Loading...
HomeMy WebLinkAbout0082 . Borrowe~ and I.ender covenant and agree as follows: ~ 1. Payment ot Principel snd Intereat. Borrower ehall prompdy pay when due the principal of and intereat on the indebkdness evidenced by the Note, prepayment and late chargea ae provided in the Note, and the principal of and intereet on any El~ture Advances eecured - by this Moctgage. 2. Il~nds [orTaseo aad Insuranoe. Subject to applicable law or to a written waiver by [.ender, Eiorrower ahall pay to l.ender o~ the day monthly installments of principal and intereat are payable under the Note, until the Note ia paid ir? full, a eum Iherein "hl?nda") equal to ono- twelRh of the yearly taxea and asseeements which may attain priority over this Mortgage, and ground renta on the Property, if any, plue one twelfth of yearly premium inetallmenta for ht4.ard inaurance, plua onetwelRh of yearly premium installme~ta [or mortgage inaurance, if any, all ae reaeonably eatimated initially and from time to time by I.ender on the bueis of aeeessmenta and bills and renaonable estimatea thereof. The I~Lnds ahaU be heW in an institution the depoeite or acoounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender ia auch an inatitution). Lender ahall apply the Funds to pay said ta:ea, aeaeeamenta, ineurance premiume and ground renta. Lender may not charge for so holding and applying the firnds, analyzing eaid account, or verifying a~d compiling esid asseeaments and bills. unlees Lender paye Borrower intereet on the ~nde and applicable law permita l.ender to make euch a charge. Borrower and Lender may agree in writing at the lime of e:ecution of thie Mortgage that intereat on the ~nde ahaU be paid to Borrower, and unleas such agreement ia made or applicable law reqairee auch intereat to be paid. I.ender shall not be required to pay Borrower any interest or earainge on the fi~nde. [.ender shall give to Borrower, without charge, an annual aceounting of the Funde showing credite and debits to the Etinde and the purpoee fur which each debit to the FLnda was made. The Funds are pledged as additional eecurity for the euma eecund by thie Mortgage. If the amount of Lhe ~nda held by I.ender, together with the future monthly installments of Funds payable prior to the due dates of ta:ea, aaseasmenta. inaurance premiuws and ground rente, ahall excred the amount required to pay said taxee, aaseasments, ineurance premiume and ground rente as they fell due, such exceee ahall be, at Borrower'e option, either prompdy repaid to Borrower or rredited to Borrower on monthly installmenta of Fhnds. If the amount of the ~nds held by Lender shall. not be eufficient to pay t~ea, seseeamenta. inaurance premiuma and ground rents as they fall due, Borrower shall pay to l.ender any amount neceeeary to make up the deficieacy within 30 daye from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in fiill of all suma secured by thie Mortgage, L.ender ahaU prompdy refund to Borrower any funda held by I.ender. If under paragraph 18 hei+eof the Property ia eold or the Property ie otherwise acquired by Lende~, Lender ahall apply, no later than immediately prior to the aale of the Property or ita aoquiaition by Lender, any ~nda held by Lender at the time of application as a credit againat the aums aecured by thie Mortgage. 3. Application of Payments. Unleas applicable law providea otherwise; alt paymente received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by l.ender 6rat in payment of amounte 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 interest and prinripal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assesementa and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof Borrower shall promptly furnish to Lender all noticea of amounta due under thia paragraph, and in the event Borrower ahall make payment directly, E3orrower shall promptly furniah to Lender receipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by auch lien in a manner aoceptable to Lender, or aha11 in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured againet losa by fire. hazarde included within the term "e:tended coverage," and anch other haaards as Lender may require and in auch amounts and for such periods ae I.ender may reqnire; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of L.ender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval ahall not be unreasonably withheld_ All premiums on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly W the insurance carrier. All inaurance policies and renewala thereof shall be in form acceptable to Lender and ahall include a atandard mortgage claase in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and mnewals thereot, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipfs of paid premiutna. In the event of loas, Borrower shall give prompt notice to the ins~nce carrier and I.ender. Lende~r may make proof of laes if not made promptly by Borrower. ! Unleas Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is economically feasible and the eecurity of thie Mortgage is not thereby impaired. If auch i restoration or repair is not economically feas.ible or if the security of thiB Mortgage would be impaired. the inaurance proceeds ahall be applied g to the sums aecured by thia Mortgage, with the e:cess, if any, paid to Borrower_ If the Property ie abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 days from the date noticse ie mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefits, Lender ia suthorized to collect and apply the insurance proceeds at Lender a option either to reatoration or repair of the ~ Property or the aums secured by thia Mortgage. ~ Unlese Lender and Borrower otherwise agree in writing, any auch application of proceeds to principai ahall not e:tend or postpone thedue date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph IS ~ hereof the Property is aoquired by Lender, all right, tide and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquisition shall peas to Lender to the extent of the euma secured by thia Mortgage immediately prior to auch sale or aoquieitioa ~ 6. Preeervation aad Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ehall comply with the ~ proviaiona of any leaee if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower's obligations undet the deciaration or covenants cTeatingor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituent dceumenta. If a ~ condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and agreementa of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protectlon of Lender'~ Sec~rit~?. If Borrower fails to perforrn the oovenante and agreemente contained in this Mortgage. or if any ~ action or proceeding ie commeaced which materially affecte Lender s intereet in the Property. including, but not limited to, eminent domain, ~ insolvency, oode enforcemen~ or aTrangemente or proccedinga involving a banicr~pt or deoedent, theh I.ender at Lender's option,upon ~ notice to Borrower may ma1~e such appearances, diaburee such euma and take such action aa is necessary to protect Lender s interest, - including, but not limited to, disbureement of reasonable attorney'e fees and entry upon the Property to make repairs. If Lender required ^ mortgage inaurance as a cpndition of making the loan aecured by thie Mortgage, Borrower ahall pay the premiuma required to maintain t~ snch insurance in effect until ench time as the requirement for euch ina~uance terminates in aooordance with Borrower e and I.endds ~ written egreemeat or applicable Iaw. Borrower ahall pay the amount of all mortgage ineurance premiume in the menner provided under ~ paragraph 2 hereof. ~ My amounts disbureed by Leader perauant to thia paragraph 7, with intereet thereon, ahall beoome additional indebtednees of ~ Borrower secured by this Mortgage. Unleee Borrower and Lender agree to other terms of payment, euch amounte ehall be payable upon ~p, notice from Lender to Borrower requeeting payment thereof, and ehall bear intereat from the date of diaburaement at We rate payable from time to time on oafatanding principal under the Note unlese payment of interest at euch rate would be oontrary to applicable law, in which event svch amounts ehall bear interest at the 6igheat rate permieaible under epplicable law. Nothing oontained in t]w paragraph 7. ehall ~ requin Lender to incur any e:pense or te1~e any action hereunder. ~ ~ a00~( ~ I~il~. ~ ~ ~ - , ~ w~ - ; - X Y~ ~ .F-~se'exE y .5-~ ~ ~ ` ~~b~ ,~~~"~~'~"~s~ ~'~'"w:~F ~ o- YF~~~~~ ; - _ , . , ~