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HomeMy WebLinkAbout0277 fiorrower and l.ender covenant and ngree aa [ollows: • 1. PaymeM ot Piri~cipal and Intereat. Borrower ehail promptly pay when due the priocipal af and intereet on the indebtedneea evidenced by the Note, prepayment and late charg~ as provided in the Note, a~d the prinripel of and iatereet un any ~ture Advancea eecu~ed by this Mortgage. 2. F`unds for Taxee and lneurance. Subject to applicable ?xw or to a writle~ waive~ by l.ender, I3orrower shuU puy to l.enderon the day monthly inatallmenta of principal and intereet are payable under the Note, until lhe Note is paid in full, a aum (herein "~nde") equal to one twelfih of the yearly taxes and asseasmente which may attain priurity over thie Mortgage, and gmund re~ta on the Prvperty, if any, plua one tvyelRh of yearly prnmium inetallmente for hazard insurance, plue onetwelRh ofyearly premium installments fo~ mortgage ineurance, if any, all ae reaeonably estimated initially and from time to time by I.ender on the baaia of Aesesementa und billa and rea8onable eatimates thereof. The F~tnde ahall be held in an institution the depoaits or accounte of which are insured os guaranteed by a Federel or State agency (including Leader if l.ender ie euch an inatitution). Lender ehall apply the Funds to pay eaid taxes, aeseesments, inaurance premiums and ground rente. Lender may not charge for so holding and applying the ~nds, analyzing said account, or verifying and compiling esid aeaesaments and bills, u~leas I.ender paye Borrower interest on the F~nds and applicable law permifa L.ender to make such a charge. Borrower and I.ender may egree in writing at the time of execution o[ thie Mortgage that interest on the h~nde shall be paid to E3orrower, and unleas euch agreement is made or applicable law requiree auch interest to be paid, Lender shalt not be required to pay Borrower any interest o~ earninge on the Flinds. Lender ehall give to Borrower, without charge, an annual aceounting of the ~nde ahowing rredita and debite to the Funds and the purpoee for which each debit to the Ftinds was made.'Itie Funda aie pledged ae additional eecurity for the eums aecured by thia Mortgege. If the amount of the fi~nde held by I.ender. together with the tuture monthly inatallmenta of Funda payable prior to the due dates of taxes. aeeeesmente, inaurance premiums and ground renta, ahall exc~ed the amount required b pay said taxea, assesaments. inaurance premiume and ground renLs aa they fall due, auch e:ceea ahall be. at Borrow ei s option, either prompdy repaid b Borrower or credited to Borrower on monthly insfelimenta of fi~nda. If the amount of the F`unds held by Lender ahaU not be aufficient to pay taxea, assesamente, inaurance premiume and gronnd rents as they fall due: Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by [.ender to Borrower requesting peyment thereof. Upon payment in full of all euma secured by thia Mortgage, Lender ehall promptly refund to Borrower any funds held by l.ender. If under paragraph IS hereof the Property is sold or the Property is otherwiae acquired by Lender, I.ender ahail apply, no later than immediately prior to the sale of the Property or ifa acquieition by Lender, any ~nds held by l.ender at lhe time of application as a credit againat the aums aecured by thie Mortgage. 3. Application of Paymeate. Unleas applicable law provides otherwise, all payments received by I.ender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender firat in payment of amounta 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 Future Advances. 4. Cbargea; Liene. Borrower shall pay all taxes, assessments and otherchnrges, fines and impositiona attributable to the Property which may atiain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner ptovided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrower ahall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event I3orrower shalt make payment directly, Borrower ehall pmmptly furniah to Lender receipts evidencing auch payments. Borrower ahall promptly diacharge a~y lien which has priority over this Mortgage; provided, that Borrow~ shall not be required to discharge any such lien so long as Borrower ahaU agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prnvent the enforcement of the lien or forteiture of the Property or any part thereof. S. Hazerd Ineurance. Borrowet ahall keep the improvements now exiating or t?ereafter erected on the Property ineured againat loss by fire, hazarda included within the term "extended ooverage; ' and »uch other hazards as Lender may require and in auch amounts and for such periods as Lender