Loading...
HomeMy WebLinkAbout0772Borrower and Lender covenant and agree a~ follows: 1. Payme~t ot Principal and [ntere~t. Borrower ahaU promptly pay when due the principal ot and intereet on the indebtedneas evidenced by the Note, prepayment and lat~charges as pcovided in the Note, and the principal otand intereet on any Future Advancee aecu~ by this Morigage. 2. Ftinds for Ta:ea and Inaurance. Subject to applicable law or to a writteo waive~ by l.ender, Borrower ahal) pay to l.ender un the day monthly installmenta of principal and intereat are payable under the Note, unti) the Note ie paid in full, a aum (herein "Ftinda") equal to one , twelRh of the yearly taxea and aaaesaments which may attain priority over this Mortgage, and gtound renta on the Properiy, if any, plua one twelQh of yearly premium installments fo~ hazard inau~ance, plus onetwelfth of yea~ly premium instaliments for mortgage inaurance, if any. ali as rnasonably estimated initially and from time to tirue by [.ender on the basis of assessments and bilia nnd reasunable estimates the~eof. The ~nds ehall be held i~ ao inatitution the deposite or accounte ot which are ineured or guaranteed by a Federal or State agency linciudi~g Lend~ if Lender is auch an inatitution). Lender ahall apply the Runda to pay said taxes, aesessmente, inaurance premiuma and ~ound rents. Lender may not charge for so holding and applying the Funds, analyzing said accou~t, or verifying and compilinq esid aeaeasmenta and bills, unleae Le~der pays Borrower intereat on the Funda and applicable law permits l.ender to make euch a charge. E3orrowe~ and Lender may agree in writing et the time of execution of this Mortgage that intereet on the Funda shall be paid w E3orrower, and ~nleas such agreement ia made or applicable law requiree such intereat to be paid, Irnder ahall noe !w r~uirw~l t.- pcey Borr~wer any interest ~r earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of tl~e F unda showing credite and debita to the Funde and the purpose [or which each debit to the Funda was made. The Funds are pledged se additional aecurity forthe sume aecured by thie Mortgage. If the amount of the Funda held by Lender, together with the future manthly inatallmente oCFunda payable prior to the due datee of taxee, assessments, inau~ance premiums and ground rents, ehall excaed the amount required to pay eaid taxea, asaessmenta, insurance premiuma and gmund rents as they fall due, such excess ehall be, at Bo~TOwer's option, either promptly repaid to Borrower or crediled to Eiorrower on monlhly inatnllmenta of Fundn. If the amount of the Funda held by Lcnder ahall not be aufficient to pay taxea, aseeasmenta, insu~ance premiuma and ground ~enta as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 daye from the date notice is mailed bY l.ender to E3orrower requesting payment thereot. Upon payment in full of all auma secured by this Mortgage, l~ender ahall promptly refund to Borrower any funds held by t.ender. If under paragraph 18 hereof the Property ia sold or the Property ie otherwiae acquired by I.ender, Leoder ahal) apply, no later than immediately prior to the sale of the Property or ita acquiaition by l.e~der, any Funds held by I.ender at the time of application as a credit againat the suma secured by thie Mortgage. 3. Application of Peymente. Unlesa applicable law provides otherwiae, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof shaU be applied by l.ender firxt in payment of amounts payable to l.ender by Borrower under paragreph 2 hereof, then to intereat payable on the Note, then to the principa) of the Nute, and then to interest and principal on any Future Advancea. 4. Charges: I.iens. F~orruw•er shall pay all taxes, assessments and othrr charges, fines and impositiuns attributable to the E'roprrty which mav attain a priority over this MortgaKe,:~nd teasehold paymentsorground rents, if any, in themanner provided under paragraph 2 herer~for, if nut paid in such manner, by Borrow•er makinK payment, when due. directly to the payee thereoC Burruwer shall promptly furnish to I.ender all notices uf .imuunts due under this paraKraph, and in the event Bormwer shall make payment direcQy. Borrower shall promptly furnish to I.rnder receipts evidencing surh pa~•men~c Rorrower shall promptiy disch:-rgr any lirn which has prionty over this Mortgage; provided, that Borruwer shall not he reyuired to discharge any such lien so IonK as fi~~rrowershail agree in writinK to the paymentuf theubligation secured by such lien in a mannrr acceptabir to Ixnd~•r, or shall in Ku~xl faith cunttst such lirn by, ordefend enfiirmment of such lien in, leKal proceedings which operate G~ prevent the enfurcemrnt uf thr lien or forfeiture uf the Pruperly or any part thercv~C , ~. Hazard 1 nsurance. fiorrower shall keep the improvements now existing ur hereafter erec-ted on the Property insured aqainst loss by fire, hAZards includ~ Nithin the term "extended coveraKe," and such other hazards as Ixnder ma> require and in such amounts and for such ~•r~r,:is as t.er.der ma~• r;quire: pro~•ided, that t.ender shall nut rryuire that the amuunt of yuch cti-veraKe excecrl that ~mount of coverage reyuired to pay the sums sri•urtd by this MortKaKp~ The insurance carriar pmcidin~; the ~nsurann• sh:ill tx~ chusc•n h~• It~~rruw•~•r xub~crt to approva) by Ixnd~•r, providwl, that such approval shall not br unrea~mably w•~thheld All prrm~ums on ~nsur.