Loading...
HomeMy WebLinkAbout0561 1 . + , Borrower and Lender covenant and agree as folbws: 1. Payment of PNncipal and lnlvrrst. Burrower shall promptly pay when due the principal of and interest on the indebtedness evidena• the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any F~rture Advances secured by thin 1 sage. 2. Funds for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to !.ender 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 ottheyearly taxeeand 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 one•twelfth otyearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates theroof. 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 Lends if Lender is such an institution). i.ender shall apply the Fonda tdpay. said taxes, assessments, insurance premiums and ground rents. Lender may not charge for 6o holding and applying the tlrnds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender b make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Ftirnds 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 ~rnde. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by !.ender, 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, asaeasmenta, insurance premiums and ground yenta as they fall due, such excess shall be, at Borrowers option, either promptly repaid to Borrower or credited to &,rrower on monthly installments of Funds. If the amount of the Fonda 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 !.ender. 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 ar its acquisition by (.ender, any Funds held by !.ender at the time otapplirntion as a credit against the sumssecured by this Mortgage. 3. Application of Payments. 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 otamounta 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. Borrowershali pay all taxes,:+ssessments and othercharges, Penes and impositions attributable to the Properly which may attain a priority over this Mortgage, and leasehold payments ar ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all natives of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Korrower shall not be required todi4charge any such lien so long as Burrower shall ague in writing to the payment of theobligation secured by _ such lien in a manner acceptable to Lender, or shall in good faith n,ntest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fr?rfeiture of the Property or any part thercr,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the team "extended rnverage,"and such other hazards as Lender may require and in such amounts and torsuch periods as Lender may require; provided, that Ixnder shall net 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 insur.+nm shall tK• chosen 1?y li„rn,wer subject to approval by 1.+•nder. pd,vided, that such approval shall not be unreasonably withheld. All premiums on insurance INdicies shall Ix paid in the m:+nner pr+n•ided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, din•+•tly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable 4, I.enderand shall include a standard mortgagecla++se in favorof and inform acceptable to Lender. I.enderahall have the right to hold the policies and renewals thereof, and liorrowershall promptly furnish to ixnder all renewal notices and all receipts of paid premiums. In the event of lass, liorn,wer shall give prompt notice to the insurance rattier and Lender. Lender may make proof of loss it not made promptly by Borrower. j Unless Lender and Borrower otherwise agree in writing, insurance pn,tteds shall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is-ec~,nomicalfy feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible r,r if the security of this Mortgage would be impaired, theinsurance proceeds shall be applied to the sums secured by this Mortgage, with the exces.R, if any, paid to Borrower. if the Property is abandoned by Borrower. or if Borrower fails to respond to Lender within :l0 days from the date notice is mailed by bender 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 soma secured by this 111ortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or postpone thedue l date of the monthly installments referred to in paragraphs 1 and 2 l+ereuf 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 acquisition shall pass to Lender to the extent of the auma secured by this Mortgage immediately prior to such sale or acquisition. I 6. Preservation and MaintenenceotProperty; Ixaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply 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 Borrower's oblige(ions 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 planned unit development rider is executed by Borrower and recorded together with this Mortgage, the wvenants and agreements of sucfi 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 Lender'. 3erurity. If Borrower Palle to perform the covenants and agreements contained in this Mortgage, or if any E action or proceeding is commenced which materially affects Lender a 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 a option,upon notice to Borrower may make such appearances, disburse such auma and take such action as is necessary to protect Lender's interest.. t ~ including, but not limited fo, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required 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 a and Lenders t ~ 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 Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of s Borrower secured by this Mortgage. Unless Borrower and !.ender agree to 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 ' i time to time on outstanding principal under the Nate unless payment of interest at such rate would be rnntrary 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 Lender to incur any expense or take any action hereunder. . t ~ ~ , BC:?i(~ PdGE /