Loading...
HomeMy WebLinkAbout0507 Bornower und Lender covenant and agree as follawe: l. Payment o[ Princlpal and Iaterest. Borrowar ehall promptly pay wt~en due the p~incipal of and intereat on the indebtedness evidenced by the Note, pnpayment aad late charges aa provided in the Note, and the principal of and intereat on any Fliture Advancee eecuoed by thie Mortgage. 2 Fltnds for Tauea and Iaeurance. Subjecl to applicable law or to a written waiver by l..ender, l3orrower shall pay to l.ender on 1he day monthly installmeota of principal and intereat are payable under the Note, unW the Note is paid in full, a sum (herc~in °F~nds") equal to one twelfth of the yearly taxes and asseaementa which may attain priority over thie MortgaQe, artd ground renta un the Properiy, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installmenta foc mortgage inaurance, if any. all as reaaonably estimated initially and [rom time to time by I.ender on the basis of assessmenta and bills and reasonable ea?imates thereof. The FLnds ahaU be held in an ipetitution the depoeita or accounts of which are ineured or guaranteed by a Federal or State agency (including Lender if Lender ia such an institution). I.ender ahall apply the Flinda to pay said taxes, asseaements, ineurance premiuma and ground rente. Lender may not charge for eo holding and applying the Ftinde, analyzing eaid account, or verifying and compiling said aaeessmente and bilts, unleae Lender paye Borrower intereat on ihe F~nde and applicable lew permits I.ender to make euch a charge. Borrower and Lender may agree in writing aE the time of e:ecution oi thie Mortgage that interest on the Funds shall be paid to Borrower, and unleas ~euch agreement ia made or applicable law requires auch intereat to be paid, I.ender ahaU not be required to pay Borrower any intereat or earninga oA the Funda. Lender ahaU give to Borrower, without charge, an annual accounting of the Funda showing eredite and debits to the Funds and the purpose for which each debit to the Fundu was made. The Funds are pledged as additional eecutity for the auma eecured by thia Mortgage. If the amount of the ~nds held by Lender, together with the future monthly inetallmente of Funds payable prior w the due dates of taues, aesesamente, insurance premiuma and ground renta, shall exctied the amount required to pay said taxee, asaesamenta, inaurance premiuma and ground renta as they fall due, auch e:cess shall be. at Borrower'a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmente of ~nds. If the amount of the Funds held by Lender ehall not be auf~icient to pay taxes, asseaementa, ineurance premiume and ground rents ae they fall due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereot. Upon payment in full of all sums eecured by thia Mortgage, l.ender ehall prompUy refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by L.ender, Lender shall apply, no tater than immediately prior to the sale of the Property or its aoquisition by Lender, any ~nda held by I.ender at the time of application as a credit againet the sums secured by this Mortgage. ~ 3. Application of Paymente. Unleas applicable law provides otherwise, all paymente received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lendet firAt in payment of amounta payable to l.ender by Botrower under paragraph 2 hereof, then to intereat payable on the Note. then to the prinripal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay ali taxcs, a.gsessmenta and other rharges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground mnts, 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 thereof. Borrower ahali promptly furnish to I.ender all noticea of amounts due under thia paragraph, and in the event f3~?rmwer shall make payment directly, E3orrower shall prompdy furnish to I.ender receipts evidencing such paymenta. Borrower ahall prompdy discharge any lien which hns priority over this Mortgage: pmvided, that Borrower shall not be required to discharge any such lien ao long as E3orn~wer xhall agree in writing to the payment of the obligation secured by ,uch lien in a manner acceptable to Lender, or shall in Qcwd faith contest such lien by, urdefend enforcement of such lien in, legal proceedings ~ which operate to prevent the enforcement of the lien or forfeiture of the Property or xny part thermf. 