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HomeMy WebLinkAbout0994 • . Borrower and I.ender covenant and agree ae follows: 1. Paymeat of Ptlncipal and lnterest. Borrower shall promptly pay when due the principal of and intereat on the indebtedneua evidenced by the Note, prepayment and late charges as providcxi in the Note, and the principal of and intereet on any I~ture Advancee secund by this Mortgage. ~ 2. b`unds forT~ee and Ineurance. Subjecl to applicable law or to a written waiver by I.ender, Horrower ahall pay to l.ender on the day monthly installmenta of principal and i~tereet are payable under the Note, until the Note ia paid in full, a aum (herein "~nds") equa! to one twelRh of the yearly taxee and aaeeeamente which may attain priority over this Moirtgage, and ground rents on the Property. if any, plua one twelRh of yearly premium inatallmenta for hazard inaurance, plus one-twelRh ofyeariy premium inetallmenta for mortgage inaurance. if any, ~ all as reasonably eatimated initially and trom time w time by l.ender on the basis of aeaeasments and billa and reasonable estimate8 thereof. The I~nds ahaU be held in an institutio~ the depoaita or accounte oi which are insured or guaranteed by a Federal or State agency (inetuding Lenda if Lender is such an institution). Lender shall apply the Funde to pay said taxea, aseesaments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Ftinds, analyzing eaid account, or verifying and compiling said aesesaments and bills, ualesa Lender pays Borrower intereat on the ~nds and applicable law permita I,ender to meke auch a charge. Borrower and [.ender may agree in writing at the time of e:ecvtion of thia Mortgage that inte~st on the ~nda ahall be paid to Borrower, and inlesa auch sgreement is made or applicable law require$ auch inLereet to be paid, Lender ehall not be required to pey Borrower any interest or earninga on the Fluids. I.ender shall give to Borrower, without charge, an annual accounting of the Funde showing credits and debita to the Funds and the purpose for which each debit to the ~nda was made. The Funda are pledged as additional eecurity for the aume aecured by thia Mortgage. If the amount of the F~nds held by Lender, together with the future monthly inataltments of Funda payable prior to the due datea of ta~cee, aeeeesments. inaurance premiums and ground rente, shall e~[c~:ed the amount required to pay said taxee, easesame~ta, inaurance premiuma and ground renta as they fall due, such e:ceas ahall be. at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of ~nds. If the amount of tlee Funds held by L.ender ehail not be eufficient to pay taaea, assessmente, insurance premiums and ground rente a8 they fall due, Borrower shap pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by Lende~ to Borrower requeating payment thereof. Upon payment in full of all euins secured by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia eold or the Rroperty is otherwiae acquired by L.ender, L.ender ahall apply, no later than immediately prior to the sale of the Property or its aoquiaition by L.ender. any Ftinda held by I.ender at the time of application as a crediE agninst the aume secured by thia Mortgsge. 3. Application of Payments. Ualeae applicable Iaw provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to I.ender 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. Chargea; Liene. Borrower ahall pay all ta:ea, aasessmenta and other rharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if uny, 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. Borrower shall promptly furnish to I.ender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to I.ender reoeipta evidencing such payments. Borrower shall promptly discharge any lien which has priority over thia Mortgage; pmvided, that Borrower shall not be required to discharge any such lien so lonq as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcemeni ofsuch lien in, tegal proceedinga w•hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoC. 5. Hazard Insurance. Borrow~ ahall keep the improvemente now exiating or hereafter erected on the Property insured againat toss by fire, hazards included within the term "eutended coverage," and auch other hazards as Lender may require and in such amounte and for such .rwricdx nw i nn~lor may rt+c~uire; ~marjrl~, t}~wt T~r~r~or aha]1 nnt rm~~irn g~~rh rnvPragP wmnunt P:~aer~ing;l~v mi~im~~m~ aa mn~. ~.n rs.