Loading...
HomeMy WebLinkAbout0501 Borrower and Lende~ covenant and agree as [ollows: 1. Payment ot Prlncipal and Intesest. Borrower shall prompUy pay when due the principal of and interest on the indebtedneee evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intereat on any ~Lture Advancea secured by thie Mortgage. 2. Funde !or Tazea and Ineurance. Subject to applicable law or to a written waiver by L.ender, Borrower shaU pay to l.ender on the day monthly installments of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (he~ein "Funda") equat to one twelfth of the yearly taxea and assess~nents which may attain priority over this Mortgage, and qround rents on the Property, if any, plua one~ twelRh of yearly premium installmenta for hazard insurance, plua onetwelfth ofyearly premium installmenta for mortgage insurance, if any, all aa reasonably estimated initially and from time to tirr~e by l.ender on the basis of asseasmenta and bills and reusonable eatimates the~eof. The ~nds ahall be held in an institution the deposita or accounts ot which are inaured or guaranteed by a Federal or State agency ;:ncluding L,ender if I.ender is such an institution). Lender shall apply the Funds to pay eaid taxee, aseeasments, insurance premiuma and grou~d rents. Lender may not charge for eo holding and applying the F1~nda, analyzing eaid account, or verifying and compiling said aseeasmente and bills, unleas Lender paye Borrowe~ intereat on the Funds and applicable law permits L,ender to make auch a charge. Borrower and [.ender may agree in writing at the time ot execution of thia Mortgege that intereat on the Flinda ehall be paid to Borrower, and unlesa euch agreement is made or applicable law requirea auch intereat to be paid, I.ender nhall not be required to pay Bormwer any intereat or earnings on the ~nda. I.ender ahall give to Borrower, without charge, an annual accounting of the Funds showing credita and debita to the Funds and the purpoee for which each debit to the Flinda was made. The Funds are pledged as additional security for the sums aerured by thie Mortgage. If the amount of the FLnde held by I.ender, together with the future monthly installments of Funds payable prior to the due dates of taxea, aeaeasments, insurance premiuma and ground rents, ahall exared the amount required to pay said taxes, asses~cnents, insurance premiuma and ground rents as they fall due, such exceas ahall be. at Boirowei s optian, either prompdy repaid to Borrower or credited to Horrower on monthly inetallmenta of F1~nds. If the amount of the Funda held by Lender ahall no~E be aufficient to pay t+ixea, assessments, inau~ance premiume and ground renta as they fall due, Borrower shall pay to L,ender any amount necesBary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in fiill of all aums aecured by this Mortgage, I.ender ahall promptly refund to Bc~rrower any funds held by I.ender. lf under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or its ecquiaition by Lender, any Funda held by I.ender at the time of application as a credit against the sums secured by thie Mortgage. 3. Application of Payments. Unless applicable law providee otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof ehaU be applied by l.ender firat in payment of amounta payable to I.ender 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 Future Advancea. 4. Charges; Liene. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable tu the Property whirh 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.l3ormwer shall promptly furnish to I.ender all notices of amounts due under lhis paragraph, and in the event Borrower shall make payment directlp, Rorrower shali promptly fumish to f.ender receipta evidencing auch paymenta_ Bortower ahall promptly discharge any lien which has priority o~~er this Mortk:ige; provided, that E3orrower ahall not be required to diacharge any auch lien so long as f3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender. or ahall in good faith conteat 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 ur any part thereof. 5. Hazard insurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Properly insured against loss by firn, hazarda included within the term "extended coverage," and auch other hazards ea I.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of L.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the greater. The inaurance carrier providing the insurance ahali be chosen by Borrower subject to appro~•al by I.rnder, pm~ idecl, that such approval shall not be unreasonably withheid. All premiums on insurance policies shall be paid in the manner pmvidrd under paraRraph 'L hereof or, if not paid in such manner, by Bor~ower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ahall be in form acceptable to Ixnder and shail include a standard mortgaqe clause in favor of i and in form acceptable to L,ender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furnish to ~ i.ender all renewal noticea and all receipta of paid ptemiuma. In the event of losa, Bormwer shall give prompt notice to the insurance carrier j and Lender. Lender may make proof of lose if not made prompUy by Borrower. ~ Unlesa L.ender and Borrower otherwise agree in writing, inaurance proceeda ahall be appiied to resloration or repair of the Property ~ damaged, pmvided auch reatoration or.repair ia economically feasible and the aecurity of this Mortgage ia not thereby impaimd. If such P restoration or repa"v is not economically feaeible or if the security of this Mortgage would be impaired, the insurance proceeds shaU be applied to the eums eecured by thia Mortgage, with the e:cese, if any, paid to Eiorrower. If the Property is abandoned by Bonower, or if Borrower faila to ~ reapond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier of'fers to settle a claim for ~ inaurance benefits, Lender ie authorized to collect and apply the insurance proceeds at Lender's option either to reatoration or repair of the p Pmperty or the auma eecured by thie Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not e:tend or postpone the due ~ date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of such inelaliments. If under paragraph 18 hereof the Property is aoquired by Lender, all right, tide and intereat of Borrower in and to any insurance policies and in and to the proceede ~ thereof resulting firom damage to Property prior W the sale or acquisitian ahall paea to Lender to the extent of the aums secured by this Atortgage immediately prior to euch eale or aoquieition. ~ 6. Preservation and Maintenence of Property: Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep ~ the Property in good repair and ahali not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaione of any lesee if thie Mortgage ia on a leaeehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ 13orrower ehall perform all of Borrower e obligations under the dectaration or covenanta creatingor governing the condominium or planned unit development, the by-Iaws and regulations of the condominium or planned unit development, and constituent documenta. If a. ~ condominium or planned unit development rider ia eaecuted by Borrower and recorded together with thia Mortgage, the oovenant3 and ~ agreements of such rider shall be incorporated into and ehall amend and aupplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. _ Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreementa contained in thie Mortgaye~ or if any :s action or prooeeding is commenced which materialiy affects L.ender e interest in the Property, including, but not limited to, e~inent domain, ~4 ineolvency, oode enforcement, or arrengemente or proceedings involving a banlm~pt or decedent, then L.ender at Lender's option,upon notice to Borrower may make auch appearenoee, dieburse euch eume and take euch action ae ie necessary to protect Lender's interest, includiag, but noL limited Lo, diebureement of reaeonable attorney e fEee and entry upon the Property to make repairs. If Lender required morigege insurance as a condition of making the loan aecured by thia Mortgege, Borrower ehall pay the premiume required to maintain ' euch ineurance in effect until euch time ae the requirement for such insurance terminatee in accordance with Borrower'e and Lender'e ~ written agreement or applicabie I.aw. Borrower ahall pay the amount of all mortgage insurance premiums in the manner provided under ~ ~ paragraph 2 hereof. Ya My amounte dieburaed by Lender persuant to thie paragreph 7, with inteieet thereon, shall become additional indebtedneee of ~ Borrower secured by thie Mortgage_ Unleee Borrower and I.ender agree to other terme of payment, auch aruounta ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear intereat from the date of diebureement at the rate payable from time to time on outstanding principal under the Note unlees payment of u?tereet at auch rate would be oontrary to applicable law, in which event ench amounts e6a11 bear interest at the higheat rate permiseible under applicable law. Nothing contained in thie paragraph 7, ehall ~ reqn'ue Lender to incvr any expenee or take any action hereunder. ~ ~ - 3.~~~ ~310 ~~~i ~oi e_-_ . . .