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HomeMy WebLinkAbout1983 Borrower and Lender ooveQant and agree as follows: I. Payment of Priaeipal-and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intereaton any Future Advances secured by this Mortgage. 2 Funds for Ta:ea and Iasurartoe. Subject to applicable law or b a written waiver by Lender. Borrower shall pay to Lends on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in fi+U, a sum (herein "Funds' equal to ono- twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plw ono- twelRh of yearly premium instalhaents for hazard insurance. plus ono-twellth of yearly premium installments for mortgage irraurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which era insured or guaranteed by a Federal or State agency (including Lender if Lender is arch an institution). Lender shall apply the Funds to pay said taxes, assessments. insurance premiums and `ground yenta. Lender may not charge for so holding and applying the Funds. analyzing said aeoouat, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at We time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requiren such interest to be paid, Lender shall not be required to pay Borrower any intered or earnings on the Funds. Lender shall give to Bosrower, without charge. an annual aooounting of We Funds showing credits and debits to the Fonda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage, ii If the amount of the Fuada held by Lender, together with the future monthly3riatallmenta of Fonda payable prior to the due dates of tares, assessments, insurance premiums and ground Trots, shall ezoaed the amount required to. pay acid fazes, asaessrnents, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of firada. U We amount of the Funds held by Lender shall not be sufficient to pay fazes, aaeeeameats, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Uunda paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. bender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the soma secured by this Mortgage. . 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender 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 oa the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4.Charges;.Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when.due, dir+ectiy to the payee thereof. Borrower shall promptly furnish to I.ender atl 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 . Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by uch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal pFoceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Iasurence. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended rnverage," and each other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall notrequire such coverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of rnvaage required to pay the sums 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 nut 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 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 notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of lose 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 unpaired. 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, viththe ezcess, ifany,Paid !oBorrower- 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 collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the sums secured by-this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. U under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and is 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 soma secured by this Mortgage immediately prior to arch sale or acquisition. 6. Preaervataon and Maintenance of Property; Leaseholds; Condondinums; 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 any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shaA perform all of Borrower a 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 agr~eementa 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. U Borrower fails to perform the covenants and agreements contained in this Mortgage, or if aqy action or proceeding is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, thud Leader at Lender's optionnpon notice to Borrower may make such appearaaoee, disburse each arms and take sack action as is necessary to protect Leaders interest, including, but not limited to. disbursement of reasonable attorney's fees and entry upon the Property to make repairs. U Leader 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 is aornrdaace wiW Borrowerb and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this Paragraph with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrows sad Lender agree to other tame of payment, such amounts shall be payable upon notice from Lends to Borrower requesting payment thereol, and shall bear interest from the date of disbursement at the rate payable from time to tune on outstanding principal ands the Note unless payment of interest at each rate would be contrary to applicable law. is which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lerida to incur any expense or take any action hereunder. gU~~ 3U2 1983 ~ - _