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HomeMy WebLinkAbout0499 Borrower and Lende~ covenant and agree as foUowa: . • 1. Peyment ot Principal and Interest. E3orrowe~ ahall promplly pay whrn due the principal uf and intereat un the indebtednexa evidenced by ihe Note, prepayment and late chargea as provided in the Note, and the principal of and interc~at on any I~ uture Advnnces aecured by this Mortgage. 2. ~tnds for Taxes and Inaurance. Subject to applicAble law or to a written w~iver by I.ende~, Burrower shall pay to I.ender un the day mo~thly inatallmente of principal and interest are payabte under the Nute, until the Note ia paid in fuU, a sum (herein "Funde"1 equal to one twelfth o[the yearly taxea and assesamenta which may attain priority over thia Mortqage, and ground rents un the Property, itAny, plus one twelfth of yearly premium installmenta for hazurcl insurnnce, plus onetweifth ofyearly pcemium inati?llments for mortgi?Ke inaurunce, if any, all as reasonably estimated initially and from time to time by l.ender on the bauis of a~sessments and 6ills and reusunable estimatea thereof. The ~nda shall be held in an inatitution the deposite or accounte of which are insured or guaranteed by a Federal or State agency (including Lender if Lender ia auch an inatitution). l.ender shall apply the Funds to pay said taxes, asaesamenta, insurance premiuma and ground renta. I.ender may not charge for eo holding and applying the Flinda, anatyzing said account, or verifying a~d compiling said • assesementa and bille, unleea I.ender paye E3orrower intereet on the Funda and applicable law permits C.ender to make euch a charge. Borrower and [.ender may agree in writing at the time of execution of this Mortqage that interest o~ the Funda ahall be paid to Borrower, and unlesa such agreement is made or appiicable law requirea anch intereet to be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the ~nds. I.ender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debita to t.he Funds and the purpose for which each debit to the ~nda was made. The Funda are pledged as additional security for the auma secured by this Mortgage. If the amount of the Funda held by I.ender, together with the future monthly insta) lmenfe of Funda payeble prior to the d ~e datee of taxes, aaeesamente, insarance premiuma and ground renta, shal! exored the amount required to pay said taxee, assesaments, inaurance premiums and ground rents as they fall due, such exceas shall be, at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly installments of ~nda. If the amount of the Funda held by l.ender ehall not be autficient to pay taxea, assessmenta, insurance premiuma and ground rents aa they fall due, Borrov?er shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aums eecured by this Mortgage, l.ender shall prompUy refund to Borrower any funds held by Lender. If under ~ paragraph 18 hereof the Property is sold or the Property is othetwise acquired by Lender, Ixnder shall apply, no later than immediately prior to the aale ot the Property or ita acquiaition by Lender, any ~linda held by Ixnder at the time of applicatiori as a credit ag~tinst the suma secured by thie Mortgage. 3. Application of Paymente. Unless applicable law provides otherwise, al) payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be epplied by l.ender firat in payment of amuunta paynble to Lender by Borrower 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. 4. Charges; Liena. Borrower shall pay all taxes, asxessments und other ch~rges, fines and impositions attributnble to the Pn~perty which may attain a priority over this Mortgage, and le~sehold payments orground rents, if any, in the mflnner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bortowershall promptly furnish to l.ender all notices o~amounts due under this paragraph, and in the event E3orrower shall make puyment directly, Borrower shall promptly furnish to I,ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over tl~is Mortgage; provided, that Borrower sha11 not be requited to discharge any such lien so long as I3orrowershall agree in writing to the payment ottheobligation secured by such lien in a manner acceptable to [xnder, or shaU in good faith contest such lien by, ordefend enfi~rcrment oFsuch lien in, leKal proceedings which operate to prevent the enforcement of the lien or forteiturn of the Property or any part thereuf. ~ 5. Hazard Ineurance. Borrower ahall keep the improvements now existing or hereafter erected on the Broperty insured against losa by fire, hazarde included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that