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HomeMy WebLinkAbout0384 . ` . • . . 8orrower and Lender covenant aad a~ree a~ followr. 1. P~meat of Prirkipal sad Interes~ Borrower ahall promptly p~y when due the principal of and interest on the indebtedness evidenosd by the Note. prepayment and late charQe~ as providai in the Note, and the principal of and intereat on ar~y PLture Advances ~ocured by thi. Mo~a~e. . 4. Ptiads for TaYea and Insurwaoe. 3ubject to applicable law or b a written waiver by I.ender. Borrower shall pay to Lender on the day monthly inslaliments of principal and iaterest an payable under the Note. unW the Note ia paid in full, a eum (herei~ "Fl?nds'~ equal to one~ twelRh of the yearly taxes and aseceaineata which may attain priority over this Mortgage. and ground rents on the Property, if any, plus onc twelRh otyearly preaaium inatallments for hazard inaurance. plue onetwelRh of yearly pnmium inatallments for mortgage ineurance. if any. all aa reasonably estimated iaitiaIIy and t~om time to time by I..ender on the basis of asaesamenta and bills and reasonable estimetea thereof.- 'ILe I~nds ~hall be heW ia sn institutioa the depoats or aooounts of which are ineured or guaranteed by a Federal or State a~ency. (including Lende= tf Lender ia auch an institution). I~der shall apply the Funds to pay said ta~ces. aasesameats, ineurance pnmiums and ' ground renta. Lendez mayr not charQe for w hoWing and applying the F~nds. analysing said aocount, or verifying and eompiling said esseesments and biUs. unlees Lender pays Borroviror interest on the I~lmds and appUcable law pernub L.ender to make such a charge. Borrowu aad Leader may agree in writing at the time of e:ecution of this Mortgage that interest on the ~ada ehall be paid b Borrnwer. and unless such s~reement is made or applicable la~r requires such iaterat eo be paid. Lendes shall aot be required to pay Bo~rower any interest or esrnings on the F1~nds. I.ender shaU give to Borrower, withont charge. an annual aooounting of the Funds showing credita and debits to the Fbnds and We parpoee for which ~ch debit to the P~nds was made. The Funda are pledged aa additional aecurity forthe suma eecured by this Mortgage. If We amount of the P~nds held by I.ender. together with the future moc~thly installmenfe of Funds pqyrable psior to the due datee of taues, aeseeamente. inswanee preaniums and ground renta. ahaU rac~ed the amount required to pay baid is:es. asseaemeats, inaurance premiums and ground reata as Wey faU due, suc6 ea~aes ahall be. at Borrower s option, either prompUy repaid b Borrowe~ or credited to Borrower on monthly installmenta of PUnds. If the amount of We Funds heM by Lender shall not be sufGcient to pay taues, aseeasmente, ineurance premiams and ground nnta aa they fall due. Borrqwer ahall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date no'Nbe ia mailed by L.ender to Borrower requeeting payment thereof. . Upon payment ia fuU of all aume secured by thia Mortgage. Lender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is sold or the Property ia othe:wise acquired by I.ender. Lender ehall apply, no latu than immediately prior to the sale of the Property or its aoqaisition by Lender. any ~nda held by I.ender at the time of application se a credit againat the auma secured by thia Mortgage. 3. Applicadon of Paymente. Ualeea applicable law providea otherwiee, sll paymente received by Lender under the Note and paragraphs 1 and 2 hereof ehaU be applied by I.ender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest pa,yeble oa the Note. then to the principal of the Note, and then to interPat and principal on any Future Advaaces. ~ 4. Charges; Liena Borrower ehall pay all taaes, aeseasments and other chargea, fines and impositiona attributable to the Property which may attain a priority ovet thia Mortgage, and leasehold paymente or ground rente, if any. in the manner provided under paragraph 2 hereof or, ~ if not paid in euch manner, by Borrow~ making payment, when due, directly to the payee thereof. Borrower shall promptly furnieh to Lender all notic~ of amoanta due under this paragraph, and in the e~ ent Borrower shall make payment directly, Borrower shall promptly fnmish to , ~ Let~der reoeipta evidencing such paymenfs. Borrower shall promptly discharge any lien which haa priority over thie Mortga~~; pmvided, that Borrower shall not be required to discharge any such lien eo long aa Borrower ahall agree in writing to the payment of the obligation secured by s such lien in a mann~ acceptable to Lender, or ahall in good faith rnntest such lien by. or defend enforcement of euch lien in.