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HomeMy WebLinkAbout0630 Borrower and t.e~der cuvenant and agree xe lolluwe: 1. Payment o[ Prlncipal and I~teraat. t;orruwe~ ahull prompdy pay when dur the principxl of and inte~eat on the indrbtrdnee?e . evidenced by the Note, prepayment and late chargea ue provided in the Note, and 1he principal of and intereat on any Future Advuncra aecured by thie Mortgage. 2. ~tnde [or Taxes and Ineurance. Subject to npplicab:e luw or to a written waiver by l.ender, Ii~~rrower ahtill puy tol.rndrr on the duy monthly inatallmrnts o[principa) and interest are payable under the Note, until the Notc ia puid in full, n aum Iherein "Funde") eyuul to on~ tweltth of the yea~ly taxee and aeaesamenta which muy att~~in priority over thia Mortg~e, und gruund rentx on the Piruprrty, if uny, plus one twelRh of yearly premium installmenta for hnzard insurance, plus unetwelfth ofyearly prnmium inatullmenta for murigage insurance, if any, all aa maeonably estimated initially and from time tu titrie by I.ende~ on the bi?aia of asac~sssments and bills nnd reaaon:?ble estima~tea thereot. The FLnds shall be held in an institution the depoaite or accounte ot which are inaured or guaranteed by a Federal or State agency (including I.ender if I.ender is auch an inatitution). l.ender ehall apply the Funda to pay said tazea, usaese?menta, insuran~~ premiums and ground rents. Lender may not charge for so holding and applying the Funda, analyzing eaid account, or verifying and compiling said asseasments and bille, unleas Lender pays Borrowe~ intereat on the Funda and applica~le law permits Lender to maite auch a cha~e. Borrower and l.ender may agree in writing at the time of execution of thia Mortgage that intereat on the Ftinds ahalt be paid to I3~rrowe~, and unlexa auch agreement ia made or applicable law requirea auch intereat to be paid, I.ender ehall not be reyuired to pny Borrower any intereat ur earninga on the F~nds. I.ender ehall give to Borrower, without charge, an annual accounting oithe Funds ehowing credife nnd debita to the Funds and the purpoee for which each debit to the Funda was made. The Funds are pledged as additionai eecurity Cor Ehe eume secured by this Mortgage. If the amount of the ~nda held by l.ender, together with the future monthly installments of Funds payable prior to the due dales of tanes, assessments, insurance premiums and gmund renta, ehall excYed the amount required to pay said taxes, assesaments, insurance premiume and ground renta ax they fall due, auch excesa ahall be, af Borrower's option, either promptly repaid to E3orrower or credited to Borrower on monthly installmenta of ~nda. If the amount of the Funde held by i.ender ahall not be autficient to pay taxea, assexaments, insurance premiuma and ground rents as they fall due, I3orrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to I3orrower requesting payment thereof. . Upon payment in full of all aums eecured by this Mortgage, L.ender ehall promptly mfund to Bc?rrower any funds held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired bp l.ender, I.ender ehnll apply, no later than immediately prior to the eale of the Property or ite soquisition by [.ender, any F~nds held by I.ender at the time of application as a credit againat the sums aecund by thia Mortgage. 3. Application ot Paymente. Unleae applicable law provides otherwise, all paymenta received by I.ender under the Note and Faragraphe 1 and 2 hereof ahall be applied by [.ender fimt in payment otamounts payable to Lender by BonoKer under parngraph 2 hereuf, then to intereet payable on the Note, then to the principal of the Note, und then to intereat and principal on any F'uture Advances_ 4. Chargea; Liena. Iiorrower shall pay all taxes, assessments and other charges, fines iind impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided ureder paragruph'2 hereo[or, if not paid in auch manner, by E3orrower making payment, when due, directly to the payee thereof. Horrowershall promptly fnrnish to l.ender all notices of amounts due under this paragraph, and in the event Borrower ahall make payment directly, E3orrower shall promptly furniah to [.ender receipta evidenc`ing auch paymenta. [3orrower shall promptly dischxrge any lien which hus P?~o+'~ty over thix Mortgage:provided, that Korrower shall not be requirecl to discharge any such lien so long as Borruwer 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 contest such lien by, or defend enforc~emrnt of such lien in, Ic~al pmceedinKs which operate to prevent the enforcement af the lien or forfeiture of the Property or any part thereuf. 