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HomeMy WebLinkAbout1211 S Burrower end Lender rnvenant and agree u folbwa: 1. Payment of Principal and lnterert. Borrower shall promptly pay when dtte the principal of and interest en the indebtedness evidenced by the Note, prepayment and late charges u provided in the Note, and the principal of and interest on any I''uture Advances secured by this Mdrtgage. 2 Ftitads for Taxes and Insurance. 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") 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, plw one twelfth of yearly premium installments for hazard insurance, plus onetwelfth otyearly premium installments for mortgage insurance, if any, all u reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranterd by 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 compiling said assessments end bills, unless Lender pays Borrowerinterest 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 F'unda shall be paid to Borrower, and unless such agreement is made or applicable law requires ouch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fltnds. 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 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 of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground yenta, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fail due, such excess shall be, at 13ot'rower`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 b~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 a~thin 3A 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 or its acquisition by Lender, any Funds held by Lender at the time otapplication as a credit against the soma 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. Borrowershall 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, if not paid in push manner, by Borrower making payment, when due, directly t.? the payee thereof Borrower shall promptly furnish t4 Lender , all notices of amounts due under this paragraph, and in the event Bc?rrower shall make payment directly, Borrower shall promptly furnish to } I .ender receipts evidencing such payments. Borrower shall promptly di4charge any lien which has priority over this Mortgage; provided, that ! Borrower shall not be required todischarge any such lien so long Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith rnntrst such lien by, or defend enfurmment otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part thereof 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 term "extended coverage," and such other hazards as Lender may require and in such amounts and forauch periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insur?nc-e shall M• ch?~cen by Burrower subjeM to approval by Lender, prcn•ided, that such approval shall not be unreasonably withheld. All premiums on insurance twlicies shall Ix paid in the manner provident under paragraph `L hermf or, if not paid in such manner, by Borrower making payment, whNn due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable W Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.endershall have the right i.? hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, liorn?wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender end Borrower otherwise agree in writing, insurance proceeds shall t?e 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. It such restoration or repair is not economically feasibly e?r if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma 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 :t0 days from the date nolire is mailed by Lender to Borrower that the insurance carrier offers !a 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 the due date of the monthly inatallrnenta referred to in paragraphs 1 and'2 taererof or change the amount of such installments. If under paragraph 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 proceccis thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of ttie sums secured by this ~ ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned Unit Developments. liorrowerahall keep 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, Borrower shall perform all of Borrower a 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 rnnetituent documents. It a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and aKreementsofauchridershallbeincorporatedintoandshallamendandsupplementthecovenantsandagreementsofthisMortgageasifthe rider wetg~part hereof. 7.='~rotei~ion of Lender'. Security. If Borrower fails to perform the covenants and agreements rnntained in this Mortgage, or if any action or proceeding is commenced which materially affects [.enders interest in the Property, including, but not limited to, eminent domain, insolvency, code entur.~eptent, 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 sums and take such action ae is necessary to protect Lender's interest, i S including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required t 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 ouch insurance terminates in accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mort gage insurance premiums in the manner provided under = paragraph 2 hereof. i Any amounts disbursed by Lender perauant to this paragraph with interest thereon, shall become additional indebtedness of I Y,orrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, each amounts shall be payable upon notice from [.ender to Borrower requesting payment thereof; and ahalf 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 rnntrary to applicable law, in which ~ event such amounts shall bear intereslt 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. ~ g~~x342 PA~E1211