Loading...
HomeMy WebLinkAbout0338 Borrower and I.ender covenaat and agree ae followa: 1. Peyment ot Principal and Inteceet. Borrower ehall promptly pay when due the prinripal of and interest on the indebtedneas evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any Ftiture Advancee aecured by this Mortgage. 2. Ftinde for Taxea and Ineurance. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to l.ender on the day monthly inataUmenta of principal and int~reat are payable under the Note, until the NoEe ia paid in full, a aum (herein "F~nde") equal to one twelith of the yearly taxee and aasesaments which may attain priority over thie Mortguge, s?nd ground rents on the Property, if nny, plus one twelfth of yearly premium inatallments for hazard inaurance, plus onetwelfth otyear~yr premium instaUments for mortguge inaurance, if any, all ae reaeonably eetimated initiaUy and from time to time by l.ender on the basis of asaeasmenta and bills und reasonable ea/imatea thereof. The Fl?nds shall be held in an institution the depoeits or accounts of which are ineured or guatanteed by a Federal or State agency (including l.end~ if Lender ie auch an institution). l,ender ehaU apply the Funds to pay eaid taxes, assesamenta, inaurance premiuma and ground rente. I.ender may not charge for eo holding and applying the Funde, analyzing said account, or verifying and compiling said asaeeaments and bille, unlees l.ender paye Borrower intereat on the ~nda and ~pplicable law permits Lender to make such a charge. 8orrower and Lender may agree in writing at the time of execution of thia Mortgage that intereat on the ~nde shall be paid to Borrower, and unlesa . such egreement ie made or applicable law requires such intereat to be paid, Lender sha11 not be required to pay Borrower any interest or earnings.on the ~nda. I.ender ehall give to Bormwer, without charge. an annual accounting of the Funda ehowing credita and debita to the Funds and the purpose for which each debit to the Funds wae made. The Funds are pledged ae additional security for theauma secured by this Mortgage. . If the amount of the Ftinda held by Lender, together with the future monthly installments of Funda payable prior to the duc datee of taxee, assesamente, insurance premiume and ground renta, ehall excred the amount required to pay said taxea, aeaeesmenls, inaurance premiuma and ground rente as they fall due, euch exceae ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmente of ~nde. If the amount of the F~nds held by Lender shall not be sufficient to pay taxes, aseeasments, ineurance premiums and ground rents as they fall due, Borrower ehall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all euma eecured by thia Mortgage, Lender shall promptly refund to Borrower any fnnda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, [.ender shall apply, no later than immediately prior to the sale of the Property or its aoquiaition by Lender, any ~nda held by I.ender at the time of application as a credit againat the aume secured by thie Mortgage. 3. Application of Paymenta. Unleas applicable law provides otherwiee. all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to Lender by l3orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liena. Borrower shall pay ull tuxes, asaesaments and other rharges, fines and impositions attribntable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided 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 ail noticea of amounta due under this paragraph, and in the event ~3.orrower shaD make payment directly, E3orroM er ahall promptly turnish to Lender receipts evidencing such payments. Borrower shall promptly diacharge any lien which has priority overthis Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long as Borrower shall agtree in writing to the payment of lhe obligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part thereof 5. Hazard Insurance. Borrower shall keep the improvementa now exiating or hereafter erected on the Property insured againat loss by fire~ hazarda included within the term "e:tended coverage," and e~uch other hazards as I.ender may require and in such amounta and for such periods as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may berequired by state or federal regulationa governing activities of L.ender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. - The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, pmvided, that such appruval shall not be unreasonably withheld. All prnmiums 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. All insurance policies and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of ~ and in form acceptable to L.ender. I.ender shall have the right to hold the policies and rnnewals thereof, and Borrower shall promptly furnish to j i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier ! and Lendec Lender may make proof of losa if not made promptly by Borrower. ' Unleea I.ender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property ` damaged, provided auch reatoration or repair is economically feasible and the security of this Mortgage isY?ot thereby impaired. If auch reatoration or repair ie not economically feasible or if the secur3ty of thia Mortgage wouid be impaired, the insurance proceeds shall be applied ~ f to the aums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to j reapond to Lender wiihin 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier offers to xettle a claim for ~ insurance benefita, Lender is suthorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the suma secured by this Mortgage. R Unless Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e:tend or postpone the due ~ date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amonnt of such inatallmente. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Botrower in and to any inaurance policiea and in and to the proceeds ~ thereof reeulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the eatent of the aums secured by this ~ Mortgage immediately prior to auch eale or acquisition. ~ 6. 'Preservation and Maintenance of Property; Leaseholde; Condominume; Plaaned Uait Developments. Borrower ahall keep y the Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ahall rnmply with the ~ pmvisions of any lease if thie Mortgage ia on a leasehold. If this Mortgage ia on a unit in s oondominium or a planned unit development, ~ Borrower ahall perform all qf Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-lawe and regulations of the condominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreementa of such rider shali be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte I.ender a interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a banicrupt or decedent. then I.ender at Lender'e option,upon notice to Borrower may make auch appearances, dieburee euch aume and tal~e sach action ae,ie necessary to protect I~nder's interest, ~ including, but not limited to, dieburaement of reseonable attorney e feee and entry upon the Property to make repaire. If Lender required mottgage ineurance as a condition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain ~ such ineurance in effect until such time as the requirement for auch insurance terminate,~ in accordance with Borrower'e and Lende~e written agreement or applicable Law. Bormwer ehall pay the amount of all mortgage inaurance premiume in the manner provided under ' paragraph 2 hereof. ~ My amounte diebureed by Lender persuant to thie paragraph 7, with internat thereon, ahall become additional indebtedneae of ~ ~ Borrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terma of payment, euch amounts shall be payable upon - notice from Lender to Borrower requeating payment thereof, and ehall bear intereat from the date ot diabureement at the rate psyable from time to time on outetanding principal under the Note unleae payment of intereat at such rate would be oontrary to applicable law, in which ~ event euch amounte ahall bear intereet at the higheat rate permisaible under applicabie law. Nothing contained in thie paragraph 7, ahall ~ require Lender to incur any e:penae or take any aMion hereunder. ~ go~x3U~ ~a~f 338 4 ~ i ey "t? ~ C° ~ r~. r~ _ ~ _ " . . - . .x