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HomeMy WebLinkAbout0191 Borrower and [.ender covenant~and sgree ae follows: 1. Payment of Principal and Interest. Aorrower shall promptly pay when due the principal of and intereat on the indebtedneas ev~aenced by the Note, pnpayment end ?ate chargea as provided in the Note, and the principal of and i~tereet on any ~ture Advancea aecured by thie Mortgage. 2. E~nds forTauea and Insurance. Subject to applicable law o~ W a written waiver by [.ender, fionuwerahall pay tol.enderon theday monthly inatallmente o[ principal and interest are payable under the Note, until the Note is paid in fuli, a aum Iherein "Funde") equal to one twelfth oithe yea~ly taxes and asaessmente which may attain priority over th?g Moirtgage, and ground rents on the Property, if any, pl~a one- twelfth of yearly premium inatalimente for hazard insurance, plus onetwelflh ofye~rly premium inatalimenta for mortgage inaurance, if any, all us reasonably eatimated initially and from time to time by [xnder on the basia of asseasmenta and bills and reuaonable estimates thereof. 'tt~e ~nda eha11 be heW in an inetitution the deposits or accounta of which are insured or guaranteed by a Federal or State agency (including I.ender if Irnder ia auch an i~etitution). Lendes shat! epply the Funda to pay suid tuxes, asaesaments, insurance premiums and ground renta. I.ender may not charge tor eo holding and applying the Funde, analyzinB eaid account, or verifying and cumpiling said asseeementa and billa, unlesa I.ender pays Borrower intereat on the ~nda and applicable law permits l.ender to make auch a charRe. Borrower anti i.ender may agree in writing at the time of execution of Lhie Mortgage that interest on the ~nda ehall be paid to Borcower, and unlese such sg~eement ie made or applicable law requirea euch intereet W be paid, I.ende~ ehall not be requiced to pay Borrower any intereet o: earnings on the Funda. Lender shall give W Borrower, without charge, an annual accounting of the Funde showing credits and debits to the Fl~nda and the purpose for which each debit to the fi~nda was made. The Funda are pledged ae additional eecurity for the eume aecured by thia Mortgage. If the amount of the Ftinds held by Lender, together with the future monthly inatallmenta of Funds payable prior to 1he due datea of taxes, aseeeaments, inaurance premiuma and ground rente. ahall exc~ed the amount requined to pay eaid ta:ea, asaeaemente, inaurance premiums and ground rents as they fali due, anch e:cess shall be. at Bo~iower~e option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallmente of Funds. If the amount of the Funda held~ by I.ender shall not be aufficient to pay taxes, saeeaemente, insurance premiums and ground rents aa they fall due, Borrower shall pay fo Lender any amount neceasacy to make up the deficiency within 30 days from ihe date notice ie mailed by Lender W Borrower requeating payment thereof. Upon payment in full of aA sums secured by this Mortgage, I.ender efiall promptiy refund to Borrower any funds held by Lender. ICunder paragraph 18 hereof the Property ie aold or the Property ie otherwise acquired by [.ender, Lender ehall apply, no later than immediately p~rior to the sate of the Property or ita aoquiaition by I.ender, any Funda held by I.ender at the time of applicati9n as a credit against the aums aecuted by fhia Mortgage. ~ 3. Application of Payments. Unleae applicable law provides othetwise, a1! paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahatl be applied by Lender firet in payment of amounfa 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 Advances. 4. Charges; Liena. Borrowershali pay all taxes, assessments and otherchargea, fines and impoeitions attributable W the Property which may attain a priority over thie Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directty to the payee thereof. Borrower shalt prompUy fumish to I.ender all noticea of amounts due under thia paragraph, and in the event E3orrower shall make pay ment dirertly, Borrower ehall promptly furniah to Lender receipts evidencing such paymenta. Borrower shall promptly discfiarge any lien which has priority over this Mortgage; provided, that Borrower ahali not be required to diacharge any such lien so long as f3onrow er shall agree in writing to the payment of lhe obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of auch lien in, legal proreedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now ezisting or heteafter erected on the Property ineured against loas by fire, hazarda included within t6e term "e~ctended coverage; ' and auch other hazards as Lender may require and in anch amounts and for such perioda ae I.ender may requim; provided, that Lender ahal! not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing aMi~ztiea of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever ie the greater. The inaurance