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HomeMy WebLinkAbout0268 ~ Borrower and l.ender covenant and agree aa followa: 1. Peyment o! Principal and Intereet. Borrower ahall promptly pay when due the principa) of and intereat un the indebtednexa evidenced by Ihe Note, prepayment and late charges aa pmvided in the Note, and the principal of and intereat on uny Future Advances aecured by thie Mortgage. 2. ~tnds for Tazee and Insuritnce. SubjeM to applicable law ur to t+ written waiver by I.cnder, E3orrower ahall puy to I.ender on ihe dny monthly inatallments of principal and interest are payable under the Note, until the Note is pnid in fuU, a sum Iherein "Funda") equal to one twelRh of the yearly taxes and asseasmenta which may attain prio~ty over this Mortgnge, a~d ground renta on the Property, if any, plus one iwelRh of yearly premium installmenta for hazurd insurance, ptus onetwelfth otyeurly premium installments for mortgage insur~+nce, if any, all ae reasunably eatimated initially and from time tu time by [xnder on the basis of usseasments and bills and reaxonable estimates thereof. The ~nde ahall be held in an institutio~ the deposits or accounla of which are inaured or guaranteed by a Federal or State sigency (including Lender if I.ender is such a~ institution). l.ender shnll apply the Funds to pay said taxes, assesaments, insurance premiuma and ground rente. l.ender may not charge for ao holding and applying the Funda, analyzing said ascount, or verifying and compiling said ~~R,..~~o ~nd hilla unlPna T.~nder oays Borrower interest on ihe Funda and applicable law permits Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that intereat on the ~nda ahall be paid to Borrower, and unieae euch agreement ie made or applicable law requiree such intemat to be paid, I.ender ahall not be required to pay Borrower any intereat or earninga on the Flinds_ Lender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debita to the Funde and the purpoae for which each debit to the ~nda was made. The Funde are pledged as additional aecurity for the sume aecured by this Mortgage. If the amount of the F~nds held by [.ender, together with the futum monthly inatallments of Funds payable prior to the due dales o[taxea, asseasmenta, insarance premiuma and ground rents, ahall exc~ed the amount required to pay said taxea, asaeasments, insurance premiuma and ground rente as they fall due, such exceas ahall be, at Borrowei a option, either promptly mpaid to Eiorrower or credited to I;orrower on monthly installmente of ~nds. If the amount of the Funda held by [.ender ahall not be au~cient to pay taxes, asaesamenta, insurance premiums and ground renta as they fall due, Borrower ahall pay to Lender any amount necesaary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in fuli of a1i eums eecured by this Mortgage, [.ender ahall promptlyrefund to Burrower any funds held by Ixnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, I.ender shali apply, no later than immediately prior to the sale of the Property or ita acquisition by I.ender, any Fl~nds held by Lender at the time of application as a credit against the sums secured by thia Mortgage. 3. Application of Paymente. Unless applicable law providea othe=wise, all payme~ts received by lxnder under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firxt in psiyment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then W the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Lien9. f3orrowershall pny all taxes, assessments and otherrharges, fines and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground mnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3~?rrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall pmmptly furnish to Lender receipts evidencing such payments_ F3orrower ahall promptly discharge uny lien which has priority over thia Mortgage; provided, that Borrov?er ahall not be required to discharge aqy such lien so long as Iiorruwer shall agree in writinQ tu the payment of the obligation secured by such lien in a manner acceplable to Lender, or shall in good [aith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now existing or hemafter erected on the Property ineured against loss by fire, hazarda included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for auch periods as I.e~der may require; provided, that Lender ahal! not require such rnverage amount exceeding the minimum, as may be required by state or federal regulations governing aMivities of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever is the greater. 'Che insurance carrier providinq lhe insurance shall be chosen by Borrower subject to approval by [.ender, pn~vided, that such approVal shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner pmvided under paruRr~ph'l hereo[or, if ; not paid in such manner, by E3orrower making payment, when due, directl~ to the insurance carrier. 4 All inaurance policies and rnnewala thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the poliriea and mnewals thereof, and I3orrower shall promptly fumish to i.ender a!1 renewal notices and all receipts of paid pmmiums. [n the event of loas, Borruwer ehall give prompt notice to the insurance carrier ! and Lender. Lender may mai~e proof of loss if not made promptly by Borrower. i Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair is economically feasible and the security of this Mortqage is not thernby impaired. If such reetoration or repair is not economically feasible or if the security of thie Mortgage woutd be impaired, the inaurance proceeds shall be applied ~ to the aums secured by this Mortgage, with the excese, if any, paid to Borrower. If the Property ia abandoned by E3orrower, or if Borrower faila to respond to Lender within 30 days trom the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settte a claim for insurance benefits, Lender is authorized to collect and apply the inaurance proceeds at I.endei s option either to restoration or repair of the Property or the sums aecnred by this Mortgage. . Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shall not extend or postpone thedue date of the monthly instaltments referred to in paragraphs 1 and 2 hereof oi change the amount of such inatallments. If under paragraph 18 hereof the Property is acquired by [.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 ahall pass to Lender to the extent of the snme secured by this Mortgage immediately prior to snch sale or acquisition. - 6. Preservation and Maintenence of Property; Leaseholda; Condominuma; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the - pmviaions of any lease if this Mortgage is on a leasehold_ If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of Bonower'a obligations under the declaration or covenants creatinQor goveming the condominium or planned ~ unit development, the by-laws and~ regulations of the condominium or planned unit develop~nent, and constituent dceumenta. If a oondomini~un or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreementa of auch rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider wern a part hereof. ~ - 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or proceeding ia commenced which materially affecte Lender a intereet in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lendei s option,upon ` notice to Borrower may make such eppearancee, dieburee euch sume and take auch action ae ie neceaeary to protect Lender'e intereet, ~ including, but not limited to, diebursement of reaeonable attorney's fees and entry upon the Property to make repaire. If L.ender required mortgage ineurance ae a condition of making the loan eecured by thia Mortgage, Borrower ahall pay the premiume required to maintain y such iaeurance in effect unbil ench time aa the requirement for such ineurance terminates in accordance with Borrower e and Lender e f written agreement or applicable Law. Borrower ahall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounta disbursed by Lender pereuant to thie paragraph 7, with interest thereon, ehall become additional indebtedneee of ~ Borrower eecured by thie Mortgage_ Unleae Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon : j notice from Lender to Borrower requeeting payment thereof, and ahall bear interest fmm the date of diabureement at the rate payable from time to time on outetanding principal under the Note unless payment of intereet at euch rate would be contrary to applicable law, in which y~~ event anch amounta ahali bear interest at the higheet rate permiaeible under applicable law. Nothing contained ia thie paragraph ahall ~ require Lender to incur any expenee or take any action hereunder. , Y~ . ~ • i~ Q ~+p ECOK2S6 FA~E G?VO ~ : - - . ~