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HomeMy WebLinkAbout0808 : . ~ Borrower and [.ender cove~ant and sgree ua follows: 1. Paymeet ot Principal and [nterest. Borrowe~ ahal) promptly pay when due lhe principal ot and intereat on the indebtednene evidenced by the Note, prepaymaat snd latc chargea as provided in the Note, and the principal of and interest un a~y Future Advancea secured by this Mortgage. 2. Ptinda [or Taues and lnsurance. Subject to applicable law o~ to s written waiver by l.ende~, l3orrowershall ppy to Ixnder un the day monthly installmente of principal and intemat are payable under the Note, until the Note ie paid in full, a sum (he~ein "Funda") equal to one tweifth o[ the yearly taxes and assesaments which may attxin priority over thia Mortgage, and ~ound rents u~ the Property, if any, plus ope twelfth of yearly premium installmente for htuard inaurance, plus onetwelfl6 of yearly premium instalimenta [or mortgage inaurance, if any, all ea reaeonably estimated iniliatly and trom time to time by I.enderon the baeie of assesamentB and bills and reasonable estimatea therrof. The Ftinds ahall be held in an inetitution the deposita or acrounts of which are i~aured or guaranteed by a Federal or State agency (including Lendeir if I.endet is auch an institution). l.ender shall apply the Funde to pay said taxes, asaeBSments, inaurance pre:miuma and ground rents. L.ender may not charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling said easesemente and bills. u~lees I.ender paye Borrower inteteat on the ~nda and applicable 1aw permite I.ender to make euch a charge. Borrower and I.ender may agree ia writing at the time of execution o! thie Mortgage that i~terest on the Funde ehall be paid to Borrower. and unlees euch agreemeat is made or applicable law requires sucl~ intereet to be paid. I.ender shall not. he ~equired to pay Borrower any interest or earnings on the Pti?nds. I.ender ahaU give to Borrower, without charge, a~ annual aocounting of the Funda ahowing credits and debita to the ~nds and the purpaee tor which esch debit to the F~nde was made. The Funda are pledged as additional eecurity [or the aums secured by thia Mortgage. If the amount of the F~nde held by Lendet, together with the future monthly instaUmenta of Funda payabte prior to the due dates of taxea, aseeeaments, inaurance premiuma and ground rente, shall exc~ed the amount required to pay aaid taxea, assesamente, insurance premiums and ground renta as they fall due, such e~ceee ehall be, at Botrower s option, either promptly repaid W Borrower or credited to Borrower on moothly inetallmenfa of ~nda. If the amount of the Funda held by Lender ahall not be aufficient to pay taxea, aseeasments, insurance premiuma and ground rents ae they fall due, Borrower ahalt pay b Lender any amount neceaeary to make up the deficiency withir~ 30daye from the date notice is :uailed by I.ender to Borrower requeating pay-ment thereof_ Upon paymeet in full of all euma secured by this Mortgage. Lender ehall promptly refund to Borrower any funde held by l.ender. If under paragrapl~ Z8 hereof the Property is eold or the Property is otherwise acquired by I.ender, I,ender ahall apply, no later than immediately prior to the eale of the Property or ite acquieition by Lerider, any Funds held by Lender at the tirtie of application as a credit againat the auma secured by this Mortgage. 3. Applieation of Paymente. Unless applicable law pro~~ides otherwise, all payments received by Lender under the Note a~nd parageapha 1 and 2 hereof ehall be applied by Lender firat in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to inteteet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liens. Borrower ahall pay all taxea, assessmenta and other rhargea, finea and impo~itions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymente or ground rnnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower maki~g payment, when due, directly to the payee thereof Bornuwershall promptly farnish to Ixnder all notices of amounGs due undet this paragraph, and in the event Borrower shall make paymeot directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge aqy lien which has priority over this Mortgage; provided, that Borrower shall not be required to dischurge any such lien ao lonq as $orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acreptubie to i.ender, or shail in good faith contest such lien by, ordefend enforcement of such lien in, leRa1 prc~ceeciings which opetate to prnvent the enlorcement of the lien or forfeiture of the Properly or any part thereof. . 