l.ender ahall not require euch coverage amount exceeding the minimum, as may berequimd by state or federal regulationa governing activities of Lender, or that amount of cover~ge required to pay the sums secured by this Mortgage, whichever is the greater. i The insurance carrier providing the insurance shal! be chosen by E3orroMer subjeM to approval by Ixnder; pmvided, that such appro~•al j shall not be unreasonably withheld. AU premiums on insurance policies shall be paid in the manner pmvideci under paragraph'L hereof or, if ~ not paid in such manner, by Borrower making payment. Nhen due, directl~• to the insurance carrier. • ~ All insurance policies and renewals thereof ahall be in form acceptable co Lenderand shall include a standard mortgage clause in favor of and in form acceptable Eo Lender. Lender ahali have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipte of paid premiuma_ [n the event of loss, Borrower ahall give prompt notice to the insurance carrier and I.ender. I.ender may make proof of lose if not made pmmpdy by Borrower. Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shali be applied to restoration or repair of the Property damaged, pmvided auch restoration or repair is economisally feasible and the security of this Mortgage is not thernby impaired. If such restoration or repair is not economically feseible or if the secwity of this biortgage would be impaired, the insurance procecds shall be applied to the suma secared by thie Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to setde a claim for inaurance benefite, I.ender is authorized to collect and apply the inaurance proceeda at Lender'a option either to restoration or rnpair of the Property or the aums aecured by this Mortgage. ~ Unlesa I.endei and Borrower otherwise agree in writing, any auch application of proc~eeda to principal shall not extend or postpone the due date of the monthly inatallmenta referred to in paragFaphs i and 2 hereof or change the amount of snch installments. If under paragraph 18 ~ hereof the Property ia aoquired 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 aoquisition shall pasa to Lender to the extent of the aums aecured by this Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and Maintenance of Property; Leaeeholds; Condominums; Planned Unit Developmente. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaions of any lease if this Mortgage ia on a leasehold. (f this Mortgage is on a unit in a oondominium or a planned unit development, Elorrower ahall perform all of Borrower e obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and rnnstituent documente. If a condominium or planned unit development rider is executed by Borrower and rEcorded together with this Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreements of this'Mortgage as if the ~ rider were a part hereof. ' ,;t Protection of I.ender'e 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in this Mortgage, or if any ~ ~ action or proceeding ia rnmmenced which materially affecte Lender s intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then L.ender at L.ender'e option,upon ~ notice to Borrower may make auch appearancee, diaburee such eume and take auch actian ae ie neoeseary to protect L.ender a intereat, >a including, but not limited to, dieburaement of reaeonable attomey's fees and entry upon the Property to make repairs. If Lender required ~ mortgage inaurance. ae a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiume reqaired to maintain euch ineurance in effect until such time ae the requirement for auch ineurance terminatea in accordance with Borrower e and Lender'e written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner provid~d under ~ paragraph 2 hereof. ; My amounts diaburaed by Lender perauant to thie paragraph 7, with inteteat thereon, ahall become additional indebtedness of F3orrower eecured by thie Mortgage. Unlees Borrower and Lender agree to other terma of payment, euch amounts ahall be payable upon 4t notice from Lender to Borrower requesting payment thereof, aAd ahall bear interest from the date of diebureement at the rate pAyable from - time to time on outetanding principal under the Note unless payment of interest at such rate would be oontrary to applicable law, in which event such amounts ahall bear intereet at the higheat rate permieaible ynder applicable law. Nothing contained in thie paragraph 7, ehall requ'ue Lender to iacur any expense or take any aMion hernunder. ~ B001( f ACE ~ ~ R ~i~7 . ~ - - - . ~n . r ~ ~ ~ ~.v~~ ~ . y~~sz ~ ~ ``~r y! ' t,+j'.' ~ „v . ' ~ i w" Y ~oa': z~' k r~ ~ ~ _ ~c~"+.-.~~~-~