Loading...
HomeMy WebLinkAbout0237 !iurrower and (.ender covenant and agree as [ollowe: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latechargea ae provided in the Note, and the principal of and interenton any Future Advances secured by this Mortgage. 2. btitr+ds for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder, Iiorruwer shall pay to lxnder on the day monthly installments of principal and interest are payable under the Nute, until the Note is paid in full, a sum (herein "Funds"1 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 twelRh of yearly premium installments for hazard insurance, plus onetwelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tiros by Lender on the basis of an.4essmenta and bills and reasonable estimates thereof. The l~rnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency ±including Lender it Lender is such an institution). (.ender 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 and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Linder 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 or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the ~rnds. 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 !.ender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, 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 Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of ~nda. if the amount of the Fonda held by !.ender 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 Ixnder to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by lxnder. if under paragraph 18 hereof the Property in sold or the Property is otherwise acquired by Ixnder, lxnder shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Ixnder at the time of application as a credit against the sums secured by thin 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 Lender by Borrower under paragraph 2 hereof, then to intereal payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. 4-Charges; Liens. Bonrower shall pay all taxes, :+sseesments and othen•harges, fines:+nd impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the mannerprovided under paragraph 2 hereofor, if nut paid in such manner, by Borrower making payment, when due, directly to the payee thrr+•+,f. Itorrowershall promptly furnish to Ixnder all notices of amounts due under this par.+gr:+ph, and in the event lt+?n over shall make payment directly, Burmwer shall promptly furnish to Lender receipts evidencing such payment.. Burrower shall promptly discharge any lien which has priorih• over this Mortgage: provided, that Borrower shall not be required lu discharge any such lien so long as Itorn,wer shall a{,vee in writing to the payment of theobligation secured by .och lien in a manner acceptable to Ixnder, or shall in gcx?d f:+ith contest such lien hy, urdefenii enfonY•ment of such lien in, legal proceedings which ope:ale to prevent the enforcement of the lien or forfeiture of the I'n,{x•rty or am• part thercv,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire hazards included within the teen "extended coverage," and such other hazards as !.ender may require and in such amounts and for such periods as lxnder may require; provided, that Ixnder shall not re•c{uire that the amount of such rnverage exceed that amount of coverage rtquired to pay the sums secured by this Mortgag+•- The insurance carver prc?vidinK the insuram-+• shall 1,+• ch„s+•n by Bom~wer sul,iw•t t„ approval by 1 xnder; provid+~l, the+t such approval ,hall not be unreasonably withheld. All premiums on insurance {?,di,•i+•s sh:dl Iw• paid in the manner pmvid+•+t and+•r par.+Kraph 'L her~r,tor, if nod paid in such manner, by Borrower making p:q•ment- when dui,, dinr•th• to the inwrance carrier. All insurance policies and renewals thereof shall be in form acceptable G,1 ender and shat! include a standard mortgageclause in favorof e+nd in form acceptable to Ixnder. Ixnder shall have the right to hold the {xdicies and renewals thereof, and Borrower shall promptly furnish to render all renewal notices and all receipts of paid premiums. In the event of loss, lir,rmwer shall give prompt notice to the insurance carrier I~; and Ixnder. Lender may make pr«,f of loss if not made promptly by Bormwer- Unless Ixnder and Borrower othervise 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 nut thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ter the sums secured by this Mortgage, with the excess, if any, paid to l;„m,wer. If the Property is abandoned by Burrower, or if Burrower fails to re pond to Ixnder within :10 days from the date notice is mailed by !.ender to l3<,rn,wer that the insurance carver offers to settle a claim for insurance benefits, Ixnder is authorized to collect and apply, the insurance pn.e•c•e•ds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless (.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installmentsa referred U, in paraKr<+phs 1 and'L !+er+tirf or change the amount of such ins4•+IlmenLs. if under paragraph IS hereof the Property is acquired by lxnder, all right, title and interest of Burmwer in and to any insurance policies and in and to the prececdn thereof resulting from damage to Property prior to the w+le or ac+{msitiun shall pass te, Ixnder to the extent of the sums secured by this ~t~rrtgage immediately prior to such sale ur acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condomimuma; 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 comply with the provisions of any lease it this Mortgage is on a leasehold. !f this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration ur covenants cn•ating or governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. [t a r nndominium or planned unit development rider is ex+ruted by lioErower and recorded together with this Mortgage, the eovenantss and . ,rrrements of such rider shall be incurp,rrated into and shallamF•nd and supplement the covenants and agreementsR of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenante and agreements Fontained in this Mortgage, or if any I action or proceeding ie commenced which materially affects Ixnder'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 Lender's option,upon notice to Borrower may make such appearances, disburse such sums 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 martgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain ~ Ruch insurance in effect until such time as the requirement [or such insurance terminates in accordance with Borrower's and Lendei s M•ritten agreement or applicable Law. Borrower shall pay the a+nount 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 Bonower secured by this Mortgage. Unlenn Aorrower and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from (,ender 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 e,f 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 Ixnder to incur any expense or take any action hereunder. nk R~I~K343 F~GE ~•3~ ; - ~ a