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HomeMy WebLinkAbout1787 t ~ ~ , ~ Borrower and Lender covenant sad anew a follows: 1. Paymnat of Priaedpal sad lateral. Horwwer shall prompWr pay when dw the priad*al of and inbred on We indebtednea widauxd by tM Note, prepgymeat sad lab charges as provided in the Note, and the prindpal of and intesat on any F1~ture Advaaoa secured . by this Mortgage. - 4.1#lrreds !or Tara sad lasnraaos. Snbjed b appUcable law or to a writbn waiver by I.wdee, Borrower shall pay to Calder on the day moaWly indaUment of priadpal and interest are payable under the Note, natU the Note is paid inlbll, a sum (herein "Ptinds'~ equal to aae- twelfth ofthe yearb? ta:aand asseameatwhich may attain priority over this Mortgage, and ground rent on the Properly. if any. plw aa? twelfW of yearly premium indalhaent for haurd insurance, plw onstweltth of yearly premium installments for mortgage insurance, if any, all sr reasonably estimated initially sad from time b time by Lender on the basis of assessment and bil4 and reasonable atimata WereoL The l?leads shall be held in as iustitutioa the deposit ~ account of which are insured or guaranteed by a Federal or Stab agency (including Lender it Leader i. such an institution). Leader shall apply the Fweds to pay said lases, assessments, insnsance premiums and ground rents. Lender easy not charge for so bolding and applying the Ftimds. analyzing said aeoonnt, or verifying and compiling said aass~enb and bills, unlea Lsewler pays Harrower interest on the Frauds and applicable law permit Leader b make such a charge. Borrower and Leader eeugr agew is writing at the time of execution of this Mortgage that interest on We Ptimds shall be paid to Borrower, and nalea such agrament i. made or appUcable law regnires such interest to bs paid, Lender shall not be required to pay Borrower any inbred or earnings oa the PLnds. Lender shall give to Borrower. wiWont charge, an annual accounting of the 1?hnds showing credits and debit to the PLnds and the purpose for which each debit to the PLnds yras made. The leads are pledged as additional security for the sums secured by this bbrtgage. - V the amosat of tM blends held by Lende>•.Together wild Wefuture monWly inutallment of P1mdspayable prior to the due dates of texas, assessmente, ieunraaes praninme and ground cart, shall exoaed the amount required to pay scud taxes, assessmeats, insurance premiums and ground rent as they fall dw, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited b Boaower on monthly lasWlment of Plrnds. If the amount of the Phnda bell by Lender shall not be suilrrdent to pay taxes, assessments, insnr'inw premiums and ground rents as they fall dw, Borrower shall pay to Lender say 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 l1e11 of all sums secured by thin Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. V under paragraph 18 hereof the Prt?psrpr i. sold or the Property is otherwise acquired by Lender. Lender shaU.apply, no later than immediately prior to the sale of the Property a it acquisition by Lender, any I~lends held by Lender at the lane of appUcation as a reedit against the sums secured by this Mortgage. 3. AppUcation of Payments. Unlea applicable law provides otherwise, all payments received by bender under the Note and paragraphs. l and 2 hereof shall b applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof; Wen to inbrat paysbb on the Nob, then to the prindpal of We Note, and then to intred and prindpal on any Ptirturs Advances. _ 4. Charges; Liens. Borrower shell pay all taxes. assessments and other charges, Rua and impwitions attributable to the Property which may attain a priority over this Mortgage, and leasehold pe~yment or ground rents. if any. in the manner provided under paragraph 2 hereof or, if not paid in such manna. by Borrower making payment. when due. directly to the payee Wereof. Borrower shall promptixfurnish toLeader - aU notice ofamounts dneunder this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipt evidendng such payment. Borrower shall promptly discharge any lien which has priority over Wier Mortgage; provided, that Borrower shall not be required to discharge any such lisp so long as Borrower shall agree in writing to We payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien err forfeiture of the Properly or any part thereof. 