-legal pi~oceedings ; which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep t1~e improvementa now eniating or hereaiter etecte~ on the Property ineured againat losa by fire, hazarda included within the tcrm "eztended oov~age." and euch other hazarda as L.ender may require and in euch amounte and for suc~i periods as I,ender may require; pmvided, that Lender ehaU not require auch ooverage amount ezceeding the minimum. ea may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums eecured by thia Mortgage, whichever is the greater. - ' The ineurance carrier prnviding the inaurance shall be chosen by Borrower subject to approval by Lender. provided, that such approval ahall not be unreseonably withheld. All preminms on insurance policiea shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the inauranee carrier. Alt insurance policies and teaewals theTeof shall be in form acceptable to I:eader and shall include a standard mortgage clauee in favor of and in form aooeptable to Lender. Lender ehall have the right to hold the policies and rene~vala thereof, and Borrower ahall promptly furnish to. iander all•re~ewal noticee and all reoeipte of paid premiuma In the eveat of loes, Borrower ahall give prompt notice to the ineurance carrier and I.ender: I.endez may make proof of loes if not made prompdy by Borrower. _ - ~ Unlees Lender and Borrower otherwiee agree in writing, ineurance pmceede ahall be applied to reatoration or repair of the Property damaged, provided anch restoration or repair is economically feaeible and the eecurity of thie Mortgage ie not thereby impaired. If auch € reatoration or repair ia not eoonomically feasible or if the security of thie Mortgage would be impaired. the inaurance pmoeeds shall be applied ~ to the sntne secnred by thie Mortgage. wiW the e~coeee, if any. paid b Borrower. If the Propedy ia abandoned by Borrower, or if Borrower faile to reepond b I.ender within 30 daya from the date notice ie mailed by Lender to Borrower that the inaurance carrier offers to eetde a claim for ~ ~ insurance benefits; Lender ia suthosized to collect and apply the inaurance proceeds at Lender's option either to restoration or rEpair of the - Property or the eume secnred by this Mortgage. s Unlesa I.ender and Borrower otheiwiee agree in writing, any snch application of proceeds to principal ahall aot eutend or poatpone the due date of the monthly inetallmente referred to in paragrapha l and 2 hereof or change the amount of anch inatallmeata. ff under paragraph 18 ; hereof the Property ia aoquired by Lender. all right, tide and interest of Borrower in and to any inenrance policiea snd in and to the proceeda ; thereof resulting from damage to Property prior to the eale or aoquisitioa ehall pasa to Lender to the ~tent of the aums aecured by thia ~ Mortgage immediately prior to such sale or soqnisition. 6. Preaervation and Maintenance of Propertp; I.esseholds; Condominuma; Planned Unit Developments. Borrower ehall keep ~ the Property in good repair and ehall not oommit aaste or permit impairment or deterioretion of the Property and ahall comply with the provisione of eny lease if this Mortgage ie on a leasehold. If thie Mortgage ie on a unit in a oondominium or a planned unit developmeat, Borrower shall perform all of Borrower'e obligationa under the declaradon or covenanta creatingor governing:t~ecopdominium or planned unit developm~?t, the by-laws and.regulations of the oondominium or planned uait developmenk and oonatituent docnmenta. If a condominiwn or planned unit development rider is e~ec~~ted by Borrower and recorded together with this Mortgage. the eovenanta aad . agreemeata of euch rider shall be iacorporated into and shall amend and anpplement the rnvenanta and agreemenLe of thia Mortgage as if the ~ rider were a part hereof. ' ~ 7. Protection ot Lender's Secnrity. If Borrower fails to prrform the ooveaaats and agreements oontained in thie Moitgege. ar if aay ~ action or prooeeding is commenoed which materially affects Lender'e interest in the Proparty. inclnding. but not limited to, aaineat domain, inaolvencq. oode ~forcement, o~ arrangema~ or pmccedinga involving a banlmipt or deoedent, then Lei?de: at Lender's option,npon notioe to Borrowes mey make ~nch appearanaes, diaburse wch anais end tate sach action as is neoessary to p~ot~ect I.ende~s int~erest, indnding. bat not limited to. disbunement of reasonable attorney'a fees and entry upon the Property to ma~e repaire. If I.ender reqnired ~ mai~e8e insnranoe as s oondition of making the laaa secared by thia MortBaee, Borrower shall pay the premiama reqnired to maintain ~ snch insnranoe in effect nntil such time as the reqnirement for snch inanrance terminates_in aocordanoe writh Bo~rrawer's and I.eadds . ~ writ4a agreemeat a~ applicable I.aw. Borrower ahall pay the amonnt of all mortgage inanrance premiums in the manne= provided nnd~r s ~ ParagraPh 2 bereof. ~ Any amonnta disbarsed by Leader pereuant to thia paragraph 7, wiW intereot thereon. shall beoome additional indebtednees of ~ Borrower ~ecnred by thia Mortgage. Unless Boaower and I.end~ agree to otha t,erms of payment, sach amount~ shall be payable apon - aotioe Lrom I.eade~ to Bonuwer requesting paym~t Wereof, and ehall bear interest from the date of disbureement at the rate payabk irom j time to time on ontstanding princapal und~ the Note nnless payment of intereat at avch rate would be contrary to applicable law, in w}uch " event snch amounts ~haU bear interest at the higheet rate permissible ~wder applicable law. Nothing oontained in this paragraph 7, ahall " requin I.eader to incar any e:pense os take any action he:eunder. i ~ i ~ ! soo~ . p 287 ~~E 382 ~ ..-..s..~Y~ '~7- ~ - ~ . _ _ . - _ . ' _ _ - ' _ - ' ~ ,.,£s i _ . ~,~~~a"'~~ _ ~'i ' .