Loading...
HomeMy WebLinkAbout1265 ' i_: . • - - •t i Uxrronr+r Oovairrtrtrs. HomoMar and Lender covenant and agree as follows: 3. >tt0'ttaaM e>i h1adN1 tttai hlereat. borrower shall promptly pay when due the principal of and interest on the atdebtedrtep evidaooed by the Note. prep~ynteat and late charges as provided in the Note, and the principal of and interest ~ oa any Ftttwe Advances secwed by this Mortgage. ~ 1 llryMtf hr '[Rasa taxi -Ltaaaa¦a~e. Subject to applicable law nr to a written waiver by Lender. Botmttrer shall pay to Lender on the day tnoathly installments of principal and interest arc. payable under the Note, until the Note is paid in full, • sttm (ha+eim "Fttttds'y equal to ot~iwelfth of the yearly tax~~ and assessments which may attain priority over this Mortgage, and =round rants oa lira Property. if any, plus one-twelfth of yearly preriuumt ittstallrrtcnis tar hazard lrtsurartce, plus oao-ttt?elfth of yearly ptemitrm installments for mortgage inutranct:. if any. all as reasonably estimated initially and from limo to lima by Leader on the bash of sssessmcnts and hills and reasonable estimates thereof. ' The Fund::hall be held in an institution the deposits or accounts of which are ittsttt+ed or guaranteed by :Federal or state agency (including Lender if Lender is such an ittstituiion). Lender shall apply the Funds to pay said taxes, assessrrtertts. iaattrance premiums and ground rents. Lender may not charge for :n holding and applying the Fnrtth. analysing said account, or verifying and compiling said assessments and bilk, unku Lender pays Borrower interest on the Funds and applicable law permits Lender to make wch a charge. Borrower and Lender may agree in writing at the time of execution of the Mortgage that interest on the. Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shag give to Borrower. without charge, an annwl aooounting o[ the Fund showing credits and debits to the Funds and tht purpaseMfor which each debit to tbt Funds was made. The Funds are pledged ss additional sxurity for the sums secured ortgage. TE the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assasmatts, insurance premiums and ground ants, shall exceed the amount required to pay uid taxes, sawments. imsuramoe premiums and ground rents as they fall due. such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds htdd by Lewder shall not be sufBcieat to pay taxes. assessments. insuratttx premiums and ground rents ss they fall due. E Borrota?er shall pay to Leader any amount rtecessary to make up the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment thereof. Upon payment in fuq of aU stints secured by this Mortgage, lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property a otherwise scquired by Lender. Lender shall spply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at tl?e time of application as a credit against the sums secured by this Mortgage. - 3. A~iicatloa of Pgarentr. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under pangaph 2 hereof. then to interest payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advatttxs. d, Cdrgae: Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if sny, 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 Lender all notices of amounts due under this paragraph, and in the event Borrower shall nuke payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower she!) promptly discharge any lien which has priority over this Mortgage; provided. that Borrower shall not be required to discharge any such lien so long as Borrower shall agrce in writing to the payment of the obligation secured by such lies in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien ia, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard iasrrapce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by Ere, hazards included within the term "extended coverage and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 'ILe insurance carrier providing the insurance shall bt chosen by Borrower subject to approval by Lender. provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable~to Lender and shall inclose a sianuaiu ~~w~.gage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lens if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is marled by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to the sums secured by this Mortgage. Unless Lender and Borrower otherwise egret in writing, any such application of proceeds to principal shall not extend or postpone the due flare of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the ProE,eny is acquired by Lender, all right, title and interest of Borrower in and to any Insurance policies and in and to the proceeds thereof resulting from damage to the Property prior to the sale 5 . or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or ~ acquisition. 6. Preservation sad Maintenance of Properly; Leaseholds; Condominiums; P4nned Unit Developments. Borrower s shall keep the Property in good repair and shall not comrgit Waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. if this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowers obligations under the. declaration or covenants creating or governing the condominium or planned unit development, the by-laws and regulations of the ` i condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agrcements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of. this Mortgage as if the rider were a part hereof. 7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if'any action ur proceeding is commenced which materially affects Lender's interest in the Property, including. but nut hmited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a bankn~pt or decedent, then tender at Lender ~ option, upon notice to Borrower, ma}• make such appearances, disburse such sums and take such action as is necewary to protect Lender's interest, including. but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. If lender reyuircd mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in effect until such time as the reyiiirement for ,uch insurance terminates in :~ecordance with Borrowers and x t 1 BO~K,.~~~ PaGE1258