Loading...
HomeMy WebLinkAbout1995 Borrower and Lender eoveaant and agree as follows: 1. Payment of Principal and Interest. Borrows: 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 interest on any Future Advances secured by thin Mortgage. Z. Fonda [or Tsses and Inauranoe. Subject b applicable law or to a written waiver by Lender, Borrower shall pay to [.ender on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds") equal to one- twelftb ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plea one twelRh of yearly premium installments for hasard insurance, plus onstweltth ofyearly premium installments for mortgage insurance. uany. ail as reawnably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Farads shall be held in an institution the depodta or accounts of which are insured or guaranteed by a Federal or Stab agency ~ (including Fender if Lender is such an institution). Lender shall apply the Funds to pay said tares, assessments, insurance premiums and ground yenta. Lender may not charge for so holding and applying the. Farads, analyzing said account, or verifying and compiling said asaesaments and bills. unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless sucb agreement is made or applicable law requires such interest to be paid, Lender shaA not be required to pay Borrower any interest or earnings on the Funds. Lender shag give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Fends was made. The Funds are pledged as additional security for the some secured by this Mortgage. If the amount of the Fonda held by Lender. together with the future monthly installments of Fends payable prior to the due dates of fazes, eseesaments, insurance premiums and ground rents, shall exceed We amount required to pay said fazes, assessments. insurance premiums and ground rents as they fall doe. such ezoeas shall be, at Borrower a option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Ftmds. If the amount of the Funds held by Lender shall not be sufficient b pay taxes. assessments, 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 b Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower aqy funds held by Lender. If 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 Properly or its acgaisition by Lender, any Funds 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 on 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 fazes, aaseeamenta 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 anch 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 furnsh 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 such lien in a manner acceptable to Lender, or shall in good faith cont~eat 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 linsnrance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and auc6 other hazards ss Lender may require and in such amounts and for anch periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding 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 carries 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 b Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender.Lender shall hags 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 loss if not made promptly by Borrower. i Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided each restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such E 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 eecared 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 aeWe a claim for ~ insurance bene5te, Lender is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Property or the soma 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 each installments. If under paragraph 18 hereof the Property is acquired by Lender, aU right, title and interest of Borrower in and to shy 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the 1?iroperty 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 is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creatingor governing the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and oonatituent documents. If a condominium or planned unit development rider is ezecated 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. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lenders interest in the Property. including, bet not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or deoedeat, then Lender at Lenders option,upon notice to Borrower may make such appearances, disburse such sums and take anch action sa is necessary to protect Lender's interest, including, 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, Borrows shall pay the premiums required to maintain sack insurance in effect until each time as the requirement for anch insurance terminates in accordance with Borrower's and Lenders written agreement or applicabk Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender pari~graph 2 hereof. Any amounts disbursed by Lender persuant 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 event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Linder to incur any expense or take any action hereunder. ga~K ~U2 ;~~1995 A ~ _ 3