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HomeMy WebLinkAbout0054 Borrower and l.ender covenant and agree as follows: 1. Payanent ot I'rincipal and Interes~ Borrower ahall promptly pay whe~ due Ihe principal of and ir?tereat on the indebtedness evidenced by the Note, prepayment and late chargea as pn?vided in the Note, and the principal oi and intcreat on any F~ture Advances secu~ed by this Mortgage. 2. Ftind. tor Tauces ~nd inturanoe. 3ubject to applicable law or to a written waiver by I.ender, Horrowe~ ahall pay to l.ender on the day mo~thly inatallments of principal and i~tereat are {?ayable under the Note, until the Note is paid in full, a~um iherein "Funda") equal to ono- lwalfth of the yearly taxes and eseeasments which may attain priority over this Mortgage, and ground rente on the Prope`ty, if any, plus one , twelRh of yearly premium inatallments for hazard inaurance, plua onetwelfth of yearly premium inataUmenta for m~rtgage inaurance, if any. all as reaso~ably estimated initiaUy and from time to time by l.ender o~ the basis of peaessmenta and billa and reasonable eatimalea thereof. The ~nda shall be held in an iastitution the depoeits o~ accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender ia such an institution). I.ender ehall apply the Funds to pay eaid taxes, aeaesamente, insurance premiums and ground r~nts. Lender may not charge for ao holding and applying the ~nds, analyzing said account, or verifying and compiling eaid assesements and bills, unleea I.ender pays Borrower intereet on the Ftinde and applicable law permits I.ender to make auch a charge. Borrower and Lender may agree in writing at the time of eaecution oi thia Mortgage that intereat on the fi~nds shall be paid to Bortower, and unleas such agrcement is made or applicable law requires such interest to be paid, Lender ahall not be required to pay Borrower any intereet or earnings on the ~nds. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing credite and debits to the Ftinde and the purpose for which each debit to the F~?nda wae made. The F~nds are pledged as additional eecurity for the aume eecured by thia Mortgage. • If the amount of the Fl~nds held by Lender, together with the future monthly inetallmenfa of Funda payable prior to the due dates of taaea, asaeeaments, ineurance premiums and ground rente. ahall e:cYed the amount required to pay said tazea, assesamenta, ineurance premiuma and ground rente as they fall due, auch e:ceae ahall be, at Borrower a option, either promptly repaid to Borrowe~r or credited t~ BoROwer on monthly installment+e of I~nds. If the a~nount of the flinds held by Lender ahall not be auf'ficient to pay tanee, aeseeamenta, inaurance premiums and ground nnte as they fall due, Borrower ahall pay to I.ender any amount neceasary to make up the deficieacy within 30 daye fiom the date notice ia mailed by L.ender to Borrower requesting payment lhereo! Upon payment in fuU of all sums eecured by this Mortgage, Lender ehall promptly refund to Borrower any funde held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ia otherwise acquired by Lender, Lender ahaU apply. no l~ter than immediately prior to the sale of the Property or ita aoquieition by Lender, any ~nds held by I.ender at the time of application ae a credit against the auma secured by thie Mortgage. 3. Applicadon of Paymenta. Unlese applicable law providea otherwiee, all payanenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargea; Li~ae. Borrower shall pay all taxea, assesaments and other charges, finea and impositions attributable to the Property which may attain a priority ovet this Mortgage, and leasehold payments or ground re~ts, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making paymen~ when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly fumish to Lender receipta evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority overthis Mortgage; provided, that - Borrower shall not be required to discharge any such lien so long us Borrower ahall agree in writing to the payment ottheobligation secured by auch lien in a manner acceptable to L.ender. or ahall in good taith conteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forteiturn of the Property or any part thereof. 