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HomeMy WebLinkAbout0602 l3~rrower and l.ender covenant and agree aa followa: 1. Payment ot Prlacipal and lnte~est. E;orirower shali promptly pay when due the principal uf and intereat un the indrbtednras evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of nnd intereat on any h uture Advances aecured by this Mortgage. 2. ~nds for Tauee and Ineu~ance. Subject to upplicable law or to a written waiver by I.ender, I3orruwrr ahxll puy tu IAnder un the day monthly inatnlimenls of principal and intemat are payable under the Note, until the Note ia puid in full, n eum Ihe~ein "F unde"1 equal tu one twelfth of the yearly itucea and asaeaxmenta which may attain priorily over thia Mortgc+yte, nnd ~round renta on the E'ruperty, if nny, plua one twelRh of yearly premium installmenta for huzard inaur~nce, pluaonetwelfth ufyeurly premium instullmentb for murtgageinsurAnce, if any, all aa reaeonably estimated initially nnd from time to tirr,e by l.ender on the bnais of tisaeasments and billa und rei+sonable eatimatex thcceof. The Ftinda ahell be held in an institution the depoeita or accounts of which are inaured or guaranteed by a Fede~al or State agency (including I.ender if I.endet ie such an institution). I.ender ahall apply the Funda to pay said tnxea, axsesamenta, insurunce premiume and ground renta. Lender may not charge for eo holding and applying the Funde, analyzing eaid account, or verifying and cumpiling eaid assesamenta and bilts, unlees l.ender paye Borrower intereat on the Funds and applicabte law permits I.ende~ to make auch a charge. I3orrower and [.ender may ag~ee in writing at the time of execution of thie Mortgage lhat intereat on lhe Fuods shall be paid to I3orrower, and unlesa euch agreement ie made or applicable law requirea such interest to be paid; L.ender ehall not be required to pay E3orn,wer any intereat or earninga on the ~nde. Lender shaU give to Borrower, without charge, an annual accounting of the Funds shov?ing credita and debita to the Funda and the purpoae for which each debit to the F~nda wns made. The F unda are pledged as additional security for the sume secured by this Mortgage. If the amount of the Funde held by I.ender, together with the future monthly inatailme~ts of F unds paya~~e priur to,the due dates of taxea, nasesamenta, inaurance premiums and ground rents, ahall excaed the amount required to pay said taxea, assesamenta, insurance pmmiuma and ground renfa ae they fall due, such excesa ahall be, at Borrowei s option, either promptly repaid to Borrower or credited to E3orrower on monthly installmenta of ~nde. lf the amount of the Funde held by ixnder shal!'not be aufficient to pay taxes, assessmenta, insurance premi~uns and ground renta as they fall due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by I.ender to E;orrower requeshng payment thereof. Upon payment in full of all aums secured by thia Mortgage, I.ender ahall promptly refund to Borrower any funds held by Lender. lf under paragraph 18 hereof the Property is sold or the Property is otherwiae acquired by l.ender, I.ender shall upply, no later than immediately prior to the sale of the Property or ita acquiaition by l.ender, any F~nds held by l.ender nt the time of application as a credit ag~inst the sums secured by this Mortgage. 3. Application of Paymente. Unleas applicable law provides othemise, all paymenta received by I.ender under the Note and paragrephe 1 and 2 heteof shall be applied by Lender first in payment of amounts payable to l.ender by Borrower under parngraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, und then to interest and principal on any Future Advances. 4. Charges; Liens. E3orrower shall pay all taxess, ussesaments and other charKes, fines and impusitions :~ttributable to the Property K~hich may attain a priority over this Mortgage, and leasehold payments or gruund mnls, if any, in the manner provided under paragraph l hereotor, if not paid in such manner, by E3orrower making ps~yment, when due, directly to the payee thereof 13ormwer shail prompdy furnish to i.ender all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Born?wer ahall promptly furnish to [.ender receipts evidencing such paymenta. E3orrower shall promptly dischnrge any lien which has priurity over this MortKaKe; pmvided, that B~rrower shaU not be required to discharge any such lien so long as Rorrower shaii ngree in writinR tu the payment of theabligation securec~ by such lien in A manner acceptuble to [.ender, or shall in Kood [aith contest such lien by, or defend enforc~ment of cuc•h lien in, leKal procecdings w~hich operate to prevent the enforcement of the lien or forfeitum ot the Yroperty or ~ny part thereof. 