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HomeMy WebLinkAbout0998 • Y ~ Hotrower and I.ender covenant a~d agree ae follows: 1. Peymeat of Principal and Intere~t. Borrower ahall prr?mpdy pay when due the ptincipa! of and interest un the indebtedneas evidenced by the Note, prepayment and lata charges as pmvided in the Note, artd the principal of and interest on any Fl~ture Advancee eecured by thia Mortgege. 2. Ftiutd~ !or Taues and Insurance. Subject to epplicable law or to a writlen waiver by l.ender, F3orrower ahall pay to l.ende~ on the day ~ monthly installments of principal and intereat are payable under the Note, until the Note is paid in full, a aum Iherein "F unde") equal to one~ twelfth of the yearly taxes snd assesaments which may attain priorily over thia Murtgage, and ground renta on the Piroperty, itany, plue one twelRh of ~early premium installmenta for hazard ineurance, plua onetwelfth ofyearly premium inataUments fo~ mortgage inaurance, if apy, all se reaeonably eatimated initially and from time to tirr,e by I.ender o~ the basie of aaeeaements and billa and reaaunable eatimalea thereof. Tha FLr?ds ehall be held in an institution the depoeits or accounta of which an ineured or guaranteed by a Federal or Stete agency (in~luding Lender it Lender ia such an inatitution). Lender ehall apply the Funda to pay eaid taxes, uaeeaaments, ineurance premiume and ground rents. I.ender may not charge for so holding and applying the F~nds, analyzing said account, or verifying and compiling said asseesmenta and bills, unleee Lender paye Borrower intereat on the ~nda and applicable law permita l.ender to make auch a charge. Borrower and Lerrder may agree in writing at the time of execution of thia Mortgage that intereat on the F~nda shall be paid to Aor~ower, and unlese euch agreement ia made or applicable law requires auch.interest to be paid, Lender ehall not be required to pay Borrower any inteceat or eamings on the Ftinds. I.ender shall give to Borrower. without charge, an annual accounting of the Funda showing credite and debite to the Funds and the purpose for which each debit to the ~Lnde was made. The Funda are pledged as additional security for the eume aecured by this Mortgage. If the amount of the F~?nds held by I.ender, together with the future monthly inetallmenta of Funda payable prior to the due dates of taxea, aeeeeamenta, ineurance premiuma and ground rents, ahall exc2ed the amount rrquired to pay said taxee, assessmenta, insurarice premiume and ground renta aa they fall due, auch exceae ahall be, at Borrower'a option, either promptly repaid to Borrower or credited to Borrower on monthly inetallments of Funda. If the eunount of the Funda held by Lender shall not be euf~cient to pay taxea, xsaeasmenta, insurance preminma and ground reata ae they fal) due. Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 days fiom the date notice ie mailed by Lender to Borrower requesting payment thereoL Upon payment in fuU of all auma eecured by thia Mortgage, Lender ehall promptly refund to Borrower any [unda held by Lender. If cnder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, Lender ahall apply. no later than immediately prior to the aale of the Property or it8 aoquieition by I.ender, any ~nds held by I.ender at the time of application as a cre~iit against the aums eecured by thia Mortgage. . . • . 3. Application of Payments. Unlesa applicable law providea otherwiee, all paymenta rooeived by I.ef~der nndeT the Note and paragraphs l and 2 hereof ahaU be applied by Lender firxt in payment of amounta pay,able to Lender by Borrqwer 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, ~uture Advancee. 4. Charges; I.iene. Borrower ahall pay all taxes, assessments and other chargee, fine~ and imp~itions attributable to the ~roperty which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragruph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof Borrowershall pmmptly furniah to Lender aU noticea of amounts due under thie para~aph, and in the event Borrower shall make payment directly, E3orrower shall pmmptly furniah to [.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Aiort~age; provided, that Eiorrower shali not be required to diacharge any such lien so long as Eiorrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptabte to Lender, or ahall in good faith contest such lien by, or defend enforcement of such lien in, legal praceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereuf. 