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HomeMy WebLinkAbout0413 Borrower and I.ender covenant and agree aa followe: 1. Payment of Principal and Intereat. Borrower shall promptly pay when due the principal of and inteteet on the i~debtednens evidenced by the Note, prepayinent and late charge8 as provided in the Note, and the principa! of and intereat un any F~ture Advances secured by this Mortgage. 2. I`wtde for'I'axee and Inaurancc. Subject to applicabte law or to a written waiver by l.ende~, l;orwwer ahAll pay to I.ender on the day monthly inatallmenta of principal and intereat are payuble under the Note, until the Note is paid in fuU, a aum (herein "Funda") equal to one twe1M of the yearly taxes and asseaaments which may attain priority over thia Mortgage, and ~und rrnta un the Property, itany, plua one twelRh of yearly premium inatallmenta for ht?zard inaurance, plusonetwelRh otyearly premium inatallmenta [o~ mort~age insurance, i[any, aU ea reasonably eatimated initially and from time to tirr~e by l.ender on the basis of asaesamenta and billa and re~xonuble eatimutes thereof. The Ftinde ehall be held in an institution the deposita or accounta of which ate ineured or gaaranteed by a Federal or State agency (including I.ender if Lender is auch an institution). Lender e~all epply the Funde to pay said taxee, asseasmente, insurance pmmiuma and ground renta. Lender may not charge for eo holding and applying the F~nda, a~aly:ing said account, or verifying and compiling said asaeeaments and bills, unle~s [.ender paye Borrower interest on the Ftinds and applicable law permite Lender to make such a charge. E3orrower and Lender may agree in writing at the time of execution of thie Mort~age that intereat on the Funds ahail be paid to Borrower, and anleas auch agrcement ia made or applicable law requiree auch intereat to be paid, I.ender ahall not be required to pay Borrower any intereet or earninga on the Flinde. I.ender shall give to Borrower, without charge, an annual nccounting of the Funds showing credite and debits to the Funda and the purpose for which each debit to the F~nda was made.l'he Funda are pledged as additional security for the aume secured by this Mortgage. If the amount of the Fl~nda held by Lender, together with the future monthly installmente of Fnnds payable prior to the due datea of taxes, aseessmente, inaurance premiums and ground renta, ahall excaed the amount required to pay said ta:es, aesesamenta, insurance premiuma and ground rents ae they fall due. such exceas shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmente of Funds. If the amount of the Funds held.by Lender ahall not be sufficient to pay taxea, aseesamenta, inaurance pre~niume and ground rents as they fall due, Borrower ahal) pay to Lender any amount necesaary to make up the deficiency within 30 days from the date notice is mailcd by l.ender to Borrower requesting payment thereof. Upon payment in full of all suma secured by this Mortgage, Lende~ shall promptly refund to Borrower any funds held by I.ender. If under paragtaph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, I ~ender shali appl~ , no later than immediately prior to the sale of the Property or ita acquiaition by Lender, any I~~nds held by I~nder at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unlese applicable law provides otherwise, aU paymenta received by I.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to ihterest payable on the Note, then to the principal of the Note, and then to interest and principal~on any Future Advancca. 4. Charges; Liens. Borrawer shall pay all taxes, aasessments and other chargers, fines and impositions attributable to the Property which may attain a priority over thie llfortgage, 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 makin~ payment, when due, directly to the payee thereof. Borrower shall promptly furnish to [.ender all noticea of amounts due under this paragrpph, and in the event Borrower shall make payment direcily, E3orrower shall promptly furnish to I.ender receipts evidencing such paymenta_ Borrower shall promptly discharge any lien which has priority o~ er this Mortgage; provided, that f3orrower shall not Ue required to discharge any such lien so long as Borrower shall agree in writinK to the pa_r•ment of the obligation secured by such lien in a manner acceptable to l.ender, or shall in gnod faith contest such lien by, or defend enfonrment of such lien in, legal procecdings which operate to prevent the enforcement ot the lien or forfeitum of the Propert~• or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured against losa by fire. hazarda included within the term "e:tended coverage," and r~uch other hazards as [.ender may require and in such amounts and for such periods ae Lender may require; provided, that Lender shall not require auch rnverage amount exceeding the minimum, as may berequired by state or federat rngulations governing adivitiea of L.