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HomeMy WebLinkAbout0201 Borrower and I.ender covennnt and agree ae [oltowa: 1. Payment o! Prineipal and I~tereat. Fiorruwer shall promptly pay when due the principal of and interc~t on the indebtrdnexa evidenced by the Note, prepayment and latechargee as peovided in the Note, and the principal of nnd intrreat on any Future Advancea secured by ehis Mortgage. 2. ~tnde for Tasee and Ineurance. Subject to applicnble law or to a written waiver by l.ender, E3onower ahaii pay to Ixnder on the duy monthly installmenta of principal and interest are payable under the Note, until the Nute is pf~id in full, a aum lherein "Funds") equal to une twelfth oithe yearty tnxes and asseasments which muy aiti~in priority over this Murtgage, a~d gruund rentx un the Nroperly, if any, plas one twelRh of yearly p~emium instaliments fo~ hazard insurunce, plus onPtwelRh of yearly premium instuUments [or mu~lguge insurance, if any, ~ all as reaeonably eatimated initiully and from time to time by (.ender on the ~iais of nsaesamenis and billa ~nd reusonable estimates thereof. The ~Lnds shatl be hetd in an inatitution the deposita or a.~cou~ts of which are insured or guaranteed by a Federal or State aKency (including Lender if I.ender ia euch an institution). l.ender ehall apply the l~'unda to pay said tuxes, asaessmenta, inaurance premiuma and ground renta. Lender may not charge for eo holding and applying the ~nda, unalyzing said account, or verifying and compiling aaid asaeasments and bills, unleas l.ender paye Borrowe~ intereat on the Funds and applicable law permita I.ender to make such a charge. Borrower and Lender may agree in writing at the titae of execution of thia Mortga~e thst interest on the Funda ahull be paid to Borrower. and unleas such agreement is made or applicable law rc~uirea auch iniereat to be paid, l.eader shall not be ~required to pay Borrower any interest or earninga on the Funde. L.ender ehall give to Borrower, wilhout charge, an annual accuunting of the Funda showing credita and debits to the Funde and the purpose for which each debit to the F~nds wns made. The Funds are pledged as additional security for ihe sums aecured by this Mortgage. If the amount of the Funda held by I.ender, together with the future monthly inatxllments of Funda payable prior to the due dates of taxea, assesamente, inanrance premiums and ground renta, shall excred the amount required to pay said taxes, asaessments, insurance premiuma and ground renta aa they fall due, auch exceas ahall be, at Bo~rower s option, either prompUy repaid to Eiorrower o~ credited to Borrower on • monthly inatallments of F~~ds. It the amount of the Funde held by I~ender shall not be sufficient to pay taxes, assessments, insurance pre~niums and ground renta ae ihey fall due, Borrower shall pa~ to I.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to E3orrower requesting payment thereoL ' ' Upon payment in full of all sums secured by this MortRage, Lender ahall promptly refund to Borrower any funds held by I:ender. If under paragraph 18 hereof the Property is twld or the Property is otherwise acquired by I.ender, l.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by l.ender, any Funds held by~ I.ender at the time of application as a credit against the sums serured by this Mortgage. 3. Application of P~ymente. Unless applicable law provides othenvise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender first in payment of amounts pay~ble to l.ender by E3orrow•er under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 9. Charges; Liens. Borrower shall pay aU taxes, aasessments and otherchnrKes, fines and impositions attributable to the I'roperty which may attain a priority o~•e~ this Mortgage, fln~ leasehold payments or gmund rents, if an~, in the manner pruvideci under paragraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly tu the pnyee thereof. I3urrower shall promptly furnish to Ixnder all notices of amounts due under this ~+araKrapl~, and in the event Rorrower shall make payment directly, Borru~eer shall promptly furnish to_ I.ender receipts evidencing such payments. f3~rrower shzill promptly discharge any tien which has priority o~•er this htortgage; pro~•ided, that f3orrower shall not be required to discharge any such lien so lonR as 13orrower shall agrer in w ritinK to the p.