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HomeMy WebLinkAbout0951 • ~ Rorn~wer and l.ender covenant and agrc•: aa foll.:ws: l. Payment ot Principal and Intereat. E3orrower ehall promptly pay when due the principal ot and interest on the indebtednese evidenced by the Note, prepayment and late charges as provided in the Note, and the principal oland inte~ealon any M uture Advaocee secured by this Mortgage. 2. FLnds fur Twzes and Ineurance. Subject to applicablr law or to a written waiver by I.endrr, Borrower ehull pay to l.ender on the day monthly inatallmenta of principal and intereat are payable under the Note, until the Note ie paid in full, a sum (he~ein "F~nda") eyual to one ewelfth of the yearly taxes and asseaamenta which may attain priority over thia Mortga~te, and ~und rente on the t'iruperty, if any, plua one twelfth otyearly premium inatallmenta [or hazard ineurance, plua unetwelfth ofyearly premium instalimenta for morlgage insurance, if any, all ae reasonably eatimated initially and from time to time by [.ender on the basie of assessments and billa end reaiaunuble eatimAtes thereof. The FLnda ehall be held in an inatitution the deposita or accounts of which are insured or guaranteed by a Federal or 3tate agency (including Lender if Lender is such an institution>. l,ender ehall appty the Fu~da to pay eaid taxee, asaeeaments, inaurance premiums and Kround rents. I.ender may not cherge [or eo holding and applying the ~nda, analyzing said account, or veri[ying and compiling eiuid asseaaments and bille, unlees I.ender paye Borrower interest on the Funda and applicable law permits Lender to make auch a charge. Borrower end I.ender may agree in writing at tl~e time of execution ot thie Mortgage that inte~eat on the ~nda ahall be paid to f3orrower, and unleae auch agreement ie made or applicable law requirea such intereat to be paid, Le~der ehall not be required to pay Borrower any interest or eaminge on the ~nds. l.ender ehall give to Borrower, without charge, an annual accounting of the F unde ahowing credita and debits to the Funde and the purpose for which each debit to the Ftinds was made. The Funda are pledged as additional security for the auma secured by thie Moirtgage. If the amount of the Funda held by l.ender, together with the future monthly installmenta of Funda payable prior to the due datra of taxea, asseasments, inaarance premiume and ground rents, ahaU exceed the amount required to pay eaid taxea, asseauments, inaurance premiuma and ground rents as they fall due. euch e:ceae ehall be, ~t Borrower a option, either promptly repaid to Borrower or credited b Borrower on monthly installmenta of fi~nds. If the amount of the Funda held by I.ender ehall not be sutficient to pay taxes, asseeamenta, insurance premiums and ground rents as they fall due, Borrower ahall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of all suma secured by this Mortgage, Lender ahall prompdy refund to E3orrower any funda held by Lender. lf under paragraph 18 hereof the Property ie sold or the Property is otherwiee acquired by [.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or its soquiaition by Lender, any Mlinda held by l.ender at the time of application as a credit against the suma secured by this Mortgage. 3. Applieation ot Paymeate. Unless applicable law pro~zdes otherwise, all paymenta received by Ixnder under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to I.ender by Borrower under paragraph `l hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Futum Advances. 4. Chargea; Liene. Borrower ahall pay al) taxea, assessments and other rharges, fines and impositions attributable to the I'roperty which may attain a priority over this Mortgage, and leasehald payments or ground rents, if any. in the manner provided under psiragraph 2 hereof or, if not paid in euch manner, by E3orrower making payment, when due, directly to the payee thereot Borrow~er shaU pmmptly furnish to I.ender ~~Il noticea of amounta due under this paragtaph, and in the event Borrower shall m~ke payment directly, Rorrower shall promptly furnish to I.ender receipts evidencing auch paymente. