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HomeMy WebLinkAbout0986 ~ _ ~ Borrower and I.ender covenant and agree ue tollowa: 1. Peyme~t ot Principal s~d I~tereet. Borrower ahall pn,mptly pay when due the principal uf And interedt un the indebtednees evidenced by the Note, prepayme~t and late chargee aa provided in the Note, and the pri~cipal of and iotereat on xny Future Advancee Becured by this Mortgage. . 2. ~nde for Ts:ee and Insurttnce. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay to I.ender un the day monthly instaltments of principai and inten~t am payable under the Note, until the Note is paid in full, t~ sum lherein "[~'unde") equal to one twelRh of the yea~ly taxee and as.~c~xmenta which may attaio priurity over thia Murtgage, und ground rents on the I'roperty, if Any, plus one twelfth of yearly premium installmenla for ht~zard inaurance, plua onetwelfth ofyeurly premium inatnllmenta for murtguge inxurAnce, if any, ail aa reaeonably eatimated initially and firom time to time by l.ender on the twxie of asseaemrnte und Lillx and reiisonable relimatca thereof. ~ The Elinds ahall be held in an inatitution the deposite or accounte of which are ineured or guaranteed by a Federal or State agency (including Lender if L.ender is auch an institution>. I.ender shall apply the Funda to pay said taxea, axaessmente, inaurance premiume and qround rente. Lender may not charge for eo holding and applying the Fnnde, analyzing said account, or verifying and compiling said aseeasmenta and biUs, unlese I.ender paye Borrower intemet on the Funda and applicable lavr permita Ixnder tn make such a charge. l3orrower and Lender may agree in writing at the time of e:ecution of thie Mortgage that interest on the Fundx shall be paid to E3orrower, and unleas such agreement ie made or applicable law requires auch intereat to be paid, l.ender ahall not be required to pay Borrower any interest or eaminge on the Ftinda. I.ender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debite to the Funds and the purpose for whieh each debit to the ~nda was made. The Funda are pledged as additional security for the suma secured by thie Mortgage. If the amount of the ~Lnde held by Lender, together with the future monthly inslaltmenta of Funds payable prior to lhe duedatea o[taxes, aseeeamente, insurance premiuma and gc~ound renta, ahall excred the atnount required to pay said taxea, asaesaments, insurance prnmiuma and ground rents aa they [all due, auch e:cesa ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on moathly iaetalimente of ~nde. If the amount of the Funda held by Lender ahaU not be aufficient to pay tauea, assessments, inaurance premiums and ground renta as they fall due. Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by I.e~der to Borrower requeating payment /hereof. Upon payment in full of all euma secured by this Morigage, Lender ahall prompUy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or ite acquisition by L.ender, any Funds held by Lender nt the time of application as a credit against the suma secured by this Mortgage. 3. Applieation ot Paymenta. Unlesa applicable law provides otherwise, all paymenta received by Lender under the Note and pamgrapha 1 and 2 hereof ahall t?e applied by [.ender first in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intemet payable on the Note~ then to the principal of the Note, and then to intereat and principa) on any Future Advancea. 4. Charges; Liens. Borrowershall pay ull taxes, assessments and other charges, fines xnd impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormvrer shall promptly furnish to l.ender all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Eiorro~+er ahall promptly fumish to I.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Rorrower ahall not be required to discharge any such lien so long as F3orrower shull agree in writing to the payment of the obligution secured by such lien in a mnnner acceptable to l.ender, or shall in good faith contest such lien by, ordefend enforcement of surh lien in, legal proceedings which operate to prevent the enforcement of ttie lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now exiating or hemafter erected on the Property insured aKainat loss bv fire, hazarda included within the term "extended coverage; ' and auch other hazards as [.ender may require and in such amounta and for such periods as Lender may require; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federai regulationa governing activitiea of I.ender, or that amount of coverage required to pay the sums aecured by this Mortgage, ' whichever is the greater. ~ . i The insurance carrier providing the insurance shall be chosen by f3urrower subject tu apprc?val by I.ender, provided, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner pm~•ided under puraRraph 'l hereof or, if ~ nat paid in such manner, by Borrower making payment, K~hen due, directly to the insur:tnce camer. ' All inaurance policiea and renewals thereof shall be in form acceptable to Lender and shall include a atundard mortgage clause in favor of ~ and in form acceptable to Lender. L.ender shall have the right to hold the policies and renewala thereof, and Borrower shall prompdy furniah to ~ i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Bornuwer shall give prompt notice to the insurance carrier ~ and Lender_ I.ender may make proof of loss if not made promptly by Borrower. € Unlese I.ender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the aecurity of this Mortgage is nut themby impaired. lf such restoration ostepaii is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the suma secure~ by this Mortgage, with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to ~ respond to L.ender within 30 days from the date notice ia mailed by [.ender to Barrower that the inaurance carrier ofiers to settle a claim for ~ insurance benefita, Lender is authotized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair of the ~ Property or the sums secured by thie Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due ~ date of the monthly installments referred to in paraKraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 1R ~ herenf the Property ia acquired by [.ender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reanlting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the aums secured by thie ~ Mortgage immediately prior to auch sale or acquiaition. 6. Preaervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or permii impairment or deterioration of ihe Property and ahall comply with the ~ pmvisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower B obligationa under the declaration or covenanta creatinRor governing the condominium or planned ~ anit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documenta. It a ~ condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of euch rider shall be incorporated into and ahall amend and supplement the covenanta and agrerments of this Mortgage as if the ~ rider wem a part hereoL ~ Protection of Lender's 3ecurity. If Horrower faile to perform the oovenante and agreementa contained in thie Mortgage, or if any ' attion or proceeding ie commenced which materially affecte Lender'e intereet in the Property, induding, but not limited to, eminent domain, - insolvency, aode enforcement, or arrangementa or proceedinga involving a bank?vpt or decedent, then L.ender at L,ender'a option,upon - notice to Borrower mey make euch appearances, diaburse such eume and take auch action as ie neoesaary to protect Lender's interest, ~ inclnding, but not limited to, diebursement of reasonable attomey e feee and entry upon the Property to make repaire. If I.ender required _ mortgage insurance aa a condition of making the loan secured by thia Mortgage, Borrower shatl pay the premiume required to maintain ~ such ineurance in. effect nntil euch tune as the requirement for euch ineurance terminates in accordance with Borrowei s and I.ender's ' written agteement or applicable Law. Borrower ehal) pay t}ie amount of all mortgage inaurance premiuma in the manner provided under paragreph 2 her~oi. ~ My amounte diebureed by Lender pereuant to this paragraph 7, with intereet thereon, ehall become additional indebtednese of ~ Borrower secured by thia Mortgage. Unleae Borrower and I:ender egree to other terme of payment, auch amounts ehall be payable upon rY notice from Lender to Borrower r uestin eq g payment thereof, and ahall bear intereat from the date of diebureement at the rate payable from ~ time to time on outetanding principal under the Note unleee payment of intereat at such rate would be oontrary to applicable law, in which ~ event such emounte ehall bear intereet at the higheat rate permiaeible unc~er applicable iaw. Nothing rnntained in thie paragraph 7, ahall ' require Lender w incur any e:pense or take any action hereunder. ~ ~ ~ ~ . ~ _ F,JtkM ~ FaGE t~Q~ . ~ ~ ~ ~~,r~:~.~.~;,~;~~s:;.~_~ . . w~ 'c~-' ~