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HomeMy WebLinkAbout0211 E3orrower and I.ender coveoant and agree as followa: 1. Payment o! Principel and interest. E~rrc?wer shall promptly pay when due the principal ot and int~rest un the i~debtednesse evidenced by the Note, prepayment and late charges aa provided in the Note, and the principal of and intereal on any ~ture Advnnces aecured by this Mortgage. 2. F unda for Taxea and Ineurance. Subject to applicnble law or to a written wai~•er by I.endrr, tiorruwer ehall puy tu l.ende~ un the day monthly installmenta of principal and intercat are payable under the Note, until the Note ia p~id in full, u sum (herein "Funda"1 equal to on~ twelfth of the yearly tnxea and aasc~e?ementx which may attuin priority over thia Mortgnge, and ground rents un the Pruperty, if any, plus one twelfth of yearly premium installments for hnzard insurance, plus onetwrlRh ofyeurly premium installme~ts for mortguge insurance, if uny, ail as reusonably eatimated initinlly and frum time to time by l.ender on the bnsia ut asseasments and bills and ret+sunublr estimatc~x thereof. The ~nda ehall be held in an institution the deposifs or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if l.ender ia auch an inatitution). I.ender shall apply the Funds to pay said taxes, neseasmenta, inaurance premiums and ground nnte. I.ender may not cherge for so holding and applying the Funds, analyzinR said account, or verifying and compiling said asaeasmenta and bills, unlesa l.ender pays Borrower intetest on the Funds and applicable law permita I.ender to make auch a c•harge. E3onower and Lender may agree in writing at the time of execution of thia Mortgage that intereet on the h unds shall be paid to E3orrower, and unleas such agreement ia made or applicable law requirea auch intereat to be paid, Lender shall not be requirecl to pay Borrower any intereaE or earninga on the ~nde. L.ender ahall give to Borrower, without charge, an annual accounting of the F unds showing credits and debits to the Funds and the purpose for which each debit to the I~'unds was made. The Funda are pledged as additional security for the suma secured by this Mortgage. lf lhe amount of the FLndB held by l.ender, together with the future monthly installments of Funda payable prior to thedue dates ottaxes, aaseasmenta, inaurance premiums and ground rents, ahaU excred the amount required to pay said taxea, assessments, insurance premiuma and ground renta as they fall due, auch e:ceae ahall be, at Borrower's option, either promptiy repaid to Borrower or credited to Burrower on monthly inetallmente of Flinde. If the amount of the Funds held by l.ender.shall not be sufficient to pay taxes, assessmenta, insu~ance premiums and ground rents as they fall due, Borrower shall pay tn Lender any amount necessary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requesting payment thereoL ` Upon payment in full of all sums aecured by this Mortgage, Lender shall promptly rnfu[~~i, ~o Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.eM~d~er, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit aqainst the sums secured by this Mortgage. 3. Applieation of Paymenta. Unless applicable law pro~~dea othen+zse, all payments received by I.ender under the lvote and paragrapha 1 and 2 hereof shall be applied by I.ender firxt in payment of amounts payable to I.ender by E3orrow~er under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the IYote, and ihen tu interest nnd principal on any Future Advarims. 4. Charges; Liena. Borrower shall pay all taxes, ussessments and other charKes, fines and impasitions attributabie to the Property which may attain a priority over this Mortgage, and lensehold payments or gruund rents, if.iny, in the manner pro~•ided under par:?gr.~ph 2 hereuf or, if not paid in such manner, by E3orrower making payment, when due, directiy to the payee thereof. Rurmw~er shall promptly furnish to l.ender all notices of amounta due under this paragraph, and in the event Borrower shall make payment directly, Born~wer shal! prumptly furnish ta Lender receipts evidencing such payments. ~rrower shall promptty discharKe any lien which has priority o~~er this tilortK~Re; pmvided, that Borrower shall not be required to discharge any such lien so tong :L4 ~rrower shall agree in v?ritinR to the p.iyment of the ubligation secured by such lien in a manner acceptable to I.ender, or shall in gocxl faith contest such iien by, ordefend enforcement otsuch lien in, le~al proce~dinKs which operate to prevent the enforcement of the lien or forfeitum nf the I'ruperty or any part thereof. 5. Hszard Insurance. Borrower shall keep the improvements now existing or hemafter erected on the I'roperty insured ~gainst loss by fire, hazards incladed within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such perit~ds as Lender may require; provided, that L,ender shall not require auch coverage amount exceeding the minimum, as may be required by state or federal regulations governing adivities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chusen by Borrower subject to approval by I.ender, provided, that such appruval j shall not be unreasunably wiihheld. All premiums on insurance pulicies shal) be paid in the mannet pruvidcvl under p.ira~raph here~~f or, if ~ not paid in such manner, by Borrower making payment, when due, direcdy to the insurance carrier. ! All insurance policies and renewals thereof ehall be in form acceptable to Lender and ahall include a standard mortgaqe clause in favor of ~ and in form acceptable to Lender. l.ender shaU have the right to hold the policies and renewals thereof, and BorroKer shall promptly furnish to ~ i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Borrvwer shall give prompt notice to the insurance camer ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. Unleas I.ender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair ia economically feasible and the aecurity nf this Mortgage ie not thereby impaired. If such restoration or repair is not economicatly feasible or if the security of this Mortgage would be impaired, the insurance procreds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to L,ender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier oKera to settle a claim for . insurance benefits, Lender is authorized to coUect'and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the suma secured by this Mortgage. Unless Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not extend or poatpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments. 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 resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to auch eale or aoquisition. ~ 6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmenta. Borrowershail keep the Psoperty in good rnpair and ahall not commit waste or permit impairment or deterioration of the Prcperty and shall comply with the . provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, f3orrower shall perform all of Borrower e obligationa under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, .and constituent dceumenta. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the rnvenants and agreementri of such rider shall be incorporated into and shall amend and supplement the co~enants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the covenante and agreetnente contained in this Mortgage, or if any ~ action or procee~ing ie commenced which materielly affecte Lender's intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or anangemente or proceedinge involving a bankrupt or decedent, then L.ender at Lender'e option,upon ` notice to Borrower may make such appearancee, disburee euch eums and tal~e euch action ea is neceeeary to protect Lender'e inte~rest, ' including, but not limited to, dieb~reement of reaeonable attorney's fees and entry upon the Property to make repaire. If I.ender reqnired mo a e ineutance ae a condition of makin the loan secured b thie Mo rtg g g y rtgage, Borrower ahall pay the premiume reqnired to maintain ~ auch inaurence in eNect until euch time ae the requirement for euch ineurance terminatea in accordance with Borrower e and Lender'a - writien agreement or applicable Lew. Borrower ahall pay the amount of all mortgage insurance premiuma in tfie manner provided under paragraph 2 hereof. } My amounte dieburaed by Lender perauant to thie paragraph 7, with intereet thereon, ahall become additional indebtednees of Bomower eecured by thie Mortgage. Unless Bonower and Lender agree to other terma of payment, auch amounts shall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear intereat from the date of disbursement at the rate payable from j.~ time to time on outetanding principal under the Note unlesa payment of interest at snch rate would be contrary to applicable law, in which event such amounta shall bear interest at the higheat rate permissible under applicable law. Nothing contained in this paragraph 7, ahall require Lender to incur any expense or take any action hereunder. ~ ~ : 29 ~ 2 - - ~ 4 ~ . - ~ _ _ _ _ ~ _ ~ ~ _ ..:~~a.,_ _..?:ti,t .