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HomeMy WebLinkAbout0799 f3otrower and l.ende~ covenant snd agree aa [oltows: 1. Payment of Principal e~d l~tereat. Borrower ehall promptly ~y when due the principal of and intereat on the indebtedneas evidenced by the Note, pnpaymertt and late cherges as provided in the Note, and 1he principal ot and interest on any F'uiure Advancee eecured by thiu Mort~age. 2. I~l~nda [or Te~es and Ineurance. Subject to applicabie law or to a written waive~ by [.e~der, E3orruwer ehall pay to l.ender on the day monthly installmenta of pri~cipal and interest are payable qnder the Note. until the Note ia paid in full, a sum (herein "Funds") equul to or~e twelfth of the yearly taxee und assesementa which may attai~ priority ove~ thia Mortgage, and gtound renta on the Propecty, if uny, plua one twelfth of yearly premium instaliments Co~ hezard inaurance, plue onetwelfth ofyearly premium inetallments for mortgage ineurance, if any, all as reasonably estimated initially and fram time to time by l.ender on the baais of nsaeasmenta and biUa and reaaonable eatimatea thereoL The ~nds ahall be held in an institution the depwits or aceounts of which are inaured or guaranteed by a Fe+deral or State agency (including I.ender if I.e~der ia such an inatitution). Lender ahall apply the Ftinds to pay eaid taxes, asaeesments, insurance premiuma and ground reats. l.ender m~y not charge for so holditig and epplyin~ the FLnds, analyzing said account, or verifying and compiling said aeseesments and bills, unleaa I.ender paya Botrower intereat on the Fl~nda and applicable law permita l.ender to make auch e charge. ~3orrower and l.ender may agrec in writing at the time of execution of this Mortgage that interee? on the ~nds shall be paid to Borrower, and unleaa auch agreement is made or applicable law requires euch interent to be paid. l.ender shell not be required to pay Bocrower any intereet or : eamings on ttie ~1nds. Lender ehall give to Borrower, without charge, an annual accounting of the Funds ehowirig credits and debite ~ Funda and the purpoee for which each debit to the Funda was made. Tfie Funde are pledged as additional eecurity for the eume secured by th Mortgage. If the amount of the FLnda held by Lender, together with the future monthly inatallmente of Funda payable prior to the due datea of taxes, aeaeeaments, inaurance premiume and ground rente. shall exc~ed lhe amount required to pay aeid taaee, aseesements, insurance premiums and ground rents es they fall due, such excese shall be, at Borrowei e option, either promptly repaid to Borrower or credited to Borrower on monthly installmenfa of flinde. If the amount of the Funds held by Lender shall not be sufficient to pay ta:es, asseesmente. insurance preminms and ground rents as they fall due, Borrower ahall pay to Lender any amount neceaeary to make up the deficiency within 30 daye ' from the dete notice is mailed by Lender to Bo~rower requesting payment thereoL ` Upon payment in fuU of aU eums eecured by thie Mortga~e. Lender ehall promptly refund to Borrower any tunde held by Lender. If under ; paragraph~ l8 hereof the Property is eolu or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite acqnisiQon by I.ender, any ~nda held by Lender at the time of application as a credit againat the aume eecured by this Mortgage. 3. Appltcation of Payments. Unleas applicable Iaw provides otherwise, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender first in paymeot of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxea, assessmerita and other charges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or qround rents, if any, in the mnnner 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 fnrnish to I.ender all notices of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing euch payments. Borrower shall promptly discharge any lien which has priority overthia Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Eiorrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ehall in good faith contest auch lien by, or defend enforcement of auch lien in, tegal proceedings which operate to pmvent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hezard Inauraace. Borrower ehall keep the imptovements now existing or hereafter ere~ted on the Property insured againat losa by fire, hazarde included within the term "e:tended coverage, ' and auch other hazarde as Lender may require and in auch amounts and for such perioda aa I.ender may require; provided, that l.ender shall »ot require auch ooverage amount eaceeding the minimum, as may be required by - state or federal regulations governing activitiee of