5. Hazerd Insurance. $orrower shall keep the improvements now existing or hernafter erected on thr Property insured aguinst loss bp fire, hazarda included within the term "extended coverage," and ~uch other hazards as Lender may require And in such amounts and for such periods as Lender may require; provided, that I.ender shaU nut require such coverage amount exceeding the minimum, ag may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this htori~age, whichever is the greater. The insurance carrier providing the insur~nce shall be chusen by Korrower subject to approval by I.ender, pro~•ided, that such approval shall not be unrnasonably withheld. All premiums on inaurance policies shall be paid in the manner provided under paraKraph 2 hc~rc~?f ~r, i: not paid in such manner, by ~rrower making payment, when due, directh• to the insuranm carrier_ All insurance policies and renewats lhereof shall be in form acceptable to I.ender and ahall include a standard mortgage clause in favor of ! and in form acceptable to [.ender. Lender ahail have the right to hold the policiea and renewals thereof, and E3ortower ahall promptly furnish tn I i,ender all renewal no6ces and a0 receipts of paid premiums. In the event of losa, [3orruwer shall give p~ompt notiee to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. ; Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property . ~ damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ resbration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to !he suma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to i respond to Lender within 30 daya from the date notice ia mailed by L.ende~ to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefite, Lender is authorized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair ot the ; Property or the aums eecured by thie Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or poatpone thedue ~ date of the monthly instailmente referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, al) right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reeulting from damage to Property prior to the eale or acquisition ahall pase to Lender to the eatent of the auma secured by this :~tortgage immediately prior to such sale or acqtusition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developments. Borrower shall keep the Property in good rnpair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaions of any lease if this Mortgage is on a leasehold. [f this Mortgage ia on a unit in a rnndominium or a planned unit development, ~ Aorrower ehall perform all of Borrower e obligationa under the declaration or covenanta creatinKor governinq the conduminium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covPnants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenanta and agreemente contained in thie Mortgage, or if any action or proceeding ie commenced which materially affects Lender'a interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may malce euch appearanoes, diaburee auch eums and take auch action ea ie neceesary to protect Lender e interest, ~T including, but not limited to, diabureement of resaonable attorney'e feea and entry upon the Property to make repaire. If Lendez required - mortgage insarance ae a condition of making the loan eecured by thie Mortgage, Borrower shall pay the premiume required to maintain ~ euch ineurance in effect until euch time ae the requirement for such ineurance terminatea in accordance with Borrower'e and I.ender e written agreement or applicable Law. Borrower shall pay the amount of a)1 mortgage insurance premiuma in !he manner provided under ~ paragraph 2 hereof. t My amounte diabureed by Lender pereuant to thia paragraph with intereet thereon, ehall become additional indebtedneae of ~ Borrower secured by thia Mortgage. Llnleas Borrower and Lender agree to other terma of payment, euch amounte ahall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear intereat from the date of diebureement at the rate payable from a'; g,: time to time on outatanding principal under the Note unlese payment of intereet at auch rate would be contrary to applicable law, in which <.y event euch amounta ahall bear intereet at the highest rate permiseible under applicable law. Nothing contained in thie paragraph 7, ahall ~ require L.ender to incur any expenee or take any action hernunder. ~ ~ !Jv`! t~t: . - i~' o- _ _ ~ ~ ~ . ` - g~'~~=' :~.Y _ _ ' . " ~ . ~ ~~~r-n-xvw ~xr-~~.:. , . r . .