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HomeMy WebLinkAbout1931Bor~ower aad Lende~ oovenant and agn~e a~ folbws: l. Psyment ot Princlpal and lntereat. t3orrowe~ shall pmmptly pay when due the principal of and intereat on the indebtednees evidenced by the Note. pnpayment and late chuges er provided in the Note. and the principal of and intereat on any Fliture Advances secured ~y this Mortgage. 2. ~nds tor Ta:ee end Insurance. Subject to applicable law or to a written waiver by l.ender, Borrowershall pay to l.ende~ on the day monthly inetallments otprincipal and interest are payeble undcr the Note, until the Note is paid in full, a aum (herein "Ftinds") equal w one twelRh of the yearly taxes and aseessments which may attain priority over this Mortgage, and g~ound rcnts on the Property, itany, plus o~e- twelRh otyearly premium installmenta [or hazard inaura~ce, plua o~etwelRh ofyearly prnmium instailmenta for mortgage insu~ance, i[any. all as reasonably eetimated initially and from time to tiR~e by l.ender on the basis of assesamenta and biUs and reasonable eatimatea thereof. The ~nda shall be held in an institution the deposits or accounta ot which are insured or gueranteed by a Federal or State agency (inrluding I.ender if Lender ie such aa institution). Lender shall apply the Funda to puy eaid taxea, aasesaments, insurance premiuma and ground rents. I.ender may not charge tor so holding and applying the Fuods, analyzing aaid account, or verifying and compiling eaid aseeasmenta and bills, u~leas Lender pays Borrower interest on the Funda and applicable law permite l.ender to make auch a charge. Bormwer and Lender may agree in writing at the time of execution ot thia Mortgage that interest on the Funda ehall be paid to Borrower, and unleae auch agreement is made or applicable lew requirea auch intereat to be paid, I.ender ahall not be required to pay Borrower any interest or earnings on the FLnde. L.ender shall give to Bormwer, without charge, an annua! accounting of the Funds showing c~atite~ n~~~i ~tri,iie lo the Funda and the purpoee for which each debit to the ~nda was made. The F un~s are pledged as additional security for the auma secured by this Mortgage. If the amount of the ~nds held by Lender, together with the future mo~thty installmenteof Funds payable prior to the duedatea ofta:es. seaeasmenta, inaurance premiuma and ground rents, ahall excxd the amount required to pay said taxes, assessmenta, inaurance premiuma snd ground ren!$ ss they fa!! due~ auch cxctsa sha!! be, at Bo~rowei a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments oi ~nde. If the amount of the Funds held by Lender ahall not be aufficient to pay tsxea, aeaeeamente, ineurance premiums and ground renta as they fall due, Borrower ahall pay to I.ender any amount ~eceasary to make up the deficiency within 30 daye from the date notice is mailed by l.ender to Borrower reqaesting payment thereot_ Upon payment in full of all auma secured by thia Mortgage. Lender ahall promptly refund to Borrower any [unds held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or ite acquisition by Lender, any Funds held by Lender at the time of application as a credit against the auma secured by this Mortgage. 3. Application of Payments. Unlesa applicable law providea otherv-1se, all payments received by l.ender under the Note and paragrapha 1 and 2 hereof ahap be applied by Lender first in payment of amounta payable to l.ender by Borrower under paragraph 2 hereof, then to interesl payable on the Nole, then to the principal of the Note, and then to inte~eat and principai un any Future Advancea. 4. Chargee; Liens. E3orrower shall pay all taxes, axsessments and other charges, fines and impositions attributable to the Property which may attain a priority o~ er this MortKage, and leasehold payments or Kmund rents, if any, in the manner provided under paraqraph 2 hereof or, ii noi paid in such ~nannrr, uy ourrower maici~g paymrni, wi-rii ~ur, uirrciiy tu the payee thereoL Borrower shail promptly furniah to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Rormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shali promptly dischargr any lien which has priority o~~er this Mortgage; provided, that Borrower shall not be required tu discharge any such lien so long as Borrower shall aRree in wnting to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in goai faith contest such lien by, ordefend enforcement of such lien in, legal prnceedings vvhich uperate to pre~ent the enforcement of the lien or forfeiture uf the Pruperh or any part there~l. 5. Hazard 1 nsurance. liorn~wrer shall keep the improvement~g nuw existing or hereafter erected on the Properly insured against losa by fire, hazard.4 included within the term "extended coverage," and such other hazards as I.ender