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HomeMy WebLinkAbout0452 . ; Borrower and I.ende~ covenant and agree ae foliuwa: 1. Peyment ot Principal end Inteteat. Borrower ahall promptly pay when due the principal of and interest on the indebtednexs evidenced by the Note, ptepayment and latechargea aa provided in the Note, and the principal of and intereat on any Future Ad~•ances secured by this Mortgage. 2_ Funds [or Taxee and Inau~ance. Subject to apphcable law or W a written waiver by IA ndrr, I3urruwrr aLall Nuy tu I.rndir w~ thr day munthly inatxllments of principal and intereat am payable under the Note, unti) the Note ia p~+id in full, a aum lherein "F unda"1 equal to one twelfth of the yearly ttixea and iiesesaments which mny attiiin_priority over this Mortgage, und ground rents on lhe Pn~periy, if nny, pius one- twelfth o[yearly prrmium instaUments for hnzard insurance, plusonetwelRh ofyearlypmmium inat~?Ilmenu+for mortgage insurance, if uny, all ae reasonabiy estim~ted initiAlly and from time to time by I.ender on the bnais of nasessment,a nnd bills nnd rensonable esitimates thereof. The ~nds ahaU be held in an institution the deposiLa or accounta of which ate insured or guaranteed by a Federal or State agency (including Lender if l.ender ia auch an institution). I.ender ahall apply the Funde to pay eaid taxea, xasessmente, inaurance premiums and ground renfa_ Lender may not charge for eo holding and appl~~ng the ~nde, analyzing said account, or verifying and cumpiling said asaesaments and bills, unleas L.ender paya Borrower intereat on the Funda nnd applicable law permitx Ixnder to make such a cha[ge. E3orn?wer and Lender may agree in writing at the time of e:ecution of this Morlgage that intereat un the Funds ahall be pctid to F3oi-rower, and unless such agreement is made or applicable law requirea auch intereat to be paid, Ixnder ahall not be ~equired to pay Borrower any intereat or earnings on the Funda. Lender ahall give to Borrower, without charge, an annuai accounting of the Funds ahowing credits und debits to the Funds and the purpoae for which each debit to the Funda was made. The Funds are pledged as additional security forthe sums secured by this Mortgage. If the amount of the fl~nds held by I.ender, together with the iuture monthly installmenta of Funda p~yable prior to the duedatea of taxes, assesamenta, inaurance pmmiume and ground mnts, ahall exczed the umount required to pay snid taxea, aasessments, ineurance prnmiuma and ground mnts se they fall due, euch excesa shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of Funde. If the amount of the Funds held by Lender shall not be aufficient to pay taxes, aseiesamente, inaurance premiums and ground rents as they fall due, $orrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. . Upon payment in full of all sume secured by this 1Norigage, Lender shall promptly refund to E3orrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, I.ender shall apply, no laterthan immediately prior to the sale of the Property or its acquisition by Ixnder, any F~nds held by I.ender at the time of application as a credit against the sums tiecured by this Mortgage. 3. Application ot Payments. Unless applicable law provides otherwiae, aU payments received by l.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by l.ender fimt in payment of amounts 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 interest and principal on any Future Advancr~. 4. Charges: Liens. E3orrower shall pay all taxes, assessments nnd other rharges, fines and impoaitions attributable to the Property which may attain a priority o~ er this Mortguge, and leasehold payments or ground rent8, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly tothe payee therrot. t3orrowershall promptly furnish to I.ender all notices of amounts due under this paragraph, and en the event E3orrower shall make payment directly, I3orrower shall promptly furnish to Ixnder receipts evidencing such pai ments. Rorrower shall promptly discharge any lien vvhich has priority over this Mortgage; pmvided, that Borrower shall not be required t~ discharge any such lien so long ns Borrower shall agrcr• in v?•riting to the payment of theobliKa?tion secured by such lien in a manner acceptable to Lender, or sh:~ll in good faith cuntest such lien by, or defend enforc~ement of such lien in, leYal procecdinKs which operate to prevent the enforcement of the lien or forfeiture of the Property or any part ihereof. 5_ Hazard Inaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may requ~re and in such amounts and for such periods as Lender may require; pmvided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing acti~-ities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the grnater_ The insurance carrier pro~~iding the insurance shall be chosen by Borrower subject to appro~•al by I.ender, pmvided, that such appruval shall not be unreasonably withheld. All premiums on insurance pulicies sh:ill be paid in the m~inner pnrvidec! under paraKraph `l hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All inaurance volicies and renewals thereof ahall be in form acceptable to Ixnder and shall include a standard mortgage clause in favor of I'; and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and t3orrower shal! promptly lurnish to 'i i,ender all renewal notices and all receipts uf paid premiums. In the event of loss, I3orruwer shall give prompt notice to the insura~ce carrier ~ and Lender. Lender may make proof of toss if not made prompdy by Borrower. - ~ Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda shail be applied to restoration or repair of the Property damaged, ptovided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restora6on or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shaltbe applied to the aums aecured by this Mortgage, with the excess, if any, paid to Bonower_ If the Property is abandoned by Borrower, or if BorrowEr ai:s :r, respond to Lender within 30 daya from the date notice is mailed by I.ender to Borrower that the inaurance carrier of~era to settle a claim for inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at I.ender's option either to restoration or repair of the Prope~[ty or the sums secured by thie Mortgage. Unleas Lender and Borrower otherw7se agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, 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 eale or acqu~sition shall pass to Lender to the extent of the suma secured by this Mortgage immediately prior to such sale or aoquisition. 6. Preeervation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahail comply with the ~ proviaions of any lease if thie Mortgage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatinKor governing the condominium or planned unit development, the by-laws and regulationa of the conduminium or planned unit development, and constituent documenta. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the mvenants and agreementa of such rider shall be incorporated inW and shall amend and supplement the covenants and agreements of this Mortgage as iCthe rider were a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the aovenante and agreemente contained in this Mortgage; or if any ~ action or proceeding ie commenced which materially affects Lender'e interest in the Property, including, but not limited to, eminent domain, a ineolvency, oode enforcement, or anangemente or proceedinga involving a banlcrupt or decedent, then Lender at Lendei e option,upon notice to Borrower mey make such appearancee, diabnrae euch atuns and take such action ae is neceaeary to protect I.ender'e intereet, ~ inclading, but not limited to, diebnreement of reaaonabie attomey's feee and entry upon the Property to make repaira. If L.ender required mortgage inaurance ae a condition of making the loan secured by thia Mortgage, Borrower ahaU pay the premiuma required to maintain ~ such insurance in effect until euch time ae the requirement for auch inaurance terminatee in accordance with Borrower'a and L.endei e ~ written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage insurance premiums in the manner provided undet ~ paragraph 2 hereof. ~ Any amounte diaburaed by Lender persuant to this paragraph 7, with interest thereon, ahall become additional indebtedneea of ~ Borrower secured by thia Mortgage. Unleae Borrower and I.ender agree to other terme of payment, such amounte ahall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear intereat from the date of diebureement at the rate payable firom time to time on outetanding principal under the Note unleae payment of intereat at such rate would be contrary to applicable law, in which ~ event euch amounts shall bear intereat at the higheHt rate permiseible under applicable law Nothing contained in thie paragraph 7, shall require I.ender to incur any expense or take any aMion hereunder. - ~ ~ 8~~(~~ ~ ~