Loading...
HomeMy WebLinkAbout2908 Borrower and I.ender covenant and a~rec as fullowa: 1. Paymeot o[ Ptlacipal snd Intere~~ Borrower ehall pro~nptly pay when due the principal of and interest on the indebtednees evidenced by the Not~e, prepayme~t and lete charg~ aa pmvided in the Note, and the principal of and intereat on any Fliture Advancee secured by this Mortgage. - 2. I~nd~ for Tauea and lnsuranoe. Subject !o epplicable law or to a written waiver by l.ender, Borrower shali pr+y to Ixnder on the day monthly inetallmente of principal and i~tereat are payable under the Note, until the Note ie paid in full, a aum Iherein "Funde") equal to une twelith of the yearly taxes and aaeesements which may attain priority over this Mortgage, and g~ound m~f8 on the Property, if any. plua one~ twelRh of yearly p'remium inatallmenta for hazard ineurance, plus onetwelflh of yearly premium installments for mortgage insurance, if any, all as rnaeonably estimated initially and from time to time by l.ender on the baeis of assenxmenta and billa and reasonable estimatea thereof. ~e Flmds shall be held in an institution the deposita or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if I.ender ia such an inatitution). I.e~der shall apply the Funds to pay aaid taxea, aseesaments, inaurance premiuma and ~ ground tpnta. I.ender may ~ot charge !or so holding and applying the ~~ds, analyzing said account, or verifying and rnmpiling said esseasmente and bille, unl~s Lender paya Borrowerinterest on the Funds and applicabfe law permit8 I.ender to make auch a charge. Boerower and I.ender may agree in writing at the time of execution of this Mortgage that intereat on the Funda ahall be paid to Borrower, and unteae euch agreement is made or applicable law requirea auch interest fa be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the Flinds. Lender ehaU give to Borrower, without charge, an annual accounting of the Funda showing credite and debita to the Funda and the purpoee for which each debit to the E1nda was made. 77~e Funde are pledged as additional eecurity for the aume eecured by thie ! Mortgage. If the amount of the FLnda held by I.ender, togeiher with the future monthly installments of Funds payable prior to the due datea of taxea, seacsementa. insnrance p~emiuma and ground renta. ehall e:c~ed the amount required to pay said ta:es, asseeamenta, ineurance premiuma and ground rents as they fall due, such e~ccesa shall be, at Borrower'e option, either promptly repaid to Borrower or credited to Borrower on i monthly inataUments of F~unds. If the amount of the Funda held by Lender ahall not be aufficient to pay taxea, asaesamenta, inaurance premiums and ground rents es they fall due, Borrower ahall pay to Lender any amount neceaeary to make up the deficiency within 30 days fmm the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in ful! otall euma secured by thie Mortgage, [.ender ehall promptly refund to Borrower any funde held by L.ender. lf under paragraph 18 hereof the Property is eold or the Property ie otherwise acquired by I.ender, L.ender shall apply, no later than immediately prior to the sale of the Property or ite aoquisition by L.ender, any flinds held by [.ender at the time otapplication as a credit againat the sums secured by this Mortgage. 3. Appllcation of Payments. Unlesa applicable law providea otherwise, all payments received by I.ender under the Note and paraqraphs 1 and 2 hereof ahall be applied by Lender fust in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to inte~eat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liens. Borrower shall pay sll taxea, asseaements and other chargea, fines and impoaitions attributable b the Property which 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. Borrower shall promptly furniah to Lender all notices of amounte due under thia paragreph, and in the event Borrower shall make payment directly, Borrower ahall promptly turnish to l.ender receipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any auch lien so long as E3orrower ehall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or ahall in good taith contest such lien by, or defend enforcement ~[such lien in, legal proceedinge which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the improvements now exieting or hereafter erected on the Property insured against loss by fire, hazarde included within the term "extended coveraqe," and euch other hazards as Lender may require and in such amounts and for such periods se L.ender may require; provided, that L.endet ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiee of Lender, or that amount of rnverage required to pay the sums aecured by this Mortgage, whichever ie the greater. The insurance carrier providing the inaurance ahall be chosen by Borrower subject to approval by Ixnder, pmvided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the mannei provided under paragraph `L hereof or, it not paid in auch manner, by Borrower making payment, when due, directly to the insu~ance carrier. All ineurance policies and renewale thereof ahall be in [orm acceptable to Lender and ahail include a standard mortgage clause in favor of and in form acceptable Lo Lender. Lender ehall have the right to hold the policies and renewals thereof, and Borrower ahall p~omptly fumish to i i.ender all rnnewal notices and all receipts of paid premiums. In the event of loss, Borrower ahall give prompt notice Lo the inaurance carrier ! and L.ender. Lender may make proof of loes if not made promptly by Borrower. p Unless Lender and Borrower otherwiae agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property j damaged, ptovided auch reatoration or repair is economically feasible and the aecurity of this Mortgage ia not thereby impaired. If such ~ reatoration or repair ie not economically feasibie or if the eecurity of thie Mortgage would be impaired, the ineurance proceede ahall be applied ~ to the euma secured by this Mortgage. with the e:ceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ' reapond to Lender within 30 days from the date notice ia mailed by Lender to BorroKer that the inaurance carrier oPfers to aettle a claim for s inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lendei a option either to restoration or repair of the : Property or the suma sec~red by this Mortgage. Unleas Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal aha11 not extend or postpone the due date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any inaurance poiicies and in and to the proceeds thereof resulting from damage to Property prior to the eale or acquisition ahall paes to Lender to the e:tent of the aums secured by this Mortgage immediately prior to auch eale or aoquisition. ~ 6. Preservatioa and Maintenance of Prnperty; Leaseholds; Condominume; Planned Uait Developments. Borrowershall keep ~ the Property in good repair and ehaU not rnmmit waste or permit impairment or deterioration of the Property and shall rnmply with the ~ provisions of any lease if this Mortgage ia on a leseehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, ~ E3orrower ahali gerform eil of Borrower e obligationa under the declaration or covenanta creatingor goveming the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and rnnatituent documente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and ~ agreementa o(auch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower faile to perform the oovenante and agreemente contained in thie Mortgege, or if any ~ action or proceeding ie commenced which materiaily affecte Lender e interest in the Property. including, but not limited to, eminent domain, ~ insolvency. oode enforoemea~ or arrangements or proceedinge involving a banlwpt or deoedent, then Lender at Lender'e option,upon ~ notice to Borrower may make such appearances, diaburse such auma and take such action ae is neceeeary to protect Lender's interest, ~ including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. If Lendet required G . mortgage inswance es a rnndition of making the loan eecured by thie Mortgege. Borrower ahall pay the premiuma required to muintain tt euch inearance in effect until wch time as the requirement for auch ineuranoe terminatee in accordance with Borrower'e and Lender's ~ written egreement or applicabie Law. Borrower shall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragraph 2 hereof. ~ My amonnte disbureed by Lender persuant to this paragraph 7, with intereet thereon, ehall become additional indebtedneee of ~ Borrower secured by thia Mortgage. Unless Borrower and Lender agree to other terme of payment, euch amounte ehall be paysble upon ~ notice from Lender to Borrower requeeting payment thereof, and ehall besr interest from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleee payment of interest at such rate would be contrary to applicable law, in which ~ eveot euch amounts ehall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragreph T, ahall ~ require Lender to incur any e:penee or teke any action hereunder. ~ ~ ~3i1 ,-?~06 ~ - ~