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HomeMy WebLinkAbout0372 Borrower and Lender coveasnt and aaree a~ follovri: 1. Pwymeat ot Ptlncipai aad lntere~~ Borrower shall promptly pay when due the principal of and intereat on the indebtedness evide~oed by the Note, prepayment and late char~eo a~ pmvided in the Note, and the principa! of and interest on any ~ture Advar?ces secured by thie Mortga~e. 2 P1~nd~ for Tazes aad In~uranoe. Subject to applicable law or b a writien waiver by [.ender. Bo~ower shall pe~y to l.endes on the day monthly irutallments of principal and intereat are payeble unde~ the Note, until the Note is paid in full, a aum (hecein "Funds") equal t~ ocrs twelfth of the yeady Laxes and aesessmenta which may attain priority over this Mo~rtgage. and ground rents on the PropeKy, if any, plue one twelRh of yearly premium instaliments for hazatd inaurance, plus one~twelfth of year~y premium inatallments ior mortgage ineurance, if any. aU ~s rea~onably eatimated initially and from time to time by I.ender on the basis of assesaments and bille and reasonable estimatee thereof. 'I7re PLads ahall be heW in an inditution the deposita or eccounta of which are insured or guaranteed by a Fedual or State agency (including Lender if I.ender is such an institution). I.erider shall apply the Funds to pay said taxes. asaesaments. ineuranoe premiums and ground rents. Leader me~y not charge for eo holding and applying the l~nds. analysing said account, or veritying and compiling eaid aesessaaenta and bills. unles~ Lender pays Burrower intereet un the Flinds and applicable law pecmits I.ender to make such a charge. Borrower and Let~der may agree in ariting at the time oI execution of this Mortgage that intenat on the FLnda shall be paid to Borrower. and unless such agreement is made or applicable law reqnires auch inte~eet to be paid. I.ender shali not be required ta pay Borrower any inberest or earnings on the Phnds. Lender ehall give to Borrower. without charge. an annual acoounting of the ~ads ahowing credita and debits to the F1~nds and the pnrpose for which each debit to the ~nds waa made. The Funda are pledged as additional atcurity tor the eume aecured by this Mortgege. If the amount of the ~nda held by Lender. together with the future monthly iaetaliments of ~?nds payable prior to the duedates ofl~es, asaesaments, insurance premiuma and grouad rents. ehall e~ccaed ttie amount required to pay eaid taxes. asseasmeats. u?eurance premiuma . and ground rente aa they fall due. auch racoeas shall be. at Borrower s option. either pmmpt~y repaid to Borrower or cndited to Borrower on monthly installmenta of Fl~nds. If the amount oi the ~nda held by Lender shall not be aufficient to pay taxes. asseaswents. inaurance premiuma and ground nats as they fall due, Borrower ahaU pay to I.ender any amount neceeeary to mal~e up the deficiency within 30 deys from the date notice is mailed by I.ender to Borrower requesting payment thereof. . . Upon peyment in full of all suma secund by this Mortgage. I.ender shall promRtly tefund to f3otrower any funda held by Lender. If undrr peragraph 18 hereoithe Property is eold or the Propedy is otherwiee acquired by I.ender, I.ender shall apply, no later than immediately prior to the eale of the Propedy or its aoquisition by I.endet, any FY~nds held by Lender at the time of application as a credit againat the suma eecured by thia Mortgage. 3. Application of Payments. Unlees applicable law pmvidea other~vise, all paymenta received by Lender under the Note and paragraphs 1 and 2 henwf ehall be applied by Lender firat in payment of amounta payable to Lender by Borrower uader 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 Advancea. ~ 4. Chargea; I.ieas. Borrower shall pajr ail ta~cea, assesamente and other charges, fiaee and impoeitiona attributeble ta the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in such msnner, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnieh to Lender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directly. Bormwer ahall promptly furniah to Lender receipLs evidencing such payments. Borrower ahall promptly diecharge any lien which haa priority over this Mnrtgage; provided, that Borrower shall not be required to discharge any auch lien so long as Borrowec a6a11 agree in writing to the payment of the obligation eecured by auch lien in a manner acceptabie to Lender, or ahall in good faith contest such lien by, or defend enforcement of auch lien in, legal procc~.