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HomeMy WebLinkAbout0538 Borrowe~ and Lender rnveoant and a~ee as folluws: 1. Payment ot Prit~eipal aad Intecest. Bor~ower ehall promptly pay when due the principa! ot and intereat on the indebted~eas evideneed by the Note, prepayment and late chargeo as provided in the Note, and the principal otend interest on any Future Advartces eecured ' by this Morlgage. 2. fiands for Taxea and In~urance. Subject to applicable law or to a written waiver by l.e~der, Borrower ahall pay to l.ende~ on the day monthly inatalltne~ts of principal and interest are payable under the Note, until the Note is paid in fuU, a sum (herein "PLnds") equal to one tv?elfth of the yearly taxes and aaseaementa which may attain priority over this Mortgage, and ground mnts on the Propecty, if any, plus onc twelfth of yearly premium installmenta for hazard inaurance, plue o~etwelfth ofyearly premium inetallmenta for morignge ineurance, if any, sll as reasonably eatimated initially and from time to time by I.ender on the basie of aseesameota and billa and reasonable estimatea thereof. 'Ibe ~nde ahaU be held in an inatitution the deposits or accotwts of which are insured or guaranteed by a Federal or State agency (including Lender if L.ender is such an inatitution). I.ender shall apply the Funds to pay eaid fs:es, aesesamente, inaurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aeaessmente and bills, unleee Lender peys Borrower interest on the Funda and applicable law permits Lender to make auch a charge. Borrower and Lend~ may agree in writing at the time of e:ecution of this Mortgage that intereel on the F'unde ahall be paid to Borrower, and unieas such agrcement is made or epplicable law requiree euch interest to be paid, Lender ahall not be required to pay Borrower any interest or earnings on the I~nds. I.ender shail give to Borrower, without charge, an annual accounting of the Funda ehowing credita and debits to the Flmde and the purpoee for which each debit to the Ftinda was made. The Funde are pledged as addirional eecurity for the aume secure~ by this Mortgage. If the amount of the ~nds held by I.ender, together with the future monthly inatallments of Funde pqyable piior ta the due datea of taxes, aeseeaments, inearance premiums and ground rEnte. ahaU e:cxd the amount required to pay said ta:ee, esaeaaments, ineurance premiuma and ground renta as they faU due, auch e:cesa ehall be, at Borrower'e option, either prompdy repaid to Borrbwer or credited to Borrower on monthly inatallments of FLnds. If the amount of the Funde held by Lender ahall not be sufficieat to pay taaea, assessme~te, insurance premiums and gmund rents as they fall due, Borrower shall pay to Lender any amount necessary to makf up_ the deficiency arithin 30 daye from the date notice is mailed by Lender to Borrow~ requeating payment thereof. Upon payment in fuq of all auma eecured by this Mortgage, Lender eha11 promptly refund to Borrower any funde held by I.ender. If under paragraph 18 hereof the Property is eold or the Property ie otherwiee acquired by Lender, I~nder shall apply, no later than immediately prior to the sale of the Property or ita aoquieition by Lender, any Ftinda held by Lender at the time of application ae a rredit againat the sums secured by this Mortgage. _ 3. ApplicatIon ot Paymeats. Unless applicable law provides otherwiae, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be epplied by I.ender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargee; Liens. Borrower shall pay all taxes, assessmenta and other chargea, fines and impositions attributable to the Property which may attain a priority over thie Mortgage, and leasehold paymente or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowerahall promptly furnish to Lender all woticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish ta l.ender receipls evidencing such paymenta. Borrower ahall promptly discharge any lien which has priority ove~ thia Mortgage; provided, that 3orrower shall not be required to diacharge any such lien so long ae Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith conteat such lien by, ordefend 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 Insurance. Borrower shall keep the improvementa now exiating or hereafter erected on the Property insured againat loss by fire, hazards included within the term "e~ctended rnverage," and auch other hazarde as I.ender may require and in such amounta and for such periods aa Lender may require; pmvided, that Lender ahall not require such ooverage amount ezceeding the minunum, as may be mquired by atate or federal rngulationa goveming activities