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HomeMy WebLinkAbout0912 Bort~ower and Lrnder covenant and agree a~ followc 1. Pwyment oi Principal s~d latere~t. Borrower shall prompqy pay when due /he principal of and inten~st on the indebtednew evidanced 4y the Note, pnpayment and late charges as pmvided in the Note, and the principal of and interest on any ~ture Advances secured by thu Mort~a~e. . . 2. I~nd~ for Te~e~ and lnsureiaca. Subject to epplicabie law or to a written waiver by I.ender, E;orrowe~ ahall pay to [.e~der o~ the day monthly installmente of principal and interest arc payable unde~ the Note. unW the Note is paid in full, a sum (herri~ •'Ftinda") equal to ono- twelRh of yearly premium instellments for hazard iru~u~ance, plus anetwelRh o[yearly premium installmente [or mortgage inaura~ce, if any, all as reasonably estimeted irtitially and trom time to time by I.ender on the baeis of asaesaments and bille and rnasonable eatimatee thereof. . The I~hnds shall ~e beld in an institution the depwits or accounts oI which are inaured or guaranteed by a Federel or State agency (including Le~der if Lender is such an insritution). Leader shall apply the Funds to pay said ia:es, asaeasments, insurance premiuma and ground renb. Lender may not charge for w holding and applying the•Funds, analyzing said accoun~ or verifying and rnmpiling said asseeamente and billa, unless Lender pnys Botrower intereat on the Funds and applicable law permita l.ender to make such a charge. Borrower and I.ender may agree in writi~g at the time of e:ecution o! this Mortgage thet interest on the Ftinda shalt be paid to Borrower, and unleas such agrcemeat ie made or applicable law requires auch interest to be paid. I.ender shall not be required to pay Barrower aay interest or eatnings on the Flinds. Lender ahall ~ive to Borrower, without charge, an annual aceounting otthe Funda ahowing credits and debite to the Fluida and the purpose for which each debit b the Etinds wae made. The Funda are pledged aa additional aecurity for the aums aecured by thia Mortgagt. ~ If the amount of the Ftinds held by Lender, together with the future monthly inetallmente oI Fu~ds payable prior to the due datea of taues, aesesamenfe, inaurance pretniums and ground rents, ahall e~cczed the amour~t required to pay said ta:es, asseesmenta, insurance premiams and ground rente aa they fall due, auch e:ceee ahall be, at Borrower e aption, either prompdy repaid to Bortower or credited to Borrower on mohthly installmeata of ~nds: If the amount of the Funds held by I.ender ehall not be sufficient to pay taxea, aeeeeementa, insurance ~ premiume and ground rents aa they fall due, Borrower shaU pay to I.ender any amount neceesary to make up the deficiency wilhin 30 days from the date notice is mailed by l.ender to Bocrower mqueeting payment thereo! Upon payment in full of all aums secured by this Moctgage, Lender shall prompdy refund to Horrower any funda held by I.ender. If under paragraph 18 hereof Lhe Property ia sold or the Propeny ia otherwiee acquired by I~nder, Lender shall apply, no later than immediately prior to the eale of the Property or ite aoquiaition by I.ender, any ~nds held by I.ender at the time of application as a credit against the suma eecured by this Mortgage. ' 3. Application of Paymeata. Unlesa applicable law providea otherwiee, all paymenta reoeived by Lender under the Note and paregraphs 1 and 2 hereof ahall be applied by Leoder firet in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea 4. Charges; Liens. Borrower ahall pay all taxea. esesessmenta and other chargea. fines and impoaitiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymentsor ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid.in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall pramptly furniah to Lender all notices of amounts due under this paragraph, and in the event Borrowei ahall make payment directly, Borrower shull promptly fumish to Lender receipts evidencing auch paymente. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required to discharge any such lien so long as Borrower ahal! agree in writing to !he payment of the obligation secured by such lien in a manner aeceptable to Lender, or ahall in good faith conte,~t such lien by, or defend enforcement of auch lien in, legal proi.~eedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL 5. Hazard insurance. Borrower ahall keep the improvements now e:ieting or hereafter erected on the Property inaured againat loss by . fire. hazardd included within ttie term "e:tended coverage," and euch other hazards ae Lender may require and in such amounte and for such periade as Lender may require; provided, that Lender shall not reqnire such ooverage amonnt ezceeding the minimum, as inay be required by state or [edera! t+egulationa governing activities of Lender, or that amount of coverage required to pay the aume aecured by this Mortgage. - whichever ie the greater. The inswance carrier providing the insurance ahall be chosen by Borrower subject to approval by l.ender, provid~d, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shall tie paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by E3arrower making payment, when due, directly to the insurance carrier. All insurance policiee and renewala thereof ahall be in form acceptable to Lender and shall include a etandard mortgage clauee in tavor.of and in form sooeptable to Lender. [.ender ahall have the rightto hold the policiea and renewala thereof, and Borrower ahall promptly furniah to. iender all renewal noticee and all reoeipts of paid premiume. In the event of loas, Borrower shall give prompt notice to the insurance carrier aad Lender. Lender may make ptoof of loea if not made prompdy by Borrower_ ~ It Unleea Lender and Borrower otherwiee agree in writing, inaurance proceeda shall be applir.d to restoration or repair of the Property ~ damaged. provided auch reatoration or repair is economically feasible and the eecurity of this Mortgage ie not thereby impaired. If anch - reebration or repair is not economically feasible or if the eecurity of this Mortgage would beimpaired, the ineurance proceeds shall be applied to the anms aecured by thia Mortgage, with the e~cceae, if any, paid to Borrower. Itthe Property ie abandoned by Borrower, or if Borrower taila to napond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance cariier oPfers to eetde a claim for inaurance benefite, Lender ia authorized to rnllect and applp the inaurance prviceeda at Lender'e option either to reetoration or repair of the Prop~ty or the eums aecured by thie Mortgage. ~ Unleas i.ender and Borrower otherwiee agrc~e in writing, any auch application of proceeda to principal shall not e:lend or poatpone the due date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of sach inetallments. If under puragraph 18 hereof the Property is aoquired by [.ender. all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof resulting from damage to Propaty prior to the sale or acquiaition shaU paes to Lender to the e:tent of the auma eecured by thia Mortgage immediately prior to euch eale or aa~uisition. . 6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmenta. Borrower shaD keep the Property in geod repair and shall not rnmmit waate or permit impairment or deterioration of the Property and shall comply with the pmvisione of eny lease if thia Mortgage is on a leasehold. If this Mortgage ia on a unit in a condominium or e planned unit development, Borrower shall perform all of Borrower's obligatione under the declaration or rnvenanta creatingor goveming the condominium or planned unit developmen~ the by-lawe and regulationa of the condominium or planned unit development, and constituent documente. If a _ condominiam or planned unit development rider ie eaecuted by Borrower and recorded together with thia Mortgage, the oovenanta and agreemente of such rider ahall be incorporated into and ahall amend and supplement the covenante and agreements of thia Mortgage as if the rider were a part hereoL 7. Protection o! Lender'~ Security. If Borrewer fails ta perfarm the oovenants and agrcementaoontained in this Mortgage, or if any action or prooeeding is oommenoed which materially affecte Lender s intereet in the Property, including, but not limited to, eminent domain, insolvency, oode eaforoement, or arrangemeats or prooeedings involving a bankrupt or deceden~ then Lender at i.ender's option,npon ~ notice to Borrower may make auch appearancee, disbuise snch auma and take snch action aa is neceseary to protect I.ender's interest, ~ ineloding. but no! limited to, disbursement of reasoaable attorney eiees and entry npon the Property to make repairs. If Leoder required ~ mottgage insurence as a condition of msking the loan iecured by this Mortgage, Borrower anall pay the premiums required to maintain ~ snch inaurenoe in eE~ect nntil such time aa tha requirement for such insurance terminates in aooordance with Borrower's and La~dei's writtan agreement ar applicable Law. Borrower ehall pay the amount of all mortgage insurance preminms in the mann~ provided nnder ~ paragraph 2 6treof. Any amonnte disbareed by Lender persuant to this paragraph 7, with in~t thereon, shall become additional indebtednees of Borrower eecured by this Mortgage. Unlesa Borrower and Lender agree to other terms of payment, such amotuits ehall be payable npon ~ notice from Lender to Bormwer requesting payment thereof, and shell bear interest trom the date of disbursement at the rate payable trom time to time on outstanding principal ~u?der the Note unlesa payrnent of intereat at such rate would be contrary to applicable lew, in whic6 event snch amounta ~hall bear intereet at the highest rate permiesible under epplicable law. Nothing oontained in this paragraph 7, shell require Leader to incnr any eupense or talce any action hereundrr. ~ ~ a~~289 ~ 901 - ~ ~ . - ~ - ~ _ ~ ~ ~ ~ . ~ ~ A~- _ _ ~ .