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HomeMy WebLinkAbout0037 Borrower and I.ender covenant and agree ai follows: 1. Pw~rment ot Peiuc[pal and Interes~ Borrower ahell promptly pay when due the principal of and intereat on the indebtedneas evidenoed by the Note. ptepaymeat And late cherge~ ae provided in the Note, and the principal af and intereat on any ~ture Advances eec ~re~d - by thi~ MortQa~e. . 2. Flttids tor T~es and In~urat~ce. Subject to applicable law or to a written waiver by l.ender, Borrower ahall pay to Ixnder on the day monthly in~Lsilmfnts of principal and interest are payable under the Note, until the Note is paid in full, a aum (herein "Funde•') cyual to one twellth ot ths year~jr taxee artd easessmente which m attain priorily over thia Mortga~e, and ground rente on thr Property. if any. plus o~e twe1R1~ of yearly pranium installmenta for hazard i~ce, plue onetwelRh ofyearly premium inatallmenta for mortgnge insurance, if any, a11 a~ rearonably eetimated initially and tkom time to time by Lender on ihe basis of assesamenta and bille nnd reasonc+ble eatimates thereof. The FLnds ~haU be held in aa institution the depwit~ or eocounta of which are insured or guaranteed by a Federal or State agency (includin~ ~,endee 1f l.ender is such an institutionl. Lender shall apply the F1u~ds b pay said taxea. aaeeeamenta, inaurance premiums and ground renb. Leader may not chsrge for so holding and applying the ~nds, analyzing aaid account, or verifying and compiling said assesamenta and biU~. unless I.ender.pays Borrower interest on the ~Lt~ds and applicable law permits I.ender to make auch a charge. I3orrower and Lender may agree in weiti~g at the time of e:ecution of this Mortgage that interest on the Flinda ahall be paid to Borrower, and unleae such agreemen6 is made or applicable law reqtures snch interest to be paid~ Lend~ ahall not be required to pay Borrower any intereat or - earning~ on the Plinds. I.ender shaU give to Borrower, without charge. an annual acaounting of the Fltnds showing credite and debits to the I~nds and the purpoae foe which each debit to the Fu~ds wes made. The Funds arc pledged as additional eecurity for the auma eecnred by this Mo~age. . Iithe amount of the fi~nde held by Lender, together with the [uture monthly inatailments of Funde payable prior to the due dates of taxea, wessmenta. inswance preaniuma and ground nnta, ahall e:czed the amonnt required to pay esid ta:es. eaeesaments, insurance prnmiums ~ aad ground rents as lhey fall due, such e:ceas ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly instsllmenb of I~nds. If the amount of the F~nda held by Lender ehaU not be aufficient to pay taxea, seseasments, insurnnre premiums and ground rents as they faU due, Borrower ehall pay b Lender any amount neceaeary to make up the deficiepcy within 30 daya from the date notice is mailed by Lender to Borrower requeating payment thereof. • Upon payment in full af all sume aecured by this Mortgage, I.ender ehall prompdy refund to Borrower any funds held by I.ender. If under pairagraph 18 he~rcof the Property is aold or the Pibperty ia otherwise acquired by Lender, I.ender shall apply, no later than immediately prior to the sale of the Property or its aoquiaition by L.ender. any F~nda held by I.ender at the time of appiication aa a credit againet the suma eecured . by this Mortgage. - 3. Application of Payments. Unlese applicable law providea ~therwise, all payments received by Lender under the Note and paragrapha I snd 2 hereof shall be applied by Lender firat in payment o amounts payable to Lender by Borrovver under paragraph 2 hereof, . then to interest payable on the Note, then to th~ principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges-,yi~ns. Borrower ahall pay all taxe8. aseesaments and other rhargea, fines and impositions attributable to the Property which may attaig a~riority over this Mortgage, and leasehold payments.or ground rents, if any, in the manner provided under paragraph 2 hereof or, if nos paid in auch mannet. by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lend:r all noticea of amounts due under this paragraph, and in the ev.ent Borrower shall make payment directly~ Borrower ahall promptly furnish to Lender receipts evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority over thia Mortgage; pmvided, that Borrower shall nd be required to diacharge any auch lien so long as Borrower shaU agree in writing to the payment of the obligation secured by . such lien in a manna acceptable to Lender, or shall io good [aith rnnteat such lien by, or defend enforcement of such lien in, legal procet.dinga ~ which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof ~ 5. Hazard Ineurance. Borrower shail keep the improvements now exiating or hernafter erected on the Property insured againat loss by Gre~ hazazds included within the term "extended coverage,° and auch other hazarda as Lender may require and in such amounta and for such ~ perioda sa Lender may require; provided, that Lender ahall not require such oovetage amount e:ceeding