Loading...
HomeMy WebLinkAbout2540 ; ~ ~ Borrower snd Lender covenant and a~cee aa Collowe: 1. Peq?meat of Prlncipal and Iateres~ Borrower shall procnpdy pay whea due the principal of and interest on the indebtednees ; evidenoed by the Note. prep~yment and late charges es pmvided in the Note, end the principal of and interest on any i~ture Advanc~ secured t by this Mort~a~e. ~ 2 Ptinda for Teses and la~urance. Subject to applicable law or to a written waiver by l.ender, Borrower ahall pay to I.ender o~ the day ~ . monthly u?atallmenta of principal and inlereat are payable under the Note. until tt?e Note is paid in full, a eum (herein "Funds") equal to one { twelfth of the yearly taxes and aseessmenta whicA may attain priority over this Mortgage, and ground rents on the Property. if any. plus one ~ twelRh of yearly premium instalimenta for hazard ineurance. plus onetwelRh of yearly premium installments for mortgegeineurance, if any. ,ill as reasonably eatitaated initially and trom time to time by l.ender on the baais of assesements and bills and reasonable estimates thereof. The PLnds shall bs held in an institution the deposib or aooounts oi which are inaured or guara~teed by a~ederel or 3tate agency (including Lender if Lend~ ia such a~ inetitution). I.ender ahall epply the ~nda to pay eaid taxes, aeeeeaments, inanrance premiuma and ground rents. Lender mqy not charge for w holding and applying the Atinda, analyzing eaid account, or verifying and compiling said asseesmenta and biUe. unlese Lender pays Borrower interest on the Funde and applicable law permits Lender b make such a charge. Borrower ~ and Lender may agree in writing at the time of e:ecution of thia Morigage that inter~t on the Flinda ahall be paid to Borrower. and unleee such agreement is made or applicable law requiree auch interest to be paid, l.ender ehall not be required to pay Bormwer any intereat or earnings oa the Ptinds. Lender ahall give to Borrower, wifhout charge, an annual aocounting of the ~nde showing credits and debits to the ' F~nds and the purpose for which each debit to !he Fanda was made. The Funds are pledged as additional security [or the euma secured by thia Mortgege. If the amount of the Plinda held by Leader. together with the future monthly installmenta of Funda payable prior to the duedates of ta~ces, aesessmenta, ineuranoe premiuma and ground rents. ahaU eacozed the amount required to pay esid taxee. aeseasmenta. inaurance premiume aad ground renta aa they fall due. auch e:oes8 ahell be. at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly installmenle of Plrnds. If the amount of the Funda held by I.ender ahall not be aufficient to pay taues. aseeaemente, ineuraace piemiyms and ground rents se they fall due. Borrower shall pay Lo Lender any amount neceesary to make up the deficienry withia 30 days from the dete notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums eecured by thia Mortgage, I.ender shaU pmmptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia aold or the Property ie otherwise acquired by Lender, Lender ehall apply, no later than immediately prior to the eale of the Propedy or ita aoquisition by I.ender, any ~nde held by I.ender at the tune of application as a credit againet the auma eecured by this Mortgage. 3. Applieation of Payments. Unless applicable law provides otherwiee, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firet in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liena. Borrowerahall pay all ta~ces, assesements and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground mnts, if any, in the manner provided under paragrnph 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 noticee of amounte due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender reoeipts evidencing euch paymente. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any such lien so long ae Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, or defend enforcement of such lien in, legal proceedings which ope~rate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Insurance. Borrower ahell keep the improvements now exiating or hereafter erected on the Propetty insund against loss by fire. hazarda included within the term "eatended coverage." and ~uch other hazards as L,ender may require and in such amounta and for auch periods as Lender may require; provided, that I.ender ahall not require auch ooverage amount eaceeding the minimum, as may berequired by atate or federal regulations goveming activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. ' The insarance carrier providing the inaurance shall be chosen by Borrower subject to approval by Ixnder; pmvided, that such appraval shall not be unreseonably withheld. AU premiums on insurance policies shall be paid in the manner provided under paragraph 'l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to lhe inaurance carrier. All insurance policiea and renewala thereof ehall be in form acceptable to Lender and ahell include a standard mortgage clause in favor of and in form accepteble to L.ender. Lender ahall heve the right to hold the policiea and renewals thereof, and Borrower shall promptly furnish to I i,ender all renewal notioea and all n~ceipta of paid prnmiuma. In the event of lose, Borrower shali give prompt notice to the inaurance carrier ` and Lender. Lender may make proof of loes if not made promptly by Borrower. Unleea I~ader and Borrower otherwiee agree in writing, insurance prooeeda ahall be applied to reatoration or repair of the Property ~ damaged. provided auch reetoration or repair ie economically feaaible and the secur+ty of this Mortgege is not thereby impaired. If such ~ restoration or repair ie not economically feasible or if the security of thie Mortgage would be impaired, the inaurance prnceeds shall be applied to the same secured by thia Mortgage. wifh the excess. if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower faila to ; reapond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier offere to setde a claim for insurance benefite, Leader ie suthorized to collect and apply the inaurance proceede at Lender e option either to restoration or repair of the Property or the eums secured by thie Mortgage_ Unlese Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal ehall not extend or poatpone the due date of the monthIy installmente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 - ' hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any insurance policiee and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquieitiun ahall pasa to Lender to the e:tent of the euma secnied by thie Mortgage immediately prior to auch sale or aoquiaition. 6. Preeervation aad Maintenance of Property; Leaseholds; CondominumR; Plaaned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall oomply with the proviaiona of any lease if thia Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower'a obligatione under the declaration or covenants creatingor governing tt~e condominium or planned unit development, the by-lawe ar.d regulationa of the condomini~un or planned unit development. and rnnstituent documente. If a co~dominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ aqreementa otsuch rider ahall be.incorporated into and ahall amend and supplement the covenanta and agreements of thie Mortgage as if the rider were a part hereof. 7. Protection of Lender'e Security. If Borrower fails to perform the oovenante and agrcements contained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender s intereat in the Property, including, bnt not limited to, eminent domain, ~ insolvency. oode enforcement, or arrangements or proceedings involving a bankrupt or deoedent, then Lender at Lender's option,upon ~ notice to Bormwer may ma1~e euch appearances, diaburse euch eams and take euch action es is necessary to protect Lender's intereet, ~ including, bnt not limited to, diebureement af reasonable atLorney e feee and entry upon the Property to make repairs. If Lender required ~ mortgage insurance ae a condition of making the loan aecured by thie Mortgage, Borrower ehall pay the premiums tequired to maintain ~ ench insnrance in eNect until euch time as the requirement for euch inaurance terminatea in accordance with Borrower'e and Lender e ~ written egreement or applicable Iaw. Borrower ehall pey the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ~ ~ Any amounts diebureed by Lender persuant to thie paragreph 7, with intereet thereon, shall become additionel indebtedneas of x Borrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terme ot payment, euch amounts shall be payable upon ~i ~ notice trom I.ender to Borrower r ueetin eq g payment thereof. and ehall bear intereet from the date of diabureement at the rate payable ~om ' time to time on outstanding principal under the Note unlese payment of interest at auch rate wouid be oontrary to applicable law, in which .`I event such amounta ehall bear intereat at the higheet Tate pernoieaible under applicable law. Nothing rnntained in this paregraph 7, ahall require I.er?der to incur any eacpense or take any action hereunder. ~ i ~ a~~~1~312 P,~~2536 ~ . . ~ ~