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HomeMy WebLinkAbout2920 . • s ~ - c l ; t s t l+ ~i Borrower and Lender covenant and agree as follows: 1. Payment o! 1?riaeipal and Interest.' Borrower shall promptly pay when due the principal of and interact on We indebtedness evidenced by the Nots, prepayment and late charges as provided in the Note, and the principal of and interest on any Ptiture Advances secured by this Mortgage. 2 Funds for Ta:ea and lnsuraace. 3ubjed 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 Note. until the Note is paid in full, a sum (herein "Funds")equal to one- twelfth ofthe yearly texas and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any, plusone- ~ twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yearly prwnium installments for mortgage insurance, if any, ell as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fbnds shall be held in an inditntion the deposib or accounts of which are insured or guaranteed by a Federal or State agency ' (including Lender if Lendm is such an inatitution)_ 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 Finds, analyzing said account, or verifying and compiling said assessments and bills. udess Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrows: and Lender may agree in writing at the time of ezecution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless ouch agreem~t 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 F1mds. 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 Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by Lender, 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 to:es, assessments, insurance premiums and ground yenta as they fall due, such ezoesa shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrows on monthly installments of Funds. Tf the amount of the Funds held by Lender shall not be sufficient to pay fazes, assessments, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up We deficiency within 30 days hom the date notice is mailed by Lender to. Borrower requesting payment thereof. Upon payment is full of all earns secured by this Mortgage, Lender shall promptly refund to Borrower any funds held byLender. Ifunder paragraph 18 hereof the Property is soW or the Property ie otherwise acquired by Lender, Lender shall apply, no later than irmediately prior to We sale of the Property or its acquisition by Lender, any Flinch held by Lender at the time of application ae a credit against the sums 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 Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Plitnre Advances. 4. Charges; Liens. Borrower shall pay all fazes, 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 under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this 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 this~Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agrer 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, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now eziating 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 such amounts and for such periods as Lender may require; provided, that 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 the sums 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 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 the insurance carrier. ~I All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and inform 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 receipts of pair' premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance pr~ooeeda shall be applied to restoration or repair of the Property damaged, provided each restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such I restoration or repair is not economically feasible or if We security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with We 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 opera to settle a claim for insurance benefits, bender is authorized to collect and apply the insurance proceeds at Lendda option either to restoration or repair of the ~ Property or the sums secured 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 6 date of We monthly inatallmenta 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 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otPropertq; 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, i Borrower shall perform all of Borrower's obligations under the declaration or oovenante 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 condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of ouch rider shall be inrnrporated 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. ar if any action or proceeding is eommenoed which materially agects Lendds interest in the Propaty, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bandmipt or decedent, then Lender at Lendds option,upon notice to Borrower may make such appearances, disburse such same and take such action as is necessary to protect Lender's interest, s including, but not limited to, diabarsement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required f mortgage insurance as s condition of making the loan secured by Chia Mortgage. Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in aeoordance wiW Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under i paragraph 2 hereof. Any 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, such amounts shall be payable upon g notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law, in which ~ event arch amounts shall bear interest at the highest rate permissible undo applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. i - aaox3Q6 ~f29i6