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HomeMy WebLinkAbout1107 ' Borrower and Lender covenant and agree v folbws: 1. Payment of Principal sad lntererat. Borrower shall promptly pay when due the principal of and iatered on the indebtedness evidenced by the Note, prepayment end late charges as provided in the Note. and the principal of and interest on any Ftitture Advances secured by this Mortgage. 2 Itltrtde for Tries and lasurance. Subject 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'h equal to ono- t.relfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus ono- twelRh otyearly premium installments for hasard insurance, plus ono-twelfth of yearly premium installments [or mortgage insurance, if any, all as reasonably estimated initially and from time to time by Leader on the basis oI aaseasmenta and bills and reasonable estimates thereof The Fltnda shall be held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Leader is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lends: mey not charge for so hokiing and applying the Funds, analyzing said account, or verifying and compiling said aasesameats and biW. nnless Leader pays Borrower interest on the Fonda and applicable law permits Lender to makesuch a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid b Borrower, and unless such agreement is made or applicable law requires such interest b be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Enacts. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose tot which each debit b 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 otFunds payable prior to the due dates of taxes, assessments, insurance premiums and ground yenta, shall exceed the amount required to pay said taxes, aesesamentb, insurance premiums and ground rents as they fall due, arch excess shall be, at Borrower's option, either promptly repaid to Borrower or credited W Borroweron monWly inataUments of FLnds. If the amount of the Funds 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 fnnda 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 otapplication as a credit against the sums secured by this Mortgage. 3. Applieatioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and par~gtaphs 1 and 2 hereof shall be applied by Leader 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 o[ 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 to 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, i f 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 make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority overthis Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien hy, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture nt the Property or any pan thereof. 5. Hazard lnaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the team "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 rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurrnrr shall be chusc•n by Born,wer subject to approval by I xnder; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall t,e paid in the manner provided under para~raph'l hereotor, if not paid in such manner, by Borrower making payment, when due, direct{y to the insuranrr carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclauae in favorot and in form acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to i.ender 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 loss if not made promptly by Borrower. ~i 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, theinsurance proceedsshall beapplied to the some 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 3(1 days from the date notice is mailed 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 the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree 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'arid 2 hereof or change the amount of such installments. I~' underparagraph 18 hereof the Property is acquired by (.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the preceeda thereof resulting from damage to Property prior to the sale or acqursition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such axle or acquisition. i 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep i the Property in good repair and shall not commit 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, t Borrower ahail perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or tanned unit develo ment rider is executed b Born,wer and recorded t ~ p p y ogether with this Mortgage, the covenants and <+greementa of such rider shdll be incorporated into and shall amend and supplement thecovenants 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 oovenanta and agreements rnntained in this Mortgage, or if any ; action or proceeding is commenced which materially affects Lender'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 Lendds option,upon notice to Borrower may make such appearances, disburse such sums and take such action as ie 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 mortgage inswance as a rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain i ouch insurance in effect until ouch time as the requirement for such insurance terminates in accordance with Borrower a and Lendds ~ i written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under i paragraph 2 hereof. Any amounts disbursed by Lender pereuant to thin paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms of payment, each 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 7, shall require [.ender to incur any expense or take any action hereunder. / € 3 . ' eoo~c 339 P:~E~07