Loading...
HomeMy WebLinkAbout2683 Borrower and L,ender covenant and agree ae tollowa: 1. Paytaeat o[ Principal and Interes~ Borrower ahall pmmptly pay when due the principal of and intereat on the indebtedneas evidenced by the Note, prep;~ymeat and late charges aa provided in the Note, and the principal of and intereat on any ~ture Advances aecured by this Mortgage. ~ 2. Ftindo tor Ta:es and Insurance. Subject to applicable luw or to a writteo waiver by I.ende~, liorrower ahali pay to lxnder on the day monthly i~atallmenta of principal and intereat are payable under the Note. until the Note ia paid in fuU, a sum (herein "Funds") eyual to one tweltlh of the yearly taxee and assessmeats which may attain priority over thia Mortgage, and ground rents on the Property, if any, plus one- twelfth of yearly prnmium inatallmenta tor hazard i~surunce, plus onetwelRh of yearly prnmium inatallmente for mortgage inaurance, if any, all ae etiaeonably e$timated rnitislly and from time to tia~e by I.e~der on the basie of Reaeeamenta and bills and reasonable estimates thereoL The ~Lt~ds shall be held in an inatitution the depoaits or accounts of which are ineured or ~aranteed by a Federai or State agertcy (including L.ender if I.ender ia auch an inetitution). Lender ahall apply the Funds to pay said ta:es, asseasmenta, inaurance premiuma and ground reats. Lender may not charge tor so holding and applying the Funda. apalyzing said account, or verifying and compiling said aeaeaamente and bille, unleae l.ender pays Borrower interest on the Flinda and applicable law pennite Lender to make auch a charge. Borrower and L.ender may agree in writing at the time of execution o[ thia Mortgage that intereat on the F~nde ahall be paid to f3orrower, and unlese such agreement ia made or applicable law requiree such ia~t to be paid. l.ender shall not be rsquired to pay Eiorrower any interest or earnings on the F~ade. Lender ehall give to Borrower. without charge, an annual acrnunting of the Runda showing credita and debite to the Funde and the purpoee [or which each debit to the F~nds was made. The Funda are pledged as additional eecurity for the sume eecured by thie Mortgage. Ilthe amount of the Ftinda held by Lender. together with the future monthly inetallmenta of Funda payable prior to the duedates of taxea, seaeaementa, insurance prnmiume and grc>und rente, ahall excred the amount required to pay said taxea, aaeeasmenta, insurance premiume and ground rents as they fall due, euch ezcesa shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borroweron monthly inafallmente of F~nde. If the amount of the Funda held by Lender ahall not be eufficient to pay tauea, aseeeamente, inaurance premiume and ground rente se they fall due, Borrower shall pay to Lender any amount neceasary to meke up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all aums aecured by thie Mortgage, Lender ehali promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by l.ender, l.ender ahall apply, no later than immediately prior to the sale of the Property or ita acqnieition by Lender, any Funda held by I.ender at the time of application as a rredit againat the aums secured by this Mortgage. 3. Application of Payments. Unlesa applicable law provides otherwise, all paymenta recei~ed by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by l.ender firet in payment of amounts payabte to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nete, and then to intereat and principal on any Future Advances. d. Chargea; Liens. Borrower shall pay all taxes, asseasments and other chargea, fines and impositions attributs~ble to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided underpuragraph'l hereo[or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3orrowershall promptly furnish to Lender all notices of amounfs due under this paragraph, and in the event E3orrower shall make payment directly, E3orrower s6a11 promptly furnish to I.ender receipta evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long as Rorrower shuU agtee in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shall in gaod faith contest such lien by, ordefend enfomement olsuch lien in, legal proceedinga which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof 5. Hezard Insurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured againat lose by fire, hazarda included within the term "extended coverage; ' and auch other hazards as Lender may require and in auch amounts and for such periods as I.ender may require; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal rngulations governing activitiea of Lender, or that amount of coverat;e required to pay the suma secured by this Mortgage, whichever