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Korrower subjeM to appmval by I.ender, pmvided, that such appro~•al shall not be.unreasonably withheld. All premiums on insurance policies shal! t?e paid in the manner pmvided under paraKraph 2 hereof or, if not paid in such manner, by I3orrower making payment, vvhen due, directly to the insurance carrier. All inaurance policiea and renewals thereof shal{ be in torm acceptable to Lender and ahall include a standnrd mortgage clauae in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Eioaower shall promptly furnish to i.ender all renewal noticea and all receipta of paid premiums. In the event of loss, ~rruwer shall give prompt notice to the insurance carrier I; and Lender. Lender may make proof of losa if not made promptly by Borrower_ ; Unleas Lender and Borrower otherwiae agree in writing, inaurance proceeds shal) be applied to restoration or repair of the Property ; damaged, provided such restoration or repair is economically feasible 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 111ortgage would be impaired, the inaurance proceeds shall be applied i ~ to the aums secured by this Mortgage, with the excesa, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower faila to 4 reapond to Lender within 30 daye from the date notice ia mailed by I.ender to Borrower that the insurance carrier offers to aettle a claim for ~ inaurance benefite, Lender is authorized ta collect and apply the insurance prooeeda at Lender's option either to restorntion or repair of the ~ Property or the sums aecured by this Mortgage. Unless L.ender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not extend or postpone the due date of the monthly inatallmenta mferred to in paraqraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is aoquired by I.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquiaition shall pass to Gender to the extent of the aums secured by this Mortgage immediately prior to such eale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in goo~ repair and ahall not commit waste or permit impairment or deterioration of the Property and shaU comply with the proviaiona of any leaee if this Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominiem or a planned unit development, Borrower ahall perform all of Boaower's obligationa under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulatione of the condominium or planned unit development, and conatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and agreemente of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this btortgage as if the rider were a part hereof. " 7. Protection of Lender's 3ecurity. If Borrower faile to perform the oovenanta and agreements oontained in thie Mortgage, or if at~y ~ action or proceeding ie commenced which materially affects I.ender'e intereet in the Property, including, but not limited to, eminent domain, ~a ineolven oode enforcement, or arran emente or g a bankrnpt or decedent, then Lender at Lender e option,upon ~3 ~Y, 8 P~~nBe involvin notice to Borrower may make euch appearanoea, dieburee euch snme and take euch action ae ie neceaeary to protect Lender a interest. ~ including. but not limited to, diebureement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required ~ mortgage inaurance a8 a condition of making the loan eecured by this Mortgage, Borrower shall pay the premiume required to maintain ~ auch inenrance in effect until such time as the requirement for such ineurance terminates in accordance with Borrower'e and Lendet'e ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiums in the manrter provided under ~ paragraph 2 hereof. My amounte diebursed by Lender pereuant to this paragraph 7, with intereet thereon, ahall become additional indebtedneaa of ~ Borrower eecured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, euch amounts ehall be payable upon req g payment thereof, and shall bear interest from the date of diebureement at the rate payable from ~ notice from I.ender to Borrower ueetin ~ time to time on outetanding principal under the Note unleee payment of interest at euch rate would be oontrary to applicable law. in which ~ event euch amounte shall bear intereat at the higheat rate permiaeible under applicable law. Nothing contyn~ in thu paragraph 7, ehall ~ require Lender to inrur any eapenee or take any action herennder. ~ • . ~ s~ox~ ~ ~ : ~ . _ - > , . . . . - - _