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HomeMy WebLinkAbout0816 Bor~nwer end I.e~der eovenant and agrre as tollowa: - 1. Payment ot Ptincipal snd Interest. Borrower ahall promptly pay when due the principal of and intereat on the indebtedneae evidenced by the Note, prepayment and late chargea xs provided in the Nota, and the principal of and i~terest on a~y Future Advancea eecured by this Mortgage. 2. ~tnde tor Tsues and Ineurancc. Subject to applicable law or to a written waiver by l.ender, Borrower ehall pay to l.ender on the day monthly inatallments otprincipal and iatereat are payable under the Note, u~til the Note is paid in full, a aum (herein "Fu~da") equal to one twelPth of the yearly taxea and aeaesamente which may attain priority over thia Mortgage, and ground mnta un the Propecty, ilany, plus one- ~ twelRh of yearty premium installments for hazard inaurance, plua onetwelRh ofyearly premium inatallmente for mortgnge ineurance, if any, all as reaeonably eatimated initially and from time to time by l.ender on the baeis of as.x~ements and billa and reusonable estimates thereof. 'lLe ~Lnds ehall be held in an institution the depoaits or accounts of which are ineured or guaranteed by a Federal or State agency (including l,ender if Lender i~ such an inatitution). Lender shail apply the ~nde to pay said taxes, aeaeasmenta, insurance premium~ and ground renta. Lender may not charge for eo holding and applying the ~nda, analyzing said account~ or veirifying and compiling said aeaessmente and bilis, unlesa I,ender pays Borrower interest on the Flinde and applicable law.perinite Lender to make euch a charge. Bor~ower and I.ender may ngtee in writing at the time of eaecution of this Mortgage that interest on the ~nda ahall be paid to Borrower, artd unleas euch agrcement ia made or applicable law requiree euch intereat to be paid, Lender ahall not be requirPd to pey Borrower any intesest or earniags on the ~nds. Lender ehall give to Borrower, without charge, an annual acoounting of the Funde showing credits and debits to the ~nds and the purpoee for which each debit to the ~nds wae made. The Funda are pledged as additional security for the aume eecured by this Mortgage. If the amount of the fi~nds held by Lender, together with the future monthly inetallments of Funda payable priot to the due datea of tauee, a8eeesmente, insurance premiume and ground re~ts, ehall e:cred the amount required to pay said taxee, asaeeamenta, insurance premiums and ground tenta as they fall due, euch e:cea8 ahall be, at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly inetallments of ~nds. If the amount of the Funde held by I.ende~ ehall not be sufficient to pay tanee, aeaessr~eents, inaurance premiume aad grourid renta as they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 dsye from the date notice ia mailed by I.ender to Borrower requesting paymeAt thereof, Upon paymenL in f~il! of all euma eecured by this Mortgage, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property ia sold or the Property is otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior to the eale of the Praperty or ite aoquiaition by I.ender, any Ftinda held by Lender at the time of application as a credit againat the sums eecured by thie Mortgage. 3. Application of Paymente. Unlesa applicable law providea otherwiae. all paymente received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firsE in payment of amounta payable to Lender by Bonower under paragraph 2 hereof, then to intereat payable on the Nole, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liena. Borrower shall pay all taxes, assesamgnta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehoid payments or ground rente, if any, in the manner prorided under paragraph 2 hereof or, if not paid in such manner, by Bortower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender all notices of amounts due. under this paragraph, and in the event Borrower shall make payment directly. Borrower shali promptly furnish to [xnder receipts evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ehatl not be requited to diacharge any such lien so long as E3orrower ahall agre~e in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, otr defend enforcement of such lien in, legal proceedings which operate W prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazerd Ineuranoe. Borrower shall keep the improvements now exiating or hereatter erected on the Property ineured against loss by fire. hazarde included within the term "extended coverage," and anch other hazards as I,ender may require and in such amounts and for auch periods as I.ender may require; provided, that I.ender ahall not require auch ooverage amount exceeding the minimum, as may be required by state or federa! regulations governing activitiea uf Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. ' 1'he insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreaeonably withheld. All prnmiums on insurance policies ahall be paid in the manner pmvided under p~ragraph 2 hereof or, if not paid in such manner, by Bc~rroveer making payment, when due, diiectly to the insurance catrier. Atl inaurance policies and renewals thereof shall be in farm acceptable Lo I.ender and ahal) inrlude a standard mortgage clauee in favor of and in fonn aooeptable to Lender. Lender ahall have the right to hold the policiea and renewala thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property damaged, provided euch restoration or repair is economically feasible and the eecurity of this Mottgage ia not thereby impaired. If auch reatoration or repair is not economically feseible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds shali be applied to the eums aecured by this Mortgage, with the eaceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to r+espoad !o Leneler within 30 daya hom the dete notice is mailed by Lender to Borrower that the inaurance carrier o~fera to settle a claim for ineurance benefits, Lender is authorized to rnllect and apply the insurance proceeda at Lender s option either to restoration or rnpait of the Property or the sums secured by this Mortgage. Unlesa i.ender and Borrower otherwiae agr~ee in writing, any such application of proceeds to principal ahall not eYtend or poetpone the due date of the monthly insisllmenta referred to in paragraphs 1 and 2 hereof or change the amount oi such inatallmenta_ If under paragraph 18 hereof the Property ie acquired by I.ender, all right, tiNe and intereat of Borrower in and to any inaurance policies and in and to the proceeds thereof reaulting firom damage to Property prior to the sale or acquiaition ahall pass to I.ender to the exteni of the euma secured by this Mortgage immediately prior to such sale or aoquieition. 6. Preaervation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developmeate. Borrower shall keep the Ptoperty in good repair and shall not commit waste or permit impairment or deteriotation of the P~roperty and ahall rnmplywith the provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, 8orrowet ahall perform all ot Borrower'a obligations under the declaration or covenants creatinqor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent dceumente. If a condomini~un or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and agreementa of auch rider ahall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgageas if the rider were a part hereof. 7. Protection ot Lender'e $ewrlty. If Borrower faile to ptrform the aovenante and agreetnenta contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Lender e intereet in the Property, including, but not limited to, eminent domain, ineolvency. oode eaforcement, or arrangements or prooeedinge involving a bankrupt or decedent, then Lender at Lender'e option.upon notiee to Borrower may make such appearanoes, dieburee auch eums and take euch action as is neceseary to protect I,ender'a intaest, including, but not limited to, disburaement of reasonable attorney'e fees and entry upon the Property to ma1~e repaire. If Lender required mortgege insurance as a condition of making the toan secured by thie Mortgage. Borrower ehaU pay the premiums reqtured to inaintein such ineurance in efiect nntil euch time as the raquirement for auch inaorance terminatee in accordance with Bornower's and Lendele written egreement or applicable Iaw. Borrower ehall pay the amount of all mortgage insarance premiums in the manner provided under paragraph 2 hereof: My amounta diabureed by Lender persuant to thiB paragraph with intereet thereon, ehaU beoome additional indebtedneas of Borrower secured by this Mortgage. UnleBa Borrower and Lender agree to other terma of payment, auch acnounte ahall be peyable upon qotice from I.ender to Borrower requeeting payment lhereof, and shall bear intereat from the date of diebyrsement at the ratc payable from time to time on outstanding principal under the Note unleee payment of intereat at auch rate wouid be oontrary to appticable law, in which event euch amounta shalt bear intereet at the highest rate permieaible under applicable law. Nothing contained in this paragraph 7, ehall rEquire Lender to incur any expenee or take any action hereunder. . b0~ . . ~ .