Loading...
HomeMy WebLinkAbout3002 Burrower and Lender covenant and agree as follows: I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and fate charges as provided in the Note, and the principal of and interest on any FtitureAdvanceasecured by this Mortgage. Funds for'Ptaacen end Insurance. Suhjay to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installtents for mortgage insurance, if any, all as reasonably estimated initially and from time to tithe by Ixnder on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay saiu taxes, asse+;srnents, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying and compiling Said assessments and bills, unless Lender pays Borrower interea/ on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this 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 shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. if the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes. assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, ouch 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 F unda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums 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 is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable !aw provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [.ender first 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 Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priorityover this Mortgage, and leasehold payments orKmund rents, ifany, in themannerprovided underparagraph 2hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to lxnder all notices of amounts due under this paragraph, and in the event Korrower shall make payment directly, Borrower shall promptly furnish to i,ender receipts evidencing such pa;•+nrr?ts. iwriower shat! pramptl;•'lisch:t: t;e ;:ny (fen which has pri~~rity ~uerthi~ MnrttragP; f?ruvidrd; that Burrower shall not berequired to discharge any such lien so long as F3tmower shall agree in writinK to the payment of the obligation secured by ,uch lien in a manner acceptable to Lender, or shall in gurxl faith contest such lira by, ordefend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or [urfeilurc• of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements nua• existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended rnverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; pnn•ided,-that Lender shall not require that the amount of such p?verage exceed that amount of coverage required to pay the sums secured by this MortKaKe- The insurance carrier pruvidinK the insurance shall tk• c•hosen b;• Burrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance t>tdiries shall IK• paid in the manner provided under paragraph 'L hereof or, if nut paid in such manner, b;• Itr~rrower makinK payment, when due•, din•e•tt;• t.. the insurance carrier. Ail insurance policies and reneu•a!s thereof shall be in form acceptable G? Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. [.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to render all renewal notices and all receipts of paid premiums. In the event of loss, Korn?wer shall Kive prompt notice to the insurance carrier and Lender. (.ender may make proof of foss if nut 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 ur if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied 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 a0 days from the date notice is mailed by Lender to Borrower that the insurance carrier ot7ers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at bender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless bender and Borrower otherwise agree in writinK, any such application of proceeds to principal shall notextend orpostpone thedue date of the monthly installments referred to in paragraphs 1 and'( 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 to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Propert;• and shall comply wtith the provisions of any lease if this Mortgage is on a leasehold. If this MortKaKe is on a unit in a condominium or a planned unit development, Horrower shall perform al! of Borrower's ohligations under the declaration or covenants creatinKor governing the condominium or planned unit development, the by-laws and regulations of the cundr~minium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Burrower and recorded together with this Mortgage, the covenants and :+Kreements ofsuch rider shah be incorporated into and shall amend and supplement thecovenantsand agrtrmentsofthis Mortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [.ender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lender s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by tender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. lJnleaa Borrower and lender agree u? other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall _ require Lender to incur any expense or take any action hereunder. b~~x3~~ ~~~~2!~