ia the greater. The inaurance carrier providing the insurance shali be chosen by Borrower subject to approval by I.ender, pm~ ided, that such approval shall not be unreasonably withheld. All premiums ou insurance policies shail be paid in the manner pn?vided under paragraph 2 hereof or, if not paid in auch manner, by Borrower makinq payment, when due, directly to the insurance carrier. ~ ! All ingurance policiea and renewala thereof ahall be in form acceptable to Lenderand ahall include a atandard mortgageclause in favor of ' and in form acoeptable to [.ender. I.ender shall have the right to hold the policiea and renewals thereof, and ~3orrower shall promptly furniah fo I i.ender all renewal noticeH and all receipts ot ?aid premiums. In the event of losa, I3orrower shall Rive prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. ' i Unleas Lender and Borrower otherwiae agree in writing, insurance prooeeds shall be applied to restoration or repair of the Property i damaged, provided auch restoration or repair is economically feasible and the security of thia Mortgage is not thereby impaired. If such ~ ~ restoration or tepair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Eiormwer faile to reapond to Lender within 30 daya from the date notice is mailed by Lender to Botrower that the insurance carrier offera to eettle a claim for { ineurance benefits, Lender is suthorized to coliect and apply the insurance proceeds at l.ender's option either to restoration or repair ot the ~ Property or the sums secured by this Mortgage. Unleas Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not extend or poatpone the due ~ date of the monthly installments referred to in paragrt?pha 1 and 2 hereof or change the amount of auch inataUmente. If under paragraPh 18 ~ hereof the Property is acquired by I.ender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceede thereof resulting from damage to Property prior to the sale or acquisition ahall paes to I.ender to the e:tent of the aums eecured by this ~ Mortgage immediately prior to such sale or aoquiaition. ~ 6. I'reaervation and Maintenance of Property; I.eseeholde; Condominuma; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall rnmply with the ~ roviaions of an lease if this Mo p y rtgage is on a leasehold. If this Morfgage is on e unit in a oondominium or a planned unit development, ~ Borrower shall perfonn al) of Borrower s obligations under the declaration or covenanta crnatinQor governing lhe condominium or p!anned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conetituent documents. If a ~ condominium or planned unit development rider ia executed by F3orrower and recorded together with this Mortgage, the oovenante and agreementa of auch rider ahall be incorpnratcd into and shall amend and aupplement the covenanta and aRreements of this Mortgnge as if the ' rider were a part hereof. ' Protection ot Lender'e 3ecurity. If Borrower faile to perform the oovenants and agreementa contained in thie Mortgage. or if any " action or proceeding ie commenced which materially affecte [.ender a intereet in the Property, including, but not limited to, eminent domain. ' ineolvency, oode enforcement, or anangements or proceedinge involving a bankrupt or decedent, then I.ender at Lender's option,upon ~ notioe to Borrower may make euch appearances, dieburee auch sums and take auch action aa is neceeeary to protect Lender's intereat, ~ including, but not limited to, diabureement of reaeonable attorney's fees and entry upon the Property to make repaire. If Lender required ; mortgage inaurance ae a condition of making the loan eecured by thia Mortgage, Borrower shall pey the premiuma required to meintain ? such ineurance in efteet until euch time ae the requirement for euch ineurance terminatee in accordance with Borrowei e and Lender's : written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided undet ~ paregraph 2 hereoL ? My amounte diebureed by Ler.der perauant to thie paragraph T, with intereet thereon, shall become additione! indebtedneae ef # Borrower eecured by this Mortgage. Unlesa Borrower and Lender agree to other terme of payment, auch amounte ehall be payeble upon ~ notice from Lender to Borrower requeating payment thereof, and aball bear intereet trom the date of diabureement at the rate payable from " time to time on outstanding principal under the Note unlese payment of intereet at such rate would be contrary to applicable law, in which ~ event euch amounte ahall bear interest at the higheat rate permisaible under applicable law. Nothing contained in thia peragraph 7, ehall ~ require Lender to incur any expenRe or take any action hernunder. s ~ ~ ~11 :2681 ~