Loading...
HomeMy WebLinkAbout1502 Borrower end Lender covenant and agree as follows: 1. Payment o! Principal and Iatereat. 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 otand interval on any F1~ture Advances secured by this Mortgage. 2. Itirrrds for Taxes and Insurance. Subject to applicable law or W a written waiver by Lender, Borrower shall pay to Lender on the dey monthly installments of principal and interest are payable under the Note, until the Note is paid in fu)1, 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 one•twelRh ofyearly premium installments for mortgageinaurance, itany, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates lhereoL The Ftirnds shall be held in an institution the deposits or accounts of which are inaund or guaranteed 6y a Federal or State agency (including Lender it 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 so holding and applying the Funds, analyzing said account, or verifying and rnmpiling said assessments and bills, unless Lender pays Borrower interest 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 of applicable law requires ouch 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 Fund4 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 Fl~nds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asaeesmenta, 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 BocYOwer s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. 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 (.ender any amount necessary to make up the deficiency within 30 days ; from the date notice is mailed by [,ender 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 applirntion as a credit against the sums secured 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 of amounts payable to bender 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 to the Property which may attain a priority over this Mortgage, and leasehold paymentsor 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 notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:cs priority over this 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 6y such ben in a manner acceptable tq lxnder, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insurAd against lose by fire, hazards included within the term "extended coverage," and such other hazards as lxnder may require and in such amounts and forauch periods as Lender may require; provided, that lxnder shall not require that the amount ofsuch coverage exceed that amount of coverage ' required to pay the sums secured by this Mortgage. ; } The insurance carrier providing the insurance shall tie chir~en by Borrower subject to approval by lxnder, pn?vided, that such approval shall not be unreasonably withheld. All premiums on insuramr p~dicic•s shall tx• paid in the manner pn?vided under paragraph 'L 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 lxnder and shall include a standard mortgageclauae in favorof a nd in form acceptable to Lender. lxnder shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to lxnder all renewal notices and all receipts of paid premiums. In the event of loss,l3orrowershall give prompt notice to the insurance carrier and Lender. [.ender may make proof of loss 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 f damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such E matoration or repair is not economically feasible or if thesecurity 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. I f the Property is abandoned by Borrower, or if Borrower fails to _ respond to Lender within 30 days from the date notice is mailed by lxnder to Borrower that the insurance carrier offers to settle a claim for - insurance benefits, lxnder is authorized to collect and apply the insurance proceeds at lxnder s option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application otproceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 21~ereof or change the amount ofsuch installments. Itunder paragraph 18 hereof the Property is acquired by Lender, all right, title and interes/ of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sate or acquisition shall pass to (.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition- 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 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 conatilueM documents. If a { condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreementaofthis Mortgagees ifthe rider were a part hereof 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is rnmmenced which materially affects (.ender a interest in the Property, including, but not limited to, eminent domain, l 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 soma 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 mortgage insurance as a rnndition 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 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 Lender petauant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender b Borrower requesting payment thereof, and shall bear interest from the date of disbursement et the rate payable from time to time on outstanding principal under the Note unless payment of interest at such-rate would be rnntrary to applicable law, in which s 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 1 S ~ ~ ~ ~ aoox341 ~acE1500 - E