The URL can be used to link to this page

Home My WebLink About1579 I~NIFORat COVEI~AA"r3. BOrrOwer and Lender covenant and agree as [ollosvs: 1. Pa}went o[ Principal and Interest. &uross•er shall promptly pay when due tl?r principal o[ and interest on the indebtedness evidenced by the Note. prepayment aue! late charges as provided in the \ute, and the principal of and inter- est on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subjt;ct to applicable law or to a written waiver by l.errcler, Borrower shall pay to Lender on the day monthly installments of principal and interest are pa}•abl r lee the Note, until the Note is paid in full, a sum (herein "Funds") equal to oue•tweltth o[ the yearly taxes and a ssmruts which may attain priority over this Mortgage. and ground rents on the Property, it any, plus one•twelfth of },early premium installments [or harard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, i( any, all as nasuuably estimated initially and [rom time to time by Lender on the basis of assessments and bills and reasonable estimates thercti~f. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or state agency (including Lencler i[ Lender is such an institution). lender shall apply the Furrds to pay saiel taxes, assessments, insurance premiums and ground rents. Lender may not charge [or so holding and apph•ing the Funds, analysing said ac- count, or verifying and compiling said assessmenu and bills. unless Lender pays Borrower interest on the Funds and ap• pliwble law permiu Lender to make such a charge. Borrower and Lender may agree in writing at the time o[ execution of ( this \[ortg-age that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law j requires such interest to be paid. Ixnder shall not be required to pay Borrower any interest or earnings on the Funds. Lender i shall give to Borrower, without charge, an annual accounting of the Fundx showing credits and debits to the Funds and the i purpose for which each debit to the Funcis was made. The Funds are pledged as additional securit}• for the sums secured by this Mortgage. if the amount of the Funds held by Lender, together with the future monthly installments o[ Funds payable prior to F the due dates of taxes, assessments, insurance premiums and ground rents, shall exceccl the amount required to pay said ~ taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funcis. If the amount of the Funds held by Lender shall not be su[[icient to pay taxes, assessments, insurance premiums and grourrei rents as the}, fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}S from the date notice is mailed bti• Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall prompth• refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold ol• the Property is otherwise acquired b}• Lender, Lender shall apply, no later than immediately prior to the sale o[ the Property or its acquisition b}• Lender, an}• Funds held by Lender at the time of application as a credit against the sums secured b}• this \[ortgage. 3. Application of Payments. Unless applicable law provides otherwise, ail payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied. by Lender first in pa}•ment of amounu pa}•able to Lender by Borrower under paragraph 2 hereof, then to interest payable on the \ote. 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 man- ner provided under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the pa}•ee thereof. Borrower shall prompth• furnish to Lender all notices of amounts due under this paragraph,jand in the eceut Borrower shall make payment directh•. Borrower shall promptly furnish to Lender receipts evidencing such pa}Trrents. Borrower shall promptly discharge any lien which has priority mer this Mortgage: provided. that Borrower shall not be re- quired to discharge any such lien so long as Borrower shall agree in writing to the pa}•meut of the obligation secured by such lien in a manner acceptable to Lender, or shall in gc>,xl faith contest such lien by, or defend enforcement of such lien in, le- gal proceedings which operate to prevent the enforcement of ehe lien or forfeiture of the Property or any pare thereof. 5. Hazard Insurance. Borrower shall keep the improvements rrow existing or hereafter erected on the Property in- sured against loss by fire, hazards included within the term "extended coverage". and such other hazards as Lender may re- quire and in such amounts and (or such pees«is as Lender ma}• require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. prodded. that such approval shall not be unreawnably withheld. :111 premiums on insurance policies shall he pair! in the manner provided under paragraph 2 hereof or, i[ not paid in such manner, by Borrower making- payment. when due, directly to the insurance carrier. ,111 insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mort- [ gage 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 Lender all renewal notices and all receipts of paid premiums, In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make prat of loss if not made promptly by Borrower. - Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration ur repair of the Property damaged, provided such restoration or repair is economically, feasible and the security, o[ this Mortgage is not 3 thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be im- - paired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Bor- rower. If the Property is abandoned by Borrower, or iE 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 authorised to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this ~[ortgage. - Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthl}• installments referred t„ in paragraphs 1 and 2 hereof or change the amount of such installments. I[ under paragraph 18 hereof the Property is acquired by i_ender, all right. title :urd interest of Borrower in t and to an}• insurance policies and in and to the proceeds thereof resulting from damage to the 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. • t i 6. Preservation and Maintenance of Property; Leaseholds; Condominiums: Planned Unit Develol,ments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comph• with the provisions of any, lease if this \(ortgage is on a leasehold. It this Mortgage is on a unit in a f condominium or a planned unit development. Burrower shall perform all of Borrower's obligations under the declaration i or covenants creating or governing the condominium or planned unit development, the b}•-laws and regulations of the condo- minium or planned unit development, and constituent documents. It a condomiuium or planned writ development rider is executed be Borrower and recorded together with this Mortgage. the covenants and agreements of such rider shall ~m- corporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a pant ' hereof. ' i 1 7. Protection of Lender's Security. If $orrower fails to perform the covenants and agreements contained in this Mortgage, or if am• action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insoke•ncv, code enforcement, or arrangements or prexeedings incolcing a bankrupt or decedent. then Lender at Lender's option, upon notice to Borrower, mac make such apl,earances. disi,urse such sums - and take such action as is necessan~ to protect l.e•nder's interest, including, but not limited to. disbursement o[ reasonable a attorney's tees and entry upnn the Property to make repairs. It Lender required mortgage insurance as a condition of making the loan secured by this Mortgage. $ormwer shall pay the premiums required to maintain such insurance in ef- fect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written - O R e~~~~r 3CGr. JV / .air ~ - ~t}