Loading...
HomeMy WebLinkAbout1412 Borrower and Lender covenant and agree a. folbwa: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtednew 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 this Mortgage. 2 Funds for Tazea and Inautanos. 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 Nots, until the Note is psid in full, a sum (herein "Funds") equal to one twdfW of the yearly lases and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw oar twelfth of yearly premium inatalhnenta for hazard insurance, plw one•tweltW ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lendm on the basis of asaeeamenta and bills and reasonable estimates thereof. The fiinda shall be held in an institution the deposits or aooonnts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Leader shall apply the Funds to pay said lases. assessments, insurance premiums and ground rents. Lender may not charge far so holding and applying the Funds. analyzing said account. or verifying and compiling said assesamenta and bills, nnlesa Lender pays Borrower interest on the Fonda and applicable law permits Lender b make such a charge. Borrower and Lends may agree in writing at the time of a:scarier of this MoKgage that interest on the Funds shall be paid to Borrower, sad unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debits to the Funds and We purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the auras secured by this Mortgage. If the amount of the Funds held by Leader, together with the future monthly installments of Ponds payable prior b the due dates of fazes, asaeesments, insurance premiums and ground rents. shall exceed the amount required to pay acid lases, assessments, insurance premiums and ground rents as they fall dw, such eoeas shall be, at Borrowds option, either promptly repaid to $orrowe: or credited to Borrower on monthly installments of Fends. If the amount of the Fends held by Lender shall not be sufficient to pay razes, assessments, insurance premiums and ground yenta as they fall due. Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to $orrower requesting payment WereoL Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. bender shall apply, no later Wan immediately prior to We sale of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the arms secured by this Mortgage. 3. Application of Payments. Unless applicable law provides oWerwise, all payments received by Lender under We Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to bender by Borrower under paragraph 2 hereof, then to interest payable on We Note, Wen to We principal of the Note, and Wen to interest and principal on any Future Advances 4. Charges; Liens. Borrower shall pay all fazes, asseaementa and other charges, fines and impositions attributable to We Property which may attain a priority over this Mortgage, and leasehold payments or ground yenta, if 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 W ereof. Borrower shall promptly furnish to Lender all notices of amounts due under Win 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 Win 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 contest such lien by, or defend enforcementof such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of We Property or any part thereof. b. Hazard Insurance. Borrower shall keep the improvements now ezisting or hereafter erected on the Property insured against lose by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may require and in each amounts and for such periods es bender may require; provided. Wat 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 We soma secured by this Mortgage. whichever is We 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 We insurance carrier. All insurance policies and renewals Wereof 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 W ereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In We event of lass, Borrower shall give prompt notice to We insurance carrier and Lender. Lender may make proof of loss if not made promptl~r by Borrower. ~ } Unless Lender and Borrower oWerwiae agree in writing, insurance procceds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair ib economically feasible and We security of this Mortgage is not Wereby impaired. If each restoration or repair is not economically feasible or if the security of Wia Mortgage would be impaired We insurance proceeds shall be applied to We soma secured by this Mortgage, wild We excess, if any, paid to Borrower. If We Property is abandoned by Borrower, or if Borrower fails to I respond to Lender wiWin 30 days from the date notice is mailed by Lender to Borrower Wat the insurance carrier offers to nettle a claim for insurance benefits, Lender is auWorized to collect and apply We insurance proceeds at Lender a option either to restoration or repair of the 1 Property or We sums secured by.thia Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not eztend or postpone the due date of We monWly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender 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 fiom damage to Property prior to We sale or aoquiaition shall peas to Lender to We eztent of the soma secured by thin Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums;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 wild We provisions of any lease if Win Mortgage is on a leasehold. If this Mortgage u on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations ender We declaration or covenants creatingor governing We condominium or planned unit development, We by-laws and regulations of We condominium or planned Wait development, and oonstitnent docnmenta. U a condominium 'or planned unit development rider is executed by Borrower and recorded togeWer wild this Mortgage, We 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 perform We covenants and agreements contained in this Mortgage, or if any ~ action or proceeding is commenced which materially affects I.ende~a interest in We Property, including. bet not limited to, eminent domain, insolvency, code enforoment, or arrangements or proceedings involving a bankrupt ar decedent, Wen Lender at Lendds option,apon notice to Borrower may make such appearances, disburse each arms and take such action as is necessary to protect Lroder'e interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender required f mortgage inuurance as a condition of making We loan secured by Win Mortgage. Borrower shall pay We premiums required to maintain each insurance in effect until such time as We requirement for each insurance terminates in accordance wild Borrower's and Lendds ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under a paragraph 2 hereof. Any amounts disbursed by Lender pereuant to this paragraph 7, wild interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older teens of payment, such amounts shall be payable upon notice fiom bender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under the Note unless payment of interest at arch rate would be contrary to applicable law, in which event such amounts shall bear interest at We highest rate permissible ender applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereaader. "a aocK~~ ra~f1411 3 y_ ~ ~ - -