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HomeMy WebLinkAbout0288 Borrower and I.ender cuvenant and agree as fulluws: l. Payment ot Principal and Intereet. Ei~rrower ehal) promptly pay when due the principal of and intereet on the indebtedneesa evidenced by the Note, prepayment and late charges ua providrd in the Note, and the principal of and interest on any Future Advances aecured by thia Mortgage. 2. ~utda forTaxee and Inaurance. Subject to applicable luw o~ to a writlen waiver by I.rnde~, l3urn?werahall pay lo I.enderon theday mo~thly i~etallmenta o! principal and interrst are payable under the Note, u~til the Note ia paid in full, a aum Iherein "h unda") equal to one twelfth of the yea~ly taxex and asseaements which may sittuin priority over thie MortgaKe, and ground rents on the Yroperty, if any, plus one~ twelfih of yearly premium instnlimenta for hazard inaurance, p1uR unNtwelfth of yeurly premium instuUmenls for mortgagr inauriince, if any, ali ae reasonably eatimated initially and fmm time to tirr~e by I.ender on the basia ot x~sesxmentx ~~d bills nnd reasonnble estimatea there~,f. The F~nda ehall be held in an inetitution /he depoaits or accoanta of which are inaured or guAranteed by a Federal or State agency (including I.ender if I.ender is auch an inatitution). I~ender shall apply the I~ unde to pay said taxes, asaesnmenta, ineurance pmmiuma and ground renta. Lendes may not charge for eo holding and applying the ~nde, analyzing eaid acn,unt, or verifying and compiling said aeeeaeme~ts and billa, unleae I.ender pays Borrower intereet on the F1~de and applicable 1aw permita Lender to make such a charge. Borrower and l~ender may agree in writing at the time of execution of thia Morlgage that intereat on the Funda ahall be paid to E3orrower, and unleae auch agreement is made or applicable law requires auch intereat to be paid, l.ender shall not be required to pay fiorrower any interest or earnings on the ~nde. l.ender ahal) give to Borrower, without charge, an annual accounting of the F unds shovving credits and debita to the Funda and the purpoae tor which each debit to the Funds was made. The Funda are pledged as additional eecurity for the aums secured by this Mortgage. If the amount of the Flinda held by l.ender, together with the future monthly installmenta of Funds payable prior to the due dates of taxea, assesamenta, inaurance premiuma and ground renta, shall excred the ~mount required to pay said taxes, asseasments, inaurance premiuma and ground rnnte as they fall due, euch excess ahall be, at Bo~TOwei s option, either prompdy repaid to Borrower or credited to Borrower on monthly installmente of ~nde. If the amount of the Funda held by Lender shall not be aufCcient to pay laxes, ass~sxments, insurance premiuma and ground rents ae they fall due, Borrower shall pay to [.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by I.ender b E3orrower requesting payment thereof. Upon payment in full of all eums aecuted by this Mortgage, l.ender ahall promptly refund to Borrower any funds held by l.ender. lf under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by l.ender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquieition by Lender, any ~nds held by l.ender at the time of ppplictttion as a credit against the suma secured by lhis Mortgage. ' - 3. Application ot Paymente. Unleas applicable law providea otherwise, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender fimt in payment of amounis payable to I.ender by Borrower under paragraph 2 heteof, • then to interest payable on the Note, then to the principa! of lhe Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liens. I3orrower shall pay all taxes, asses.gments and uther chnrgex, fines and impusitions attributable to the F'roperty which may attain a priority over this Mortgage, und leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in Ruch manner, by E3orrower making payment, when due, directl~ to the payee thereot Aorrower shall promptly furnish to Lender all notices of amounts due under this paragraph, ~nd in the event Bormv?er shnll mukr puyment directly, BorroNer shall promptly turnish to Ixnder receipis evidencing such paymenta.l3orrower shall promptly dischargr any lien which has priority oeer this Mortguge; proeided, that Borrower ahall not be required tu discharge any such lien so IonR as Bormwer shall agree in writing to the pa~•mrnt of theobligation secured by such lien in a manner acceptable to Lender, or sh~ll in Q~wd fFiith a~nte~t such lien by, or defend rnforcement of such lien in, leKal pr<~ceedings " which operate to prevent the enforcement of the lien or forfeiture of the 1'n~perh~ or any part thereuL 5. Hazerd Inaurance. Borrower shalt keep the improvements now e:iating or hereafter erected on the Propert~ insured against lo.4s by fire, hazards included within the term "extended coverage," and xuch other hazards