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HomeMy WebLinkAbout0939 ' Borwwer and l.ender covenaat ar?d a~cree aa follc~wr ~ : 1. Paymeat ot Priacipal aad Intere~t Borrower ehall promptly pay when d~te the principal of and intcreat on the i~debiednees ~ evideaced by ~,he Nate, prepayment and late charge~ as pmvided in tha Note, and the principal of and intere~/ on any Fl~ture Advancea aecured by this Mortga~e. 2 F~tnds for Tases and Iasurance. Subject to upplicable law or to a written waivec by [.ender, I3orrower ahall pay lo l.ender on the day monthly inatallments of principal and interest are payuble under the Note, unW the Note ia paid in full. a sum (herein "Funds") equal to one ~ twelRh of the yearly taues and aaseasmenta which may attairi priority over this Mortgage. and gtound renta on the Propecty. if any. plua one ~ tweltth of yearly premium inatallmenta for hazard inaurnnce, plua onetwelRh of yearly premium inatallments for mortgage ineu~ance, if any, all as reasonably eatimated initially and firom time to time by I.ender on the bneis of aseeaementa and billa and reasonable eatimetea thereof. The Plinds shaU be hcld in an institution the deposits or accounta of which are insured or guaranteed by a Federal or State a~eacy (including Lender if Lender is such an institutioa). I.ender ahall apply the F~nds to pay said ta:es, assesaments, i~surance premiuma and ground eents. Le~der may nat charge for so holding and applying the Eltads, analyzing said account, or verifying and compiling said asseasmenta and bills. unless I.eader pays Bormwer intereet on the Funds and applicable law permita I.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that interest on the Fl~nds shall be paid to Borrower, and unleas such agroement ia made or applicable law requires auch intenst to be paid, I.ender shall aot be required to pay Borrower any inlereat or earnings on the I~nds. Lender ehall give to Borrower. without charge, an annusl acoounting of the ~nde showing credits and debite to the Ftinds and the purpose for which P.ach debit to the ~nds waa made.'[Ue Funde arepledged as add'etional aecurity for the auma secured by this Mortgage. If the amount of the ~Lnda held by Lender, together with the future monthly inetallmenta of Funde payable prior to the due ~ates of ta:es, esseeementa. ineurance premiume and ground rente, shall exoaed the amount required to pay esid taxee, asseaamente. inaurance premiuma and ground renta as they fall due, auch excees shall be. at Borrower s option, either promptly repaid to Bor~ower or credited to Borrower on monthly installments of Flu?ds. If the amount of the ~nds heid by Lender ahall not be sufficient to pay taxea. assesemente, ineurance preauume and ground nnta as they fall due, Borrower ahall pay ta Lender any amount neceesary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums aecured by this Mottgage. Lender ahaU promptly refund Lo Bor~ower any funda held by I.ender. If under k paregraph 18 hereof the Property ie sold or the Property ie otherwise acquired by I.ender. I.ender shall apply. no later than immediately prior } to the sale of the Property ot ite aoquieition by Lender, any ~nda held by Lender at the time of application as a credit againat the aums aecured by this Morrtgage. 3. Application ot Paymente. Unleea applicable law providea otherwise. all payments received' by l.ender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounte payal,le to L.ender by Borrower under paragraph 2 hereof, then to intere~at payable oa the Note. then to the principal of the Note, and then to intereat and principal on any Future Advancea 4. Charges; Lieas. Borrower shall pay all taxes, asaeesmente a~d other chargeH, fines and impoaitions attributabte to the Property which m ay attain a psiority over this Mortgage, and leasehold paym~'nta or ground rente, if any, in the manner pro~zded under paragiraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shaU prompdy furnieh to Lender all noticea of amounta due under thia paragraph. and in the event Borrower shall make payment directly, Borrov?er shall promptly fumiah to Lender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over thia Mortgage; provided, that # Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahail in good faith contest auch lien by, or defend enforcement of auch lien in, legal proceedings ? which operate to prevent the enforcement of the lien or forfeiture qf the Property or any part thereof. ~ ' 5. Hazard Iaeuranoe. Borrower ahall keep the improvementa now e:iating or hereafter erected on the Property insured against losa by ? fire. hazards iacluded within the term "e:tended rnvernge," and auch other hazards ae Lender may require and in auch amounte and for such perioda es Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, ae may be required by atate or federal regnlationa governing activities of I.ender, or that amount of coverage required to pay the euma eecured by this Mortgage, whichever ia