Loading...
HomeMy WebLinkAbout1048 J 1 E3orrower and I.ende~ covenant and a~ree as followe: l. Payment of Principal and Intereet. Eior~ower ahall promptly pay when due the principal of and intereat on the indeblednese evidenced by the Note, ptepayment a~d late chargee ae pmvided in the Note, and the principal of a~d interest on eny Ftiture Advancea secund by thie Mortgage. 2. Ftinda for Tiucea and lasurance. Subject to applicable law or to a written waiver by l.ender, I3~?r~ower ahall pay to l.ender on the day monthly inatallments of principal and intereat are payable under the Note, uatil the Note is paid in full, a eum (herein "F unda") equal to one twelfth of the yea~ly taxes and asaesaments which may attai~ priority over thia Mor:gage, and ground ~enta on the Property, if any, plua one twelfth of yearly premium inatallmenta for hazard inaurance, plus onetwelfth ofyearly premium inatalimente for mortgage insu~ance, if any, all as reaso~ably estimated initially and from time io time by I.ender on the baais of aeseasments and billa and reasonable estimatea thereof. 'l~e FLnds ahall be held in an institution the depoeits or accounte of which are insared or guaranteed by a Federal or State agency (including Lender if Le~der ie auch an institution). I.ender shall apply the Funda to pay said taxee, asseae?uenta, ineurance premiums and ground rents. I.ender may not charge for eo holding and applying the ~nde, analyzing eaid account, or verifying end compiling eaid asaeasments and bills, unlese l.ender pays Borrower intereet on the Flinda and applicable law permita I.ender to make auch a charge. Borrower and Lender may agree in writing at the time of esecution of this Mortgage that interest on the ~nde ahall be paid to Fiorrower, and unleaa such agrcement is made or applicable lew requires euch intereat to be paid, Lender ehall not be required to pay Borrower any interest or earnings on the Ftinds. Le~der shall give to Borrower, without charge, an annual accounting of the Funda showing credita and debite to the Funds and the purpoee for which each debit to the ~?nde was made. The Ftinde are pledged ae additional aecwity for the aume secured by this hiortgage. If the amount of the ~nda held by Lender, together with the fulure monthly inntallmenta of Funda payable prior to the due datea of taxea, ass~amenta, ineorance premiuma and ground renta, ahall exczed the amount required to pay said taxes, aseesamente, inaurance premiuma and ground rente se they fall due. euch e:ceae shall be, at Rorrower s option, either prompdy repaid to Borrower or c~edited to Borrower on monthly inatallmente of ~nde. If the amount of the ~nda held by I.ender ahall not be eufficient to pay taxes, aeaesamente, inaurance premiume and ground renfa ae they fall due, Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Bormwer requeating payment thereof. Upon payment in full of all euma secured by this Mortgage, Lender shall promptly refund to Borrower any funde held by Lender. If under paragraph 18 hereof the Property ie aold or the Property is otherwiee acquired by L.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ita aoquisition by Lender, any F~nda held by Lender at the time of application se a credit againet the sums secured by this Mortgage. 3. Application of Paymenta. Unlesa applicable law provides otherwise, all payments received by l.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereot, chen to interest payable on the Note. then to the principal of the Note, and then to interest and prinripal on any Future Advancea. 4. Chargee; Liena. Botrower shall pay all taxes, assessments and other charges, fines and impositions attributahle to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereo[or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all ~oticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to l.ender 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 ahall agree in writing to the payment of the obligation aecured by such lien in a manner acoeptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the improvementa now e:isting or hereafter erected on the Property inaured against loss by fire, hazarde included within the term "extended coverage; ' and auch other hazards as Lender may require and in such amounts and for such periods as Lender may tequire: provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regiilations governing activitiea of I.ender, or that amount of coverage required to pay the auma secured by this Mortgage, ~ hichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrawer subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policiex shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by Borrowet making payment, when due, directly to the insurance carrier_ All insutance policies and renewala thereof ahall be in form acceptabie to Lender and ahall include a standard mortgage ciause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower shail promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of losa, Borrower ahall give prompt notice to the insurance carrier j and Lender. Lender may make proof of loss if not made promptly by Borrower_ Unleas Lender and Borrower otherwiee agree in writing, insurance proceeda shall be applied to reatoration or repair of the Property damaged, pmvided such restoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired_ If auch reatoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeda ahall be applied " to the aums secured by this Mortgage, with the e:cese, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier of~ers to aettle a claim for i inaurance benefits. Lender is authorized to collect and apply the insurance proceeds at Lender's option either to reatoration or repair of the E Property or the suma secured by thie Mortgage. s Unlesa Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not extend or poatpone the due ~ date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amonnt of auch inatallmente. If under paragraph 18 ! hereof the Froperty is aoquired by Lender, all right, tiUe and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or soquiaition shall pass to Lender to the e:tent of the sums aecured by this ~ Mortgage immediately prior to auch sale or aoquisition. E 6. Preservation and Maintenance of Propetty; Leaseholde; Condominums; Planned Unit Developments. Borrower ahall keep ` the Propetty in good repair and shall not commit waate or permit impairment or deterioration of the Property and ehalt rnmply with the t proviaiona of any lease if this Mortgage ia on a leaeehold. If thia Mortgage ia on a unit in a condominium or a planned unit development, i Borrower ahall perform all of Botrower a obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the rnndominium or planned anit development, and constituent documents. If a , j condominium or planned unit development rider is executed by Borrower and recorded together with thie Mortgage, the oovenants and ~ 3 agreements of such rider shall be inrnrporated into and ahall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof ~ 7. Protection of Lender'e Se~.~arity. If Borrower feila to perform the oovenante and agreementa contained in this Mortgage, or if eny ; action or proceeding ie commenced which materially affecte I.ender'e interest in the Property, including, but not limited to, eminent domain, s insolvency. oode enforcement, or arrangemeate or pmoeedinge involving a bsnkrupt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may make auch appearances, dieburee such eums and talce auch action as is neoeeaary to protect Lender's inteseat, including, but not IimiLed to, diebureement of reseonable attorney's feee aad entry upon the Property to make repaire. If Lender required > mortgage ineurance aa a oondition of mal~ing the loan sec~red by thia Mortgage, Borrower ehall pay the premiums required to maintain anch insuranoe in effect until euch time aa the requirement for euch inaurance terminatea in accordance with Borrower'e and Lender s written egreement or applicable IBw. Borrower shall pay the amount of all mortgege inenrance premiums in the manner pmvided under paragreph 2 hereof. My amounts diebureed by Lender persuant to thie paragraph 7, with intereet thereon, ahall beoome additional indebtedneas of Borrower eecured by thia Mortgage. Unleae Borrower and I.ender agree to othe; terms of payment, such amounte ehall be payable upon ? notice from I.ender to Borrower requesting payment thereof, and ahall bear intereat from the date of diabursement at the rate payable from ~ time to time on outatanding principal under the Note unlese payment of intereat at auch rate would be oontrary to applicable law, in which ~ event such amounta ehall bear intereat at the higheet rate permieaible under eppiicable law. Nothing contained in thia paragraph 7, ehall _s require Lender to incur any expenae or teke any action hereunder. s ao~~ 30`l ~ 10~48 ~ ~ . _ ~ ' 2