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HomeMy WebLinkAbout0461 ~ Borrower and [.ender covenant and agree ae foltowa: l. Psyment of Peiacipa! and Intereat. Aorrower shall promptly ~?y when due the principul of s~nd interrst on the indebtednesa evidenced by the Note, prepayment end late charges as providecl in the Note, and the pri~cipal of and intereet an any ~~tum Adv~nces secured by thie Mort~age. 2. Funda torTa~ces and Ineurance. Subject to applicable luw or to a written wniver by l.rnder, I3orruwrrshall puy to Ixnderun theduy monthly installments of principal and in/erest are payable under the Note, until the Note ia paid in full, u sum iherein "Funda") equul to onP twelfth of the yea~ly taxea and assesaments which may attain priurity over this Morlgnge, and ground re~ts on the I'roperty, if nny, plus one twelRh of yearly premium installmenta for hazatd insurance, piua onriwelfth ofyearip premium inst:+llments for mortg~ge ineurance, if any, nlI as teasonably estimated initially and from time to ti~r~e by l,ender on the basis of assessmenta and billa and reasonable estimntes thereof. The ~nde shall be held in an institution the deposits or accounts of which are inaund or guaranteed by a Federal or State Hgency (including I.ender it l.ender is such an inatitution). Lender ahail apply the Funds to pay suid taxet~, asaesamente, insurance premiuma and ground tente. [.ender may not charge Cor eo holding and applying the F'unde, annlyzing said account, or verifying and compiling axid assessments and bi~ls, unlesa l.ender paya Borrower interest on the Funds and applicable law permits I.ender to make auch u charge.l3orrower and I.ender may agree in writing at the time of execution ot this Mortgage that interest on the Funds shall be paid to Borrower, and unle~a auch agreement ia made or applicable law requirec+ such interest to be paid, Lender ahail not be required to pay Borrower a~y intereat or eaminge on the FLnde. l.ender ahall give to fiorrower, without charge, an annua! accounti~g of the Funds showing credita and debits to the Funda and the purpose for which each debit to the Funda was made. 7'he Funda are pledged as additiunal aecurity [or the aums secured by this Mortgage. If the emount of the ~nda held by I.ender, Wgether with the tuture monthly inatatiments of Funds payable prior to the due dates of taxes, asseasmenta, insrtrance premiums and ground rents, ahal) excred the amount required to pay said taxes, asaesaments, insurt?nce premiums and ground rents as they fall due, euch excess ahall be, at Bottower s option, either promptiy tepaid to Borrower or credited to Borrower on monthly installmente of Funda. It the amount of the Funda held by Lender ahall not be sufficient to pay ta~tes, asseasmenta, insurance prnmiums and gtound renta ae they fall due, Borrower shali pay to Lender any amount reeceaeaty ta make up the deficiency within 30 daya from the date notice is mailed by Lender to Borrower tequeating payment thereof. i T.~.~ _.4~~t__••rt ;n fnll of ~Il aumn apcured bv thia MortaaKe, Lender ahall promptly refund to Eiorrower any funds held by I.ender. If under paragmph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, Lender shali apply, no later ti~an ~mmed~aieiy pr~or to the sale of the Property or ite acquisition by I.ender, any Funda held by Lender at the tiine of application ae a credit against the surns secured by this Mortgage. 3. Application of Payiuente. Unless applicable law providea otherwise, all payments received by Lender under the IYote and paragtaphs 1 and 2 hereof shall be applied by I.ender firxt in payment of amounfs payable to Lender by Borrower undet paragraph 2 hereef, then to interest payable on the Note, then to the principal of the Note, nnd then to interest and principal on any Future Advancea. A. Charges; Liens. I3orrower shall pay all taxes, assessments and other charKes, fines and impositions attributable to the Property v?hich may attain a priority over this Mortgage, and lelsehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by 13orrower making payment, when due, directly to the payee thereof. E3orrower shall promptly furnish to I.ender all notices of amounts due under this parugraph, and in the event F3~rrower shall make puyment directly, Borrower shall promptly fumish to I xnder receipts evidencinq such parments. Borrower shall prompdy discharge any lien which has priority o~~er this Mortgage; provided, that F3orrower shall not berequired to discharge any such lien so lonR tis Rorrower shaU agree in writing to the payment of the obligation secnred by ,uch tien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforct ment of such lien in, l~al proceedings µhich operate to prevent the enformment of the lien or forfeitum of the Property or i~ny part thereof. 