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HomeMy WebLinkAbout0374 . Borrower and Lendet rnvenat~t and aRree aa follows: 1. Payweat of Priacipal and Intere~t. Boreower shall prompdy pey whrn due the principal of and intereei on the indebtednras evide~eed by the Note, prepeyment and late charges as pmvided in the Note, and the principal of and intereet on any Fature Advances secured by this Mortgage. . . , 2. ~?nds for Te~tee aad Inrurartce. Subject to applicable law or to a writtea waiver by I.e~der, Eiorrower ahali pay to l.ende~on the day monthly instaliments of prir~cipai and intereat are payable ur~de~ the Nate, until the Note ie paid in fu!!, e aum (herein "Ftinds") equal to one~ twelflh of the yearly taxes and asacssmenta which may attain priutity over thia Mortgage, and ground rents on the Property, if any, plua one twelRh of yearly premium inatailmente for hazard inaurance, plue onetwelRh of yearly pretr?ium installmenta tor morlgage inaurance, if ariy, all as reasonably eatimated initially and ttom time to time by [.ender on the basie ot assessments aad bills and reaaonable estimates thercof. The ~nds shal) be held in an institutioA tha deposits os eocounts o! which are ineured or guaranLeed by a Federal or State agency (including Lendar if Lender ia such an institution). l.ender shall apply the Funds to pay eaid tazes, aaeeasmente, inaurance premiums and ground rents. Lender may not charge for eo holding and applying the ~nda, analyzing said account, or verifying and compiling said asseeaments and bills. unless Lender pays Borrower intereet on the F~unde and applicable law permi ts I.ender to makeauch a charge. Borrower and Leader may agree ir~ vvriting a! the time of execution of this Mortgage that intereat on the ~nda shaU be paid to Fiorrower. and unleaa such agreement ia made or applicable la~i req~ires auch interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the ~1nds. I.ender shall give to Borrower, without charge, an annual aecounting of the F~tnda showing credita and debits to the Funde and the purpose for which ~ch debit to the Funde was rnade. The Funda ara pledged as additional security for the euma eecured by this Mortgage. If the atnount of the F1nda held by Lender, together with ihe future raonthly inatailmenia uCFunde payable prriur iu ihc due dates of tazes, asaesamenta. insnrance premiums and gmund rente. ahali exezed the amount required to pay aaid tazes, assessments, ineuranee premiume and ground rente as they fall dae. such eac~s ahal! be, at Borrower s option, either prompUy repaid to Borrower or rredited to Borrowet on monthly inetallmenls of Ftinda. If We amoun! of the Funda held by I.ender ahall not be aufficient to pay taxea~ aaseasments, insurnnce preraiume and ground nnts as they faU due, $orrower ehall pay to I.ende~ any amount necessery to make up the deficiency within 30 days ~ firom the date notioe ie mailed by l.ender to Borrower requesting payment thereof. . Upon payment in fu1) of all sume secuted by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lehder. If under paragraph 18 hereof the Property ia eold or the Property ie otherwise acquired by I.ender, Lender shall apply, no later than immediately prior to the eale of the Property or ita soquisition by Lender, any Elinda hetd by I.ender at the time of application ae a credit against the suma eecured by this Mactgage. ~ 3. Application o! payments. Unlese applicable law provides otherwise, sl! payments received by Lender under the Note and 2 paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under peragraph 2 hereof, then to intereat payable on the Note, then to the principai of the Note, and then to interest and prinripa) on any Future Advances. 4. Chargee; Liene. Borrowerahal) pay a!I taxes, asAesaments and otherchargea, finea and impositiona attributable W the Property which ~ may attain a priority over this Mortgage, and leasehold payments or gmund rente, iCany, in the man~er piovided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the pay ee thereof. Borrower ahalt prompUy furnish to I.ender ~ all nMices of amounts dae under thie paragraph, and in the event &,rrower shall make payment direcily, Borrower ahall prompUy fumish to . l.ender receipta evidenring such pavments. Borrower shall promptly discharge amy lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any such lien so long ae Botrower shs~ll agree in writing to the payment of the obligation secuted by such lien in a manner acceptable to I.ender, or ahal! in good faith contest such lien by, ordefend entorcement of such lien in, legal proc~aedings which opetate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvementa now e~cisting or hereafter erected on the Property insured against losa by fire. hazarde included within the terna "e~ctended coverage," and auch other hazards aa Lender may require and in auch amounta and for auch periods as I.ender may require; provided, that Lender ahail not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiee of I.ender, or that amount of coverage required to pay the sums