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HomeMy WebLinkAbout0582 Borrowe~ and l.ender covenant and agree as fullowa: 1. Payane~t ot Principal and I~tereet. Borrower ehall promptly pay when due the principal of and intereat o~ the indebtedaee~e evidenced by the Note, prepayment and late charqes as provided in the Note, and the principal of and i~ternet on any Futum Advancea secured by this Mortgage. 2. F~unds [or Ta=es and Ineurance. Subject to applicAble law or to a written waiver by I.ende~, Korrower ahnli pay to l.enderon the day monthly i~atallmenta of principal and intereat are pnyable u~der the Note, until the Note ia pxid in fuU, a aum (herein "Funda"> equal to one twelQh of the yearly taxea and assessmenta which may attain priurity ove~ thia Mortgage, and ground renlx on the I'roperty, if any, plua one- twelRh of yearly premium instaltmenta for huzard ineurunce, plus one-twelfth ofyearly premium instalimenta for mortgs~ge insurunce, if any. ali ae reaeonably estimated initially and from time to titne by Ixnder on the basia of assessments ~nd billa and rensonable estimi~tea thereof. The Ftinds shall be held in an inst'itutio~ the depoaits or accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is such an inatitution). l.ender ehall apply the Funda to pay eaid taxee, asaeaame~ts, insurance premiums and ground renta. Lender may not charge for eo holding and applyinq the ~nds, analyzing said acco~nt, or verifying and compiling said assesamente and bills, unleas Lender pays Borrower intereat on the Funda and applicable law permita Ixnder to make such a charge. Borrower and Lender may agree in writing at the time of execulion of this Mortgage that intereat on the Funde shall be paid to Borrower, and unlesa such agreement ia made or applicable law requires auch interest to be paid, I.ender ahall not be required to pay Elorrower any intereat or earninga on the Flinde. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debita to the Funda and the purpose for which each debit to the Funds wae made. The Funds arn pledged as additional securily [ortheaums se.cured by thie Mortgage. If the amount of the ~nds held by Lender, together with the future monthly instalimenta of Funde payable prior to the due dates of ta~ces. aesesamente, insurance premiuma and ground rents, shall excred the umount required to pay said taxes, asaeaeiments, insurpnce premiuma ani gruund r~nta as they fati due, surh excess shull be, at Botrawer's option, either promgily rrpsid tu Borrower or credited to Borrower on monehly iastallmenta of flinde. If the amount of the Funda held by Lender shall not be sufticient to pay taxea, aseessmenfs, insurance premiuma and ground renta as they fall due. Borrower ahali pay to l.ender any amount necesaary to make up the deficiency within 30 days from the date notice ie mailed by [.ender to Borrower requesting payment thereof. ' Upon payment in fuU of uq aums secured by thia Mortgage, Lender shall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, t.ender shall apply, no later than immediately prior to the sale of the Property or its acquiaition by Lender, any E~nda held by I.ender at the time of application as a credit againat the sums aecured by this Mortgage. 3. Applieation of Payments. Unless appticable law provides otherwise, all payments received by Ixnder under the Note and paragraphs 1 and 2 hereof ehall be applied by l.ender firxt in payment of amounta payabte to I.ender by E;orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal ot the Note, and then to i~tereat and principal on any Futum Advances. 4. Chargea: Liena. E3orrowershall pay all taxes, as.sessments and othercharges, ~nes and impositions attributable to the Property which may attain a priority over this MortRage, and leasehold payments or Rround rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, v~hen due, directly to the payee thereof. Borrower shall promp/ly furniah to lxnder all notices of amounts due under this paragraph, nnd in the event Borrower shall make payment directly, Borrower sh~ll promptly furnish to I.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority uver this MortK:iKe; provided, that Horrow er shall not be required to discharge any such lien so long a+s E3orrower shall agree in writing to the pe~yment of the obligation secured by such lien in a manner acceptable to l.eoder, or shall in Rooci faith contest such lien by, or defend enformment of such lien in, leKal proceedinKs which operate to pre~•ent the enforcement of the lien or forfeiture of the Froperty or an}~ part thereof. 