I.ender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by E3orrower subject tu approval by [xnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by I3orrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewale thereof shall be in form acceptable to L.ender and ahall include a atandard mortgage clauae in favor of and in form acceptable to Lender. I.ender shal) have the right to hold the policies and renewala thereof, and Bo~rower ahall prompdy furniah to i.ender all renewal notices and all receipte of paid premiuma. in the event of losa, Bott+ower shall give prompt notice to the insurance carrier i and [.ender. Lender may make proof of losa if not made promptly by Borrower. C Unless Lender and Borrower otherwiee agree in wtiting, insurance proceeds shall be applied W resWration or repair of the Property i damaged, provided euch reaWration or repair is economically feasible and the eecurity of this Mortgage ia not thernby impaired. If such = reatoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the aums sec~red by thia Mortgage, with the excesa, if any. paid to Borrower. If the Property ie abandoned by Borrower, or if Bo:rower feils to ; reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the inaurance carrier of~era to eetde a claim for g ineurance benefits, Lender ie authorized to collect and apply the inswance proc~eeda at Lender s option either to restoration or repair of the ~ -Property or the aume eecured by this Mortgage. Unleae [.ender and Borrower otherwiee agree in writing, any such application of procerda to principal shall not e~ctend or postpone the dae ~ date of !he monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 ~ hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any ineurance policiee and in and to the proceeda ~ thereof resulting trom damage to Property prior to the eale or acquisition shaU paes to Lender to the e:tent of the sums secured by this Mortgage immediately prior to auc6 eale or aoquiaition. ~ 6. Preservation aad Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developmente. Bonower ahall keep the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and shall oomply with'the ~ proviaions of any leaee if thie Mortgage ie on a leasehotd. If this Mortgage is on a unit in a oondominium or a planned unit development, Boaower ehall perform all of Borrower e obligationa nnder the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws .and regulationa of the oondominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider ie e:ecuted by Borrower and recorded together wi~h thia Mortgage, the o~venanta and a~ agreements of such rider shall be incorporated into and shall amend and supplement the covenante and agreementa of this Mortgage as if the ~ rider were a part hereof. 7. ProLectiou o! Lender'~ Securitq. If Borrower fails to perform the oovenante end agreemente contained in this Mortgage, or if any ~ action or proceeding ia commenced which meterially affects Lender'e interest in the Property, including, but not limited to, eminent domain. ~ insotvency. oode enforaemenR or errangemente or proceedings involving a banion~pt or decedent, then I.ender at Lender's option,npon notice to Borrower may malice such appearances, diaburee euch eums and take such action as is neceesary to proted Lender s intezeet. ~ incle~ding, but not limited to, disbursement of reasonable attomey e fcee and entry upon the Property to make repairs. If Lender required ~ mortgage insurance as a condition of making the loan eecured by thia Mortgage, Borrower shall pay the premiums required to meintain such insurance in efEect nntil such time.as the requirement for auch insurance terminatee in aocordance with Borrowezb and Lendds ~ written a~reement or applicable Law. Borrower ahall pay the amount of all mortgage insurance premiuma in the manner provided under paragraPh 2 hereof. • ~ My amounte disbursed by Lender pereuant to thie paragraph 7, with interest thereon, ahall beoome additional indebtednees of Borrower secured by this Mortgage. Unlees Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon ~ notice from L.ender to Borrower requeating payment thereof, and ahaU bear intereat from the date of dieburse~ot at the rate payable.irom ~ time to time on outetanding principal under the Note unleee payment of intereet at such rate would be contrary to applicable law, in which _ ~ event snch amounta ehall bear interest at the highest rate permiseible under applicable law. Nothing oontained in this paragraph 7, shall require Lender to incur any ~penee or take any action here~nder. ~ R t ~ ~ ~ . . ~~~~z85 f~~F ~ ; 87 Y ~ f ~ ' ' ' ~ ~ ~ . -.i7. . Y~r.. ~"~G~"~"5.