Loading...
HomeMy WebLinkAbout0673 Borrower and I.ende~ covenant and agree as followa: 1. Payment ot Priaclpal and Iaterest. Bormwer ehall promptly pay when due the principal of and intereat on the indebtednese evidenced by the Note, prepayment and late chargee as provided in the Note, and the principal of and intereat on any F~ture Advances eecured by thia Mortgage. 2. Ftinde for Ta:es and lnsurance. Subject to applicable law or to a written waiver by Le~der, Borrower shall pay to I.ender on the duy monthly installmenta of principal and intereet are payable under the Note, until the Note is paid in full, a aum (herein "F unde") equal to one twelfth of the yearly taxee and aseessmenta which may attain priority over this Mortgage, and ground re~te on the Property, if any, plue one~ twelRh of yearly premium inatallmenta for hazard ineura~ce, plusonetwelRh ofyearty pre~nium installmenta for mortgage inaurance, if any, all ea reaeo~abty eatimated initially and trom time to time by l.ender on the basis of asaeaements and biUs and reasonable estimatea thereof. The Fl~nds shaU be held in an inetitntion the deposits or aocounte of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender ia auch an inatitution). Lender ahall apply the I~nda to pay aaid taxes, aseessmenta, inaurance premiuma and ground rents. Lender may not charge for eo holding and applying the ~nds, analyzing said account, or verifying and compiling said aeaeaementa and bille, unlese Lender pays Borrower intereet on the ~nde and appiicable law permita [,ender to make auch a charge. Borrower and Lender mqyr agree in writing at the time of execution of thia Mortgage that intereat on the Ftinda shall br paid to Borrower, and unleas euch agreement ie made or applicable law requirea such intereat to be pa.id. Lender ahall not be required to pay Borrower any intereat or earninga on the ~nds. Lender ehall give to Borrower. without charge, an annual accounting of the ~ds ahowing credits and debite to the Funds and the purpoae for which each debit to the ~nda was made.'11~e Funds are pledged as additional security for the auma eecured by this Mortgage. If the amount of the Ftinda heid by I.ender, together with the future monthly inatallmenta of Funds payable prior to the due datea of taxea. aneesamenta, inearance premiuma and ground renta, ahall e:ored the amount required to pay eaid taxea, aeeeasments, inaurance premiums and ground renta as they fall due, such ezceas shall be. at Borrower s option. either prompdy repaid to Borrower or cndited to Borrower on monthly installmenta of Fl~nds. If the amount of the F~?nds held by Lender ahaU not be sufficient to pay taxes, assesaments, insw~ance premiume and ground rents as they fall due, Borrower shall pay to I.ender any amount nec~eseary to make up the deficiency within 30 daye from the date notice ia msiled by Lender to Borrower requesting payment thereof. Upon payment in full of sU auma secured by this Mortgage, Lender ahall promptly refund to Bortowet any funds held by I.ender. If under paragraph 18 hereof the Property ie eold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the aale of the Property or ite acquiaition by Lender, any Funda heid by Lender at the time of appiication as a credit againat the aums secured by this Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwiee, alt payments rrceived by I.ender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to I.ender by F3orrov? er under paragraph `l hereof, then to intere8t payable on the Note, then to the principal of the Note, and then to interest and principel on any Future Advances. 4. Charges; Liene. Borrowe~ ahall pay all taxea, assessmenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner pQrvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shaU promptly furniah to I.ender all notioea of amounts due under this paragraph, and in the event Borrower ahal) make payment directly, I3ornower shnll promptly turnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortqage; provided, that Borrawer shall not be required to diacharge any such lien so long as Borrower shall aRree in vvriting to the payment otthe obliRation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforrnment of such lien in, legal proceedings which operate to prnvent the enforcement of the lien or forfeiture of the Property or any part thereot. 