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HomeMy WebLinkAbout0955 Borrowe~ and I.ender rnvenant and agrec a.+ followz. - 1. Peyment ot Principnl and lnterest. Aorrower ehull prompUy pay when due the principal uf and intereat un the indebtednrae evideuced by the Note, prepayment and Iate charge8 aa provided in the Note, and the principAl of and intereat on any F uture Ad~~ancea e~ecured by thia Mortgage. 2. ~nde for Taxes and Ineurance. Subject to applicable law or to a written waiver by l.ender, F3nrruw•er ahnll pay to l.ender on the day monthly installments o[ principal and intereat are payaLle under the Note, until the Note ia paid in full, a aum Iherein "Funda") equal to one twelfth of the yearly taxea and asaesamenta which may attain priority ove~ this Mortgage, and gruund rents un the E'ruperty, if any, plua une- twelfth of yearly premium inatallmenta for hazard inaurance, plus onetwelfth ofyearly premium inetallmrntx for murtgi+ge inaurunce, if any, all ea reasonably estimated initielly and from time to time by I.ende~ on the basis of nssexamentx and bills nnd res?sonnble ratimntes thereof. The Fl~nda shall be held in an institution the depoeits or aceounte of which are i~sured or guaranteed by a Federal or State agency (including L.ender if Lender ia auch a~ inatitution). [.ender ahaU apply the Funde to pay said taxee, aeseaxments, ineurunce premiums and ground rents. I.ender mey not charge tor so holding and applying the ~nds, analyzing said accou~t, or verifying and compiling eaid aeaesaments and bills, unleea I.ender paya Borrower intereat on the ~nda und applicable law permita I.ender k, make such a charge. Borrower and L.ender may agree in writing at the time of e:ecution of this Mortgage that intereet on the Funda shall be paid to Born~wer, and unleas auch agrcement ie made or applicable law requirea such inte~eat to be paid, Lender ehall not be required to pay Borrower any intereat or earnings on the F~nde. Lender ahall give to Borrower, without charge, an annual accounting of the Funde ahowinq credits and debits to the Funde and the purpose for which each debit to the ~nde waa made.l'he Funda are pledged as additional aecurity for the eums aecured by this ' Mortgage. I[the amount of the Hlinda held by I.ender, together with the futum monthly installmenta of Funda payable prio~ to the due dates of taxes, aseeasmente, ineurance premiuma and ground mnta, ahall excxd the amount required to pay eaid taxea, aseessmenta, inaurance premiums and ground rente ae they fall due, euch exceas ahall be, at Borrower's option, either prompdy repaid to l3orrower or credited to Borrower on monthly installmente of fi~nde. I! the amount of the Funda held by l.ender shall not be aufficient to pay taxea, assessments, insurance premiums and ground rents ae they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender b Borrower requeating payment thereof_ Upon payment in full of all eume secured by this Mortgage, I.ender ahall promptly refund to Borrower any funda held by Le~der. lf under paragraph 18 hereof the Property ia sold or the Properiy is otherwiae acquired by Lender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ita acquisition by Lender, any Funds held by l.ender at the time of application as a credit against the suma secured by thie Mortgage. 3. Application ot Payments. Unleae applicable law provides otherwise, aU payments received by Lender under the Note and paragrapha 1 and 2 heteof ahall be applied by Lender first in payment of amounta 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 interest and principal on any Future Advnncea. a. Charges; I.iena. Borrowershall pay all taxes, asseasments and othercharges, fines and impositiona attributable W the Property which may attain a priority over this Mortgage, and lensehold payments or ~mund rents, if nny, in the ma~nner provided under para~rt~ph'l hemc~f or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Bormwer ahall promptly furnish to Ixnder all noticea of amounts due under this paragraph, and in the event Borrower shaU mnke payment dirertly, Born>wer shali promptly furniah to I.ender receipta evidencing such payment8. Borrower shail promptly dischargr any lien which hns priority over this ~fortgage; provided, that Borrower shall not be required todischarge any such lien so long as E3orrowershall aKrne in writing to the pnyment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, ordefend enforcement of such lien in, lrgal proreedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5_ Hezard Insurance. Borrower shall keep the improvementa now existing or hernafter erected on the