cxrrier providing the insurance ahall be chosen by Borrower subject to approval hy l.ender, pmvided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies sha11 be paid in the manner provided under paragraph 2 hereof or, if not Raid in such manner, by f3orrower making payment, when due, directly to the insurance carrier. j All insurance policiee and renewala thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage dauae in favor ot ; and in form aoceptable to Lender. Lender ehal! have the :~~ht to hold the policiee and renewals thereof, and Borrower shall promptly furnish to i~ender a11 renewal notices and al) receipts of paid pr~:miums. In the event of losa, Borruwer ahall give prompt notice to the insurance carrier ~ and Lende~. I.endet may make proof of losa if not made prompdy by Borrower_ Unleas I,ender and Borrower otherwise agree in writing, ineurance proceeda ahall be appiied to restoration or repair~of the Property ; damaged, pmvided auch restoration or repair ie economicaUy feseible and the aecurity of this Mortgage ia not thereby impaired. If euch ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied ~ to the auma eecured by thie Mortgage, with the excesa, if any, paid ta Borrower. If the Property is abandoned by Borrower, or if Borrower faile to E respond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier oftere to aettle a claim for ! inaurance benefita, l.ender ie authorized to collect and apply the inaurance proceede at Lender's option either W reatoration or repair of the ~ Property or the sums aecured by this Mortgage. ~ Unleae Lender and Borrower otherwise agree in writing, any such application of proceede to prinripal ahall not extend or poatpone the due ~ date ot the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of euch inetallments. V under paragraph 18 ~ hereof the Property is acquired by Lender, aU right, title and intereat of $orrower in and to any inaurance policiea and in and to the proceeds ~ thereof reauiting from damage to Property prior to the sale or ncquisition sha11 pass to Lender to the e:tent of the sume secured by thia ~ Mortgage immediately prior to such aale or aoquiaition. ~ ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Pianned Unit Developments. Borrower ehall keep ~ the Ptoperty in good repair and ahal) not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisione of any lease if thia Mortgage ia on a leaaehold. If thie Mortgage ia on a unit in a rnndominium or a planned unit devefopment, Borrower ahall perform all of Borrower's obligatione under the decleration or rnvenante creatingor goveming the condominium or planned ~ unit development, the by-lawa and regulationa of the condominiucn oi planned unit development, and conetituent documente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together wiih thia Mortgage, the oovenante and `x agreements olauch rider shall be incorporated into and shall amend and aupplement the rnvenants and agreementaof this Mortgage as if ihe ~ rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower faile to pertorm the oovenante and agreemente contained in thie Mortgage, or if any action or prooeeding is cwnsmenced which msteriaUy affecte Lendei s intereat in the Propeity, including, but not limited to, eminent damain, insolvency, oode enforcement, or arrangementa ot proceedinge involving a bankrupt or decedent, then Lendes at Lender's option,upon notice to Borrower may ma1~e euch appearanoes, diaburee such aums and taice euch action aa is neceasary to protect L.ender's intereet, including, bnt not limited to, dirbureement of reasonable attomey'e fees and entry upon the Property to make repaira. If I.endez required mortgage inenrai~ce as a condition of making the loan secured by thia Mortgage, Borrower ahaU pay the preminms required to maintain such insurance in effect until euch time es the requirement for auch ineurance terminatee in accordance with Borrower'e and Lende~a written agrcemeat or applicable Law. Borrower shall pay the amount of eU mortgage inewance premiume in the manner provided under : paragraph 2 hereoL . ~ My amounte disbursed by Lender persuant to ~hie paragraph with intereet thereon, ehall become additional indebtedness of Borrower eecured hy t}iie Mortgage. Unleas Burrower and Lender agree to other terme of payanent, sach amonnta ahail be payable upon ~ notice from Lender to Borrower requeeting payment thereof, a.~d ehali bear interest from the dete of diebureement at the rate payable from ' time to time on outatanding princ'spal under the Note uniesa payment of intereet at euch Tate would be oontrary to applicable law. in which event such amounta shall bear intereet at the highest rate permiasible under applicable law. Nothing contained in thia paragraph shall ~ require Ixnder ta incur any e:penee or take any action hereunder. ~ ~ t ' ll Q : 293 i~ ~ ~3 - _ ~ ~ ~ _ ~ ~ _ _ - - ~ : l = > ' ~ , ...~._~..F r