as I.ender may require and in such amounta and for such ~ periods as Lender may require; provided, that I.ender ahaU not require such roverage amount exceeding the minimum, as may be required by state or federal regulations governing activiti~ of i.ender, or that amount of coveraqe required to pay the sums secured by Ihis Mortgage, whichever ia the greater_ The insurance carrier providing the insuranm shail be chosen by Bormv?er subject to appruval b~ I.ender, pru~~ided, thnt such appro~~al sha11 not be unreasonably withheld. All premiums on insuranm policicw shall be patd in the manner provided under par:~Kraph `l hermf or, if not paid in such manoer, by E3onower making pa~~ment, when due, directly tu the insurance carrier. All insurance poliries and rnnewale thereof ahall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form aeceptable to Lender. I.ender ahall have the right to hold the policiea and renewals thereof, and Bormwer shall promptly [urnish to i.ender aU renewal noticea and aU receipts of paid premiums. [n the event of loss, Born~wer shall give prompt notice to the insurance carrier ~'I and Lender. Lender may make proof of loss if not made promptly by Borrower. i Unleas I.ender and Borrower otherwise agree in writing, insurance preceeda shall be applied to restoration or repair of the Property f damaged, provided auch reatoration or repair ia economically feasible and the security of thie Mortgage is not thereby impaired_ If such € reatoration or repair is not economically fessible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied " ; to the sums aecured by this Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daya from the date notice is mailed by Lender to E3orrower that the inaurance carrier offers to settle a claim for inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to reatoration or repair of the ~ Property or the sume secured by this Mortgage_ ~ Unless Lender and Borrower otherwise agree in writing, an3 such application of proceeds to principal shall not extend or postpone the due date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of such installmenta. If under paragraph lA hereof the Property is acquired by Lender, all right, title and intereat of E3orrower in and to any insurance poliries and in and to the proceeda thereof reeulting from damage to Property prior to the sale ot acquiaition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or soquiaition. 6. Preservation and Maintenance of Property; Leaseholda; Condominuma; Planned Unit Developmente. Borrowershall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and aha11 comply with the pmvisions of any lease if this Mortgage is on a leasehold. [f this Mortgage ia on a unit in a condominium or a planned unit development, Borrower shall perform all of Sorrower e obligationa under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conetituent documents_ If a rnndominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the covenanta and agreementa of auch rider shall be incorporated into and shall amend and suppleme~t thecovenanta and aqreements of this Mortgage as if the ~ ride~ were a part hereof. ~ 'i. Protection of Leader's Security.lf Borrower faile to perform the oovenante and agreemente rnntained in thie ~ortgage, or if any ~ action or proceeding ie commenced which materially affecta Lender a interest in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option.upon notice to Borrower may make euch appearancee, dieburee euch aums and talce such action ae is necesaary to protect Lender e intereat, including, bnt not limited to, diabureement of reaeonable attomey's feea and entry upon the Property to make repaire. If Lender required - r mortgage insurance as a rnndition of making the loan secured by thie Mortgege, Borrower shall pay the premiume required to maintain ~ euch insutance in effect unti) euch time as the.requirement foT euch insurance terminatee in accordance with Borrower's and Lender's ~ written agreement or applicable Law. Borrower ehaU pay the amount of ap mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. ~ My amounte dieburaed by Lender pereuant to thie paragraph 7, with intereet thereon, ahall beoume additional indebtednees of Borrower eecured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, such amonnta shaU be payable upon ~ notice from Lendet to Borrower requeeting payment thereof, and ehaU bear interest from the date of diebureement et the rate payable from ~ time to time on outetanding principal under the Note unlesa payment of intereet at such rate would be oontrary to applicable law, in which event auch amounta ahall bear interest at the higheet rate permiasible under applicable law. Nothing contained in this paragraph 7, shall ~ require Lender to incur any e:penee or take any aMion hereunder. . ~ ~ ~ ~ - ~a~K284 2~8 ~ ~ ~ _ ~ _ _ _ _ - - - 3 ~ ~ `-r`.~tr'x~ .~.'?iK^'3 l.ci . , ' e; - . - .