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment uf the obligatiun secured by .uch lien in a manner acceptable to Lender, or ahall in good taith contest such lien by, ordefend enforcement of such lien in, legal procecdings w•hich operate to prevent the en[orcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Botrower shall keep the improvementa now existing or hereafter erected an the Property inaured against losa by fire, hazatda included within the term "eatended rnverage," and auch other hazards ae Lender may require and in such amounta and for such periods aa Lender may requue; provided. that Lender shall not require such rnverage amount exceeding the minimum, as may berequired by state or federal regulations goveming activities of Lender, or that amount of coverage required to pay the aums secured by this Mortqage, w•hichever is the greater. The insurance carrier providing the inaurance shall be chosen by Korrower subject to approval by I.ender, pnn~ided, that such ~pproval shall not be unreasonably writhheld. All premiums on insurance policies shall be paid in the manner provideci under paragraph `L hereof or, if not paid in such manner, by Borrower makinq payment, when due, directly to the insurance carrier. All insurance policiea and renewala thereof ahall be in form acceptable to I.ender and ahall include a standard morfgage clause in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower shall pro:nptly furniah to i.ender all renewal noticea and all receipta of paid premiuma. In the event of losa, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of losa if not made prompdy by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeda ahali be applied to reetoration or repair of the Property damaged. provided auch restoration or repair ia economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or repair is not eoonomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds ahall be applied to the auma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to L.ender within 30 days from the date notice ie mailed by Lender to Borrower that the inaurance carrier oft'ers to settle a claim for j insurance benefita, L.ender is authorized to collect and apply the insurance proceeda at Lender's option either to restoration or repair of the ; Pmperty or the auma secured by thie Mortgage_ ~ Unleae Lender and Borrower otherwise agree in writing, any auch application of pra~eeda to principal ahall not extend or postpone the due i date of the monthly installments referred to in paragrapha I and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the pro~,~eeds j thereof resulting from damage to Property prior to the eale or acquiaidon.shall pass to Lender to the extent of the aums secured by this ~ ~iortgage immedistely prior to such sale or aoquiaition. i 6. Preservation end Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrowershall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ; provisione of any lesee if this Mortqage ia on a leasehold. If thie Mortgage is on a unit in a oondominium or a planned unit development, ~ E3orrower ahall perform all of Borrowet's oblsgationa under the declaration or covenanta creatinqor governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documenfs. If a ~ ,:ondomini~un or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the covenants and :+greementa of such rider shall be incorporated into and ahali amend and aupplement the covenanta and agreements of thia Mortgage as if the ; rider were a part hereof ` 7. Protection ot Lender's 3ecurity. If B'orrower faile to perform the oovenante and agreemente rnntained in thie Mortgege, or if any ~ action or proceeding is rnmmenced which materially affecte Lender e intereet in the Property, including, but not limited to, eminent domain, ` ineolvency, oode enforcement, or arrangemente or proc~eedinge involving a baniwpt or deoedent, then Lender at Lendei s option,upon s notice to Borrower may make auch appearanoes, disburae such sums and take auch action as ie neceseary to protect Lender's interest, - inclnding, but not limited to, disbureement of reasonable attomey'e feee and entry upon the Property to meke repaire. If Lender required ti mortgage ineurance as a condition of ineking the loan eecured by thie Mortgage. Borrower shalt pay the preminms required to maintain ~ auch insurance in effect until such time as the requirement for such insurance terminatee in aocordance with Borrower's and Lendels ; written agreement or applicable Iaw. Borrower ehall pay the amaunt of all mortgage ineurance premiume in the manner provided under „ paragraph 2 hereof. ~ Any amounta diabureed by Lender persuant to this paragraph 7, with intereet thereon, ehall bernme additional indebtedneee of ~ E3orrower secured b thia Mo e Unlese Borrower and Lender a y y rtgeg . gree to other terms of payment, euch amounts ahall be payable upon " notice from I.ender to Bor~+ower requeeting payment thereof. and shall bear interest from the date of diaburaement at the rate payable from ~ time to time on outetanding principal under the Note unlees payment of intereat at euch rate would be oontrary to applicable law, in which ~ event auch amounts ehall bear intereat et the hi hest rate :i g permiaeible under applicable law. Nothing contained in this paragreph 7, ehall ~ require Lender to incur any expenae or take any action hereunder. ~ ~ ~ r= p - ~ g~o~ 29~ 943 ~ ,p ~ - - . _ . : - - - - - - - - ~ ~a~ F ~ ~ i".w +:YT ~m ~2' ~ ~,.n~ Y4~ ~'i:=:.',': ' - -