5. Hazard Inaurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured against loss by fire, hazarda included within the term "eatended coverage; ' and ~uch other hazards as I.ender may require and in such amounta and for such periode as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by state or Cederal regulations governing activities of I.ender, or that amount of coverage required to pay the sums secured by thia hlortgage, whichever is the greater. - The insurance carrier providinq the insurance shall be chi~en by Eiorrower subject to ~pproval by I.ender; prr?vidrd, that such appro~•al shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pm~ idc~i under paraKr.iph Y hereof or, if not paid in such manner, by E3orrower making payment, w•hen due, directiy to the in~urance carrier. All insurance policies and renewals thereof ahall be in form acceptable to I.ender and shall include a standard mortg~?geclause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewais thereof, and t3orrower shall promptly furnish to ~.ender all renewal noticea and all receipta of paid premiums. In the event of losa. Borruwer shall qive pmmpt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prumptly by E3orrower_ ! Unleea Lender and Borrower otherwise agree in writing, insurance proceeds ehall be applied to restoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceede shall be applied fi to the sums eecured by this Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 days from the date notice ia mailed by I.ender to Borrower that the insnrance carrier of~ers to settle a claim for ~ e insurance benefite, I.ender ia authorized to collect and apply the insurance preceeda at I.ender s option either to restoration or repair of the Property or the suma secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of pruceeds to principal ahall not extend or postpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereotor change the ~monnt of auch installmenta. If under paragraph 18 ~ hereof the Property is aoquired by Lender, all right, tide and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquiaition shall pass W Lender to the e:tent of the sums se~ured by this ;4lortgage immediately prior to such eale or aoquiaition. ~ 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit De'velopmenta. Borrowershall keep the Property in good repair and shaU not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisions of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, [iorrower ahall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documenta. If a s condominium or plenned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenante and agreements of such rider shall be incorporated into and ahall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof_ ~ 7. Protection o! I.ender'e 3ecurity. If Borrower fails to perform the oovenants and agreements rnntained in thie Mortgage, or if any ~ action or proceeding is commenced which materially affects Lender'a intereet in the Property, including, but not limited to, eminent domain, ~ ~ ineolvenry, oode enforcement, or arrangements or prooeedings involving a bankrupt or decedent, then Lender at Lendei e option,upon ; notice to Borrower may make auch appearancea, diaburee such aums and take such action aa ie neceeeary to protect Lender'e interest, inclnding, but not limited to, disbursement of reaeonable attorney'e fees and entry upon the Property to make repaire. If I.ender reqaired mortgage ineurance ae a condition of making the loan secnred by thia Mortgage, Borrower ahall pay the premiuma required to maintain euch ineurance in effect until euch time ae the requirement for such ineurance terminatea in accordance with Borrower'e and Lender's writtet? agreement or applicable Law. Borrower ahall pay the amount of all mortgage insurance premiume in the menner provided under paragraph 2 hereof. Any amounte dieburaed by I.ender persuant to thie pa~agraph 7, with intereat thereon, ahall become addidonal indebtednesa of ' ~ I3orrower secured by thia Mortgage. Unlese Borrower and Lender agree to other terms of payment, such amounts ahall be payable upon notice from I.ender So Borrower requeeting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from time to time on outstanding principal under the Note unleea payment of intereat at auch rate would be oontrary to applicable law, in which Y>` event auch amounta shell bear intereat at the higheat rate permieaible under applicable law. Nothing contained in thie paragraph ahall ~ require Lender to incur any expense or take any action hereunder. ~r ~o~x ~9i~ ~ ~ ~ j. ~ _ - - - - - - _ _ ~ K. w.k'~:-~` _ , s._ ~ ~ . ~ ~ . ~ r,.-. ~ ~-~'c ~ ~ ~--f~, 34 , w:~*~'~' ' ~~,'~'c~ 'a' ~ ~ -~a.a,vs.~~~.w.~~..~~ r