Loading...
HomeMy WebLinkAbout0391Borrower and !.ender covenant and agree as follows: 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 late charges as provided in the Note, and the principal otand interest on any Future Advances secured by this Mortgage. 2. l~ltttds for Taxes and Insuratce. Subject to applicable law or to a written waiver by !.ender, Borrower shall pay to l.enderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a su+n (herein "Ftitnda'") 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 ofyearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to lime by Lender on the basis of assessments rend bills and reasonable estim:+tea thereof. The Fl-nds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including [.ender if !.ender is such an institution). !.ender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Fonda, analyzing said account, or verifying and compiling said assessments and bills, unless (.ender pays Borrower interest on the Funds and applicable law permits (,.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, (.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting ottl-e Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by (.ender, together with the future monthly installments of F ands 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 trots as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. It the amount of the Funds held by (.ender 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 thereot- Upon payment in full of all sums secured by this Mortgage, (render shall promptly refund to Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acyuired by (.ender, !.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by (.ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable taw provides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amounts payable to (.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. 9. Charges; Liens. Borrower shall pay all taxes, ascesamentc and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymentsorKmundrents, ifany, in themannerprovided underparagraph'lhereofor, if nut paid in such manner, by Borrower making payment, when due, directly to the p:n•re thereof Rormwershallpromptly furnish to Ixnder all notices of amount.S due under this paragraph, :+nd in the event Borrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Runrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Burrower shall not be required tudischarKe am• such lien su lank as liorruwer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to IA nder, or shall in K+KxI f:-ith cuntc•st such lien by, ordef+•nd enfonrment of such lien in, ligal proceedings which operate to prevent the enforcement of the lien or forG•iture of the• Prop+•rty or.any part therEti-f. 5. Hazard Insurance. Borrower shall keep the impnwements now• existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall nut rectuire that the amount of such n-verage exceed that amount of coverage required to pay the sums secured by this MortgaKc•. The insurance carrier providinK the insurmc+• shall tK• e•hosen by Burn~wer subjw•t to approval by 1 w•nd+•r; pru~•id+•+1, that such approval shall not be unre:+sonably withheld. All pmmiums nn insurance IN~licic•s si+all Iw• paid in the manner pruvidc•d antler par-.+Kraph •~ hereofor, if nut paid in such manner, by liorroa•er makinK pa}•-nent, when due- directh• t.. the insur.-nc•e carrier. All insurance policies and renewals thereof shall he in form acceptabl+• to 1.:•nder and shall include a standard mortgageclause in favorof and in form acceptable to Lender- Lendershall have thc•right to hold th+• IHdicies and renewals thereof, and Borruwershall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of loss, Born~wer shall Kive prompt notice G~ the insurance carrier and Lender. Lender may make pr«,f of loss if not made promptly M• Borrower- Unlesa Lender and Borrower otherwise agree in writinK, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ec•unornicalh• feasible and the securih of this Mortgage is not 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 to the sums secured by this Mortgage, with the excess- if any, paid to l;.+rrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notic•+• is mail+d by Lender to fiorn~wer that the insurance carrier offers to settle a claim for insurance benefits, !.ender is authoriz+•d to collect and apply the incur:+nce proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this l11ortK:+Ke. Unless Lender and Borrower otherwise agree in writinK, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred W in paragraphs 1 and 'l herer~f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender.:-(1 right, title and interest ~~f Borrower in :+nd to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or antuaitiun shall pass to !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otI'roperty; I.eaaeholds; ('ond++minuma; Planned Unit Developments:Borrowershall keep the Property in good repair and shall not commit waat+• or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this btortg:+ge is on a leasehold. If this :~1ortKage is un a unit in :+ condominium or a planned unit development, Burrower shall perform alhof Borrower's obligations under the dec•lar:+tion or covenants cn.+tingor Kovermng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent 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 incurporatcd into and shall amend and supplement the covenants and agreements opthis Mortgageasif the nder were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or it any action or proceeding is commenced which materially affects Lender'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 (.ender at Lender's option,upon notice to Borrower may make each appearances, disburse such soma and take such action as ie 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 insuranm terminates in accordance with Borrower a and Lender e 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 (.ender perauant to this paragraph 7, with interest thereon, shall 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 Lender to Borrower requesting payment thet•eof, 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 of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permieaible under applicable law. Nothing contained in this paragraph 7, shall require (.ender to incur any expense or take any action hereunder. B~~x344 PEE 391. - . ~- .~