5. Hazard Insurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insured against losez by fire, hazarda included witnin the term "extended coverage," and euch other hazards as L.ender may require and in such amounts and~for such periods as I.ender may require; pro~~ded, that I.ender ahall not require such coverage amount eaceeding the minimum, as may be required by state or federal regulations governing activitiea of L.ender, or that amount of coverage required to pay the sums secured by this ~1lortgage, whichever is the greater. The insurance carrier providing the insurance shall he chusrn by Borrow•er subject to appro~ al by Ixnder, pm~•ided, that such approval ~hall not be unre~-~sonably w•ithheld. All premiums un insurnnce policiNS shall be paid in the manner pruvidc~cl under par:?~raph 'L hereof or, if nut paid in such manner, by [3onower makinR payment, vehen due, ~iirectly to the insuranm carrier. All inaurance policiea and renewals thereof shaU be in form accepisble to Lender and ahall include a standard mortgaqe clause in fa~~or of and in f~rm acerptable tn I~nder. i.ender ehnll have the right to hold the policies and renewals thereof, and BorroMer shall promptly furnish to ; i.ender all renewal noticea and all receipta of paid prnmiums. In the event of loss, E3orruwer shall give prompt notice to the insurance carrier ~ and I.ender. Lender may make proof of loss if not made promptly by Borrower. ~ Unless Lender and Borrower oiherwiae agree in writing, insurance proceeds shaU be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such ~ reatoration or repair is not economically feasible or if the security of this Mortgage would be impuired, the inaurance proceeds shall be applied W the snms secured by this Mortgage, with the e:cess, if any, paid to Borrower_ if the Property is abandoned by Borrower, or if E3orrower faila to € respond to Lender within 30 daya from the date notice is mailed by l.ender to E3orrower that the insurance carrier offera to settie a claim for ~ ineurance benefite, I.ender is authorized to collect and apply the insurance pmceeds at L.ender's option either to reatoration or repair of the ~ Property or the sums aecured by this Mortgage. Unless [.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or poatpone the due ~ date of the monthly inatallments referred to in paraqraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and intemst of Borrower in and to any insurance policiea and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acqu~sition ahall pass to Lender to the extent of the sums secured by this ~ Mortgage immediately prior to such sale or aoquisition. ~ 6. Preaervation and Maintenanceof Property; Leaseholda; Condominume; Planned Unit Developmenta. F3orrowerahaU keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisiona of any leaee it this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ E3orrower ehall perform all of Borrowei s obligations under the declaration or covenants creatinKor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documents. if n ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements otsuch rider ahall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider v`ere a part hereof. ~ 7. Protection ot Lender'e 3ecurity. If Borrower faile to perform the aovenants and agreemente rnntained in thia Mortgage, or if any action or proceeding ia commenced which materially affecte I.ender's intemet in the Property, including, but not limited to, eminent domain, ~ insolveacy, oode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at Lendei e option,upon notice to Borrower may make euch appearances, diaburee auch aums and take such action se ie neoeesary to protect Lender'a intereet, ~ including, but not limited to, diebureement of reseonable attorney'e feee and entry upon the Property to make repairs. If Lender reqaired - ~ mortgage insurence ae a condition of making the loan secured by thia Mortgage, Borrower ehall pay the premiume required to maintain ' ~ snch inaurance in effect until euch time ae the requirement for snch ineurance terminatea in accordance with Boaower's and Lendei a written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under Y= paragraph 2 hereoi. ~ My amounte diebursed by Lender perauant to thie paragraph 7, with internst thereon, ahall become eddidonal indebtedneea of ~ ~ Borrower secured by thie Mortgage. Unleae Borrower and I.ender agree to other terme of payment, auch amounte ahall be payable upon 4:i notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be oontrary to applicable law. in which ~ event auch amounta shall bear interest at the highest rste permiaeible under applicable law. Nothing contained in this paragraph 7, ehall ~ require I.ender ta incur any e:pense or teke any action hereunder. _ ~ ^ ;~~<290 ~A~~ 582 ~ ~ ~ _ _ ~ a~~~x:~:~ ~ . _ ~