may require; provided, that I.ender shall not require auch ooverage amount exceeding the minimum, as may be required by ~atate or federa! regulationa governing activitiee of Lender, or that amount of coverage required to pay the auma secured by thie Mortgage, . whichever ia the greater. The insurance carrier providing the inr~urance sha4 be chasen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner pmvided under paragraph 'l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiea and renewale thereof ahall be in form acceptable W Lender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewala thereof, and Borrower shall promptly furniah to i.ender all renewal noticee and all receipta of paid premiuma. In the event of loas, Borr+ower ahall give prompt notice to the insurance carrier i and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ - Unleas Lender and Borrower otherwiae agree in writing, inaurance prot,~eeda shall be applied to restoration or repair of the Property • ~ damaged, provided auch reatoration or repair ie economically feseible and the eecurity of thie Mortgage ie not thereby impaired. If such ; restoration or repair is not economicaily ~easible or if the security of thie Mortgage would be impaired, the insurance proceeds shall be applie~ ~ to the aums aecured by thia Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ; reapond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the insurance carrier oPfers to setde a claim for ~ inaurance benefits, Lender ie authorized to collect and appiy the insurance proceeda at Lender's option either to restoration or repair of the Property or the auma secured by this Mortgage. g Unleae Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e:tend or poatpone the due date of the monthly installmente referred to in paragrapha 1 and Z hereof or change the amount of such inetallmenta. If ander paragraph 18 hereof the Property is aoquired by I.ender. all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquisition shall paea to Lender to the extent of the aums aecured by this Mortgage immediately prior ta auch sale or aoqaisition. 6. Preaervation and Maintenance of Property; Leaeeholde; Condominume; Plenned Unit Developmente. Borrower ahall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ehaU comply with the provisions of any lease if this Mortgage is oo a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and reguletiona of the condominium or planned unit development. and oonatituent dceumenta. If a condominium or planned unit development rider ie executed by Borrower and recorded togef.her with thie Mortgage, the oovenants and agreementa of auch rider ahall be incoTporated into and ahal! amend and supplement thecovenants and aE[reementa of this Mortgage aa ifthe ~ rider were a part hereof. . ' 7. Protection of I.ender's Security. If Borrower laile to perform the covenaate and agreements contained in this Mottgege, or if any action or prooeeding ie commenced which materially affecta Lender s intereet in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforoement, or errangements or proceedings involving a banlQUpt or decedent, then Lender at Lender's option,upon notice to Borrower mey make such appearanoee, disburee euch auma and take such action as is neceeeary to protect Lender's interest, ~ inclnding, but not limited to, diabureement of reasoaable attorney'e fees and entry upon the Property to make repairs. If I.ender reqaired _ mortgage inenrance se a rnndition of making the loan secured by thie Mortgage, Borrower ahall pay the premiums required to maintaiu such ine~uence in effect until euch time as the requirement for Buch inaurance terminatee in aocordance with Borrower'a snd Lender's ~ writlen agreement or applicable Law. Borrower ehall pay t6e amount of all mortgage inaurance premiuma in the manner provided under ~ paragreph 2 hereof. ~ My amounte disbureed by Lender pereuant to thia paragraph 7, with intereat thereon, ehall become additional indebtedneea of ~ Borrower secured by thia Mortgage. Unleae Borrower and Lender egree to other terme of payment, auch amounte ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, end ahell bear intereat from the date of disburaement at the rate payable from $ time to time on outetsnding principal under the Note unless payment of interest at such rate would be oontrary to applicable law, in which event auch amounts ehall bear intereat at the highest rate permiesible under applicable law. Nothing contained in thie paragraph 7, ahall ~ require Lender to incur any expenae or take any action hereunder. ~ ~ S~GK291 Fat,_ 277 . ~ . r, ; ~ _ - - - - - ~ : ~ _ ~ ~ ~ ; ' _ ~ --~,~y~. : ` _ , :s~