Loading...
HomeMy WebLinkAbout2741 Iorrower and Lender rnvenant and agree ae 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonda for Taxes and Insurance. Subject to applicable law or W a written waiver by Lender, Borrower shall pay to Ixnder on the day monthly inalallmenta 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 fur hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance, if any, :+Il as reasonably estimated initially and from time to lime by ixnder on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including (.ender i[ Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Fonda, analyzing said account, or verifying and compiling said usaesamenta and bills, unless (.ender pays Borrower interest on the Funds and applicable law permits (.ender 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, Ixnder shall not be required to pay Borrower any interest or earnings on the Flrnds. 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 Fonda 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 duedates 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, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited tEi Borrower on monthly inatallmenta of Ftirnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums afid ground rents as they fall due, Borrower shall pay to bender 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, (.ender shall promptly refund to Borrower any funds held by Lender. If under p:+ragraph 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 orits acquisition by Lender, any Funds held by Ixnderat the time of application as a credit against the sums secured by this Mortgage. - 3. Application of Payments. Unless applicable law provides otherwise, all payments received by !.ender under the Note and paragraphs 1 and 2 hereof shall be applied by ixnder 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 Note, 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 W the Property which rosy attain a priority over this Mortgage, and leasehold payments or Kround 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. Burn+wershall promptly furnish to Ixnder all notices of amounts due under this par.+{traph, and in the event Borrower shall make payment direEtly, Rorn+wer shall promptly furnish W Lender receipts evidencing such payments. Iurrower shall promptly discharge :+ny lien which has priorih• m•er this MortKage; provided, that Borrower shall not be required to discharge any such lien.u long as liorruN•t•r shat( agree in writing to the payment of tht• utiliKation secured by ~ueh lien in a manner acceptable to Ixnder, or shall in Kcsicl faith cunt+•st such lien hy, or defend enfon•ement o[such lien in, IE•Kal proceedings .~•hich operate to prevent the enforcement of the lien ur forfeiture c.f thE• Property ur am• part thereof. • Hazard Insurance. Borrower shall keep the improvements now existinK ur hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as 1 xnder may require and in such amounts and forauch periods as Ixnder may require; providEd, that Ixndec shall not require that the amount of suE•h coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providing thE• insurance shall he ch~~sen Iry liorrowt•r subjt•c•t to :+pprvcc:+) by Lender, pnwidtd, that such approval shall not be unreascmabh• withheld. All premiums un insurance p~dir•it•s shall fs• p:ud in thc• m:u+ner pro~~idw! under par:rgraph'~ hertnf or, if not paid in such manner. by Ii~rrroH•er makinK payment, when duE•, din•c•th• to the incur.+nce carrier. All insurance policies and renewals thereof shall be in form acceptable to Ixnder and shall include a standard murtgagedause in favor of and inform acceptable to [xnder. Ixnder shall ha~•e the right to hold the {Hrlicies and renewals thereof, and Burrower shall promptly furnish to :lender all renewal notices and all receipts of paid premiums. In the event of loss. liorruwer shall give prompt notice W the insurance carrier and Ixnder- (xnder may make proof of loss if not madt• pn+mpth• by Burrower. Unless Ixnder and Borrower otherwise aKreE• in writing, insurance prcx•eeds shall tx• applied to restoration or repair of the Property ~ damaged, provided such restoration or repair i. ec•unumically feasible and the strurih• of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur itthe seE•urity of this Mortgage would t+e impaired, the insurance proceEds shall beapplied u. the sums secured by this MortKage, with the excess, if any. paid to liar. oveer. If the Property is abandoned by Borrower, or it Borrower fails to I respond to Lender within :3U days from the date nutie•e is m:+ilcd by li~ndor to Korruwer that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorizeEl to colh•c•t and apply the insurance prcK•E•eds at Ixnder's option either to restoration nr repair of the E'ruperty or the sums secured by this MortK:+Ke- unless Ixnder and Borrower otherwise agre•t• in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and Y hereof or change the amount of sut•h installmentsg- If under paragraph 18 hereof the Property is acquirEd by Ixnder, all right, titlE• and interest of Kurn,wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale ur acgwsition shall pass to Lender to the extent of the sums secured by this ~Lrrtgage immediately prior to such sale or acquisition. ~ 6. Preservation and 1laintenanceof Property; Ixaseholds;('ondominums; Planned Unit Developments. Borrower shall keep ' the Property in gaud repair and shall not commit w:+~te ur {x•rmit impairment ur deterioration of the Property and shat! comply with the pru~•isions of any lease if this bortgage is on a leasehold. if this Mortg:ge is un a unit in a Eondominium or a planned unit development, Burrower shall perform all of Borrower's obligations under tht• de•E•laratiun orcovenants crealingur KovermnK the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a a ~ unduminium or planned unit development rider is exErutcd by Borrower and rE•c•urded urgether with this Mortgage, the covenants and ;~Kreements of such rider shall lte incurpcrrattd into and shall amend and supplement the c•uvenants and agreementsof this Mortgagees if the nder were a part hereof. 1 7. Protection of Lender's Security. If Borrower fails k+ perform the covenants and agreements contained in this Mortgage, or if any 1 action or proceeding is commenced which materially affects Fender's interest in the Property, including, but not limited to, eminent domain, I insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder 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's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required c 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 requirement for such insurance terminates in accordance with Borrower's and Lendei a `s written agreement or applicable [aw. Borrower shall pay the amount of al! mortgage insurance premiums in the manner provided under paragraph 2 hereof. 3 Any amounts disbursed by [.ender perauant to this paraKraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Burrower and Ixnder agree to other terms of payment, such amounts shall be payable upon • notice from Ixnder to Burrower 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 Mute unless payment of interest at such rate would t+e contrary to applicable law, in which went such amounts shall bear interest at the highest rate permissible under applicable law. tiothinK contained in this paragraph 7, shall require Ixnder to incur any expense or take any action hereunder. k a~ 3z7 P~~E z~s 9 i 'Y yrs. •