5_ Hazard Ineurance. Borrower shall keep the improvements now existing or hereafter etected on the Property insured against loss by fire, hazarda included within the tetm "extended coverage," and ssuch other hazards as Lender may tequire and in such amounta and for such periods se I.ender may require; provided, that Lender ahall not require such rnverage amount exceeding the minimum, as may be requirrd by state or federal regulatione governing activities of I.ender, or that amount of coverage required to pay the sums aecured by this lllortgage, whichever ia the greater_ The insurance carrier providing the inaurance shal! be chosen by E3orrower subject to approval by l.ender, provided, that such appn,val shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under paragraph `L hereolur, if not paid in such manner, by Borrower making payment, when due, d'uectly to the insurance carrier_ ~ ' All insurance policiee and renewala thereof ahall be in form acceptable to L.ender and shall include a standard mortgage clause in favor of j and in form aoceptable to Lender. I.endet ahall have the right to hold the policiea and renewale thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all receipts of paid premiuma. In the evenl of loes, Born~wer ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly by Borrower. ~ Unlesa Ler,der and Borrower otherwise agree in writing, insurance prooeeda shall be applied to re8toration or repair of the Propert> damaged, provided such restoration or repair is economically feasible and the s~xurity of this Mortgage is not theteby impaired_ If such ` restoration or repair is not economically feasible or if the secutity of this Mortgage would be impaired, the inaurance proceeda shall be applied , to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to j reapond to L.ender within 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier oPFets to settle a ctaim for f inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lender s option either to restoration or repair of the ~ Property or the auma secured by this Mortgage_ j Unleas Lender and Bortower otherwiee agree in writing, any auch application of prooeeda to prinripal shall not extend or poatpone the due ~ date of the monthly inatallmente referred to in paragrapha 1 and 2 heneof or change the amount of such inatallments. If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds ¢ thereof resulting from damage to Property prior to the eale or aoquiaition ahall pasa to Lender to the e:tent of the sums aecured by this ~ Mortgage immediately prior to auch sale or soquisition. ~ 6. Preservation and Maintenanceof Property; Leaseholda; Condominums; Planned Unit Developments. Borrower shall keep ~ the Property in good repa'v and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the provisiona of any lease if this Mortgage ie on a leasehold. 1f this Mortgage is on a unit in a rnndominium or a planned unit development, ~ I3orrower shall perform aU of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulatione of the condominium or planned unit development, and conatituent documenta. If a ~ condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with this Mortgage, the oovenante and ~ agreements of euch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender's $ecnrity. If Borrower faile to perform the oovenanta and agrcemente contained in thia Mortgage, or if any ~ action or proceeding ie commenced which materially affecfs Lender a interest in the Property~ including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or deoedent, then Lender at Lender'e option.upon ~ notice to Borrower may make auch appearancee, dieburee euch aume and take such action aa is neceseary to protect ixnder's intereet, = inclading, but not limited to, dieb~usement of reasonable attorney'e feee and entry upon the Property to make repaire. If Lender required : mortgage ineurance as a condition of making the loan eec~red by thie Mortgage, Borrower ehall pay the prnmiume reqaired to msintain ~ euch insurance in eftect nntil euch time as the requirement for euch inaurance terminates in ac~cordance with Borrower's and Lender s written agreement or applicable Iaw. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner pmvided under ; paragraph 2 hereo[. - Any amounte dieburaed by Lender persuant to thia paragraph 7, with interest thereon, ahall become additional indebtednees of ~ Borrower eecured by thia Mortgage. Unleae Borrower and Lender agree to other terma of payment, such amounte ahall be payable upon ~ notice from [.ender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diebursement at the rate payable ~om time to time on outatanding principal under the Note anleas payment of intereat at euch rate would be rnntrary to applicable law, in which ; event auch amounts ahall bear interest at the highest rate permiasible under applicable law. Nothing contained in thia patagraph 7, ahal) ~ require Lender to incur eny expense or take any action hereunder. ~ ~ - ~ j k.3U~ - _ z . ~7 ; ~ ~ . . _