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HomeMy WebLinkAbout0748 ~ ~ . . , Borrower and Lender covenant and aQree ae follows: 1. Peyment o[ Priaclpal and Iatere~~ Borrower shall promptly pay when due the principal of and intere~t on the i~debtedness evidenced by the Note. prepayment and lato charges ee pmvided in the Note, and the principal of and interest on any P1~ture Advances secured ~ by this Mort~a~a ~ 2 I~nds for Ta:es ~nd In~urance. Subject to applicable law or to a written waiver by Le~der. Borruwer ehall pay to l.ender on the dey monthly irtatallme~ts of principal a~d interest are payable under the Note. until the Note is paid in full, a sum therein "FLnds") equal to ont twelRh of the yearly taxee and aeaesements which may attain priority over thia bfottga~e. and grrund rn~ta on the Property, i[any. plua one twelRh of yearly premium installmenta [or hazard inaurance, plua unetwelfth of yearly p~emiam inetallmente for morigage inaurance, if any. all ae nasonably eetimated initially and from time to time by L.ender on the basia of aseesaments and billa and reaaonable eatimates thereof. 'I1?e P~nds shall be held i~ an institution the deposits or aecounts of which en insured or guaranteed by a Federal or State agency (indudiag Lender if Lender ie euch an instilution). Lender ahall apply the Funds to pay said taxes, asaeasments. insurance premiuma and ground nats. Lender me~y aot charge for eo holding sad applying the Fl~nds._analyaing said acoount, or verifying and rnmpiling said ass~sments and bilb, unleee Lender pays Borrower inter~t on the Funds and applicable law pennite Lender to make such a charge. Borrower aad I.ender may agree in writing at the time of e:ecution of this Mortgage that intereat on the I~1nde ahall be paid b Borrower. and unleas Auch agreement is made os applicable law requires euch interest to be paid, Lender ahall not be required to pay Hosrower any interest or earnings on the ~nde. Lender shaU give to Borrower, without charge, an annual acoounting of the ~nds ahowiag credite and debite to the Funds and the purpose for which each debit to the ~nds wes made. The ~nds are pledged ae additional eecurity for the euma eecured by thie Mortgage. If the amount of the F~nds held by Lender, together with the future monthly inaLallmeate of Funda payable priorto the due dates of ta~ces, aeseeeinents. inauranoe premiume and ground rente. shaU eucxd the amount required b pay said taxea, aeeeasments, ineurance premiums and ground rente aa they fall due. such escees shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of fl~nds. If the amount of the Funda held by I.ender ahall not be sufficient to pay tauea, aeseesments, inaurance premiums aad ground renta as they fall due, Borrower shall pay to Lender any amoant neceseary to make up the deficiency within 30 days from the date nopce is mailed by Lender to Borrower requeeting payment thereof. _ Upon payment in full of aU auma eecured by thia Mortgage. I.ender ehall pmmpdy nfund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ia othe:wiee acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite acquiaition by Lender, any fl~nda held by Lender at the time of applicatiun ae a credit against the auma secured by thia Mortgage. • 3. Applicatlon ot Payments. Unlese applicable law pmvides otherwiee, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any ~ture Advances. 4. Chargea; Lietu~. Borrower ahall pay all taxea, assesamenta and other chargea. fines and impositioas attributable to the Propertp which may attain a priority over this Mortgage, and leasehold paymenta or ground rente. if any, in the manner provided under paragraph 2 hereof or, ~ if not paid in such mannet. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to I.ender all notices of amounte due under thia paragraph; and in the event Borrower snall make payment directly, Borrower shall pmmptly furnish to I.ender reeeipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien ao long as Borrower shall aRree in writing to the payment o[ the obligation eecured by such lien in a mann~ acoeptable to Lender, or shall in good faith rnntest such lien by, ordefend enforcement of auch lien in, legal proceedings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the impmvements now eu~ting or hereafter erected on the Property inaured againat losa by fire, hazarde inclnded within the term "eztended coverage," and auch other hazards aa Lender may require and in such amounte and for such periods as Lendez may require; provided, that I.ender ehall not require such ooverage amount ezceeding the minimum, as may be required by _ atate or federa] regalationa governing activities of Lender, or that amount of rnverage required to pay the aums secured by this Mortgage. whichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by l.