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HomeMy WebLinkAbout0006 fiorruwe~ a~d l.ender covenant and agree ua futluwa: 1. Payment of Principal end Intereet. E3orn~wer shaii prompUy pflv when due the principxl of and intereat on the indebkdnexa evide~ced by the Note, prepayment and lale chargee as provided in the Note, and the principal of nnd intereat on any Future Adv~ncea aecured by this Mortgage. 2. ~nds for Taxee and Insurance. Subject to npplicxble law or to a wriUrn wai~•e~ by I.ender, l;orrower ahnll pay ta I.ender on the day monfhly instaliments of principul and interest are puyable under the Note, until the Note is puid in full, :i sum (herein "Funda") eyuul ta one twelfth otthe yearly taxes and assexsmentx which may att~?in priority o~•er thia 111ortgage, and ground rrntx on the ['ruperly, if xny, plux on~ twelRh of yearly premium inatallments for he~znrd inaurence, plus onPtweiRh of ye:uly premium inst.illmentx for murige~ge innuraince, if nny, All aa reasonably estimated initiully and from time to tiR~e by I.ender on the bnais of nxseasmen~g and billa nnd reasonuble estimaleei thereof. The ~nda ehaU be held in an inatitution the depoaits or accounta of whict~ are ineured or guurunteed by a Federal or State agency iincluding Lender if Lender ia such an institution). txnder shall apply the Funda to pay said taxeP, asseeuimenta, inaurance premiums and ground rente. Lender may not charge for eo holding and appl~~ng the Funde, analyzing euid account, or veri[ying and compiling said asaeaementa and bills, unleae I.ender paya BormMrer intereat on the Funds und applirabte law permita l.ender to make such a churEte. F3orrower and Lender may agree in writing at the time of execution ~f thia Mortgage that interest on the F unds ahall be paid to Borrower, and unleris euch egreement ie made or applicable law requirea such interest to be paid, l.ender ahull not be required to pay Horrower nny intereat or earnings on the Fu~de. Lender ahall give to Eiorrower, without charge, an annual accounting of lhe Funde ahowing credita nnd debita to the Funda and the purpose for which each debit to the F~unda wus made. The Funde are pledged as additiunal security for the suma secured by thie Mortgage. If the amount of the F~?nda held by I.e~der,-together with the future monthly inetallmenta of Funds payable prior to the due datea of taxes, asaessmente, insurance premiums and gmund rente, shall exctied the amount nyuired to pay xaid taxes, assesaments, inaurance premiuma and ground renta as they fall due, such excesa ehall be, at Borrower's optinn: either promptly repai~ to. Borrower or crediled to E3orruwer on monthly installmente of ~nde. If the amount of the hunda held by Lender ehall not be su[ficien~to~ay taxes, asseasments, insurance premiums and ground tents as they fall due, Borrower ehall pay to Lender any amount necessary tol`nalte up the deficiency within 30 days from the date notice is mailed by l.ender to Rorrower requesting paymgnt ihereaf. ~ Upon payment in full of all eums aecured by this Mortgage, I.ender ahall promptly refun~ $e~ower any funda held by lender. If under paragraph 18 hereof the Property ie sold or the Property is othetwiae acquired by Lender, Len er shaU apply, no later than immediately prior to the sale of the Nroperty or its ae~uisition by Lender, any Funde held by Lender at the t~me o npplicat~on as a credit againat the sums secured by thia Mortgage. 3. Application of Paymenta. Unless applicable law provides otherwise, all payments rec~eived by I.ender under the Note nnd paragrapha i and 2 hereof shall be applied by I.ender first in payment of amuunts payable to I~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 Futurn Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other chi~rKes, finc~ and im~wsitions attributable tn the I'n~perty which may attain a priority over this Mortgage, and leasehoid pRVments ur ~n~und rentx, if any, in the ma~ner provided under pars~grap~'l hereof or, if not paid in such manner, by Borrower making payment, when due,~irectly to the payee thereof. Borrowershall promptl~~ furmsh to l.ender all nuticea of amounts due under this paragrn~h, and in the event Borrower shall make pa~ ment directiy, Borrower shall promptly fumish to l.ender receipts evidencing such paymenta. Rorrower ahall promptly discharge xny lien which has priority over this Mortgage; pmvided, that E3orrower shall not be required todischazge any sucNlien so long ~.s E3orrower shall :~gree in writing to the payment of theobliKatiun secumd by such lien in a manner acceptable to l.ender, or shall in good fnith rnntest such lien by, or defend enformment of such lien in, IeKal pnx•ec~lings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part thereof. S. Hezard Ineurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured against losa by fire, hazarde included within the term "extended coveraqe," and auch other hazards as I.ender may require and in such amounts and for such perioda as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as ms~y be required by state or [ederal regulations governinq activitiea of I.ender, or that amount of coverage required to pay the suma secured by this Mortgage. whichev~ is the greater. , The insurance carrier providing the insurance shall be chosen by I3orrower subject tr, appro~•al by I.ender; pnn•ided, that such app~oval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraKraph 1 hercr~f or, if not paid in such manner, by 13orrower making p~yment, when due, directly to the ins,urance carrier. All insurance policiea and renewala thereof shall be in [orm acceptable to l.ender~nd shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and F3orrower shnll promptly furnish to i.ender all renewal noticea and all receipta of paid premiums. In the event of toss, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. t j Unlese Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to restoration or repair of the Property ' damaged, provided auch restoration or rnpair is economically feasible and the security of this Mortgage'ia not thereby impaired. If such ; restoration or repair is not economically feaaible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the sums secured by thie Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by I3orrower, or if Borrower fails to ! respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, L.ender is authorized to collect and apply the insurance proceeds at i,ender's option either to restoration or repair of the ~ Property or the sume secured by this Mortgage_ ' Unless L.ender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not extend or poatpone the due : date of the monthly instaUmente referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 E hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds y thereof resulting from damage to Property prior to the sale or acquisition ahall pasa to Lender to the extent of the aums secured by this a Mortgage immediately-prior to auch sale or aoquiaition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Cdndominume; Planned LInit Developmenta. Borrower aha11 keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the a provisions of any lease if this 4fortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ F3orrower ahall perform all of Borrower a obligations under the declaration or covenants creatinKor governing the condominium or plnnned g unit development. the by-lawe and regulations of the condominium or plnnned unit development, and conatituent documenta. If a ~ condominium or plnnned unit development rider ie executed by Borrower and recorded together with this Mortgage, the covenants and 3 agreementR of such rider shall be incurporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the , rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreemente contained in thia Mortgage, or if any - action or proceeding is commenced whicbmaterially aftects Lender'e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement~ or arrangemente or proceedinge involving a banl~rupt or decedent, then Lender at Lender e option,upon ~ notice to Borrower may make auch appearancee, diaburee auch eume and take euch action ae ie neoe8eary to protect Lender e intereet, ~ including, but not limited to, diebureement of reasonable attorney's feea and entry upon the Property to make repaire. If Lender requited mortgage inaurance se a condition of making the loan secured by thie Mortgage, Borrower shall pay the premiume required to maintain ~ euch ineurance in effect until such time ae the requirement for euch ineurance terminatea in accordance with Borrower'e and Lendei s ' written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiums in the manner provided under paragreph 2 hereoL - My amoante disbursed by Lender pereuant to thia paragraph with intereet thereon, ehall become additional indebtedneae of I3orrower eecured by thia Mortgage. Unleae Borrower and Lender agree to other terms of payment, auch amounte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of diabureement at the rate payable from y time to time on outatanding principal under the Note unlees payment of interest at auch rate would be contrary to applicable law, in which ~ event euch amounta ahall bear inierest at the highest rate permiaeible under applicable law. Nothing contained in this paragraph 7, ahall ~ req~iire Lender to incur any eapense or take any action hereunder. ~ K ~ ooK 291 , F'ACE 6 _ t: ~ ~ r_^ - - - - - ~ - - ~ ~ ~I 4 y » .#.s:~ ` ~ ~r a;~. ~ . _ a.~~,'~ . _ _ : ~~~s"~-"