+dinge which operate to Rrevent the enforcement of the lien or forfeiture of the Property or any part thereof. ~ 5. Hazard Insuranoe. Botrower shall keep the improvements now e:ieting or hereafter erected on the Property insured againat lose by ~ fire, hazarde included within the tem~ "e~ctended ooverage," and anch other hazarde se Lender may require and in auch amounts and for auch periods ae Lender may tequire; provided, that Lender ehall not teqnire such coverage aa~ount ezceeding the miniajum, as may be required by atate or federal tegulationa goveming activities of Lender. or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the gre~ater. The ineurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval } shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or. if not paid in auch manner, by Borrower making payment, when due, directly to the inaurance carrier. All ineurance policies and nnewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form aooeptable to I.ender. Lender ahall have the right to hold the policies and renewele thereof, and Borrower ahall promptiy furnish to i.ender all renewal notioes and all receipta of paid premiuma. In the event of losa; Borrower shall give pmmpt notice to the inaurance carrier I and I.ender. Lender may make proo~ of loes i! not made promptly by Borrower. ` i Unlees Lender and Borrower otherwiee agree in writing, inaurance proceeds shall be applied to reetoration or repair of the Property ~ ~ damaged, provided auch reatoration or repair ia economically feasible and the secarity of thia Mortgage ia not thereby impaired. If such ; reetoration or repair ie not eoonomically feasible or if the security of Lhis Mortgage w onld be impaired. the inaurance proceeda ehall be applied ~ to the anms eecured by thia Mortgage. with the e~ceas, if anY. paid to Bdrrower. If the P~roperty is abandoned by Borrower. or if Borrower faila to ! respond to Lender within 30 daya from the date aotice is mailed by Lender to Borrower that the insurance carrier o~ere to eettle a claim for inaurance benefite, Lender is authosized to rnUect and apply the insurance prooeeds at Lender's option either to reatoration or repair of the ~ Property ot the $ums Becured by this Mortgage. ~ Unlesa I.ender and Borrower otherwiee agree in writing, any euch application of proc~eeda to principal ahall not e~tend or poetpone the due ~ date of the monthly inetallments referred to in paragtaphs 1 and 2 hereof or change the amount of auch inetalimente. If under paragraph 18 - hereof the Property is aoquired by Lender, all right, title and intereat of Borrower in and to any insarance policies end in and to the proceeda thereof reaultiag from damage to Property prior to the eale or aoquisition ehall pase to I.ender to the e:tent of the euma eecured by thia ? Mortgage immediately prior to auch sale or aoquisition. 6. Preaervatioa and b'Isintenanoe of Property; I.easeholds; Condominuma; Planned Unit Developments. Borrower ahall keep the Property in good repair and ehaU not oommit waste or permit impairment or deterioration of the Pmperty and ahall oomply with the pmvisione of any lease if this Mortgage is on a leaeehold. If this Mortgage is on a uniL in a oondominium or a planned unit development, ' Borrower ahall'perfosm all of Borrower e obligationa under the declaration or covenants creatingor governing the oondominium or planned ~ unit developmeat~ the by-laws and regulations of the rnndominium or planned unit development, and conetituent documente. If a condomininm or planned unit development rider is ezecutetl by Borrower and recorded together with thie Mortgage, the oovenants and ~ agreementa of auch rider shall be incorporated into and shall amend and aupplement the covenanta and agreementa of thie Mortgage as if the ~ rider were a part hereof. : 7. Protection of I.ender'~ Secnrtty. If Borrower fails to perform the oovmants and agreements oontained in this Mortgage. or if aay = action or prooeeding is oommenced which materiaUy affects Lender's interest in the Property. including, bnt not limited to, emin~t domain, ~ insolvency, oode enfon~emmt, or arrangemeats or pmceedings iavolving a baniQapt or deoedent, then I.ender at I,endd~ option.apon notioe to B~rower may make such appearanoes. diebnroe snch sums and take snch action as is neoesaary to perotect Lender'~ inte:est, Y induding, bat not limited to. disbarsement of resaon~le attorney'e fees and entry npon the Propedy to make repairr. If Lender required ~ mortgage inaarance as a condition of maldng the loan eecnred by this Mortgage, Borrower shall pay the preminms reqoired to maintain ~ sach itunreaoe in effect antil sach time as the reqnirement for sach insurance t~xminates in aucordanoe with Borrower'~ and Lendds ' ~ written a~eement or applicable Law. Bormwer shall pay the amount of sU mortgage ineurance premiume in the mannez provided undrr ~ paragraph 2 hereof. - ~ Any amounts diabnrsed by I.eader perauant to this peragraph 7, wiLh intereat thereon, shall beoome additional indebtednesa of ' Borrower secured by thia Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable npon ~ ~ - ~ notice irom Lende: to Bonower requesting payment thereot. and shall bear interest from the date of disbureement at the rete payable irom ; time to time on ontatanding principal und~ the Note unless paymeat of interest at such rate wonld be oontrary to applicable law, in which ~ event such amounts shall bear in~t at the higheet rate permiaeible ander applicable law. Nothing contained in thia paragraph 9. ehall r ' require I.ender to incnr any e~cpense or take any action hereund~. , ~ ~ fl R s aoo~ZB? ~ 370 ~ ~ ~ . ~ t~C," ~ ' _ ~ y gY~ _ - - - - - ~ ~y.£ ~ - ~ t ~y ~ . _ 9 R _ _ ~ 4 . .