6. Hazard Insurance. Borrower shall leap the improvement now exieting or hereafter erected on the Property insured against lea by firs, hasards induded wiWin the term "extended coverage." and ouch other hazards as Lender may require and in such amount and forsnch periods as Lender may require; provided. Wait Lender shall, not require Wal We amount of such coverage exceed Wat amount of coverage required to psy.We sums secured by Wis Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender. provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided undo paragraph 2 hereof or, if not paid in such manna, by Borrower making payment. when due, directly to the insurance carrier. AU insurance policies and renewal; Wereof shall be in form acceptble to Lender and shall include a standard mortgage dause in favor of and in form aoosptable to Lender. Lender shall have the right to hold the policies and renewale Wereof, and Harrower shall promptly furnish to i.er?der all renewal erotica and all receipt of paid premiums. In the event of loss. Borrower shall give prompt notice to the itunrance carrier and Lender. Lender may make.proof of foes if not made promptly by Borrower. Unless Lender and Borrower oWerwise agree in writing, insurance procee~w shall be applied to restoration or tau of the Property damaged, provided such restoration or repair is economically feasible and We~security of this Mortgage is not Wereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. We insurance proceeds shall be applied f to We arena secnrai by this Mortgage. wild We excess. if any, paid to Borrower. If the Properly is abandoned by Borrowei, or if Borrower fait to ~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier others to settle a claim for inanranoe benefit, Lender is auWorized to collect and apply the insurance pra~eeda at Lender's option either to restoration or repair of We Properly or the sums secue+ed by Wis Mortgage. Unlea Lender and Borrower oWerwise agree in writing, any such application of proceeds to principal shall not catered or pwtpone the dw dal of the monthly inataUment referred to in paragrapher 1 and 2 hereof or change the amount of such inataUmeat. V under paragraph 18 hereof the Property is acquired by Lender. all right, title and interest of Borrower in and to anyinaurance policies and in and to the proceeds E Wereof resulting 11rom damage to Property prior to We sale or acquisition shall pass to Lender to the-extent of the soma eecured by this Mortgage immediately prior to each sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Coadominums; Planned Unit Developments. Borrower shall keep the Properly in good repair and shall not commit waste or permit impairment or deterioration of the Properly and shall comply with We provisions of any lease if this Mortgage u on a leasehold. I[ Wis Mortgage is on a unit in a condominium or a planned snit development` Borrower shall per[orm all of Borrower's obligations under We declaration or rnvenant creatingor governing the condominium or planned unit development, We by-laws and regulations of We condominium or planned unit development, and 'constituent document. If a ooadomininm or planned unit development rider is executed by Borrower and recorded together wild Wis Mortgage, We oovenent and agreement otsuch rider shall be incorporated into and shall amend and supplement the covenant and agreement otthis Mortgage as if the rider were a purl hereof. 7. Protection of Leader's Security. It Borrower fails to perform the covenant and agreements contained in this Mortgage. or if aq~r j action or proceeding is ooasrnareed which materially affect Lender's intred in We Property. indnding, but not Umited to, eminent domain; insolvency. code enforcement, or arrangement or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,npoa notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to prated Lsndse's interest, indnding, but not I~mitsd to. disbursement of reasonable attorney's fees and entry upon the Properly to make repairs. V Lender required mortgage insurance w • condition of making We loan secured by Wier Mortgage. Borrow`` shall pay the premiums required to maintain such irunranos in disc! until surf` time as We requirement for such irunranoe terminates in accordance with Borrower's and Lsadw's - writtn agreement or applicable Law. Borrower shall pay the amount of all morlgage insurance psemiuau in the manner provided nrrdsr - paragraph 2 hereof. Any amount disbnreed by Lender persuant to Wis paragraph 7, wild interest Wereon. shall become. additional indebtedness of Borrower secured by this Morlgag~'Unlea Borrower and Lender agree to older terms of payment, such amount shall be payable upon Helios fr+am Lender to Borrower requiting payment W ereof. and shall bear interest from We dal of disbursement at the rate payable loom time b time on outstanding prindpal under the Not unlea payment of interest at such rate world-be contrary to applicable law. in whkh event such amount shall bear interest at We highest rate permissible under applicable law. Nothing contained in Wis paragraph 7, shall require Larder to incur any expense or take any action l~aeunder. • _ so~341 ~~1782