Property insured against loas by fire, hazarda included within the teTm "extended coverage," and auch other hazards aa Lender may require and in such amounts and for such periods as I.ender may require; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activitiee of Lender, 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 hy 13c,rrower subject to approval by I.ender, pn,vided, that such ~pproval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner pn~videci under paraKraph 'L hereof or, if not paid in such manner, by E3orrower makinq payment, when due, directly to the insurance carrier. All insurance policiee and renewals thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clause in fa~•or of ~ and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptiy furnish to i.ender all renewal notices and all ~ec~eipte of paid prnmiuma. In the event of loss, Borrower shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of lose if not made promptly by F3orrower. , Unleae Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or rnpair of the Property f damaged, provided such restoration or repair ia economically feasible and the aecurity of this Mortgage ia not thereby impaired. If such ~ reatoration or repair is not economically feasible or if the aecurity of this Mortgage wouid be impaired, the inaurance proceeda shall be applied ' ~ to the suma secured by this Mortgage, with the eaceas, if any, psid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier ofTers to settle a claim for ! inaurance benefite, Lender is authorized to collect and apply the insurance proceeds at I.ender s option either to restoration or repair of the ; Property or the sums secured by this Mortgage. ~ Unless Lender and Borrower otherwiae agree in writing, any such application of proceeda to principa,l ahall not extend or postpone the due ~ date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta_ If under paragraph IA ~ hereof the Penperty is aoquired by Lender, all right, tide and interest of Borrower in and to any ineurance policies and in and to the proceeds thereof reaulting hom damage to Property prior to the sale or aoqu~sition shall pass to Lender to the extent of the aume secuied by this Mortgage immediately prior to such aale or aoquiaition. 6. Preeervation and Maiatenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and aha11 not commit waste or permit impairment or deterioration of the Property and ahall comply with Lhe proviaiona of any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, F3orrower ehall perform all of Borrower's obligations under the declaration or covenants creatinRor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the covertants and ~ agreements of such rider shall be incorporated into and shall amend and aupplement thecovenants and agreementa of thia Mortgaqe as if the rider wern a part hereof. ~ 7. Protection of Lender's Security. If Borrower failB to perform the c~venants and agreements oontained in this Mortgsge, or if any ~ aMion or proceeding is rnmmenced which materially afCecte Lender's intereet in the Property. including, but not limited to, eminent domain, ~ ineolvency. oode enforcemen~ or anangemente or proccedings involving e banl~rupt or decedent, then I.ender at Lender's option,upon ~ notice to Borrower may make auch appearances, disburse auch aums end take euch action as is neceeaary to pmtect Lender's interest, - including, but not limited to, diebursement of reaeoneble attomey e fcea and entry upon the Property to make repaira. If I.ender reqaired ~ mortgage inaurance as a condition ot meking the loan aecured by this Mortgage, Borrower ahall pay the premiuma required to maintsin ; euch iasurance in effect until euch time as the requirement for auch ineurance terminatea in accordance with Borrower's and Lendei e ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragraph 2 hereof. ~ My amounte diaburaed by I.ender perauant to thie paragraph with intereat thereon, ehall beoome additional indebtedneae of F3orcower eecured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, euch amounte ehall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear intereet from the date of diabursement et the rate payable ftom ~ time to time on outstanding principal under the Note unlese payment of intereet at such rate would be oontrary to applicable law, in which ~ event euch amounts shall bear intereet at the highest rate permienible under applicable law. Nothing contained in thie paragraph 7, ehall ' ~ reyuire Lender to incur any expenee or take any action hereunder. ~ - ~ ~ ~ - a~~K 291 P~~~ 9~7 - - - - . _ ~ - ~w ~ ~ ~ _ ..,i'..~v::~:':