~~,~Zlo.i hy state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the grester. The inaurapce carrier providing the insurance sha11 be chosen by E3orrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in surh manner, by Borrower making payment, when dne, directly to the insurance carrier. ~ All insurance policiea and renewals thereof ahall be in form acceptable to I.ender and ahall include a standard mortgageclauae in favor of and in form aooeptable to Lender. Lender ehall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furniah to ~ iJender all renewal notioea and all receipta of paid premiums. In the event of losa, Born~wer shaU give prompt notice to the insurance carrier ! and Lender. Lender may make praof of loea if aot made promptly by Borrower_ ~ Unless I.ender and Borrower otherwiee agree in writing, insurance proceeds shall be applied Lo reatoration or rnpair of the Property I damaged, provided such reatoration or repair ie economically feasible and the security of thie Mortgage is not thereby impaired. If such ; restoration or repair is not economically feasible or if ihe security of this Mortgage would be impaired, the inaurance proceeds shall be applied ; to the swns aecnred by thia Mortgage, with the e~cesa, if any, paid to Borrower. If the ProperEy is abandoned by Borrower, or if Borrower faila to i reapond to I.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier oPfers to aetde a claim for ` insurance benefita, Lender is authorized to rnllect and apply the inaurance proceeda at Lender's option either to restoration or repair of the ~ Property or the aums aecured by this Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any auch application of procecds to principal ahall not eatend or postpone thedue ` date of the monthly inatallmente referred to in paragraphe 1 and Z hereof or change the amount of such inatallments. If under paragraph 18 ~ hereof the Property ia acquired by Lender. all right, titie and intereat of Borrower in and to any insurance policiee and in and to the proceeda i thereof reaulting from damage to Property prior to the eale or acquisition shall pass to I.ender to the e:tent of the sume secured by thia ~ Afortgage immediately prior to such eale or aaquieition. 6. Preaervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not rnmmit waete or permit impairment or deterioration of the Property and ahall oomply with the ~ proviaiona of any leaae if this Mortgage ia on a leasehold. If thie Mortgage ie on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrowei s obligationa under the declaration or rnvenants creatingor governing the condominium or planned . ~ unit development, the by-laws and regulationa of the rnndomini~un or planned unit development, and conatituent documente. If a ~ condominium or planned unit developmrnt rider ia eaecuted by Borrow~er and recorded together with this Mortgage, the oovenant8 and - agreements of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Ptotection of Lender'~ Securitp. If Borrower faile to perform the oovenante and agreemente oontained in thia Mortgege, ot if any ~ action or proceeding is commenced which materially affecte Lender'e interest in the Property, induding, but not limited to, eminent domain, ~ insolvency. oode enforoemen~ or arrangements or proccedinga involving e bankru~ or decedent, then I.ender at Lender's option,npon - notice to Borrower may make such appearanoee, dieburee sach aums and take auch action ae ie neoeaeary to pmtect Lender'e interee~ `a inclading, but not limited to, disb~rsement of reasonable attorney's fcee and entry upon the Properiy to make repairs. If Lender required - mortgage insnrance as a condition of making the loan aecured by thie Mortgage Borrower ahall pay the premiume required to maintain - euch inaarance in effect antil such time as the reqnirement for such insurance temninstea in accordance with Borrowei'e and Lender's - ~ written a~eement or applicable I.ew. Borrower shall pay the amount of all rqortgage inaurance premiume in the manner pmvided under ~ pare8*aPh 2 hereof. My emounLs disbnreed by Lendet perauant to thia paragraph with interest thereon, ahell beoome additional indebtednesa of ~ - Borrower ~ecured by this Mortgage. Unleas Borrower and Lender agree to other terma of payment, euch emounta ehall be payable upon = notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date of diabursement at the rate payable from _z time to time on outetanding principal under the Note unless payment of intereat at auch rate would be oontrary to applicable law, in which =F event euch amounte shall bear interest at the higheet rate permiasible under applicable law, Nothing contained in this paragraph 7, shall e~ reqaire I.ender to incur any e:pense or take any ection henunder. s s ~ - ~ ~ . ; ~ . _ ~ ~ ~ " - , ; ~ _ - - - - - ~ ~ f ~ >-v-' a . , .t ~ ~ ~ ~~`~~r~;~' ~ ~,;:'z~.___~,:~-~.,.~~_~~~„ _ _ " `a ;f:~~... . . . .