of Lender, or that amount of rnverage required to pay the eums aecured by this Mortgege, whichever ie the grester. The insuranee carrier providing the insurance shali be chosen by Borrower subject to approval by l.ender, provided, that such approval shall not be unmasonably withhetd. All premiums on insurance policies shail be paid in the manner provided under paragraph 'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiee and renewals thereof ehall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form accepiable to I.ender_ I.enderehall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furnish to [.ender all renewal notices and all receipta of paid premiume. In the event of losa, Borrower shall give prompt notice to the ineurance carrier and Lender. Lender may make proof of loes if not made pmmptly by Borrower. ' ' Unless Lender and $otrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property € damaged. provided such restoration or repair ia economically [eaeible and the eecurity of this Mortgage is not thereby impaired. If such ~ reatoration or repair is not economically feasible or if the security of thie Mortgage would be impaired the inaurance proceeda ahall be applied ~ to the enma secured by thie Mortgage, with the excees, if any, paid to Borrovrer. If th~e Properiy ie abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offera to settle a claim for ~ insurance bene5ts. I.ender is authorized to collect and apply the inaurance proceeda at Lender's option either to reatoration or repair of the = Property or the aume eecured by this Mortgage. ~ Unleee Lender and Borrower otherwise agree in writing, any auch application of proceede to principal shall not extend or poatpone thedue ~ date of the monthly inaLallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property ia aoquired by I.ender. all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof reeulting from damage to Property prior to the eale or acquieition ehall paae to Lender to the eutent of the sums eecured by this Mortgage immediately prior to such aale or aoquiaition. 6. Preeervation and ~faintenance of Property; Leaeeholde; Condominuma; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the provieions of any lesee if thie Mortgage ie on a leasehold_ If thia Mortgage is on a unit in a oondominium or a planned~unit development, Borrower shall perform all of Borrovti er'e obligations under the declaration or covenanta creatingor governing the condominium or planned unit developmen~ the by-laws and regulationa o~ the condominium or planned unit development. and conatituent dceumenta. If a . condominium or planned unit development rider ia executed by Borrower and recorded togethet with this Mortgage, the oovenants and ~ agreements of auch rider shall be incorporated into and ahaU amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection ot Lender's Sectirity. If Borrower faile to perform the oovenant8 and agreements oontained in thia Mortgage, or if any r; action or proceeding is commenoed wvich materially aHecte Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforoement, or arrangementa or piooeedings involving a bankrupt or decedent, then I.ender at Lender'e option,upon ~ notice to Borrower may make such appeaianoes, diabnree auch suma and talce ench action as ia neoeeeary to protect L.ender's interest, inclnding, but not limited to. disbursement of reasonable attorney'e fees and entry upoa We Property to make npairs_ If L.euder required ~ mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower ehall pay the premiums required to maintain ~ such inaurance in effect nntil such time as the requirement for such ineurance termiaates in aocordance with Borrower e and Laide~s ~ written agreement or applicable Law. Borrower shall pey the amount of all mortgage inaurance piemiume in the~ manner provided under ~ paragraph 2 hereof. ~ Any amounts diaburoed by Lender persuant to thia peragraph with interest thereon, ehali beoome additional indebtedneea of ~ Borrower secured by this Mortgage. Unless Bonower and Lender agree to other terma of payment, euch amounte ehall be payable apon ~ notice from I.ender to $ormwer requesting payment thereof, and shall bear interest from the date of diabureement at the rate payable from time to time on outatan ~ ding priecipal under the Note unleas payment of interest at each rate would be oontrary to applicable law, in which ~ event snch amounts ehall bear intereet et the higheat rate permiasible under applicable law. Nothing contained in this paragraph 7, ahall ~ require I.ender to incur any ~penee or teke any action hereunder. ~ ~ ~ ~'~c~29~, enci ~J~ ~ , ~ _ - . _ - - ~ ~ ~ -