5. Hazard Insurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured againat loas by fi re, hazarda included within the term "eztended coverage." and such other hazards as I.ender may require and in such amounts and for such periods as Lender may require; provided, that [.ender shall not require such co~ erage amount exceeding the minimum, as may be required by state or federal regnlations governing activitiee of Lender, or that amount of coverage required to pay the sums secured by thia hlortgage, whichever is the greater. - The insurance carrier providing the insurance shall be chosen by Borruwer subject to approval by t.ender, provided, that such appro~•al .i~aji Ilvi i~e iiillrisiK~~YitUiV W~iltfieiU. Hii ~l~rlntu~na W~ tlltiufel?~'r ~xlii~it5 al~:ffl i~ El'dlU Itl ihr ttlallllef NIUYIUtlf UIIUr~ p2i[li~;CdNh 'L Re~l'VI O[, ii 'i not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All insurance policies and renewals thereof eha11 be in form acceptable to Lender and shall include a atandard mortgage clause in favor of ' and in form acceptable to [.ender. Lender ahall have the right to hold the policies and renewals thereof, and Boaower shall promptly furnish to i i.ender all renewal notices and all receipta of paid ptemiums. In the event of loss, Born~wer ehall give prompt notice to the insurance carrier i and Lender. Lender may make proof of losa if not made prompdy by Borrower. ~ Unleas Lenderand Borrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property 4 damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeds ahall be applied to the eums secured by this 1liortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ` respond to L,ender within 30 days firom the date notice is mailed by Lender to Borrower that the insurance carrier offera to setde a claim for ~ ineurance benefita, I.ender is authorized to collect and apply the insurance proceeda at I.ender's option either to restoration or mpair of the Property or the auma secured by this Mortgage. Fg Unless Lender and Borrower otherwise agree in writing, any auch applirntion of proceeds to principal ehall not extend or postpone the due ! date of the monthly inatallments referred W in paragraphs 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, tide and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquisition ahalt pass to Lender to the e:tent of the euma secured by thia ~ Mortgage immediately prior to auch sale or aoquisition. ~ 6. Preservation and Maintenance of Property; Leaaeholds; Condominume; Planned Unit Developmenta. Borrowerahall keep ~ the Property in good repair and shall not commit waetr or permit impairment or deterioration of the Property and ahall comply with the z provisions of any leaee if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or e planned unit development, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenanta creatinKor governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and rnnatituent documenta. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of such rider shali be incorporated into and shall amend and supplement the cuvenants and agreemente of this Mortgage as if the ~ rider were a part hereof. ~ ProteMion of Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreemente contained in this Mortgage, or if any " action or prooeeding is commenced which materially affecte Lendei a interest in the Property, including, but not limited to, eminent domain. - ineolvency, oode enforcement, or arrangementa or proceedinge involving a bankrupt or decedent, then Lender at Lender'a option,upon ; notice to Borrower may make euch appearancee, dieburee euch aums and take such action aa ie neceasary to proteci L.ender's interest, - including, but not limited to, diebiueement of reaaonable attorney's feee and entry upon the Property to mal~e repairs. If Lend~ required ~ mortgage ineurance ae a rnndition of making the loan eecured by thie Mortgage, Borrower ahall pay the premiuma required to mainLain ; euch inewance in eNect until euch time ae the requirement for euch ineurance terminatee in accordance with Borrower'a and Lender s writien agreement or applicable [.aw. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ? My emounte diebursed by Lender persuant to thie paragraph 7, with interest thereon, ahall become additional indebtedneas ot g Borrower eecnred by thia Mortgage. Unlesa Borrower and Lender agree to other terma of payment, euch amounts ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall besr intereat from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note unlesa payment of intereet at such rate would be contrary to applicable law, in which ~ event euch amounta ahall bear interest at the higheet rate permisaible under applicable law. Nothing contained in thie paragraph ahall a require Lender to incur any expenee or take any action hereunder. ~ ~ ~ ~ - °:RK 306 507 ~ ~ ~ . r s ~ _