Loading...
HomeMy WebLinkAbout0868 : • Borrower a~d I.ender covenant and eQree aa tollows: 1. Paymeat ot Principal and Interes~ Borrower shall promptly pay when due lhe principal of and interest on the indebtedness evidenced by the Note, prepayment and late chargee ae provided in the Note, and the principal otand intereet on sny Future Advancee secured by this Mortgage. 2. Fl~nda for Ta~ces end Insurance. Subject to applicable law or to a written waiver by Lender, Borrower ehall pxy !o I.ender on the day monthly installmenta of principal and intereat are payable under the Note, until the Note is paid in fuU, a sum (herein "~nds") equal to onc twelfth of the yearly taues and asseaements which may attain priority over thia Mortgage, and ground rents on the Property, if any, plua one 't twelfth of yearly premium it?stallmeals for hazard inaurance, plua on~twelRh of yearly premium inatallmente for mortgage insurance, if any, all as ceaeonably estimated initially snd trom time to time by l.ender on the basia of seaeeamcnta and bille and reasonable eetimatea ihereof. '1!?e P~nds shall be hdd in an inetitution the depoeits or acrounts of which are insured or guaranteed by a Federal or State agency (including Lender if l.ender ia such an inetitution). I.ender shall epply the Funde to pay said ta:ea, aseeeements, inaurance premiume and g~ound rents. Lender may not charge for so holding and applying the Funds, at~alyzing eaid accoun~ or verifying and rnmpiling esid aeaeeamenta and bills, unlees L.ender paye Borrower intereet on the Fl~nde and epplicable law permits I.ender to make such a charge. Borrower and Lender may agree in wtiting at the time of e:ecution of thie Mortgage that interest on the ~nda ehall be paid to Borrower, and unleas auch agreement is made or applicable law requires such intereat to be paid, Lender shell not be required to pey Borrower any interest or earninge on the ~nds. Lender ehall give to Borrower. without charge. an annual accounting of the ~nda ahowing credita and debite to the Funds and the purpose for which each debit to the Funds was made.'ILe Funda are pledged as additional eecurity for the sums eecured by thia ~ Mortgege. ' If the amount of the ~nda held by I.ender, together with the future monthly inetaliments of Funde payable prior w the due datea of taxes, assessments. insurance preaaiums and ground nnts, ahall e:ozed the amount required to pay esid ta:ea. aseesaments, insuranoe premiuma and ground rents as they fall due, such excees shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on ~ monthly inataUments of Ftinds. If the amount of the Funds held by I.ender shall not be aufficient to pay taxea, aeeeasmente, ineurance - ~ preminms and ground rents as they fall due, Borrower shall pay to Lender'any amount neceeeary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon paywent in tnll of all eums eecured by thia Mortgege, Lender ahall promptly refund to Borrower any funde held by Lender. If under paragraph 18 hereof the Property is aold or•the Property is otherwiee acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Propedy or ite aoquisition by Lender, any ~nda held by Lende~ at the time of application as a credit against the eume secured by this Mottgage. ~ - 3. Application of Payments. Unleae applicable law providea otherwiee, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payme~t of amounte payable to Lender by Botrower under paragraph 2 hereof, then to intereat payable on the Note. then to the prinripal of the Note, and then to interest and principal on any Fnture Advances. 4. C6arges; Liene. Borrower ahall pay all taxea, assesements and other chargea, finea and impositiona attributable to the Property which may attain a priotity over this Mort(~age, and teasehold payments or ground rnnts, 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 l.ender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directly, Borrower ahali promptly furnish to I.ender receipta evidencing $uch payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that I3orrower aball not be required to diecharge any such lien ao long as Borrower shall agree in writing to the payment o[the obliqation secured by such lien in a manner acceptable to Lender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceeeiings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. . 5. Hazard Insurance. Borrower aha11 keep the improvemente now e:iating or hereafter erected on the Property insured againat loea by fire, hazarda included within the term "e:tended rnverage," and auch other hazards as Lender may require and in such amounts and for such periode aa L.ender may require; pmvided, that I.ender ehall not require euch ooverage amount eaceeding the minimum, as may be required by atate or fede~al regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ia the greatez. The inaurance carrier providing the insuTance shall be choaen by 13orrower subject to approval by l.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph `L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All inaurance policies and renewale thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of and in fotta acceptable to I~ndet. I.ender ehali have the right to hold the policiea and renewals thereof, and E3orrower shali promptly furniah to ' i.ender all renewal noticee and all receipte of paid premiuma. In the event of loas, Borrower ahall give prompt notice to the insurance carrier ; and Lender. Lender may make proof of loea if not made prompdy by Borrower_ ~ Unlesa Lender and Borrower otherwiee agree in writing, inaurance proceeda shall be applied to reetoration or repair of the Property ~ damaged, provided such reatoration or repair is economically [easible and the eecurity of thia Mortgage ia not thereby impaired. If such restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired. the ineurance proceeda shall be applied i to the suma eecured by this Mortgage. with the excess, if any. paid to Borrower. If the Property ie abandoned by Borrower. or if Borrower faila to re»pond to I.ender within 30 daye from the date notice ie mailed by Lender to Borrower that the ineurance carrier of~era to eettle a claim for ~ inaurance benefits, Lender ia authorized to rnilect and apply the inaurance procxede at Lendei a option either to reatoration or repair of the ~ Property or the sums aecnred by thie Mortgage. Unleea Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not eztend or poatpone the due s date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of snch installmente. If under paragraph 18 ~ hereof the Pcoperty is aoquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceede _ ~ thereof reaulting from demage to Property prior to the sale or aoquisition shall pasa to Lender to the eztent of the auma secured by thie ~ Mortgage immediately prior to euch eale or acquiaition. ~ 6. Preservation and Maintenance of Property; Leaeeholds; Condominume; Planned Unit Developments. Borrower shall keep ' the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisione of any lease if thie Mortgage ie on a leaeehold. If thie Mortgage ie on a unit in a aondominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituen! documents. If a condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with this Mortgage, the eovenante and - agreemente of auch rider ahall be incorporated into and ahall amend and aupplement thecovenanta and agreemente of thia Mortgage as if the - rider were a part hereof w 7. Protection of I.ender'~ Security. If Borrower fails to perform the oovenante and agreements contained in this Mortgage, or if any ~ action or proceeding is rnmmenoed which materially affecte Lendefs interest in the Property. induding, but aot limited to, eminent domain. y insolveacy. oode mforcemen~ or arrangemente or pevoeedings involving e banictupt or deoedent, then I.ender at I.ender'e option,npon ~ notioe to Borrower may make such appearanoes. diabune such sums and take auch action es ie neoaeary to protect Lender'~ intrrest, ~ inclnding. but not limited b, diabureement of reaeoaable attorney e fe~ and entry upon the Property to make repain. If Lender required ~ mortgage inaorence aa a condition of making the loan secured by this Mortgage, Borrower ehall pay the preminms required to maintain > wch insursnce in eftect until such time as the requirnment for such insurance ter~ninate~s in accordanoe with Borrower's and Lender's i writtea agrcement or applicable Iaw. Barrower shall pay the amount of all mortgage inearance premiums in the manner pzovided under ~ paragraph 2 hrreof. ? My amoanta disbursed by Lender persuant to this paragreph 7, with interest thereon, ahall beoome additional indeMedneea of ~ Borrower ~ecured by this Mortgage. Unless Bonower and Lender agree to other terms of payment, such emounts ahall be payable npon notice from I.ender to Borrower requesting peyment thereof. and shall bear interest from the date of disbureement et the rate payable from ~ time to time on outstanding principel nnder the Note nnlesa payment of interest at such rate would be a~ntrary to applicable law, in which ~ event auch amounts shall bear intereat at the higheat rate permissible under applicable law. Nothing contained in this peragraph 7, ehall requ've Lender to incur any e~cpense or teke any action hereunder. ~ ~ ~ ~ ~ ~ 311 ~n~: 86? ~ ~