Loading...
HomeMy WebLinkAbout1142 . ; 1 ' . ~ ~ . Borrower and [.ender covenant and agree ae follows: 1. Payment ot Pri~cipal end Interest. Borrower ehall prompdy pay when due the pri~cipal ot and intereat o~ the indebtedneae evidenced by the Note, prepayment end late chargee as provided irt the Note, and the principal of and interest on any Future Adv~ncea secured by thie Mortgage. 2. Fltnda [or Taxes a~d Inaurance. Subjecl to applicable law or ta a written waiver by l.ender, Borrower ahall pay to l.ender on the day monthly installmenfs of principal and interext are payable under the Nute, until the Note is paid i~ fuU, a aum (herein "Funds") equal to one twelfth of the yearly taxea and assesaments which may attain priority over thie Mortgage, and ground rents on the Propecly, if any, plue one twetfth of yearly premium inatallmenta for hazard insurance, plua onetwelfth ofyearly premium inatallmente for mortgage inauran.,~e, if any, all as reasonably eatimated initially and from time to tirrie by Ixnder on the basie oi aasesamenta and billa and reasonable eati~natea thereoL The Funde shaU be held in an inatitution the deposits or accountB of which are ineured or guaranteed by a Federal or State agency (inctuding Le~der if Lender ia such an inetitution). I.ender ehall apply the Funda to pay eaid taxes, asseasmenta, insurance premiuma and ground rente. Lender may not cfiarge for eo holding and applying the ~nds. analyzing said account, or verifying and rnmpiling eaid aseeasments and bills, unleae Lender pays Borrower intereat on the Ftinda and applicable law permita I.ender to make auch a charge. Borrower and l.ender may sgree in writing at the time of e:ecution of this Mortgage that intereat on the Funds ahall be paid to Borrower, and unleae euch agreement ie made or applicable lavr requires snch intereat to be paid, I.ender aheU not be required to pay Borrower any intereet or earnings on the FLnds. Lender ahall give to Borrower, without charge, an annual accounting of the F~nda ahowing credits and debits to the Funda and the purpose for which each debit to the ~Lnda was made. The Funde are pledged as additional eecurity for the sums aecured by thia Mortgage. If the amount of the ~nds held by Lender, together with the future monthly inatallmenta of Funda payable prior to the due datea ottaxea, eaeessmenta, ineurance premiums and ground rents, ahall excred the amount required to pay said taxea. assesementa, insurance premiums and ground renta as they fall due, euch eYceae ahall be. at Borrower e option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmente of ~nds. If the amount of the Fnnde held by Lender ahall not be aufficient to pay t~ee, seeeaemente, inaurance premiume and ground rent8 as they tall due. Borrower ehall pey to Lender any amount neceseary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requcreting payment thereof. Upon payment in full of all auma eecured by thie Mortgage, I.ender shall promptly refund to Borrower any funds held by l.ender. If under paragraph 1H hereof the ~'roperty ie aold or the Property is otherwise acquired by Lender,l.endeT ahall apply, no later than immediately prior to the eale of the Property or ite aoquiaition by I.ender, $ny Funde held by I.ender at the time of application as a credit againat the suma secured by thie Mortgage. 3. Application of Payments. Unleas applicable law providee otherwise, all payments received by Lender under the Note and paragraphe 1 end 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then W interest and principal on any Future Advances. 4. Charge$; Liene. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable 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 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3orrowershall promptly furniah to Lender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mo~age; provided, that Fiorrower ahall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligaf ion secured by such lien in a manner acceptabie to Ixnder, or shal) in good taith contest such lien by, ordefend en[orcrment of such lien in, (egal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ehail keep the improvements now existing or hereafter erected on the Property inaured againat loss by fire, hazarda inciuded within the term "extended rnverage," and ~uch other hazards as Lender may requirn and in such amounta and forsuch periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federa) regulationa goveming adivities of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. The inaurance carri~ providing the inaurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withhefd. All prnmiums on inaurlnce policies aha11 be paid in the manner pn?vided under paraKraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. A11 ineurance policies and renewala thereof sha11 be in form acceptable to I.ender and shall include a atandard mortgage clause in favor of ~ and in form acceptable to I.ender_ Lender ahall have the right to hold the policies and renewals thereof, aud Borrower shall promptly furnish to ; i.ender all renewal noticea and all receipte of paid premiuma. In the event otloss, Borrower shall give prompt notice to the insurance carrier and [.ender. Lender may make proof of losa if not made promptly by Borrower_ ~ Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property ; damaged, provided such reatoration or repair is economicall"y feseible and the aecurity of this Mortgage is not thereby impaired. If such E reatoration or repair is not economical]y feseible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the sums secund by thia Mortgage, with the e:ceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to f reapond to I.ender within 30 daya from the date notice is mailed by Lender to Borrawer that the insurance carrier of~ers to setde a claim for ~ inaurance benefita, Lender is authorized to collect and apply the inaurance proceeds at Lender'a option either to restoration or repair of the Property or the auma eecured by thie Mortgage_ Unless I.ender and Borrower otherwise agree in writing, any auch application of ptoceeda to principal ehall not extend or postpone thedue date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and tosny inaurance policies and in and w the proceeda thereof teaulting from damage to Property prior to the sale or aoquiaition ahall pase to L.ender to the extent o[ the auma secured by this . Murtgage immediately prior to euch sale or aoquisition. ~ 6. Preeervation and Maintenence of Property; Leaseholde; Condominums; Planned Unit Developments. Borrower ahall keep ~ the Property in good repair and ahall not commit waste ot permit impairment or deterioration of the Property and shall comply with the ~ proviaions of any lease if this Mortgage ia on a leasehold_ If tl?is Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all uf Borrower a obligatiuns under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conetituent documente. If a ~ condominium or ptanned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and = agreementr~ of such rider ahall l,e incorporated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the " rider were a part hereof. $ 7. Protection of Lender's 3ecurity. If Borrower fails to perform the o~venants and agreemente aontaine~ in thie Mortgage, or if any ~ action or proceeding is commenced which materially affects Lender s intereet in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforoement, or arrangementa or proceedinge involving a bankrupt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may ma1~e auch appearances, disburse such suma and ta1~e auch action as is neceaeary to prot~ect Lender's interest, ~ including, but not limited to, disbursement of reasoaable attomey'e fees and entry upon the Property to make repairs. If Lender required ~ mortgage inearance aa a condition of making the loan secured by thia Mortgage, Borrower ahall pay the premiums required to maintain ~ auch insnrance in effect until such time ae the requirement for such inaurance terminates in aocordance w*ith Borrower's and Lender'e written agreement or applicable I~w. Borrower aha11 pay the amount of all mortgege inenrance premiums in the manner provided under paregraph 2 hereof. ~ My amounts diabureed by Lender perauant to this paragraph with intereat thereon, ahall beoome additional indebtedne~s of ~ F3orrower secured by thie Mort~tage. Unless Borrower and Lender agree to other lerms of payment, such amounts ehell be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ehall bear intereat from the date of diebureement at the rate payeble from ~ time to time on ontetanding principal under the Note unlese payment of interest at auch rate would be oontrary tn applicable law, in which event auch amnunts shal) bear intereet at the highest rate permissible under applicable law. Nothing rnntained in this peragraph 7, ehall require Lender to incur any expenee or take any action hereunder_ ~ ~ 3~~- 311 ~a~: i141 ~