5. Hazard Insurance. Burrower ehall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and auch other hazards as l,ender may require and in such amounte and forsach periods as Lender may require; pmvided, that l.ender shal! not require such rnverage amount exceedinq the minimum, as may be required by state or federal regulations goveming activities of l.ender, or that amount of coverage required to pay the suma secured by this Mottgage, whichever is the greater. The insurafice carrier providing the insurance shatl be chosen by Borrow•er subject to approval bp l.ender; pro~~ided, that such fipprocal shall oot be unreasonably withheld_ All premiums on insurance policies shall Ue paid in the manner pro~~idecl under para~raph `l hereof or, if nat paid in such manner, by Borrower m~king payment, when due, directly to the insurance carrier. All insurance puliciea and renewals thereof ahall be in form acceptable to Lenderand ahail include a standarci mortgage clause in favor of and in form acceptable to I.ender. Lendershall have the right to hold the policies aad renewals thereof, and Borrower shaU promptly furnish to ixnder all mnewal notices and all receipts of paid premiume. In the event of losa, Borruwer shall give prompt notice to the inaurance camer and Lender. Lender may make proof of loss if not made promptly by Borrower. Unleas Lender and Borrower otherwise agree in w-riting, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. I[ such restoration or rnpair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the suma secured by this Mortgage, with the excesa, if any, paid to Botrower. If the Property is aba~doned by Bonower, or if Borrower fails to reapond to Lender within 30 days from the date notice is maited by Lender to Aorrower that the inautance cr3rrier offers to aetlle a daim for insarance benefits, I.ender is authorized to collect and appty the inaurance proceeds at Lender's option either to restoration or repair of the Property or the auma secured by this Mortgage. Unless Lender and Borrower othetwise aRree in writing, any such application ofproceeds to principal ehall not extend or poatpone thedue date of the monthly installments referred to in paragrapha 1 and 2 hereof or chnnge the amount of auch inst,~llments. If under paragraph 18 hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the suma secured by this Mortgage immediately prior to such sale or acquiaition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good rnpair and ahall not commit waste or permit impairment or deterioration of the Property and ahal: comFly with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a ptanned unit development, E3orrower shall perform all of Borrower's obligations under the declaration orcovenants creatingor governing thecondominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the rnvenants and agreements af auch rider shall be incorporated into and shall amend and supplement the covenants and agreements ofthis Mort~age as if the rider were a part hereof. 7. Protection ot Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreemente oontained in thie Mortgage, or if eny action or proceeding ie commenoed which materially affecte Lendei a interest in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or arrangementa or proceedings invo[ving a bankrupt or decedent, then Lender st Lender's optio~,upon notice to Borrower may make such appearanaee, dieburse such a~une and take euch action ae ie neceesary to protect Lendei a intereet, including, but not limited to, diebureement of reasonable attorney's feee and entry upo~ the Property to make repaire. If Lender required mortgage insurance ae a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiume required to maintain euch insurance in effect until euch time as the requirement for auch ineurance terminates in accordance with Bonower e and I.endei a written egreement or applicable Law_ Borrower ahall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. My amounte dieburaed by Lender persuant to thie paragtaph 7, with internat thereon, shall bc~~ome additionai indebtednese of Borrower eecured by thia Mortgage. Unteae BorroK•er and Lender agree to other terma of payment, auch amounte eha11 be payable upon notice hom I.ender to Borrower requeeting payment theteof, and ahall bear intereat from the date of diebureement at the rate payable from time to time on outatanding principal under the Note unlees payment of intereet at auch rate would be oontrary to applicable law, in which event sach amounta ahall bear interest at the highest rate permisaible under applicable law. Nothing contained in thie paragraph 7, ahall require L.ender to incur any expense or take any action hereunder. ~ , o~~2s~ ;A~ ~59