~yment of the~bligation securrd by such lien in a manner-~?cc.eptable to [.ender, or shall in good faith rnntest such lien by, or defend enf~nrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part thereuf. 5_ Hazard Insurance. Borrower ahall keep the impruvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "eatended coverage," and auch other hazarda as lxnder may require and in aucl~ amounts a~id for such periods as Lender may require; provided, that (.ender shall not require such coverage amount exceeding the minimum, as may t?e required by state or federal regulatione governing activiteea of Lender, or that amount of coveruge required to pay the sums secured by this Mortgage, whichever is the greater. ~ The insurance carrier pro~•idink the insu~anm shalt be chosen I,v Borrower subject tu appru~•al h}• Ixnder, pm~ ided, that such approval ~ ! shall not be unre~sonably withheld. All pmmiums un insurance p~dicies shall be paid in the mannet pmvidecf under paraKraph `L hereof or, if ! not paid in such manner, b5• E3orrower making payment, w•hen due, ~firectl~ tu the insurance carrier. ~ ~ All inaurance policies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lendershall have the riqht to hold the poiicies and mnewals thereof, and Borrowersha}l promptly furnish to ~ i.ender a11 renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance camer and Lender. I.ender may make proof of losa if not made pmmptly by Borrower. Unless Lender and Borrower otherwise agrne in writing, insurance proceeda shali be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the aums secured by thia blortgage, with the excess, if any, paid to Borrower. lf the Property is abandoned by Borrower, or if Borrovver fails to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier of~era to setde a claim for inaurance benefits, Lender is suthorized to collect and apply the insurance proceeds at Ixnder's option either to restoration or mpair of the Property or the sums secured by thia 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 paragraphs 1 and 2 hereof or change the amount of such instaliments. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquisition ahal! pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to such sale or acquisition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep the Ptoperty in good repair and ahail not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndomin~um or a planned unit development, ~ Borrower sha11 perform all of Bonower's obligations under the declaration or covenanta creatingor goveming the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent dceuments. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenanta and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the oovenants and agreemente contained in this Mortgage, ar if eny action or procee~ing ie commenced which materially aKecte Lender'a intereat in the Property, including, but not limited to, eu?inent domain, = ineolvency, oode enforcement, or anangemente or proceedings involving a bankrupt or decedent, then Lender at Lendei e option,upon notice to Borrower may make euch appearancea, diaburee auch eums and take auch actiun ea is neceesary to prot~ect Lender e intereat, inclading, but not limited to, diebureement of reaaonable attorney e feee and entry upon the Property to make repaire. If Lender required - mortgage inaurance as a condition of making the loan secured by thie Mortgage. Borrower ehall pay the premiums required to maintain ~ euch ineurance in effect until auch time se the requirement for auch ineurance terminatea in accordance with Borrower'a and Lender s - writLen agreement or applicable I.aw. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner pror'ded under paregraph 2 hereof. ~ ~ _ My amounte diebureed by I.ender persuant to thie paragraph 7, with intereat thereon, ehall become additional indebtednese of Borrower eecured by Lhie Mortgage. Unless Borrower and Lender agree to other terms of payment, auch amounte ehall be payable upoq notice frpm Lender to Borrower requeating payment thereof, and ahall bear intereat from the date of diabursement at the rate payable from - time to time on outatanding principal under the Note unlesa payment of intereet at such rate would be oontrary to applicable law, in which - event auch amounts shall bear intereat at the higheet rate permieaible under applicable law. Nothing conta~ned in thie paragraph 7, ehall require Lender to incur any expenae or take any action hereunder: 1~ ~ :3 ~ - ; : . 2g4 r»~, f ~Qi _ ' ~ ~ _ _ - ~ _ _ ; ~ _ ~ ~e ~ ~,~x,..-- . ~ ¢F: