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HomeMy WebLinkAbout0644 E3oROwer and I.ender covena~t and agree aa follows: l. Psytaent of Piri~cipal and Intetest. Eiorrower ahall promptly pay when due the principal of and intereat on the indebtednees evidenced by the Note, prepayment and late charges as provided in the Nute, and the principat of and interest o~ any F uture Advancre secured - by this Mortgage. 2. F~nde for Tau[ee and Insurenoe. Subject to applicable law or ta a written waiver by I.ender, f3orruwer eh~ll pay tu I.enderon the day monthly 'snstallmente of principal and intereat are payable under the Note, until the Note ie paid in full, a aum Iherein "Funds"> equal to one twelfth of the yearly taxea and aaseaemerits which may attai~ priurity ove~ this Mortgage, and ground re~ta oo the Property, if uny, plua on~ twetfth of yearly premium instailmente for hazard ineurance, plus unetwelfth ofyearly premium installme~ts for mortgage innurance, itany, all ea reasonably eatimated initially and from time to tiR~e by I.ender on the bxaie of usaessmenta and bilis und reason~ble eatimates thereof. The Flinds ahall be held in an institution the depw+its or accounts of which are ineured or guaranteed by a Federal or State agency (including I.ender if l.ender ie auch an inatitution). l.ender ehall apply the Funds to pay said taxea, asaesamenta, inaurance premiuma and ground rente. Lender may not charge [or ao holding and applying the A`u~ds, analy_zing aaid account, or verifying and compiling said asaeeamente and biDs, unleas l.ende~ peys Borrower intereat o~ the Funda and applicable iaw permits Lende~ to make such a charge. Borrower and l.ender may agrree in writing at the titae of e:ecution of thia Mort~age that interest on the Fl~nde ahall be paid to Borrov?er, and unlesa euch agreement ie made or applicable law requiree auch interest to be paid, Lender ehall not be required to pay Borrower any interest or earninga on the Funds. [.ender shall give to Borrower, without charge, an annual accounting of the Funds ehowing credita and debite to the Funde and the purpoee for which each debit to the Funde wae made. The Funda are pledged ae additional security for the eums aecured by lhis Mortgage. I[the amount of the ~nde held by [.ender, together with the future monthly inatallmenta of Funds payable prior to the due datea of taxes, assesemente, insurance premiume and ground rente, shall excred ihe amount required to pay said taxea, asaessmenta, inaurance premiume and ground rents aa they fall due, euch exceas shall be, at Bo~rower a option, eilher promptly mpaid to Borrower or credited to Borrower on monthly inatalimenta of Funde. If the amount ot the Funde held by Lender ahall not be sufficient to pay taxea, asaessmenta, insurance premiume and ground renta aa they fall due. Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of all aums aecured by thie Mortgage, Lender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is olherwiae acquired by Lender, I.ender ahall apply, no Iater than immediately prior ta the aale of the Property or ite aoquieition by [.ender, any Funds held by Lender at the time of application as a credit againat the sums aecured by this Mortgage. 3. Application of Payments. llnlese applicable law provides otherwine, all paymenta received by I.ender under the Note and paragrapha 1 and 2 hereof ehall be applied by [.ender fimt in payment of amounts payable to I.ender_by Eiorrower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances_ 4. C6arges: Liene. Borrower shall pay all taxes, assesaments and other charges, finea and impositions attributable to the I'roperty which m~y attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pnymenl, when due, directly to the payee thereof. BorrowershaU promptly furnish to Lender all notices of amounta due under this paragraph, and in the event Rorrower shnll make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments_ F3orrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as I3orrower shaU agree in writing tu the payment of the obligation secured by such lien in a manner acceptable to Lender, or shali in qood faith contest such lien b3, ordefend enforcement of such lien in, legal prceeedings which operate to prevent the enforcement of lhe lien or forfeiture of the i'roperty or ~ny part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now exiating or hernafter erected on the Property inaured againat loss by fire, hazarda included within the term "e:tended rnverage," and euch other hazards as Lender may require and in such amounts and for such periods as I.ender may require; pmvided, that I.ender shaU not require such coverage amount exceeding the minimum, as may berequired by state or Cederal regalations goveming activities of l.ender, or that amount of coverage required to pay the sums aecured by this ltort{tage, whichever is the greater. The insurance carrier providing the insurance shall be chugen b~ Borrower subject to nppro~ al by Ixnder, provided, that such approval shall not be unreasonably withheld_ All premiums on insurance poliries shall he paid in the m:~nner pro~•ided under p:~rsiKraph 'l hereof or, if not paid in such manner, by E3orrov?er making payment, v?hen due, directiy to the insurance carrier. All inaurance policiea and renewals thereof ahall be in form acceptable to I.ender and shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lendershall have the right to hold the policies and renewais thereof, and Borrower shall promptly furniah to j i.ender all renewal noticea and all receipta of paid premiuma. In the event of laes, Borruwer ahall give prompt notice to tha inRUrance carrier ' and l.ender. Lender may roake proof of losa if not made promptly by Borrower. ~ Unless Lender and Borrower otherwiae agree in writing, insurance proceeda shall be applied to reatoration or repair of the Properiy ~ damaged, provided such restoration or rnpair is economically feaeible and the security of this Mortgage ia not thereby impaired. If such ~ reatoration or repait is not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeds ahail be applied r to the eama secured by thia Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila b ` reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the ineurance carrier offers to settle a claim for ~ inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or mpair o[ the Property or the auma secured by this Mortgege. ~ Unleas Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahall not extend or postpone the due ~ date of.the monthly installmenie referred to in paragrapha I and 2 hereof or change the amount of such instaliments. If under peragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds thereof resulting ftom damage to Property prior to the sale or acquieition ahall pasa to I.ender to the e:tent of the euma secured by this tiiortgage immediately prior to auch sale or soquisition. 6. Preeervetion and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrowershail keep ~ the Property in good repair and ahali not commit waste or permit impairment or deterioration of the Property and shall rnmply with the ~ proviaiona of any IeaBe if thia Mortgage ia on a leasehold. If this Mortgage ia on a unit in a eondominium or a ptanned unit development, - ~ Borrower shall perform all of Borrower'e obligations under the declazation or covenants creatingor governing the condominium or planned ~ unit developrnent, the by-Iawa and regulations of the condominium or planned unit development, and rnnatituent documenta. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with thie Mortgage, the oovenante and ~ agreements of auch rider ahall be incorporated into and shail amend and supplement the covenanta and aqreements of thia Mortgage as if the ~ rider wern a part hereoL ~ 7. Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thie MorEgage. or if any ~ action or procceding is commenced which materially affecte I.ender'e intereet in the Property, including, but not limited to, eminent domain, ` insoivency, oode enforcement, or arrangements or prnceedinga involving a bankrupt or deoe~ent, then I.ender at Lender's option,upon i notice to Barrower may make auch appearances, dieburse such eume and take euch action as ie neoeseary to protect Lender's intereat, - induding, bnt not limited to, diebureement of reasonable attorney B fe~ and entry upon the Property to make repairs. If L.ender required ' mortgage insurance ae a condition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain a` auch insurance in effect until auch time as the requirement for such ineurance terminatee in aooordance with Borrower's and I.ender'e written agrcement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereoL ~ My amounte diabureed by Lender perauant to thia paragraph 7, with interest thereon, ehall become additional indebtednesa of Borrower secured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon notice from Lender to Borrower requesting payment thereof, and shall besr interest from the date of disbureement at the rate payable from F' time to time on outstanding prtncipal nnder the Note unleee payment of intereat at euch rate would be oontrary to applicable law, in which ~ event such amounte ahall bear intereat at ~he highest rate permiasible under applicable law. Nothing rnntained in this paragraph ehall ~ requ'ue Lender to incur any expenee or teke any action herennda. ~ ~ ~ ~ 292 c~ 6~4 ~ BOC~K PA ~ • _ ~ ~"~'",,,~~6= ~ ~`r ! s ~~~2~"'r~`_~""~.° `7. ~^,~.+s _