due the principal of and intereat on the indebtednees evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and inter~t on any FLture Advances secured by thie Mortgage. ~ 2. I~lt~tde tor Tues and Ineuraace. Subject b applicable law w to a written waiver by Lender. Borrower shall pay to I.ende~ on the day monthly inetallmenta oi principal and intereet are payable under the Note. unW the Note is paid in fuU. a aum (herein "l~linds") equal to ono- twelftli of the yearly ta:es and aseeesmenta which may attain piriority ov~r thie Mortgage. and ground renta on the Propedy. if any, plua one tweltth of yearly premium instellments for hazard inaurance. plua onttwelRh of yearly premium installments for mortgage insurance. if any. all as reasonably eatimated initially and trom time to time by I.ender on the basis of aaseasmenta and bills and reasonable estimates thereof. The ~nds shall be held in an institution the deposits or accounta of which an insured or guaranteed by s Federal or State agency (including Lenda if Lender is such an institution). Lender ehall apply the Fu~da b psy said ta:es, assesamenta. inauranoe premiums and ground nnts. Lender m~y? not charge for so holding and applying the fi~c?ds, analyaing said account, or verifying and compiling eaid aeeessmente and bills, unleaa Lender pays Borrower iAt~eat oa the fi~nda and applicable law peranite Lender to make euch a charge. Borrower and I,ender may agree in writing at the time of e:ecution of this Mortgage that interest on the PLnds shall be paid to Borrower, and unleea s~uh agrcemeat ie made or applicable laa requires wch int~est to be paid. Leader shall aot be e~equired to pay Borrower any intereat or eamings on the I~nda. Lenda shall give to Borrower. ~vithout charge. an annual accounting of the Ftinds showing credite and debits to the Funds and the puepoee for which each debit to the ~nds wae made. '14~e Funds are pledged aa additional security for the aume eecured by this Mortgage. If the amonnt of the ~nde held by Lender, together with the future monthly inatallments of Ftinds payable prior to the due dates of ta~cea, asaesamenta, insurance premiuma and ground rente, shall e:e~ed the amount required to pay said Laxea. aaeesamente. inaurance premiuma and ground rente as they fall due, such e~tcees shall be. at Bo~rower s option, either pmmptly repaid to Borrower or credited to Borrower on monthly inetallmenta of I~Lnds. If the aa~ount of the i~ade held by I.ender ahall not be aufCcient b pay ta:es, aeaessmente. inaurance premiums and ground rents se they fall due. Borrower ahall pay to l.ender any amount nece~eeary to mal~e up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in fuU of all ecums secured by thie Mortgage. Lender shall prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ie sold or the Prope~ty ie otherwise acquired by Lender. Lender ahall apply, no laterlhan immediately prior . to the eale of the Property or ite aoq~isition by_ Lender, any I~nda held by Lender at the time of appGcation as a credit againet the euma eecured by thia Mortgage. 3. Applieation of Payments. Unleas applicable law provide8 otherwiee, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payab[e on the Note, then to the prinppal of the Note, and then to interest and principal on any FaWte Advances. 4. Charges; Liens. Borrower shall pay all taxes, assesements and other chargee, fines and impoeitiona attributable to the Property which may attain a priority ove~ this Mortgage, and leasehold paymenta orground rents, i[any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall pmmptly furnieh to Lender aU notices of amounts due under thia paragraph, and in the event Borrow~ shall make payment directly, Borrower ahall promptly furnish to Lender receipta evidencing auch paymenfa. Borr~o+~et ehall promptly discharge any lien which has priority over thia Mertgage; provided, that Borrower shall not be required to discharge any snch lien eo long as Borrower shall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or sh 1 in` good faith conteat such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the~en or forfeiture of the Property or any part thereof. _ 5. Hazard Insusaace. Borrower shaU keep the inprovementa no~r e:iating or hereafter erected on the Property insured againef losa by fire. hazarde included within the term "Pactended ooverage," and auch other hazards as I.ender may require and in such amounts and for such periods as Lender may.require; pmvided, that Lender shall no! require such ooverage amount e:ceeding the minimum, as may be required by atate or federal regulationa goveming activities of Lender, or that amount of eoverage required to pay the auana secured by this Mortgage, whichever ia 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 unreusonably withheld. All premiums on insurance policies shall 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. All insurance policies and renewals thereof ahall be in form acceptable to Lender and ahall include a atandard 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 notiees and all reoeipts of paid premiuma In the event of loss, Borrower shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loea if not made promptly by Borrower. i Unleas Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property ~ damaged, provided euch reetoration or r~epair ie economically feaaible and the eecority of this Mortgage is aot thereby impaired. If such i reatoration or tepair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proce~da shall be applied to the sums secured by thie Mortgage, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower. or if Borrower faile to respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the inaurance carrier offera to aetde a claim for insnrance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender a option either to restoration or repair of the Property or the suma eecured by this Mortgage. ~ Unlesa Lender and Borrower otherwiee agree in wridng, any such application of praceeds b principal shall not eztend or poatpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Pmperty ie aoquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting feom damage to Property prior to the sale or acquisition shall pase to Lender to the e:tent of the anms eccnred by thia 11lortgage immediately prior to such sale or acquiaition. 6. Preaervation and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmente. Borrower shall keep the Property in good repair and ahall not rnmmit waete or permit impairment or deterioration of the Property and ahall oomply with the proviaions of any leaee 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 Barrower's obligationa under the declaration or covenanta creatingor governing the oondominium or planned unit developmen~ the by-laws and regulatione of the wndomininm or planned unit development, and conatituent dceuments. If a condominium or planned unit development rider is ezeruted by Borrower and recorded together with thia Mortgage. the oovenants and agreementa of such rider ahall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of I.ender's 3ecarity. If Borrower feile to per[orm the oovenanta and agreements oontaiaed in this Martgage. or if any action or prooeeding is commenced which materially affecte I.ender's interest in the Property, induding, but not limited to, emin~t domain. ~ insolvency, aode enfor~oement, or arrangementa or proceedinga involving a bankr~pt or deoedent, then Leader at Lei?der's option,upon ~ notice to Borrower may make euch appeareaae, disburee such euma and take snch action sa is neceaeary to protect Lender's interest, inclnding, bnt not limited to, dieb~ent of reasonable attorney'e feee and entry upon the Property to make repairs. If L.ender required ~ mortgage insnrance ae a oondition of malcing the loan eecvred by thie Mortgage. Borrower ehell pay the preminms required to maintain auch ineurance in effect until anch time ae !he requirement for euch insurance terminates in aocordance with Borrowe~r's and I.endet'a ~ written agrcement or applicable Law. Borrower ehall pay the amount of all mortgege inanrance premiuma in the menner provided nnder paragraph 2 hereof. Any amounts diebureed by Lender persuant to this paragraph 7, with intereat thereon, ehall beoome additional indebtednees of Borrower secured by this Mortgage. Unl~e Borrower and L.ender agree to other terms of payment, euch amounta ehall be payable upon notice trom I.ender to Borrower requesting payment thereof, and shall bear intereet from the date of diabursemeat at the rate payable from time to time on outatanding prinripal under the Note unleae payment of intereet at euch rate would be coatrary to applicable law. in which event auch amo~nta ahall bear intereet at the higheet rate permiseible under applicable law. Nothing oontained in this paragraph 7, shall require Lender to incur any e:penae or take any action hereunder. _ ~~RK 302 860 _ _ _ _ _ _ , v _ _