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HomeMy WebLinkAbout0064 Borrower and Lender covenant and agree as tuUows: ~ 1. Peymeat ot Principal and Intereat. Borrower ahall prorupUy pay when due the principal ot and intereat on the indebtrdneaa evidenced by the Note, prepayment and latechargas as pmvided in the Note, and theprincipal of and intereat on any ~ture Advancee eecured - by thia MortQage. 2. ~nds for Taxeo and Insurance. Subject to applicable law or to a written waiver by l.ender, tiorrower ehalt pay Io t.ender on the day monthly installmenta of principal and inte~eat arc payable under the Note, until the Note is paid in fuU, a aum (herein "Funda") equal to one twelfth of the yearly taxes and aeseasments which may attain priority over this Moictgage, and gruund re~ta un the Piroperty, if any, plua one twelft}? of yearly premium inatallmenta for hazard insurance, plus one-twelfth of yearly premium inataUments fo~ mortgage inauranre, if any, all as reasonab?y eatimated initially and hw~i time to time by I.ender on the basis otaasesaments and biits and reASOnable estimates thereof. The ~nds shall ba hetd in an institution the deposita or accounte of which are i~aured or guaranteed by e Federel or State agency (including l.ender if I.ender ia euch an institution). Lender shall apply the ~nde to pay said taxea, aseeeaments, ineurance premiuma and ground rents. Lender may ~ot charge for so holding and applying the Ftinda, analyzing said arcounR or verifying and compiling said seaeasmente and billa, unleea l.ender pays $otrower interest on the ~?nds and applicable taw penmits L.ender to make such a charge. Borrower and Lender may egree in writing at the time of execution ot this Mortgage that intereat on the FLnda shall be paid b Sorrowet, and unleas auch agreement is made or applicable law requires such intereat tu be paid, I~ender ehall not be required to pay Borrowe~ any intereat or earnings oe the ~nds. I.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debita to the Funde and the purpoee for which each de~it to the Funda waa made. The Funde are pledged as additional security for the auma secured by thie Mortgage. . If the amount of the F1nds held by I.ender, together with the future mo~thly installmenta of Funds payable prior to the due datea of ta~cea, aeaesamente. inaurance premiuma and ground mnte, ahall excaed the amount required to pay eaid taxee, assesamenta, insurance premiuma and gmund renta ea they falt due, such excese shali be, at Borrower's option, either pmmptly repaid to Borrower or credited to Borrower on monthly inetallmenta of ~nde. If the amount of the Funda held by l.ender ahali not be sufficient b pay ta~cea, aseeasments, inaurance prEmiums and ground nnts as they fall due. Borrower ehall pay eo Lender any amount neceeaary to make up the de5ciency within 30 daye from the date rtotice ia mailed by [rnder b Barrower requeating payment thereo[ Upon paymeat in fuU of a!1 sums eecured by thie Mortgage, Lender aha11 promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property ie otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ite aoquisition by I.ender. any ~nds held by Lender at the time of application as a credit againaf the auma secured by thia Mortgage. 3. Applicatioa of Payments. Unleas epplicable law providea otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof sha11 be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of fhe Note, and then to interest and principat on any Future Advanees. 4. C6erge8; Liens. Bor[ower ahatl pay all taxes. assessmenta and otherchargea, fines and impositions attributable to the Pmperty which may attain a priority ovet thie Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragtaph 2 hereof or, if not paid in auch mat~ner. by Borrower making payment, when due, ditectly to the payee thereof. Borruwer shall promptly furnish to [.ender all noticea of amounta due under this paragraph, and in the event Borrower shali make payment directly, Borrower sha!! pmmptly fumiah to I,ender receipte evidencing auch payments. Botrower ahal! promptly discharge any ]ien which has priority over this Morigage; pto~-ided, that Bortower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the ps~yment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, or defend enforcement of such iien in, legal proceedings which operate to prevent the enforcement of the (ien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahsll ke~ep the impmvementa now e:iating or hereafter erected on the Property insured against losa by fire, hazarda included within the term "eztended coverage," and auch other hazarde as I.ender may require and in such amonnts and for such periods as I.ender may requiue; provided, that I.ender ehall not require euch ooverage amount exceeding the minimum, as may be required by atate or federa! regulationa governing activities of Lender. or that smount of rnverage required to pay the sums