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HomeMy WebLinkAbout0405 - . . ` ~ i Horrower and [.ender rnveoa~t and agree us folluws: l. Payment oi Principel and Intereot. Eiorirower shall promptly pay when due 1he principal of end interest on the indebtednexa evidenced by the Note, prepayment ahd late charges as provided in the Note, and the pri~cipal of and intereet on any F~turn Advancea eecured by this Mortgage. 2. F~nds for Texes and Inaurance. Subject to applicable law or to a written waiver by l.ende~. I3orrower ahnll pay to l.ender on the day monthly installmenta of principal and intrrnet are payable under the Note, until the Note ie paid in full, a sum (herein "~nde") equal to one twelfth of the yearly taxee and assessmente which may attxin prio~ty over thia Mortgnge, and ground rents on the Property, ilany, plue one iwelRh of yearly premium inatallmenta for hazard ineurance, plua onetwelRh of yearly premium inatallmenta for mortgage insurance, if any, all as reasonably eatimated initially and from time W tia,e by Lender on the baeie of aseesaments and biUa and reusonable eetimates ihereof. The ~nds ahall be held in an inatitution the depoeita or accounts of which are ineured or guaranteed by a Federal or State agency (including I.ender if I.ender is such an institution). Lender ehall apply the Funda to pay said taxes, aseeeamenta, inaurance pmmiuma and ground rents. Lender may aot charge for eo holding and applying the Funde, analyzing eaid account, or verifying and compiling said aeaeaements and bills, unlese I.ender pays Borrower intereet on the ~nde and applicable law permits I.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of thia MortgaEte that intereat on the Ftinds ahall be paid to Borrower, and unlesa each agraement ie made or applicable law requires such intereat to be paid, I.ender shall not be required to pey Borrower any intereat or earnings on the F~nds. Lender shall give to Borrower, withou! charge, an annual acoounting of the Funde showing credits and debita to the Funde and the purpose for which each debit to the FLnds was made. The Funde ere pledged ae additional security [or the euma secured by thie Mortgage. Itthe amount of the ~nde held by I.ender, together with the future monthly inatallmenta of Funde payable prior to the due datea of taxea, easeasmente. insurance premiuma and ground rente, shall exczed the amount required to pay said taxea. aasesamenta, inaurance prnmiume and ground rents as they fall due, euch exceea ahall be. at Borrower e option, either prompUy repaid to Borrower or credited to Borroweron monthly inatallments of Ftinda. If the amount of the Ftinde held by I.ender ahall not be aufficient to pay ta~cee, asaesamente, inaurance premiuma and ground rents as they fall due, Borrower shall pay to I.ender any amount neceeaary fo make up the deficiency within 30 daye from the dste notice ia mailed by Lender to Borrower reqaeating payment thereof. Upon payment in full of all sums aecured by thia Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. [f under , paragraph 18 hereof the Property is eold or the Property ie otherwise acqaired by Lender, Lender ahall apply, no later than immediately prior to the aale of the Property or ita acquiaition by Lender. any I~`unda held by Lender at the time of application se a credit against the sums secured by thie Mortgage. _ 3. Application ot Payments. Unless applicable law providea otherwiae. all paymenta rereived by Lender under the Note and paragraphs 1 apd 2 hereof ehall be applied by L.endcr first in payment of amounte payable to I.ender by Borrov?er under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat.and principal on any Fature Advancea. 4. Chergea; Liene. ~3orrower shali pay all taxes, sesessments and other charges, 6nea and impositions attri~utable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to I.ender receipta evidencing auch paymenta. Borrower ahal) promptly discharge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Eiorrower ahall agrea in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or shall in good faith contest such lien by,-ordefend enforcementofsuch lien in, legal proce+.dinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Ineurance. Borrower shall ~eep the improvementa naw existing or hereafter erected on the Property insured against loss by fire. hazarde included within the term "extended coverage," and euch other hazards ae Lender may require and in such amounta and for such periods aa Lender may require; provided, that Lender ehall not requirn such ooverage amount exceeding the minimum, as may be required by state or federal regulatione goveming activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insursince shall be chosrn by $orrower subjecl to approval by l.ender, provided, that such approval shall not be qnreasonably withheld. AU prnmiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier_ All inaurance policies and renewala thereof shall be in form acceptable to I.ender and ehall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the poticies and renewais thereof, and Borrower shall promptly furnish to i.ender all rertewal notices and all receipta of paid premiume. In the event of lose, Bornower shall give prompt notice to the inaurance carrier j and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ Unleas Lender and. Borrower otherwiae agree in w~iting, insurance prooeeda sha11 be applied to restor.?tion or repair of the Property ~ damaged, provided auch restoration or repair ia economically feaeible and the eecurity of this Mortgage is not thereby impaired_ If such ! restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the sums eecured by this Mortgsge, with the excess, if any, paid to Bortower. If the Property is abandoned hy Boaower, or if Borrower faila to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to seWe a claim for ineurance benefite. Lender is authorized to coliect and apply the insurance proceeds at Lendei a option either to reatoration or repair of the ~ Property or the aums eec~red by thie Mortgage. Unlese Lender and Borrower otherwise agree in writing, any auch application of proceede to principal ahall not extend or postpone the due ~ date of the monthly inalalimente referred to in paragraphA 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by Lender~ all right, title and intereat of Borrower in and to any inaurance policiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquiaition ahall paes to I,ender to the extent of the auma secured by this Mortgage immediately prior to auch sale or soquisition. 6. Preeecvation and Meintenance of Property; Leaeeholde; Condominums; Plenned Unit Developments. Borrower ehall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisiona of any lease if thie Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulationa of the rnndominium or planned unit development, and constituent dceuments. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and agreements of such rider ahall be incorporated into and shall amend and aupplement thecovenants and agreemente of this Mortgage as if the rider were a part hereof. ~ 7. Protection oi Lender's $ecurity. If Bonower faile to pertorm the oovenante and agreemente oontained in thie Mortgege. or if any ~ction or prooeeding ie commenoed which materially affecta Lende~s intereet in the Property, including, but not limited to, eaninent domain, ~ insolvency. oode enforcement, or arrangementa or proceedinga involving a banlmip! or dec~edent, then Lender at L.endei e option,apon ~ notice to Borrower may make such appearano~, disburee such sums and take euch action aa ie neoeesary to protect L,ender's interest, - r; including, but eot limited to, diebureement of reasonable attorney e feee and entry upon the Property to make repaire. If Lender required ~ mortgage ineurance ae a condition of ineking the loan eecvred by this Mortgage, Borrower eha11 pay the premiume reqvired to maintain ~ such ineuranoe in effect until ench time aa the requirement for euch insnrance terminatee in accordance with Borrowez'a and Lendei a ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under b paragraph 2 hereoL ~ Any amounte diabureed by Lender perauant to thie paragraph T, with intereet thereon, ehall beoome additional indebtedne8e of ~ Borrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terme of payment, euch amounts ehall be payable upon notice from Lender to Borrower requesting payment thereof, and ehall bear interest firom the date of diabureement at the rate payable from time to time on outatanding principal under the Note unleee payment of intereat at such rate would be oontrary~ applicable law, in which ~ event such amounte ahall bear intereat at the higheet rate permiasible under applicable lew. Nothing c~a~ fi~ thie paragraph 7, ehall require Lender to incur any e:penae or take any action hereunder. ~ ~ . ~ qRK2~ PAGf ~ ~ ~ ~ 600 - - - _ ~a~_ . _ , - ~ . ,