the greater. ~ The insurance carriet providing the insurance eha11 be chosen by i3orrower.subject to approval by I.ender; provided, that auch approval shall not be unreaHOnably withheld. All premiums on insurance policies shsill 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 inaurance carrier. Ali inaurance policiea and renewals thereof ahall be in form acceptable to I.ender and shall include a etandard mortgage clauee in favor of and in form aoceptable to Lend~. [.ender shall have the right to t.old the policiea and renewala the~eof, and Borrower shall promptly furnish to i.ender all renewal noticee and all receipts of paid premiume. In the event of loes, Borrower ahell give prompt notice to the inaurance carrier and I.ender. Lender may make proof of lose if not made pmmpdy by Borrower. ' - Unlesa Lender and Borrower otherwiee agree in writing, insu:ance proceeda ahaU be applied to restoration or repair of the Property ; damaged, provided auch restoration or repair is economically feasible and the aecurity of this Mortgage ia not thereby impaired. If auch ~ reetoration or repair is not economically feasi6le or if the aecurity of thie Mortgage would be impaired, the ineurance proceede ahall be applied - to the euma eecured by thia Mortgage, with the Pxceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ reapond to I.ender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to eetde a claim for ` inaurance benefite, Lender is authorized to collect and apply the inaurance proceeda at Lender s option either to reetoration or repair of the ~ Propezty or the eums aecured by this Mortgage. ' ~ ' Unleae Lender and Borrower otherwise agree in writing. any such application of procgede to principal ahall not ~tend or poatpone the due @ date of the monthly inatallments referred to in paragraphe 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 hereof the Property ie aoquired by I.ender, all right, title and interest of Borrower in and to any ineurance policies and in and to the proc~eeda thereof reeuldng from damage to Property prior to the sale or acquieition shall pasa to Lender to the extent of the suma eecured by thie • Mortgage immediately prior to auch eale or aoquieition. 6. Preservation and Maintenance of Property; I.easeholde; Condominums; Planned Unit Developmente. Borrower shall keep the Propetty in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and ahall complywith the provisiona of any leaee if this Mortgage ie on a leaeehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, i ~ Borrower ehell perform all of Borrowez'e obligationa under the declaration or covenanta creatingor governing the oondominium or planned $ unit development, the by-lawe and regulations of the condominium or planned anit development. and oonetitaent documents_ If a condominium or planned unit development rider is executed by Borrower snd recorded together with thia Mortgage, the oovenanta and _ agreements of auch rider shall be incorporated into and ahall amend and supplement the rnvenanta and agreements of thia Mortgage ae if the 3 rider were a part hereof. s ~ 7. Fcotectiaa ot I.eader's $ecnrft~. If Borrower fsile to petform the oovensnb and sgreements contained in thie Mortgage, or if any ~ action or proveeding is commenoed which materially affects Lende~a intereat in the Proparty, including, bnt not limited to, eminent doqrain, insolvency. oode enforoemen~ or arrangements or prooeedings involving a benkrupt or decedent, then Lender at I.endds optioa,npon ~ nolioe to Bo~rrower may make suc6 appearanoce, disburae euch aume and take such action as is neceasary to proteet I.endar'a interea~ . ~ inclading, but not limited to. diebureement of reasonable attomey's fees and entry upon the Property to malce npairs. If Laider required ~ mortgage insnranoe as s oondition of maidng We loan eecured by this Mortgege, Borrower shall pay the pre~miums required to maintain snch insuranoe in dfect until anch time ae the requirement for such inBUrance terminates in aooordance with Botrower's aad Lendds ~ written agrcement or applicable I.ew. Bore+ower ehsll pay the amount of a11 mortgege inaarance premiums. in the manner provided under ~ paragrsph 2 hereof. ~ Any aa?onnta disbnrsed by Lender persuant to thie paragraph T, with interest thereon, shall beoome additional indebtedneas of Borrower secured by this Mortgage. Unlees Borrowc~r and Lender agree b ott?er terms of payment, snch amounts shall be payable upon notice from Lender to Borrower reqnesting payment ihereof, and shall bear interest from the date of disbureement at the rate payable trom ~ time to time on outatanding principal unde: the Note unless payment of intereat at such rate would be oontrary to appLcable law. in which ~ event snch amoante shall bear interest at the highest rate permisaible under applicable law. Nothing contained in this paragraph 7, ahaU require Leader to incur any ezpense or take any action hereunder. ~ ' . . ~ ~ $OOK ~UC7 PAf~ V~~ . ~ . v~~