~n~•~• ENdi~•u•..hall F-c~ paid ~n the manne•r pro~•~dfrl undrr par.~Kr.~ph 'l herf~,f or, if not paid in su~•h mannrr, b~• Ii~~rr~~w~er makinK payment, w•ht•n due, directly tu the invurance camer. All insur~nce policies and renewals there~~f shall be in form acceptanle G~ l,e~der and shall include a standard mortgaKe clause in favorof and in form acceptable tn I.rnder. I.rndershail ha~~e the nght Ui huld the pulic~es and renewals thereof, and Borroaersh~ll promptly furnish to ~~ender ail renewal nutices and all receipts of paid premiums. In the event of loss, Burruwer shal~ give prompt notice ta the insurance carrier and I.ender. I.ender may makr pra-f of loss if not made promptly by Burrower- Unleas I.ender and F~~rrnwer ~~therwi~ a}~ree in writing, insurance pr~xreds shall be applied to restoration or repair of the Property damaged, pro~~dcd such resu~r:~tiun ur repair is ecunumically frasible and the security of this t4tortgage is not thereby impaired. If such reyturaiion or repair is not ecum-micall_r• feassble or if the security of this Mortgagewould be impaired, the insurance proceeds shall be applied to the sums secured by this MortKaKe, w~th thr ex~•rss, if any, paid to Rorrower. lf the PropeRy is abandoned by Rorrower, or if Iiorrower faila to rexpond to I.ender w~thin :i(1 days frum thr date nutice is mailNCf by I~ender tu liorruwer that the insurance camer offera to settle a claim for ~naurance benefitr,. (.ender is authunzed to collec•t ~nd apply the insurancr proceeds at I.ender's option either to restoration or repair of the Property or the sums secured by this MurtKaRe ~ linleas I.ender and Burrower otherwise aKree ~n wntinK, any such appl~cation otproceeds to principal ahall notextend or poatpone thedue date of the monthly insk~llmentx referred tn in paraQraphs 1 and `l hereof or change lhe amount of auch inslallments. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and intereat of E3ormwer in and to any insurance policiea and in and to the proceeds - thereof reaultinR frum damaKe tu Yroperty prior to the sale or acywsition shall pass to I.ender to the extent of the suma secured bp thie Mortgage immediately prior to such sale or acquisition. 6. Preaervation and Naintenanceof Property; Ixaseholde;('ondominuma; Planned Unit Developmenta. Rorrowershall keep the F'roperty in RcHx1 repair and shall not commit waste ur permit impairment nr deterioration of the Ymperty and shal) rnmply wiLh the pro~•isions of any lease if thix lllurtKage is on a lea!;eh~>ld !f this MurtKaKe ~s on a unit in a condominium or a planned unit development, 1~orrower shall perform altr~f ~rrrower's obliKations under the declaration ur cuvenanta ~•reatinKor govem~ng the condominium or planned unit development, the by-laws and rrKulations of the cundominium or planned unit development, and constituent documente. if a condominium or planned unit devrlopment rider is executed by E3orrowrr and recorded t~ether with this Morlqage, the rnvenante and aKreements.-f such ridrr shall br incorp~~raled into and shall :imend and supplement theco~•enants and agreementsofthis MortKaKeas if the nder ~ere a part hereof. 7. Protection of Lender's 3ecurity. 1[ Borrower faile to perform the euvenante and agreemente contained in thie Mostgage; or if any action nr proceeding ie commenced which materiaUy affecte I.ender'a interest in the Property, including, but not limited tu, eminent domein, ineolvency, eode entorcement, or arrangemente or ptoceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower mey make such appearances, disburae euch aume and take euch action as is necessary to protect Lender's intereat, including, but not limited to, diebursement of reasonable attomey'e fees and entry upon the Property to make repairs. If Lender reqaired mortgege insurance ae a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain euch ineurance in effect until auch time se the requirement for euch ineurence terminetes in accordance with Borrower's and Lendei s written agreement or applicable Lew. Borruwer ehall pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereoL Any amounte diabursed by Lender persuant to this paragraph 7, with interest thereon, ahal) lxcome additiona) indebtedness of Borrow~r serured by this Mortgage. Unlesa Borrower and l.ender agree to othtr terms of payment, such amounte shal) be payable upon notice from i.ender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diabureetnent at the rate payable from time tn time on outetanding principal under the Note unleas payment ot intereet at auch rate would be rnntrary W epplicable law, in which event auch amounta ehal) bear inlereet at the higheet rate permiesible under applicable law. Nothing coMained in this paragraph 7, ahall require I.ender to incur any e:penae or teke any action hem nder. ~:~~'x349 ~K~ 773 ~ 9 i J 4W'F'Y"-:..~•:. "