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HomeMy WebLinkAbout0341 Bom,wer and I.ender covenant e~d agree ae folluwe: 1. Payment o! Principal and lntereat. Aorrower ehell promptly pay when due the principal ot and inlereet un the indebtednexe evide~ced by the Note, prepayment and lale chargee as provided in the Note, and the principal uf and internst on any Future Advancea xecured by thia Mortgage. 2. E1nds tor Taxee and lntturanee. Subject to applicuble law or to a vrritten waiver by l.rnder, f~,rrower xhxll puy to l.r~der on the day monthly inatalimenta of principal and interret are payable under the Nute, until the Nute ia paid in full, a aum Iherei~ "Funde") eyual w one twelfth o[the yearly taxea and aasesamente which may attuin priority over thia Morigage, and ground rrnta on the !'ruperty, if uny, plus o~e twelfth of yearly premium inatnllme~ts foT hazard inau~ance, plus onPtwelfth ofyearly premium inatallmentei for mortgiige insurance, itAny, all as reasonably estimated initially and from time to titr~e by [.ender on the bt?sis of nsaeasments and billa nnd masonnble estimutea the~euf. The El?nds shall be held in a~ institution the depoaita or accounts of which ere ins~nd or guaranteed by a Federal or State agency (including I.ender if l.ender is euch an inatitution). Lender shall Apply the Funde to pay said taxea, aesesamenis, ineurence premiums and ground rente. L.ender mey not charge for eo holding and applying the Funde, analyzing said account, or verifying and compiling said asaesamenls and bille, unleea I.ender paye Borrower interest on the ~nde and applicable law permita I.ender to make euch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that intereat on the Funda shall be paid to E3orrower, and unlea~s euch agreement is made or applicable law reqairea such intereat to be paid, Lender ahaU not be requimd to pay Borrower any intereat or earnings on the Ftinde. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing credita and debite to the Funde and the purpoee tor which each debit to the Funde wae made. The Funds are pledged as additional security for the auma secured by this Mortgage. If the amount of the Fltnds held by L.ender, together with the future monthly inatallments of Funda payable prior to the due dates of taxea, aseesamente, inaurance ptemiuma and ground rente, ahall e:c2ed the amount required to pay said taxea, aaseasmente, insurance premiuma and ground rents as they tall due, such eaceas shall be, at Bo~TOwer a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nde. If the amount of the Funds held by I.ender ahall not be aufficient to pay taxea, assesaments, ineurance prnmiuma and ground rents as they fall due, Borrower ahall pay to Lender any amount neceaaary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requesting payment thereof. Upon payment in full of all auma eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by l.ender. If under paragraph 18 hereof the Property ie sold or the Property ie otherwise acquired by I.ender, l.ender ahall apply, no later than immediately prior to the sale of the Property or its acquieition by Lender, any Fnnda held by Lender at the time of npplication as a credit againat the suma secured by thie Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwise, ali payments received by I.ender under the Note and paragraphe 1 and 2 hereof ehall be applied by I.ender firat in payment of amounte payable to Lender by Borrow•er under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Fuaure Advances. Chargee; I.iene. Borrowe~ shall pay all taxes, assesaments and other charges, fines and impositions uttributable w the I'roperty which may attain a priority over this Mortgage, and leasehold payments or ground rnnts, if any, in the manner provided under paragr3ph 2 hereof or, if not paid in such manner, by f;orrower making payment, when due, directly to the payer thereof. Burrower shail promptly furnish to Lender atl notices of amounte due under this paragraph, and in the event Eiorrower shall make payment directly, E3orruwer shali promptly furnish to [.ender receipts evidencing such payments. Eiorrower shall promplly discharge any lien which has priority over this Mortgage; pmvided, that Borrower shall not be required to discharge any such lien so long as f3orrower shaU agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, urdefend enfurcement of auch iien in, leqal proceedings which operate to prnvent the enforcement o[ the lien o~ lorfeiture of the Pmperty or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvements now exieting or hereafter erected on the Property insured against toas by fire, hazarda included within the term "eYtended coverage," and auch other hazards as Lender may require and in such amounts and for such perioda ae Lender may require; provided, that L.ender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing adivities of I.ender, or that amount of rnverage requind to pay the suma aecured by this Mortgage, whichever is the greater_ The insurance carrier providing the insurance shall be chosen by Rorrower subjeM to approval by [xnder, pro~~ided, that such appru~•al shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hermf or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All insurance poliries and rnnewala thereof shall be in form acceptable to I.ender and shall include a atandard mortgage clause in favor of ' and in form acceptable to I.ender. Lender ahaU have the right to hold the policies and renewals thereof, and Borrower ehall promptly furnish to ! i.ender all renewal no6cea and all receipts of paid premiuma_ In the event of loss, Borruwer shall ~ive prompt notice to the ineurance carrier ~ and Lender_ Lender may make proof of loss if not made promptly by Borrower. Unlesa Lender and Borrower otherwiae agree in writing, insurance proceeda shall be appiied to reatoration or repair of the Property f damaged, provided such restoration or repair is economically feasible and the security of thiB Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the auma eecured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 daya from the date notice is mailed by Lender to Eiorrower that the insurance carrier of'fers to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the ~ Property or the aums secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poatpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquiaition shall pass to Lender to the extent of the sums secured by this ylortgage icnmediately prior tu auch sale or aoquisition. 6. Preservation and Maintenance of Property; Leaseholde; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaiona of any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borruwer ahali perform a11 of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit develapment, the by-lawa and regulations ot the rnndominium or planned unit development, and conatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia blortgage, the oovenants and agreements of such rider ahall be incorporated into and ahall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protectfon of Lender'e 3ecurity. If Borrower feile to perform the oovenanta and agreementa rnntsined in this Mortgage, or if any ~ aMion or proceeding ie commenced which materially affecta Lender'a interest in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangemente or pmceesiings involving a banlmipt or decedent, thea Lender at Lender's option,npon ~ notice to Borrower may make euch appearancea, diaburee euch aume and take euch action ae is necessary to protect I.ender'a intereat, including, but not limited to, diebureement of reseonable attorney'e fcee and entry upoa the Property to malce repairH. If Lender reqaired ~ mortgage ineurance ae a rnndition of making the loan eecvred by thie Mortgage, Borrower ahall pay the premiuma reqnired to maintain ~ such insuranoe in effect until auch rime as the requirement for auch ineurance terminatee in accardance with Borrowei s and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiuma in the menner provided under ~ paragraph 2 hereoL _ My amounte diebursed by Lender pereuant to this paragraph 7, with interest thereon, ehall become additional indebtedness of ` Borrower secured by thie Mortgage. Unleee Borrower and I.ender agree to other terme of payment, euch amounte ehall be payable upon ~ notice from L.ender to Borrower requeating payment thereof, and ehall bear interest from the date of diabursement at the rate payable from ~ time to time on outstanding principal under the Note unleae payment of interest at auch rate would be contrary to applicable law, in which event euch amounta ahall bear intereat at the higheet rate permiaaible under applicable law. Nothing rnntained in thia paragraph 7, shall require Lender to incur any e:penee or take any actid., hereunder. ~ - ~ ` ~y. ?92 341 ~ . ~ _ - -.s, r _ ~ : _ ~ w ~ ~ ~ : ~ ~ ~ ~ ~ ~~~4 ~ ~ _ ~ ~ ~;~~~~y .~f ~ ~ . _ ~ .~.z~~.~ _ ~ a ~ . ~ _ _