Loading...
HomeMy WebLinkAbout0656 ' . Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principa! of and interest on the indebtedness evidenced by the Note, prepayment and latechargea ae provided in the Note, and the principal of and interest on any F uture Advances secured by this Mortgage. 2. Ftutds for Taxes and Insurance. Subjec/ to applicable low or to a written wuiver by lxnder, Borrower shall pay to lxnder on the day monthly inatalimenta 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 asaeasmenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium inatallmenta for hazard insurance, plus one•lwelfth of yearly premium installments fur mortgage insurance, i[any, :+11 as reasonably estimated initially and from time to time by lxnder on the basis of nasesgments and bills t+nd re:+sonablr estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured ur guaranteed by a Federal or State agency (including lxnder if Lender is such an institution). lxnder shall apply the Funds to pay said taxes, asseasn+enta, insurance premiurna and ground rents. lxnder may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said :+saesamenta and bills, unless Lender pays Borrower interest on the Funds and applicable law permits lxnder to make such a charyce. Borrower :+nd 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, lxnder 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 Funds showing credits and debits to the M unds and the purpose for which each debit to the Funds was made. The Funds:+re pledged as additional security for thesuma secured by this Mortgage. If the amount of the Funds held by lxnder, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall excrecl the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Ro+rc?wer's option, either promptly repaid to Borrower or credited to Eiorruwer on monthly installments of Fonda. If the amount of the Fonda held by lxnder shall not be sufficient to pay taxes, assessments, insurance premiums and gmund rents ae they fall due; Borrower shall pay to lxnder any amount necessary to make up the deficiency within 30daye from the date notice is mailed by Lender to Borrower requesting payment therec?f. Upon payment in full otall sums secured by this MortKage, lxnder shall promptly refund to Korrower any funds held by 1 ender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by lxnder, lxnder shall apply, no later than immediately prior to the Bale of the Property or its acquisition by lxnder, any Funds held by 1 ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by lxnder under the Note and paragraphs 1 and 2 hereof shall be applied by lxnder first in payment e?f amounts payable to i ender 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. -t. Charges; Liens. Born?wer shall pay all taxes, assessments and othen•harges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kround n•nts, if any, in the m:mner pn?vidcd under paragraph 2 hereofor, if nut paid in such manner, by Borrower making payment, when due, din•ctly to the payee there.?f. Borrower shall promptly furnish to lxnder :d! notices of amounts due under this paragraph, and in the event i;„rrower shall mak+• payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. lie,rrower shall promptly discharge any lien which has priority over this Mortgage; provided,that }:,,mower shall not be required to discharge any such lien so long as It+?m,wer shall agree in writing to the payment of the obligation secured by ,uch lien in a manner acceptable to lxnder, or shall in gex,d faith contest such lien hy, ordefend enfon•e•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitur+• of the Property or any part then~,f. :i. Hazard Insurance. Burrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and wch other hazards as lxnder may require and in such amounts and forsuch periods as lxnder may n•quire; provided, that lxnder shall not n•e{uin• that the amount of such cvn•erage exceed that amount of coverage re•yuired to pay the sums second by this Mortgage,. The insuranrn +•:+mer pn,viding the insurance shall l,e• chosen by Itom,wer suhje•e•t to approc:+l by I.e•nder, provided, that such approval shall nor tx unre:+semahly withheld. All pn•miwns on insurance {H,licies sh:dl he• paid in the manner provident under par-.+graph'L hereof or, if nut paid in such manner, by t~,m,wer making p:+yment. ~~•hrn due, din•ctly to the insuranie carrier. All insurance policies and renewals thereof shall t?e in form acceptable to Lender and shall include a standard mortgagedause in favor of :end in form acceptable to lxnder.Ixndershallhavetherighttoholdthe{N,liciesandn•news(stherend.and~orr~wershallpromptlyfurnishte? :.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall Kive prompt noiim G? the insurance carrier :+nd lxnder. lxnder may make pns?f of loss ii not made promptly by Borrower. Unless lxnder and Ilr?rrnwer otherwise agree in writinK• insurance pr«•e•eds shall tx• applied to restoration or repair of the Property damaKed, pro~~ded such resU,r:+tion nr repair is economically feasible and the see•urih of this Mortgage is nut thereby impaired. if such restoration or repair is not economically [easible or if the sen•urity of this Mortgage would tx• impaired, the insurance proceedsshall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the 1'roperiy is abandoned by Burrower, or if Borrower fails to { respond. to lxnder within all days from the d:+te notice, is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for :nsurance benefits, lxnder is authorized to collen•t and :+pply the insurance-pn,e•ee•ds at lender's option either to restoration or repair of the Property or the sums secured by this 1ortgage. Unless lxnder and Borrower otherwise' agree in writing, any such application of pn?e•en•ds to principal shall not extend ar postpone thedue date of the monthly installments referred to in paragraphs t and'L henn,f or change the amount of such installments- If under paragraph 1K hereof the Pmperty is acquired by lxnder, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage te? Property prior to the sale or acywsilion shall piss G? lxnder to the extent of the sums secured by this 1ortgage immediately prior to such s:+le or acquisition. 6. Preservation and Neintenanceof Property; Leaseholds;Condominuma; Planned Unit Developments. Borrowerahal) keep the Property in good repair and shall not commit waste or pe•nnit impairment or dMerior.+tion of the Property and shall comply with the provisions of any lease if this Mortgage is on le:sehold. 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 cn•atinKor Kovern+ng the condominium or planned unit development, the by-laws and regulations of the condominium or planned uni! development, and constituent documents. If a , undominium or planned unit development rider is exe•e•uted by Borrower and re+-urdent b,gether with this Mortgage, the covenantB and ~ ,+Kreementgofsuchridershallhrincorporatcdintoandshallam+•ndandsuppl+•m+•ntth+•coven:+ntsand agreements of this~1ortgageasifthe rider weer a part hereof- ~ 7. Protection of Lender's Security. If Borrower i ails to perform the covenants and aKreementa contained in this Mortgage, or if any action or proceeding is commenced which materially affects lender's interest in the Property, including, but not limited lo, eminent domain, Insolvency, code enforcement, or arrangements or pmceedinKs 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 aMion 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 repaire. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain Auch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender e written agreement or applicable law. Borrower shall pay the amount of all mortg;+Ke insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by lxnder perauant to this paragraph with interest thereon, shat! become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and [ender agree to other terms of payment, such amounts shall be payable upon notice from lxnder 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 lxnder to incur any expense or take any action hereunder. 0 8o~x 343 Pa~F 655 - -