5. Hazard Ineurance. Borrower shall keep the improvemente now exiating or hereafter erected on the Property insured againat losa by fire, hazards included within the ter~n "e:lended coverage," and auch other hazards as I.ender may require and in auch amounts and forsuch periods as i.ender may require; provided, that Lender shall not require auch coverage amonnt exceeding the minimum, as may be required by atate or federal regulations governing activitiee of Lender, or that amount of rnverage tequired to pay the sums aecured by thia Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by I3orrower subject to approvnl by l.ender, pmvided, that 3uch apprevfll ahail not be unreasonably withheld A!1 premiums on insurnnce policies sha11 be paid in the manner pma~ided under paragraph `l hereof or, if not paid in such manner, by Borrower making payment, when dne, directly to the insurance carrier_ All inaurance policiea and renewals thereof ahall be in form acceptable to Lender and ahall include a standard mottgage clause in favor of and in form acceptable to I.ender. Lender ahall have the right to hold the policies and reteewals thereof, and Borrower shall promptly furnish to i.ender sU renewal notices and al! receipts of paid premiuma. In the event of loss, Borrower ahall give prompt notice to the insurance carrier and l.ender. I.ender may malce proof of loae if not made promptly by Borrower_ Unleas Lender and Botrower otherwiee agree in writing, insurance proceede shall be applied to restoration or repair of t1~e Property damaged, provided such reatotation or repair is econotnically feaeible and the security.of this Mortgage is not thereby impaired. If auch reatoration or repsir is not economically feaaible or if the aec~uity of thie Mortgag~ would be impaired, the insnrance proceede shall be applied to the aums eecnred by thie Mortgage, with the excees, if any. paid to Borrower_ If the Property is abandoned by ~3orrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrov~ er that the insurance cerrier ot~ers to settle a claim for insnrance benefits, I.ender is authorizcd to collect and apply the inaurance proceeda at I.ender s option either to restoration or repair of the Property or the sums eecured by this Mortgage. Unleea Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shall not extend or poatpone the due date of the monthly instatlments referred to in paragrephs 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph l8 hereof the Property ia acquired by Lender, all right, tiNe and interest of Botrower in and to any ineurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquiaition shall pasa to L.ender to the eztent of the aume secured by this Mortgage immediately prior to anch sale or aoquieition. - . 6. Preaetvation and Maiatenance of Property; I.easeholds; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and ahall comply with the pmviaiona of any lease if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a oondominium or a planned uoit development, Borrower ahall petform all of Borrower's obligationa under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-lawa and regulationa ot the condomini~un or planned unit development, and constituent dceumente. If a condotninium or pianned unit development rider ia e:ecuted by Borrower and recorded together with thie Mortgage, the oovenants and agreemente of such rider ahall be incorporated into and ahall amend and aupplement the covenants and agreements of this Mortgage as if the rider wern s part hereof. 7. Proteetion o! I.ender's Security. If Borrower faila to perform the oovenante and agrcements contained in thia Mortgage, or if any action or prooeeding is commenced which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain. insolveacy. oode ~forcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender at Lender's option,upoa notice to Borrower may make auch appearancee, disbnree aach eums and ta1~e anch action as ie neoeseary b prot~ect Lender'e interest, inclnding, but not limited to, diebnrsement of reaaonable attomey's feee and entry upon the Propetty to make repa'ue. If Lender reqnired mortgage insurance sa a oondition of making the loan eecured by thin Mortgage, $orrower shall pay the preoniume requi~d to maintain snch ipaurance in effect until euch time ae the requirement for such inaurance terminatee in accordance with Borrower's and I.ender'e written agreement or applicable Law. Borrower ehall pay the amount of a11 mortgage inaurance premiume in the manner provided under paragraph 2 hereof My amoante diebureed by Lender persuant to thie paragraph with intereet thereon, ehall become additional indebtedneee of Borrower secured by thie Mort;a~e. Unless Boaower and Lender agree to other terme of paymeni, anch amounts ahall be psyable upon notice trom Lendez to Bore+a~vez req~esting payment thereof, and ahall bear intereet from the date of diaburaement at the rate payable from dme to time on outstanding principal under the Note unleas payment of intereet at euch rate would be oontrary to applicable law, in which event euch amounte ehall bear intereat at the higheet rate permiaeible under applicable law. Nothing rnntained in this paragraph eha11 reqnire I.ender to incur any expense or take any action hereunder. s~~x 285 F~~f ?9~ ~ ~ !F