Loading...
HomeMy WebLinkAbout1481. :~ ! Borrower and Lender rnvenant 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 ae provided in the Note, and the principal of and interest on any I'ti+ture Advances secured by this Mortgage. 2. Funds for Ta:es and Insurance. Subject to applicable law or W a written waiver by Lender, Borrower shall pay to Lender un the day monthly installments otprincipal and interest are payable under the Note, until the Nete 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, itany, plus one, twelfth of yearly 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 time by !.ender on the basis of assessments and bills and re:+aunable 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 Lender 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 so holding and applying the Funds, analyzing said account, or verifying and rnmpiling said assessments and bills, unless Lender 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, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. 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 Fonda 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 taxes, asaeasmenta, insurance premiums and ground rents, shall exeeed 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 Burrower or credited to Borrower on monthly installments of Funds. If 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 W Lender any amount necessary to make up the deficiency within 30 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, bender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any F ands held by !.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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by [.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold pay ments or ground rents, if any, in the manner provided under paragraph `l hereofor, if not paid in such manner, by Burrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event Ib-rruwer shall make payment directly. Burmwer shall promptly furnish W !.ender receipts evidencing such payment4. Il<,rn,wer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so lung as li(,rrowt r shall agree in v-•riting to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in goexl faith n,ntest such lien by. urdefend enfunrment of such lien in.legat pn-ccedings which operate to prevent the enforcement of the lien or fi-rfeiture of the 1'rope•rty or any part therer,f. S. Hazard lnsurance. Borrower shall keep the improvements now existing or here:+fter erected on the Property insured against loss by fire, hazards included within the term "extruded coverage." and such other haz:vds as 1 xnder may require and in such amounts and for such periods as Lender may require; provided, that Lender sh:+ll not myuire that the amount of such e•-n•erage exceed that amount of coverage required to pay the sums secureel by this Mortgage. The insurance carrier providing the insur:+ne-e shall Iw• chosen by Borrower subject to approval h~• I.e•nder; providetil, that such approval shall not be unreasonably withheld. All pn•miums on insurance INdiri-•s .hall M• paid in the m:uuu•r pnn•idwl under par.+gr.-ph Y henr-f or. if nut paid in such manner. by liorn,a•er m:+king pa~•ment, when due. direr-th• t., the insurance carrier. All insurance policies and renewals thereof shall Ix• in form aerept:+hle t+, I,e•nder and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lendersh:dl have theright to hold the tw,hc+es and renewals there(,f, and Rorrowershallpromptly furnish to (,ender all renewal notices and all receipts of p:+id premiums. In the event .,f loss, Burrower shall give prompt notice to the insurance carrier and Lender. (.ender may make pr--of of loss if not made promptly by ~orrower- Unless Lender and Borrower otherwise :+grer in writing. incur:+nce proceeds shall he applied to restoration or repair of the Property damaged, provided such restoration or repair is ee•unomically fe:+sible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would t-eimpaired, the insurance promedsshall beapplied t., the sums secured by this Fliortgage, with the excess, if any, paid to Ib,rn,wer. if the 1'ruperiy is abandoned by Borrower, or if Borrower fails te- respond to Lender within :f0 days from the date notice is mailed by l .ender to Borrower that the insurance carrier offers to settle a claim for :nsurance benefits, Lender is authorized to colle•e•t and apply the insurace pn-ceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Bonmwer otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred te- in paragraphx 1 and °L here•(,f or change the amount of such inst:llments. If under paragraph 18 hereof the Property is acquired by [ender, all right, title and interest of Rormwer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgmsitiun shall pass l0 1~[•nder to the extent of the sums secured by thin Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Lc•aseholda; Condominums;Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste ur 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 -•n a unit in a condominium or a planned unit development, Furrower shall perform all of Borrower's obligations under the dec•laratiun or covenants creatu+gor governing 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 exee•uted by Borrower and recorded together with this Mortgage, the eovenanta and .,greements of such rider shall be incoryx,r.+ted into and shall amend and supplement the covenant•z and agreements ofthis Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in thin Mortgage, or if any action or proceeding is rnmmenced 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 Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action ae 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 ae 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 ae the requirement for such insurance terminates in accordance with Borrower's and Lender s written agreement or applicable I.aw. Borrower shall pay the amount 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 Borrower secured by this Mortgage. Unless Borrower and [.ender agree to other termx of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbunsement 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 permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. - - 8~ 344 P~Ei481 • _ -~~ _ _ ~ -~