aecured by this Mortgage, . whichever ia tl~e greater. ' The inau~ance carrier ptoviding the insurance shall be chosen by Borrower subject to approvnl by [,ender, provided, that such approval ahall not be unreasonably withheld_ A11 premiums on insurance puliciex shali be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Aorrowe~ making payment, when due, directly to the insurance carrier. ' All inaurance policiea and renewals thereof shell be in form acceptable to Lender and shall include a standard mortgage ciause in favor of F and in form aoceptable to Le~der. Lender shall have the right to hald the poticies and renewala thereof, and Borrower ahail prom ptly [urnish to i.ender all renewat natic+ee and al1 ceceipta of paic! premiuma. In the event of Iosa, Borrower ahaU give prompt notice to the insurance carrier and Lender. L.ender may make proof of loss if not made prompdy by Borrower. Unleas Lender and Borrower otherwise agree in writing, ineurance prooeeds shall be applied to reetoration or repair of the Property damaged, provided auch restoration or repair ie economically Ceasible and the security of this Mortgage is not thereby impaired. If auch restoration ~ repair is not economically feaeible or if the aecurity of thie Mortgage would be impaired, the insurance proceeds shall be applied to the enma eecured by thie Mortgage, with the e:cesa, if any, paid to Bo~rower. If the Property is abandoned by Borrower. or if Borrower fails to ' reapond to Lender within 30 daye firom the date notice is mailed by Lender to Borrower that the inaurance carrier offers to aettk a claim tor ineurance benefita. I.ender is aathorized to collect and apply the ineurance proceeda at Lendei s option eithet to restoration or repair of ihe - Property or the sums secured by thie Mortgage_ ~ • Unlesa Lender and Bomower otherwise egree in writing, any such application of proceeda to principal ahall not eztend or postpone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of sach inatallmenta. If under paragraph 19 hereof the Property ie aoquired by Lender, all right, tide and interest of Borrower in and to any inaurance policti~ and in and to the proceeda thereof reaulting from damage to Yroperty prior to the sale or aoquisition ahall pase to Iender to the eztent of the sume secured by this Mortgage immediately prior to auch sale or aoquieition. 6. Preeervation apd Maintenence of Property; Leasehotds; Condominume; Planned Unit DevelopmeAte. Borrowerehall keep the Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ehall comply with the proviaione of any leaee if thie Mortgage ia on a leasehold_ If thia Mortgage ie on a unit in a oondominium or a planned unit development, Borrower eha11 perfotm all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or pianned unit development, the by-lawe and regulationa of the con~omir?ium or planned unit development. and oonatituent documents. If a oondominium or planned unit development rider iB executed by Borrower and recorded together with this Mortgage, the oovenants and agreementa of such rider shaU be incorporated into and ahall amend and supplement the covenanta and agteementa of thia Mortgage se if the rider were a part hereof. 7. Protection of Lender'~ 8ecarity. If Borrower faile to perform the oovenants and agreementa conteined in this Mortgage, or if any x action or proceeding is commenced which maLerially affects Lender's interest in the Propaty. including, but not linrited to. eminent domain, insolvency~ oode enforcemeat~ or errangemente or pmceedings involving a bantrupt or decedet?t, then I.ender at I.endei s option,upon aotice b Borrower may make such appearances, diaburee such eume and talce sach action sa is nec~eesary to protect Lende~'s interest, inclnding. bat not limited to, diaburaement of reasonable attorney's feee and entry npon the Property to make repairs. If I.ender reqaired mortgage iasurance as a oondition of mal~ing the loaa secured by this Mortgage, Borrower shall pay the pt~emiums required to maintain sach insurance in effect until auch time as the requirement for such ineurance terminatee in aocordance with Borrower's and [.ender's written agreemeat or appticabk I~w. Borrower shall pey the amonnt of ell mortgage insurance praninaos in the manner pmvided under paragraph 2 hereof. . AnY 8motu?te disbareed by Lender pereuant to this paragraph 7, with ~ interest thereon, ahall become additional indebtcdnees of i Botro~ver secaMred by t*.?is Mortgage. Unlese Bortower and Lender agree to other terme of payment, snch amoanta ehall be payahle upoa notice trom Lender to Borrnwer requestin~ payment thereof, and ahall bear interest from the date of disbursement at the rate payable from ~ time to time on outatanding ~rinapal under the Note unlees payment of interest at such rate would be aontrary to applicable law, in which event snch amounte shall bear intereet at the highest rate permiaeible under applicable law. Nothing oontained in this paragraph 7, ehall " roquin Lender to incur any expenee or fake any action her~wnder. ~ ; ~ - aa~x288 ?~A~E 3~ ~ - - ~ : ~