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HomeMy WebLinkAbout1951Borrower and Lender cove~ene and a~ree aa followa: 1. P~yment of Priacipal aad Intere~~ Borrower shall pmmptly pay when due the principc;l oE and intereat on the indebtcd~ess evidenced by the Note, prepayment and late chugea aa pro~-ided in the Note, a~d the principal of and interest on any Ftiture Advances secured by this Motrtgage. 2. Funde !or Ta~ce. ~nd Insurance. Subject to applicable law or to a writte~ waiver by Lender. Borrower ahatl pay to l.ende~ on the day monthly inatallmenta of principal and interest are payable under the Note. until the Note ia paid in full, a aum (hecein "Fl~nds") equal W one- twelfth of 1he yearly taxes and assessments which may attain priority over this Mortgage, and ground renta on the P~roperty. if:,ny. piua ont twelfih of yearly premium installmente fo~ hazard inaurance, plun onetwelEth olyearly premium insEal{ments for mortgage ineurance, if any, all as reasonably estimated initially and from time to time by [.ender on the basie of aeaeasments and billa and reasonable estimates theceof. '11~e ~Lnda shall be held in an institution the depoaita or accounts ot which are insured or guaranteed by a Fede~al or State agency (including Lender if [.ender 'ss such an inetitution). Lender shall apply the Funds to pay said taxes, asseasments, insurance premiwns and gTOUnd re~ts. Lender may not charge for so holding at-d applying the Funds. analyzing said account, or verifysng and compiling said asseasments and bills, u~less Lender pays Borrower interest on the Funde and applicable law permita Lender to make such a charge. Borrower and Lender may agree in writing ai tht time of execution of thia Mortga~t lhat intereat an the fi~nds ahall t,e paid iu Borrower, and uniaa euch agreement ia made or applicable law cequires such intereat to be paid, Lender shafl noL be reqnired to pay Borrower any intereat or earninge on the F1nds. Lender shaU give to Borrower, without charge, an annual aceounting of the Funda showing c~edits and debita to the Funds and the purpo~e for which each debit to the Funds wae made. The Funda are pledged as additional aerurity !or ehe auma secured by this Mortgege. If the amount of the Funda held by I.ender. together with the tuture monthly inatallmenta of Funds payable prior W the due dates of taxes, asseasmenla, insurance premiuma and ground rente, shall e:cred the amount rcquired W pay said ta:ea. aseesaments, insurance premiums and ground renta as they fall due, such e:ceas ahall be, at Borrower s option, either prompdy repaid W Borrower or rredited eo Bormwer on monthly inatallments of Ftinds. If the amount ot the Funds held by L.Bnder aha{1 no! be sufficient to pay ta:es, aaseasme~ta, insurance premiuma and ground rents as they fall due, Borrower ahall pay to Lender any amount neceassry to make up the deficiency within 30 days from the date nodce is mailed by Lender to Sorrower requesting paymenl thereof. Upon payment in lu11 of a11 sums secured by this Mortgage, Lender ehall promptly refund to Borrower any funda held by Lender. I[under paragraph 18 hereof the Property ie eold or the Propedy iB otherwise acquiced bp I.ender, Lender ahalt apply, r~n ~$kFl.han in!nt~ie+~l~ =.-'sa: io tne esie of the Froperty or its acquiaition by l.ender, any Funds held by Lender at the time of application aa a credit against the aums secured by this Mortgage. - . 3. Application of Payments. Unless applicable law providea otherwise, a11 payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be spplied by Lender 6ret in payment of amounts payable to Lender by Bonower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advancea. 4. Chargee: Liena. Sorro~vrershaU pay ail taxes, assessments and other chargea, fines and impositions attributable to the Pmperty which may attain a priority over this Mortgage, and leasehold payments or ground rents, i[any, ~n the manner provided under paragraph 2 hrreof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrowershall promptly furniah to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bormwer shall prumptly fumish to l,ender receipts evidencing such payments. Rorrower sha{I promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borruwer shall agiree in writing to the paymentof theubligation secured by such (ien in a manner acceptable lo [xnder, or shall in goad faith cvntest such lien by, ordefend enforcement ofsuch lien in, lega) proceedings which operate to prevent the enforcement o[ the lien nr [orfeiture of the Property or any part thereof. 