Loading...
HomeMy WebLinkAbout0489Borrower and I.ender cove~a~t a~d ag~ee a~ folbws: i. P~ymeat o[ Principsl snd Intere~t. Borrower shall prompUy pay when due the principal o[ and interest on the indebtedneae evidenced by the Note, prepayment and late chargea a~ pmvided in the Notr, end the principal of and interest on any Future Advances secured by this Mortgage. - 2. ~nds for Ta:es and lnsurance. Subject to applicable law or to a written waiver by Lender, Borrower ehall pay to Ix~der on the dey monthly inatallme~ta of principal and intereat are payable under the Note, untii the Note ia paid in full, a sum (herein "Funds") equal to one twelRh of the yearly taxes and aeaesements which may attain priority over thia Mortgage, and giround rente on the Property, itany, plus one~ twelfth of yearly premium inatallmenta [or hazard inaurance, plus onetwelRh ofyearly premium inatallmeota for mortgage inaurance, if any, all as reaeonably estimated initially and from time to ti~rie by l.ender on the basia of assesame~ta and bills and reasonable eatimates the~eof. 'I1~e ~nds shall be held i~ a~ institution the deposits or accounts of which are insured or guarantecd by a Federal or State agency (including l.ender it I.ender is such at~ institution). Lende: shall apply the Funda to pay eaid taxes, asaea8ments, ineurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing aaid account, or verifying and compiling eaid aeaesamenta and billa, unies~ Lender pays Borrower intereat on the Funds and applicable law permita Lender to make auch a charge. Borrower and Lender mey agree in writing at the time of e:ecutioo of thia Mortgage that intereat on the F`~nda shall be paid to Borrower, and unless euch agreement is made or applicable law requires auch intereat to be paid, l.ender shall not be required to pay Borrower a~y intereet or earninga on the Funds. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debite to the Funds and the purpone [or which each debit to the Funda wc~s made. The Funda are pledged as additional security tor the auma eecured by this Mortgage. I[the amount otthe Flinds held by i.ender, together with the tuture monthly inatallmente olFunds payable prior to the duedatea of taues, $aeesamente, ineurance premiume and ground rents, shall excaed the amount required to pay eaid ta:es, asaeasments, inaurance premiuma and ground rents aa they fall due, auch exceas ahall be, at Bo~rowei a option, either pmmptly repaid to Borrower or credited to Borrower on monthly inatallmente of ~nda. If the amou~t of the Funds held by I.ender ahe~l not be eufficient to pay taxea, asseasmenta, inaurance premiume and ground rents ae they fall due, Borrower ahal) pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payme~t in full of ail auma eecured by this Mortgage, l.ender ahall prompUy refund to Borrower any funds held by l,ender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior to the aale of the Property or ita acquieition by [,ender, any Funda held by Lender at the time of application as a credit againat the suma secured by thia Mortgage. 3. Application of Peyroents. Unlesa applicable Iaw provides otherwise, all paymenta received by l.ender under the Note and paragrapha 1 and 2 hereof shall be applied by Leader firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal ot the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liene. BorrowershaU pay ail taxes, assesgments and othercharges, fines and impositions attributable to the Property which inay attain a priority over this MortKage, and leasehold payments or ground rents, itany, in the mannrr pruvided under paragraph 2 hereo[or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereot Borrower shall promptly furnish to Lender all notices ot amounts due under this paragraph, and in the event Borrower shall make payment directly, Korn,w~er sh:~ll promptly furnish to I.ender receipts e~ idencing such payments. Rorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge nny such lien so long as F3nrtuNer shall agtree in writing to the payment of theobligatinn secured by such lien in a manner accrptable to txnder, or shall in gond faith contrst such lien by, or defend en[urcement of such lien in, leQal pruceedings M•hich operate to prevent thr enforcement o! the lien ur forfeiture of the E'roperty or any part thereof. 