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 paymenL, when due, directly to the insurance carrier. All inaurance policies and renewala thereof shall be in form acceptable to I.ender and shall include a standaed mortgageclaase in favor of and in form aooeptable to Lender. Lender ahall have theTight to hold the policies and renewala thereof, and Borrower ahall pmmptly furnish to i i.ender all renewal notices and all receipts of paid premiuma. In the event of loas, Borrower shall give prompt notice to the insurance carrier j and Lender. Lender may make proof of loas it not made promptly by Borrower. ~ Unlees Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to reetoration or repair of the Property damaged, provided auch restoration or repair is economicaUy feasible and the aecurity of this Mortgage ia not thereby impaired. If auch ~ iestoration or rep~ir ia not eoonomically feaaible or if the eecurity of this Mortgage would be impaired, the ineurance proceeda ahall be applied - ~ to the sums eecured by thia Mortgage, with the exceas, it any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to I.ender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for E inaurance benefite, Lender is suthorized to collect and apply the inaurance proceede at Lende~s option either to restoration or repair of the Property or the eums eecured by this jVlortgage_ _ Ualese Lender and Borrower otherwiee agree in writing, any auch application of proceede to principal shall not extend or postpone the due date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of auch instaliments. If under paragraph 18 _ hereof the Property ia ecquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceede thereof reeulting from damage to Property prior to the eale or aoquisition ahall pasa to Lender to the e:tent of the suma secured by thia Mortgage immediately prior to such eale or acqui~sition. 6. Preaervation and Maintenance of Property; I.eaeeholde; Condominuma; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ehaU not commit waste or pennit impairment or detsrioration of the Property and ahall comply with the - provisioas of any leaae if thie Mortgage ia on a leasehold. If this Mortgage ia on a unii in a oondoaainium or a planned unit development, Borrower ahall perform all of Borrower'e obiigatione under the declaration or covenants creatingor governing the rnndominium or planned unit developmenl, the by-lawe and regulatione of the rnndominium or planned unit development, and oonatituent documente_ If a oondominium or planned unit development rider ie ezecuted by Borroarez and recorded together with thia Mortgage, the oovenante and agreementa of auch rider shall be incorporated into and ahall amend and supplement the rnvenanta and agreements of thia Mortgage aa if the rider were a part hereof. ~ - 7. ~Protection of I.ender's Security. If Borsower fails to perform the ooveaants and egceemente contained in this Mortgage, ar if any ~ action or proceeding ie oommenoed which materially affects Lender s interest in the Property. including. bnt not limited to, eminent domain. ~ insolvency. oode_ aifon~ennent, or arrangemente or proceedings involving a bsnl~rupt or deoedent~ then Lender at I.ender's option,npon notice to Borrower may make such appearancee. diahurae euch sums and take ench action aa is necee8ary to proted Lender's intaest, ~ indnding, btrt not limited to, disbursement of reeaoaable attomey'e feee and entry upon the Property to make repairs. If Lender required ~ mortgage in.urance as a condition of malring the loan eec~red by thia Mortgage, Borrower ehall pay the premiums reqnired to msintain ~ snch insurance in effed nntil ench time as the requirement for such insuranoe terminatee in aooordance with Borrower's and Lendds ~ ~ writteo a~eement or applicable Lew. Bor~naer eha11 pay the amount of all mortgage insurance premiums in the manner provided und~r ~ paragraph 2 hereof. ~ ~ Any amounte disbureed by I.ender pereuant to thia paragraph 7, with int~erest thereon~ ahall beoome additional indebtedness of ~ Borrower eecured by thie Mortgage. Unleee Borrower and Lender egree to other ternoa of peyment, ench amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intereat from the date of diebureement at the rate payable ~om time to time on outstandit~ principal under the Note unless payment of interest at snch rate wonld be oontrary to applicable law. in which ~ eveat such amoiwts ahall bear intereet at the higheat rate permisaibie nnder applicable law. Nothing contained in this paragraph 7, shall ~ reqnire Le~~der to incur any eipenee or take any action hereunder. ' sooK287 f~~ 745 i ~ , _ . . = . . - - - _ . . . . _ _ u TM~~