5_ Hazard Ineurance. Borro~rer shall keep the impmvements nuw existing or fiereafter erected on tfie Property ineured against loea by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in auch amounts and for such periods as Lender may require: provided, that I.ender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. r The insurance carrier providinR the insurance shall be chosen by Rorrower subject to approval by Ixnder; pmvided, that such approval shall not be unrnasonably withheld. All premiums on insura~er p~-licies shall t~e paid i~ the manner provided under paraRr:~ph 2 hereof or, it ~ot paid in such manner, by Korrower makinK payment, when duP, directly to the insurance carrier. All insurance policies and renewals thereotshalt be in form acceptable to Lender and shall include astandard mortgageclausein favorof and in torm acceptable to I.ender. I.ender shall have the n.ght to hold the policies and renewals thereof, and Borrower shall prumptly fumish to VWAI nfiroc an.1 ~11 oro' ~e 1.. " - • ^t1^-' _~ . .• . .• - . ~ pn~PT a~~ ro~_ ___ *2______ ~.... .... :..~..:+.... ~. ~.33~ g~.^.s::::.^.s. E: t~:~ 8~c::a v. waa, Prin Pv~+ci d~a:~ g~vr prumpa nuuce co ~ne ~nsurance camer end Lender. [.ender may make p~oof ot loas i[ not made promptly by Barrower. Unless Lender and I3orrower otherwise aqree in writing, insurance p~oceeds shal) be applied to reatoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the arcurity of thie Mortgage ie not thereby impaired. lf auch restoration or rnpair is not economically feasible or if the security of this Mort~aqe would br impaired, the insurance proceeds shall be applied to the sums secured by this Mnrtgage, with the excess, if any, paid to Eiorrower. I[the Nroperty ia abandoned by Borrower, or if Borrower fails 10 reapond to Lender within :i0 d:~ys from the date notice is mailed by Ixnder to E3orrower that the insurance rarrier of~ers to settle a claim for insurance benefita, l.ender is authorized to collect and apply the insurance proceeds at [.ender's option either to restoration or repair of the Property or the auma eecured by thie MortKage. Unlese Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poatpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of auch installments. I[ under paragraph 18 hereof the Property ia acquired by I.ender, all right, titie and inleresi of Borrower in and to any insurance policiea and in and to the proceeds thereof reeulting from damage ta Property priQr to the sale or acquiaition ahaU pass to Lender to the extent of the aume aerured by lhis Mortgage immediately prior to such sale or acquiaition. 6. Preeervation and MaintenanceotProperty; i.easeholds; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioraiion of the Property and shall comply with tht provisione of any lease it this Mortgage is on a leasehold. If thie lNortgage ia on a unit in a rnndominium or a planned unit development, F3orrower aha11 perform all of f~rrower's obligations under the declaration orcovenants creatinKor governing the condominium or planned unit development, 1he by-laws and regulations of the condominium or planned unit development, and rnnstituent documente. If a condominium or planned unit development rider is executed by Borrower and recorded togetfier with thia Morigage, tfie rnvenanta and :~greements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreemenis of this Mortgage as ifthe rider were a part hereof. ?. ProteMion of L.ender'~ Security. if Borrower faile to perform the oovenante and agreements contained in this Mortgage, or if any aMion or proceeding is commenced which materially aftects Lendei s interest in the Pmperty, including, but not limited to, eminent domain. insolvency, eode enforcement, or arrange~nenta or proceedings involving a bankrupt or deoedent, then Lender at Lendtr's option.upoa notice to Borrower may make such appearances, diaburoe such aums and talce auch action as is neceseary to protect Lender's interes~ including, but not limited to, diabursement ot reaBOnable atWrney's fees and entry upon the Qroperty to maice repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiucas required to maintais- euch insurance in effect until euch time as the requirement for such inaurance terminetea in accordance with Borrowrr's and Lender'~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgege ineurance premiums in the manner provided under paragreph 2 hereof. - Any amounts diebursed by Lender pereuant to thia paragraph 7, with intereet thereon, ahall become additional indebtedness of Borrower secured by this Mortgage. Unleas Borrower and Lender agree W other terms oi payment, such amounts shall be payable upon notice from Lender to Borrower requeating psyment thereof, and eha{I bear interest from the date of diabursement at the rate payable from time to time on outatanding principal under the Note unlees payment of intereat at euch rate would be rnnttary to appliceble law, in wh-ch event euch amounte ehaU bear interest at the highest rate permissible under applicable Iaw. Nothing fOntained in this paragraph 7, ehall require I.ender to incur any expense or take any action hrreunder. Baox 350 f~a~~ 1949 ~ ~ ~ ~ ~ ~ ~~_ _-.