5. Hazard Ineurance. Botrower ahall keep the improvements now exiating or hereafter erected on the Property ineured againat losa by fire~ hazerde included within the term "e:tended rnverage," and euch otfier hazards aa Lender may require and in such amounts and for such periods aa Lender may require; provided, that I.ender ahaU not re4uire euch coveratre amount e:ceeding the minimum: as may be requir~l hy state or federal regulationa governing activities of Lender, or that amount of rnverage required W pay the suma secured by this Mortgage, whichever is the greater. • ' The insurance carrier providing the inaurance ahall he chosen by Borrower aubject to approval by I.ender, pmvided, that such approval ~ shall not be unreasonably withheld. All premiums on insurance policies shali be paid in the manner provided under paragraph 2 hereof or, if ; not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. i All inaurance poliri~ and renewala thereof shall be in form acceptable to L.ender and ehall include a standard mortgage clause in favor of ~ and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to ` i.ender all renewal notioes and all receipts of paid pteQ?iums. In the event otlosa, Borruwer ahall give prompt notice to the inaurance carrier ~ and Lender. L.ender may make proof of loea if not made prompdy by Borrower. Unlese Lender and Borrower otherwiae agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property ~ damaged, provided such reatoration or repair ia economically feasible and the security of this Mortgage is not thereby impaired. If such reatoration or repair ie not economicaUy feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied F to the sums aecnred by thie Mortgage, with the e:ceee, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower faila to G reapond to Lender within 30 days frem the date notice is mailed by Lender to Borrower that the ineurance carrier of~ers to settle a claim for s insurance benefite, Lender ia authorized to collect and apply the inaurance proceeds at Lender a option either to reetoration or repair of the ° Property or the eume secured by thie Mortgage. ~ Unless Lender and Borrower othetwiee agree in writing, any such application of proceeda to principal shall not extend or poatpone thedue ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amonnt of such inatallments. If undei paragraph 18 ~ hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any insnrance policies and in and to the proceeda ~ thereof resalting from damage to Property prior to the sale or ac~uiaition ahall pass to I.ender to the e:tent of the suma secured by this ~ Mortgage immediately prior to auch sale or aoquiaition. ~ 6. Preservatioa snd blaintenance of Property; Leaeeholde; Condominums; Planned Unit Developmente. Borrowera~all keep the Property in good repair and ehal) not commit weate or permit impairment or deterioration of the Property and shall rnmply with the ~ provieiona of any leaee if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligatione under the declaration or covenants creatingor goveming the condominium or planned 3 unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnstituent documente. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the oovenanta and agreementa of auch rider shall be incorporated into and ahali amend and supplement the covenants and agreementa of t6ia Mortgage as if the ~ rider were a part hereof. ~ 7. Protecttoa ot Lender's 3ecurity. If Borrower feile to perform the oovenants aad agreementa oontained in thia Mortgage, or if any ~ action or proceeding is commenced which materia~ly effecis Lendei s intereat in the Property, including, but not limited to, eminent domain, ~ insolvency. oode enforcement, or arrangements or prooeedinge invoiving a bankrupt or deoedenk then I.ender at Lender's option,upon notice to Borrower may make such appearanoes, diaburee such eums and teke such action as ia neoaeary to protect Lender's interest, t incl~ding, but not limited to, diabursement of reaeonable attorney'e feee and entry upon the Propedy to make repaire. If Lender required ~ mortgage insurance as a oondition of making the loan secured by thia Mottgage. Borrower shall pay the premiums required to maintain - such insarance in effect nntil auch time as the requirement for auch ineurance terminates in aocordance wiW Borrower'e and Lendes's writt~,m agreement or applicable Law. Borrower shall pay the amount of alt mortgage inaurance premiuma in the manner provided under paragraDh 2 hereof. ~ My amounts diabursed by Lender perauent to thie paragraph 7, with interest thereon, shell beoome additional indebtedneas of ~ Borrower secnred by this Mortgage. Unleee Borrower and Lender agree to other terms of peyment, auch amounts ahall be payable upon = notice from I.er?der to Borrower requeeting payment thereof, and ahall bear interest from the date of diabursement at the rate payable firom -a time to time on outetanding principal under the Note unleas payment of intereet at such rate would be oontrary to epplicable law, in which "~-r~~-'., event ench amounte ehall bear intereet at the higheat rate permiaeible under applicable law. Nothing oontained in this paragraph 7, ahatl ~ requira Lender to incur any e~penee or take any action hereunder. ~ - ~ f i :9 ~ F v ~ ' Sl~ ~/wi( t ~ , ~ - - ' ~ ~ : ` . ~ - ~ , „ ~ ~