the rrsinimum, as may be required by atate or federal regulatione goveming activities of Lender, or that amount of rnverage required to pay the suma secured by this Mortgage, whichever ia the greater. . - The inaurance carrier providing the insurance shall be chosen by Bor[ower subject to approval by I.ender, provided, that such approval ahall not bt unreasonably vrithheld. All prnmiums on insurance policies shall be paid in the mannet provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineumace policies and cenewals thereof ehall be in form acceptable to Lender and shall include a atandard mortguge clauae in favor of and in form acceptable to Lender. Lender shal) have the right to hold the policies and renewals thereof, and Borrower shall promptiy turniah to i,ender all renewal notioee and all receipts of paid preaaiuma. In the event of losa. Borrower ahall give prompt notice to the insurance carrier and I.ender. Lender may make proof of lose if not made promptly by Borrower. i Unless Lender and Boirowrr otherwiee agree in writing, ineurance proceeds ahall be applied to restoration or repair of the Property i damaged, provided anch reatoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired_ If such E restoration or repa'u is not eoonomically feasible or if the eecurity ot this Mortgage would be impaired, the insurance proceeda shall be applied j to the auma secured by this Mortgage. with the eucese, if any. paid to Borrower. If the Property is abandone~ by Borrower, or if Bormwer fails to ~ respond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the insurance carrier o6era to settle a claim for ~ ineurance benefite, I.endsr is anthorized to collect and apply the insurance proceeda at i.ender's option either to restoration or repair of the Property or the sums eecured by thie Mortgege. 4 Unlesa Lender and Borrower otherwiee agree in writing, any auch application of proceeds to principal shall not e:tend or poatpone thedue ~ date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change lhe arnount of euch inetallmenta. If under paragraph 18 hereof the Property is aoqnired by Lender, sll right, title and interest of Borrower in and to eny ineurance policies and in and to the proceeds thereof resulting from damage to. Property prior to the aale or aoquisition ahaU paea to Lender to the e:tent of the sume eec~red by this Mortgage immediately prior to such sale or aoquisition. 6. Preservation and Maintenance of Property; Lease6olds; Condominums; Plaaned Unit Developmente. Borrower ehall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the provieione of nny lease if thia Mortgage is on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligetione under the declaration or covenante rreafingor governing the rnndominium or planned unit development, the by-lawe and reguladona of the rnndomininm or planned unit development. and conatituent documenta. If e condominium or planned anit development rider is executed by Borrower and recorded together with thie Mortgage, the oovenants and ' ~ agreementa of auch rider ahall be incorporated into and ahall amend pnd supplement the covenants and agreements of this Mortgage as }f the - rider were a part hereof. . ~ 7. Protection ot Lender's Seenrity. If Borrower fails to perform the oovenants and egrceaieats oontained in thie Mortgege, or if any action or prooeeding ia oommenced which materially aftects Lender's interest in the Property, including, but not limited to, eminent domain, ~ insolvency~ oode enforcemeat, or asrangementa or proceedings involving a banimipt or deoedent, then Lender at Lender's option.upon ~ 4 notioe to Boreower may mate such appearanoes, dieburee such snms and take such action as ie na~easary to protect I.euder'a interes~ ~ ~ inclnding. btit not limited to, disbureement of reaaonable ettomey'e feee and entry upon the Property to melce repairs. If I.endat reqnired § ~ mortgage insnranos as a ooaditioa of making the loan eecured by thie Mortgege. Borrower ehall pay the pr~aiums reqaired to maintain ~ euch insarane~ in el~ed nntil ~uch time as the requirement for such insuranee terminates in acxordance with Borrower'a and Lendei e ~ writt~ a~reement ot applicable Law. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided under ~ ~ ParasrePh 2 hereof. ' , ~ My amounts di~bnrsed by Lender pereuant to thia paragraph 7, with interest thereon, ahall beoome additional indebtedness of Horrower secured by thia lylortgage. Unleas Borrower and I.ender agree to other terms of payment, such emounte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebureement at the rate payable 5rom ~ time to time on outatanding principal under the Note unless payment of interest at such rate would be oontrery to epplicable law, in which ~ event euch amounts ahall bear intereet at the higheet rate permiseible under applicable law. Nothing contained in this paregraph 7, shall require I.ender to incvr any e:penee or take any action hereunder. ~ ~ eR _ ~ - ~ ~ ~'f ~ - - ~ ~ ~ ~ - - - - - ~ . ' ~ 'k ~ 4 ~ _ ~ ~ . ~ay z . ;~~i~`.' . ~ ~ w.r.~ ~ . ~ ""'yr: . ~ _ `s'.:~`: