Loading...
HomeMy WebLinkAbout1161 Borrower and Lender covenant and agnate es folbws: 1. Payment of Priaclpal and Interest. Borrower 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 oq any Future Advances secured by this Mortgage. 2. Fonda for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly instaibaaents of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Fonda")equal to o~~- twelfth ofthe yeerlytaxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plea one- twelfth ofyearly premium installments for hazard insurance, plus onetwelfth of yearly premium inatalLaents 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 Fliada shall be held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Fonda to pay said taxes, assessments. insurance premiums and ground yenta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aeseeaments and bills, ualeas Lender pays Bozrower interest on the Fande and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execation of this Mortgage that interest on the Funds shall be paid to Borrower, and unless 'such agreement is made or applicable law regaires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit b the Flinch was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the F1mds held by Lender, togeWer with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments. insurance premiums and ground yenta, shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground teats as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of P1mds. If We amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount neoeeaary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Leader shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is Bold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of We Property or its acquisition by Lender, any Funds held by Lender at the time of application ae a credit against the same 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 Leader first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then b 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 taxes, assessments 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 undei paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompily_furniah to Lender all notices of amounts due under this paragraph, and in the event Borrows: shall make payment directly, Borrower shall promptly furnish 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 arch lien eo 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 rnnteat 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 of any part thereof. 5. Hazard Insarance. Borrower shall keep We improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards ae Lender may require and in such amounts and for such 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 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 inawance 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 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 thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all r+eoeipte of paid premiums. In the event of lase, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property 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 sot economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied j 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 Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the arms secreted by this 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 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 ie acquired by Lender, all right, title and interest of Borrower in and to any 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 eztent of the soma secured by this s Mortgage immediately prior to each sale or acquisition. ~ 6. Preservation and tdaintenance of Property; Leaseholds; Copdominums; 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, Borrower 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 snit development, and constituent documents. If a 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. ~ Protection of Lender's 3ecnrity. Iff Harrower fails to perform the covenants sad agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest is the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrapt or decedent, then bender at Lender's option,npon ~ notice to Borrower may make such appearances, dubnrse each sums and take each action as is necessary to protect Lender's interest, iaclndiag, but not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repairs. If Lender rogmred mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's sad Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Aay 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, each 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 b~om time to time on outstanding principal ender the Note nnlees payment of interest at each rate would be contrary to applicable law, in which ' i ~ event such amounts shall bear interest at the highest rate permissible ender applicable law. Nothing rnntained in this paragraph shall require Lender to incur any expense or take any action hereunder. F s i t X06 ~11s0 . - _ -