secured by this Mortgage, - whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such appro~~al shall not be unreasonsbly withheld. All premiuma on insurance policies ahatl be paid in the manne~ provided under paragraph 2 hereof or, if not paid in such mann~, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in foran acceptable to L.ender and ahall include a standard mortgage clause in favor of and in form aoceptable to I.ender. Lender shall have the right to hold the policiea and renewala thereof, and Borrower ahali pmmptly tumish to i.ender all renewal notices and al! receipts of paid premiums. In the eveat of loss, Borrower shall give prompt notice to the inaurance carrier and Lender. Lender msy make proof af loss if not made prompdy by Borrower. Unleas Lender and Borrower otherwiee agree in writing, insurance proceeds ahaU be applied to restoration or repair of the Property dameged, provided anch reatoration or repair is economically feasible and the security of thie Mortgage is not thereby impaired. If such resbration or repair ia not economicalty feasibte or i f the security of this Mortgage would be impaired, the inswance proceeda ahalt be applied to the auma securnd by thie Mortgage, with the e:oese, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower fails to reepond to Lender within 30 days from the date notice ie mailed by I.ender to Borrower that the inaurance carrier offere to eettle s claim for inaurance benefits, Lender ie authorized fu collect and apply the inaurance proc~eeda at I.ender's option either to reatorateon or repair of the Property or the aums secared by thie Mortgage- Unleae Lender and Borrowet otherwiae agree in writing, any such application of proceeds to principal shall not e:tend or poetpone the due date of the monthly inatallments rnferred to in paragrapha 1 and 2 hereof or change the amount of such instailmenta. If under paragraph t8 hereof the Property is aoquired by Lender, a11 tight, tide and interest of Borrower in and to any ineurance policies and in and to the proceeds thereof reeuiting from damage to Pmperty prior to t6e sale or aoquiaition ehall pass to I,ender to the e:tent of the eums secured by thia Mortgage immediately prior to auch sale or soquiaition. 6. Preservation and Maintenance of Property; Leaseholde; CondominumA; Planned Unit Developmente. Borrowershall keep the Property in good repair and ehall not oommit waste or permit impairment or deterioration of the Property and ehali comply with the proviaiona of any leaae if thie Mortgage ia on a leaeehold. If thia Mortgage ie on a unit in a condomiaium or a planned unit development, Borrower ahall perfortn all of Borrower'e obligatione under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulationa of the rnndominium or planned unit development, and rnnetituent dccnmente. If a condominium or planned nnit developmen! rider is executed by Borrower and recorded together with thia Mortgage, the oovenenta and agreemente of auch rider shall be incorporated into and ahall amend and aupplement the covenanta and agreementa of thia Mortgage aa if the rider were a part hereof. - 7. Pcotectioa of I.ender's Security. If Borrower tails to pa~form the oovenante and agreementa contained in this Mortgage, or if any action or proceeding is commenced vrhich materially affecta Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangementa or prooeedings involviag a banlwpt or deoedent, then I.ender at Lender a option,npon notice to Borrower may make such appearances, disburse such suma and take such action as is neoeaaary to protect Lend~ a interest, inclnding, but not limited to. disbursement of reasoaabte attarney's feee aad entry upon tht Property to mal~e npairs. If I.ender required mortgage inaurance as a condition of making the loan secured by fhie Mortgege, Borrower ahall pay the preminme required to maintain euch inanrance in dfect nntil such time as the requiremeat for such inaurance terminatea in aocordance with Borrower'e and Lender's writLen agteement or applicable I.aw. Borrower shall pay the amount of sli awrtgage insurance premiume in the manner provided under paragraph 2 he~of. My amounts diebateed by Lender persuant to thia paragraph 7, with interest thereon, ehall become additional indebtedneea of Borrower eecured by this Mortgage. Unleee $orrower and Lender agree to other terma of payment, auch amounts ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ahalt bear intereat from the date of diebursement at the rate payable fzom time to time on outetanding principal under the Note unlesa payment of interest at euch rate woutd be oontrary to applicable law, in which event suc6 amounta shall bear intereat at the higheet rate permiaeible under applicable law. Nothing oontained in this paragraph 7, ahall require Lender to incur any expenee or take any action hereunder. eoox2~1 pac; F d.CUr " . _ . _ . . - _ '~v. z3?-~ '"~YhY YmL~"~:~a S r ~ ~ ;g~,3 ~ - ~ ~ ~ ~r_ ~ _