may require and in such amounta and for auch periods as Ixnder may requirP; pro~•ided, that l.ender shall not require that the amount of such coverage exceed that amount of coverage required to pay the aums secured by this Mortgage_ The insurance carrier pru~~idinK the insurance shall F-e chusen b~• Rorrower subject to approval by Ixnder, provided, that such appruval shall not be unreasonaMy withheld. All premiums on insurance prdicies shall be paid in the manner providrd under paraRraph 2 hermf or, if not paid in such manner, b~ liorrower makinK payment, vrhen due, direcUp to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage clause in favor of and in form acceptabie to I.ender. I.ender shall ha. e the right tn hold the, pulicies and renewals thereof, and Borrower shall promptly fumish to -,ender all renewal notices and all receipts of pa~d premiums_ In the event of loss, &~rn~wer shall give prompt notice to the insurance camer and I.ender. I.ender may make pruof of loss if not made promptly by E3orruwer. Unlesa Ixnder and E3orrower otherwise agree in writing, insuranm proreeds shall be applied to restoration or repair of the Property damaged, pro~~dcd such restoration ur repair is ec~,nomically leasible and the security of this Mortgage ia not thereby impaired. lf sueh restoration or repair is not econumically feasible ur if the security of this Mortgage would be impaired, the insurance proceeda shall be applied to the aums secured by this Mortgage, w-ith the excess, if any, paid to I3orrov-er. lf the Property ia abandoned by Borrower, or if Borrower [aila to rexpond to Lender within :i0 days from the date notice is mailPd by I.ender u- E3orrower that the inaurance carrier ofiera to settle a claim for inaurance benefits, [~ender is authorized to collect and apply the insurance pmcerds at [.endei s option either to reatoration or repair of the Property or the suma secured by this MortKage. Unlese Lender and Acrruwer otherwise agree in writing, any such application uf proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paraRraphs 1 and 2 t~ereof or change the amount of such installments. If under paragraph 18 hereot the Properly is acquired by l.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeda thereot reeulting from damage to Property prior to the sale or acqu-sition shall pass to I.ender to the extent of the aume secured by this Mortgage immediately prior to auch sale or acquisition. ti. I'reeervation ana 'niain[enance oiProperty; Leaseholds; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaions of any lease if this Mortqage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit Jevelopment, Borrower ahall perform all of E;orrower's obligations onder the declaration or covenants creatinRor govern~ng the condominium or ptanned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documenta. If a conduminium or planned unit development rider is executed by Rorrower and recorded together with thia Morigage, the oovenants and agreements of such rider shall be incorporated into and shall amend and supplement the covrnanls and agreementa of this Mortgageas if lhe rider were a part hereof. 7. Protection of Lender'. Security. If Borrower faile to perform the oovenante and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially affecte Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make auch appearances, disburse euch sums and ta1~e such action as ie nccessary to protect Lender's interest, including, but not limited to, disbureement of reaaonable attorney'a fees and entry upon the Property to make repain. It Lender required mortgage ineurance as s condition of roaking the loen secured by thia Mortgage, Borrower ahaU pay the premiums reqnired ta maintain euch insurance in effect until such time as the requirement [or such insurance terminates in accordance with Borrower'e and Lendei ~ written agreement or applicable Law. Aorrower ehaD pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. Any nmounta disburoed by Lender perauant to this paragraph T, with interest thereon, ehall become edditional indebtedness of Borrower sectued by thie Mortgage. Unleae Borrower and Lender agree to other terms of payment, such amounte shall be payable upon notice irom [,ender to Borrower requeating peyment thereof, and ehall bear intereet from the date of disbursement at the rate payable irom time to time on outstanding principal under the Note unleea payment of intrrest at euch rate would be contr8r~ to applicable law, in which event such amounta shall bear interest at the highest rate permissible under applicable law. Nothing cont~lned in thia paragraph 7, shal) require [.ender to incur any expense or take any aMion henunder. ~ 3 ~ . a~350 F~~~9~'9 }1 ~ 'c _,,..: .- , _ _. : . _ _ .. , _. _ '. __ ~_ _ ~ c _ ... . . . . . --.~ =c.. _ ~ ~ .,