Loading...
HomeMy WebLinkAbout1327 Burrower and lender covenant and agree as follows: 1. Payment of Principal and lnterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges us provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 'I. Funds for Tares and Insurance. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to lender 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 W one twelfth of the yearly taxes and ctasessmenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, 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 an insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, 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 lender may agree in writing at the time of execution of this Mortgage that interest on the F ands shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall 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 1•titnda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the I•ltnds held by [.ender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, uiaurance premiums and ground rents as they fall due, such excess shall be, at Botrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Furida. It the amount of the Fonda held by !.ender shall not be sufficient to pay taxes, assessments, insunance premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30days from the date notice ie 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. 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 Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender under the Note and paragraphs 1 and 2 hereof shall be applied by Ixoder first in payment of amounts payable to Lender by Borrower under paragraph 'l 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. t. Charges; liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which - nay at.ain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph `L hereof or, sf not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Born~wershall promptly furnishto Lender :sll notices of amounts due under thin paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnishto !,ender receipts: evidencing such payments. &>rrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that fts:rrov~•er shall not be required to discharge any such lien so long us Borrower shall agree in writing to the payment of the obligation secured by much lien in a manner acceptable to Lender, or shall in g~wd faith contest such lien by, or defend enfomcment of such lien in, legal proceedings •..hich operate w prevent the enforcement of the fen or forfeiture of the Property or any part thereoL Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by hre, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as !.ender may require; provided, that [.ender shall not require such coverage amount exceeding the minimum, as may be required by Mate or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurim•~• shall be chosen b>• Borrower suhjcrt to approval by lender; pmvided, that such approval mall not tK• unreasonably withheld. All premiums on insurance policies shall la• paid in the manner prucided under paragraph 2 hertvif or, if not paid in such manner, by Borrower making payment, when due, dircxth• to the insurann• carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of j and in form acceptable to Lender. !.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to s.erder all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier j and Lender. Lender may make proof of los_g if not made pmmptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property I damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ar if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured 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 !.ender to Borrower that the insurance carver offers to settle a claim for insurance benefits, !.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Q Property or the sums secured by this Mortgage. Unless (xnder and Borrower otherv~lse agree in writing, any such application of pmceed$ 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. if under paragraph 18 ~ hereof the Property is acquired by Lender, all ri ht, title and infereat of Borrower in and to an - i q y insurance policies and in and to the proceeds s thereat resulting from damage to Property prior to the sale or acqutsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Naintenanceof 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 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, Forrower shall perform all of Borrower's 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 1' condominium or planned unit development rider is executed 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. ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any s action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, cwde enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon - notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, i 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, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof- i Any amounts disbursed by !.ender 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 Bormwer requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from _1 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 such amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph 7, shall - = require Lender to incur any expense or take any action hereunder. y 3 ~ so~304 P~~13~~ =r a'.