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HomeMy WebLinkAbout0578 Borrower and Lender covenant and agree as folluws: 1. Payment ot Prtnclpal and I~tere.t. Aorrower shall prumpUy pay whFn due the principal of and interest on the indebtednesa evidenced by the Note, prepayment and lale chargee aa provided in the Note, and the principal of and intereat on any F uture Advancee aecured by thia Mortgage. - 2. ~nds [or Ta:es and Insurance. Subject to applicable law or to a written waiver by l.ende~, Borrower ahall ~+e+y to I.ender on the day monthly inatallments of principal and interest are payable under the Note, until the Note is paid in full, a aum Iherein "Funde") equal to one twelfth of the yearly taxes and asaesamente which may attain priority uve~ this hlurtgage, and ground re~ta on the Yroperty, itany, plus one twelRh of yearly premium installments for hazard inaurance, plus onetweltth o[yearly premium instaUmentei for mortguge insurance, if any, all aa reaeonably estimated i~itially and from time to tirc~e by I.ender on the basia ot aaseasmenta i?nd bille and ret?sonable estimatea thereof. The FLnde ehall 6e held in an inetitution the depoeits or accounte of which are ineured or guaranteed by a Federal or Stale agency ~including I.ender i[ I.ender is such an inatitution). I.ender ahall apply the Funda to pay said taxee, aaseaamenta, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Ftinda, analyzing aaid account, or verifying and compiling said easeeamente and bills, unleae Lender pays Borrower intereet on the Funda and applicable law permits [.ender to make anch a charge. Borrower and Lender may agree in writing at the time of esecution of thia Mortgage that interest on the ~nda ahall be paid W Borrower, and unleae such agreement is made or applicable law requires such intereet to be paid, Lender ehall not be required to pay Borrower any intereet or earninge on the ~nds. I.ender ahall give to E3orrnwer, without charge, an annual aceaunting of the Funde showing credite and debita to the Funds and the purpoee for which each debit to the Funda was made. The Funde are pledged as additional eecurity tor the euma secund by thie Morigage. If the amount of the Fl~nda held by I.ender, together with the futum monthly installmenta of Funde payable prior to the due datee of taxea, asaeasmente, inaurance premiume and ground renta, shall exc~ed the amount required to pay said taxee, aeseasments, inaurance premiuma and ground rents ea they [all due, euch excees ahall be. at Borrowei s option, either promptly repaid to Borrower or rredited to Borrower on monthly inatallmenta of ~nde. If the amount of the Funde held by Lender ahall not be aufficient to pay tauea, asaesamenta, inaurance premiums and ground rente ae they fall due. Borrower ehall pay Lo Lender any amount neceesary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all auma secured by this Mortgage, Lender shall promptly refund to E3ormwer any funda held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwiae acquired by I.ender, Lender ahall apply, no later than immediat~ly prior to the saie of the P~operty or ita acquieition by Lender, any ~nda held by I.ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Paymente. Unlesa applicable Iaw providea otherwise, all payments received by l.ender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounta payabte to I.ender by Borrower under paragraph `l hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principa) on any Future Advancea. 4. Charges; Liene. Borrower ahall pay a11 taxes, asseasmenta and other chargee, fines and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by f3orrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender nll notices of amounts due under this paragraph, and in lhe event Borrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing suCh paymenta_ Borrower shali promptly discharge any lien which has priority over thia Mortgage; pmvided, that Borrower ahall not be required to discharge any such lien so long as Rorrower shall agree in writing to the payment of the oblig~tion secured by ~uch lien in a manner acceptable to Lender, or shaU in good faith contest such lien by, or defend enforcement of sach lien in, legal proceedings which operate to pm~ent the enforcement of the lien or forfeiture of the Property or nny part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "e:tended coverage," and such other hazarde as I.ender may requirn and in auch amounts and for such periads as I.ender may requ've; provided, that Lender ahall not require such coverage amount exceeding lhe minimum, as may be required by state or federal rngulationa goveming activities of Lender, or that amount of coverage required to pay the sums serured by thie Mortgage, whichever is the greater. 7'~ie insurance carrier providing the insurance shail tre chusen by Korrower subject to approval by I.ender, pro~ ided, that such approval shall not be unreasonably withheld. AU premiums on insurance policies shall be paid in the manner provided under paragraph 'l hereof or, if I~ not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. ' All insurance policies and renewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of _ ¢ and in form acceptable to L,ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to ~ i.ender aU renewal noticea and all receipts of paid premiums. In the event of loes, Borruwer shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loes if not made promptly by Borrower_ i Unleea Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to restoration or repair of the Property ° dameged, provided auch reatoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ reatoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, theinaurance proceeda ahall be applied ~ to the aums aecured by thie Mortgage, with the excesa, if any, paid to Borrowet. If the Property ie abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 days trom the date notice is mailed by Lender to Borrower that the ineurance carrier offera to settle a claim for ~ insurance benefite, l.ender ia authorized to collect and apply the inaurance proceeds at Lender a optiun either to reatoration or repair of the q Property or the sums secured by this Mortgage. Unleas Lender and Borrower otherwiae agree in writing, any auch appiication of proceeda to principal ehall not e:tend or postpone the due ~ date of the monthly inetallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquisition ahal{ pese to Lender to the extent of the eums aecured by this ~ Mortgage immediately prior to auch sale or soquisition ~ 6. Preaervation and Maintenance otProperty; Leaseholda; Condominums; Planned Uait Developmente. Borrower ahali keep the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall comply with the ~ provieiona of any 1Qaee if this Mortgage ia on a leaaehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower a6a11 per[orm all of Botrower's obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the bylawa and regulationa of the cundominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and agreementa of such rider ahall be incorporated into and shall amend and aupplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. 7. Protection ot Lender'e Security. If Borrower faile to perform the oovenante and agreemente contained in this Mortgege, or if any action or proceeding ia commenced which materially aftecle Lender a interest in the Property, including, but not limited to, eminent domain, ~ insolvency. aode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then L.ender at Lendei s option.upon notice to Borrower may make such appearanoes. disburee such suma and ta1~e euch action as is necessary to protect Lender's intereet, ~ including, but not limited to, disbursement of reasonable attorney's teee and entry upon the Property to make repaire. If Lender required mortgage inaurance ae a condition oi making the loan secured by this Mortgage, Borrower ahall pay the premiume required to maintain auch insurance in effect until euch time as the requirement for such insurance terminatee in accordance with Borrower's and Lendei e ~ writt,en agreement or applicable Law. Borrower ehall pay the amoant of all mortgage inaurance premiume in the manner provided under x paragraph 2 hereoL ~ My amounta disbureed by Lender pereuant to thie paragraph 7, with intereet thereon, ahall become additionel indebtedness of Borrower secured by thia Mortgage. Unlese Borrower and L.ender agree to other terme of payment, such amounts ehall be payable upon ~ notice Erom Lender_ to Borrower requeeting payment thereof, and ehall bear intereat. from the date of diabureement at the rate payable from ~ time to time on ontstanding principal under the Note unlees payment of intereet at auch rate would be oontrary to applicable law, in which ~ event such amounts ehall bear interest at the highest rate permissible under applicable law. Nothing rnntained in thie paragraph 7, ahall require Lender to incur any e:pense or take any action hereunder. ~ ~ sc,~K 29~ ra~~ ~7g ~ ~ - - - - - _ ~ k_2 w~ . ~Yy~~Y '~+R~ ~PCYr3*. >.~'a.v~-f''r'°.ls ~,~~"bS . _ ax3p