5. Hazard Insurance. Borrower ehall keep the improvements now exiating or hereafter erected on the Property ineured againet loas by 6re, hazards included wiLhin the term "e~teaded coverage," and $uch other hazards as I.ender may require and in auch amounts i+nd for such periads as Lender may require; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by atate or federal regulations governing setivitiea of Lender, or that amount of coverage reqaired to pay the auma secured by this Mortgage, ; whichever ia the greater. ~ , The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such mann~, by Borrower making payment, when due, direMly to the insurance carrier. ~ All insurance policies and renewals thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clauee in favor of and in form acoeptable to Lender. I.ender ahaU have the right to hold the policiea and renewala thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all receipte of paid premiume. In the event of losa, Borrower ehall give prompt notice to the inaurance carrier ' and Lender. Lender may make proof of lose if not made prompdy by Borrower. f Unleae Lender and Borrower otherwiee agree in writing, insarance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the eecurity of thia Mortgage is not thereby impaired. If such f reatoration or repair is not econumically feasible or if the aecurity of thia Mortgage would be impaired, the ineurance procceda shall be applied ; _ € to the suma eecured by this Mortgage, with the eucesa, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to respond to I.ender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier of~era to eettle a claim for ~ inauranae benefite, Lender ie anthorized to collect and apply the insursnce proceeda at Lender e option either to restoration or repair of the Property or the auma eecured by thie Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not eutend or postpone the due date of fhe monthly inetsliments referred to in paragraphe 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ~ hereof the Property is aoquired by Lender. all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof resulting from damage to Property prior to the eale or acquiaition ahall paes to Lender to the eztent of the suma secured by this Mortgage immediately prior to auch eale or aoquisition. 6. Preservation and Maintenaace of Property; Leaeeholde; Condominums; Planned Unit Developmenta. Borrower shal) keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall oomply with the proviaions of any lease if thiB Mortgage ia on a leseehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower'a obligationa under the declaration or covenante creatingor governing the condominium or planned unit developmen~ the by-lawe and regulations of the condominium or planned unit development, and conatituent documenta. If a oondominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage. the oovenants and agreemente of such rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower faile to perform the oovenants and agreements coatained in this Mortgage. or if a~y action or prooeeding is commenoed which materiaUy affects Lende~a interest in the Property, including, but not limited to, eminent domain, insolvency. aode enforcement, or arrangements or pmceedinga invoiving a bankrupt or deoedent, then I.ender at Lender's option,upon ~ aotice to Borrower may ma1~e such appearanoea, diaburse anch sums and take snch action as is neceeeary to prot~ect Lender'e intereat, inclnding. but not limited to, disb~rsement of reasonable attomey e fees and entry upon the Property to meke repairs. .If Lender required mortgage inanrance ae a oondition of making the loaa eecuted by thie Mortgage, Borrower shell pay the premiums required to maintain snch insuranoe in ePfect nntil such time as the requirement for such ineurance terminatee in aa~ordance with Borrower s and Leader'e ~ written agreement or applicable Law. Borrower ahall pey the amount of all mortgage ineurance premiume in the manner pmvided under ~ paragraph 2 hezeof. Any amonnts diebureed by Lender persuant to thie paragraph 7, with intereet thereon, ehall beoome additional indebtedneas of ~ Borrower secured by this Mortgage. Unleae Borrower and I.ender agree to other terme of payment, auch amounte ehall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear interest trom the date of disbursement at the rate payable from ~ time to time on outatanding principal under the Note unleas payment of interest at euch rate would be oontrery to appliceble law, in which event such amounta ehall bear intarest at the highest rate permiesible under applicable law. Nothing contained in this paragraph 7, shall eequire Lender to incur any ~penBe or take any action hereunder. • ~ ~ ~ ~ ~ BGOK ~~7~ PAGE ~ ; , ~{y I ~ ~ I ~ . _ _'._-s~.r.~_ y_, . . - ;a 'v,'r: . z.:~v~~;~ _ r ~,~a,.sx.~' ~3 _ _ - sx. ,X yd ~ ~ - P y~~~E ~r-~ - _ ' ~ .