5. Hazard 1 neurance. Borrowrer shall keep the improvements now existing or hereafter erected on the Proprrty insured against loss by fire, hazards included within the term "extended coverage." and xuch other hazards as t.ender may require and in such amounts and [or such periods as I.ender may reyuire: provided, that I.ender shall not require that the amount ot such coveraqe exceed that amount of coverage required to pay the sums secured by this MoRKage. The insurance carrier providinK the insurance shall 1-e chusen by Rortower subject to appro~•al b~ Ixnder, provideci, that such approval shall not be unreticonably vcithheld. All premiums un ~nsurance p~~licirs +hall hc~ paid in the m.innrr prnvide~l under paraKraph 'l hereof or, if not paid in such manner, b~~ Rorruv-er mak~nK payment, whrn due, directh~ ,u the in.urance carrirr. All insurance policies and renew~ats thereof shall be in form acceptable to l.ender and shall include a standard mortq:-ge clause in favor of and in form acceptable to [.ender. l,ender shall have the nght to hold the policies and renewals thereof, and Borrower shall promptly furnish to -.ender all renewal noticea and all receipts of paid premiums. In the event of loss. Eiorn,wer ahall give prompt notice to the insurance carrier and l.ender. l.ender may make pr~wf of loss if not made promptly by Borruwer. Unless I.ender and E3orrower ~therwise agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property damaged, provided such resturation ur repair is econ~~mically [easible 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 Mortgaqe would beimpaired, theinsurance proceedashall beapplied to the sums secured by this MortKeiKe, with the excess, if any, paid to Borrower. If the Property ia abandoned by E3orrower, or if E3orrower faila to respond to Lender within :i(1 days from the d:~te notice ~s mailed by I.ender tu Borrower that the inaurance carrier offers to settle a claim for insurance~benefits, l.ender is authorized to collect and apply the insurance pmceeds at I.ender'a option either to restoration or repair of the Property or the sums secured by this MoriKage. Unless Lender and F3orrower otherwise agree in writing, any such application of proceeds to principal ehall not extend or postpone thedue date of the monthly installments referrcYl u, in paraRraphs 1 and'L here<-f or change the amount of auch installmenta. !f under paragraph 18 hereot the Property is acquired by Ixnder, all riqht, title and intereat ot Burrower in and to any inaurance policiea and in and to the proceede thereof reeulting firom damage to Property prior to the sale or acqu~sition shall pasa to Lender to the extent of the aume secured by this 4fortgage immediately prior to such sale or acquiaition. 6. Preeervation and Maintenance of Property; I.eeseholds; Condominume; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration ot the Property and Bhall comply with the provisions of any lease if this Mortgage is on a leasehuld. If this Mortqage is on a unit in a condominium or a planned unit development, Borrower ahall perEorm all of &,rrower's obligations under the declaration ur covenants creatinRor govermng the condominium or planned ~uit UCVCIU~lfllCi~I, ii~r by-iaws and reKuialions of the condominium or pianned unit deveiopment, and conatituent documenta. If a c•ondominium or planned unit development rider is executed by E3orrower and recorded together with thia Mortgage, the covenants and agreements of such rider shall be incorpc~rated into and shall amend and supplement thecovenants and agreementsof this Mortgage as if the nder were a parl hereof. 7. Protection ot Lender'e 3ecurity. lE Borrower fails to perform the covenants and agreemente rnntained in thie Mortgage. or if any action or proceeding is commenced which materially ettecte Lender'e intereat in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make euch appearances, diaburee auch aume and take such action as is necessary to protect Lender's interest, including, but not limited to, diebursement of reasonable attorney'e feee and entry upon the Property to make repain. iE Len~er required mortgage inaurance as a condition of making the loan eecured by thie Mortgage, Borrower shell pay the premiums required to maintain auch inaurance in eftect until euch time as the requirement for auch insurance terminates in accordance with Borrower's and Lender'~ written agreement or applicable [~w. Borrower shal) pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedneaa of Borrower eecured by thia Mortgage_ Unless Borrower and Lender agree to other terms ot payment, euch amounfe shall be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date ot diabursement at the rate peyable from time to time on outstanding principal under the Note unlese payment of interest at such rate would be contrary to applicable law, in which event euch amounte shall bear intereet at the highest rate penniaeible under applicable law. Nothing contained in this paragraph 7, shall reyuire Lender to incur any expense or take any action hereunder. an~K354 Pa~E 489 4 i 3 ~ • d E~ ~`_.:F'. ~ - -.- '~ _ ._ . _ . - -_, _ .... ~ • '- . . . . . .:'<.S£+.