Loading...
HomeMy WebLinkAbout0898Borrower and Lender covenant and agree as follows: I. Payment of Principal and Interest. Borrower shall promptly pay when dur the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Ftiutds torTa:ee and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall p:+y to I.enderon theday 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, plus one- twelRh ofyearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tines 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 guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. bender may not charge for so holding and applying the Ml+nda, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest 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 Funds shall be paid to Borrower, and unless such agnrment 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 Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing reedits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged ++s additional security for thesums secured by this Mortgage. If the amount of the ~+nds held by bender, together with the future monthly installments of F ands payable prior to the duedatea 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by bender 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 Lender to Borrower n*questing payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shat! promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Fender, Lender shall apply, no later than immediately prior to the sale a:f the Property or itsacquisition by Lender, any Funds held by Lender at the time of application as a credit against thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Fender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment e,f amounl.4 payable to Lender 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. Borrower shall pay all taxes, assessments and othercharges, fines and iml,ositiuns attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur Kround rents, i f any, in thc• manner provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making paymc•nt• when due. directly to the payer ther+r,f. Burrr,wershall promptly furnish to Lender :ell notices of amounts due under this paragraph, and in the event Borrower shall make payment directly Borrower sh:+ll promptly furnish W !.ender receipts evidencing such payments. liorn,wrr shall promptly discharge am• lien which has priority over this Mortgage: provided, that Burrower shall not l,e required G,disc•harge any such lien su lung as 1{r,m,wer shall aKre•e• in writing to the payment of the obligation secured by such lien in a manner acceptable to l.i•nder. or shall in grrr,d frith contea such lien b~•, ordefend enforcement of such lien in, legal pn-ecedings which operate to prevent the enforcement of the lien or forfeiture of the 1'nrl,e•rty or an~• part therer,f. 5. Nazard Insurance. Korroa•er shall keep the impnn•ements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended overage." and such other hazards as Iw•nder may require, and in such amounts and for such periods as Lender may require; pr,vided, that Ixnder shall not n•etuire that the :+muunt of such overage exceed that amount of coverage required to pay the sums see•ured t-y this Mortgage. The insurance carrier providing the insurance shall he• chosen b~• Bom,-ver subjw•t to :q,proval be Lender; pro~•ided• that such apprrval shall not be unreasrmabh• withheld. All pn•miums on ir+sur:rnce• INrlicies sled! he• paid in thn• manner providr•rl under pa r:+Kraph L hererdor• if nut paid in such manner, by lir,rr,wer making payment. when dur•• directl> ter the insuramce e•arrier. All insurance policies and renewals thereof shall I,e in firm :+cc•epteble to Lender and shall include a standard mortgage, clausein favorof and in form acceptable to bender. Lender shall have the right to hold the, twlic•ies and renewals theree,f.:and Bornrwershall promptly furnish to render all renewal notices and all nreipts of paid premiums. In the event of loss, Korrower shall giv.• prompt notim to the insurance carrier and !.ender. Lender may make pn,r,f of loss if not made promptly by Borrower. lJnlesg Lender and Bc,rrower otherwise agree in writing, insurance prrrc•e•eds shall tx• applied to restoration or repair of the Properly damaged, provided such restoration or rep:-ir is eronomicalh• feasible and th+• ur•urlt>• of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible nr if the stvurity id this Mortgage, would t,e• impaired, the insurance proceeds shall beapplied to the soma secured by this Mortgage, with the r•xcess• if any, paid to lir,rr,wer. If the Property is abandoned by Borrower, or if Borrower fails to respond to !.ender within :30 days from the dale notice is mailed by Lender to Kortower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to colle•r•t and apply the insurance pn,e•e•e•ds at I,e•nder's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agnr in writing, any such application of pr,ecr•ds to principal shall not extend or postpone thedue date of the monthly ins4+llments referred to in paragraphs 1 :rod '~ herer,f ur change, the amount of such installments. If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the saie or ac•yursitiun shall pass to Lender to the extent of the sums secured by this Morgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in gex,d repair and sh:dl not commit wane or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this ,Mortgage is on a (ease•huld. If this MortgaKe is on a unit in a condominium or a planned unit development, Borrower shall perform all of liom,w+•r's obligations under the de•c•laratinn or covenants cn:etingor KovernmK,thecondominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by IA,rn,wer and rrorded together ve-ith this Mortgage, the covenants and :rKreements of such rider,chall Ix• incorporate•ct into and shall amend and supplement the covenants and agreements of this Mortgage as if 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 if any action or proceeding is commenced which materially affects I.ender'e 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 each appearances, disburse such soma 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 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 such insurance terminates in accordance with Borrower's and Lender e written agreement or applicable Law. Borrower shall pay the :+mount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Burrower secured by this Mortgage. (Tnless Borruwe~ and [.ender agree W other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment theremf, 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 rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph ?, shall require tender to incur any expense or take any action hereunder. ~~;ax344 P~~F 898 _~ X ~. _~~