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HomeMy WebLinkAbout0507 a . F3orrower and Lender covenant and agree ae followe: 1. ~ Peyment of 1'~rincipel and Intereet. Borrowe~ ahall promptly pay when due the principel of and intereat on the indebtedneae evidenced by the Note, prepayment and latecharges as provided in the Nvte, and Ihe principal of and intereaton any Future AdvAncea secured by this Mortgage. 2. ~tnda tor T~utee and Ineurance. Subject to applicabie law or to a writlen waiver by I.ender, [3orrower xhxll pay to l.ender un the day monthiy installments ot principal And interest are puyabie under the Note, until the Note ia paid in full, a sum (herein "Funds") equal to one~ twelfth of the yearly taxes and assrssments which may attain priority o~•er thia Mortgage, and ~u~d rents on the Piroperty, if any, plus one twelRh of yearly premium inatallmente for hazard inaurance, plusonelwelfth ofyearly premium inatallments for mortKage insurance, itany, aU as reasonably estimated initially and from time to ti~r~e by l.ender on the basia of asaesaments and bills and reuROnable eatim~tes thereof. The ~nds ehall be held in an inatitution the depoeita or accounte of which are insured or gunranteed by a Federal or State agency (inctuding Lender it Lender is auch a~ inatitution). Lender shall apply the Funds to pay said taxes, asaesamenta, insurance premiums and ground rente. Lender may not charge for eo holding and applying the ~nda, analyzing eaid account, or verifying and compiling said esseasmente and bille, unlesa I.ender paya Borrower intereat on the F~nda and applicable law permits l.ender to make such a charge. E3orruwer and Lender may agree in writing at the time of execution of this Mortgage that intereat on the Funda ahall be paid to Borrower, and unlesa euch agreement ia made or appiicable law requirea such interest to be paid, Lender ahnll not be required to pay Borrower any interest or earninga on the ~Lnde. L.ender shail give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to the Funds and the purpose for which each debit to the Funds was made. The Funda are pledqed as additional security for the aume secured by this Mortgage. If the amount of the F~nda held by Lender, together with the futurn monthly inatallmenta of Funds payable prior to the due datea of taxes, asaeasments, inaurance premiums and ground rents, ahall e:cred the amount required to pay said taxea, asaessments, insurance premiums and ground rents as they fall due, auch e:ceas shall be, at Borrower's option, either prompily repaid to Borrower or credited to Borrower on monthly inetallmenta of Funda. If the amount of the Funds held by Lender ahall not be auf~icient to pay taxes, assesamenta, insurance premiuma and ground renta as thev ful! due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days fram the date notice ie mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of all auma eecured by this Mortgage, I.ender ahall promptly refund to Borrower any funda held by [.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, l.ender shail apply, no later than immediately prior to !he eale of the Property or its acquiaition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Paymenta. Unlese applicable law provides otherwise, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof shall be applied by I,ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereai payable on the Note, then to the principal of the Note, and then to intetest an~i principal on any Future Advances. 4. Charges; Liens. Borrower shaU pay all taxes, aavessmenis nnd other churges, fines flnd impositions attributable t~, the Property which may attain a priority over this Mortgage, and leasehold puyments orground rents, if nny, in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly turnish to [.ender a~ll notices of amounts due under this para~Craph, and in the event E3c+rrower chall mlke pa~•ment directly, ~3orrower shall promptly furnish to l.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that E3urrower shall not be required to discharge any such lien so long as Rorrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [.ender, or shall in good faith cuniest such lien by, ordefend enforcement of such lien in, lc~;a) proceedings which operAte to prevent the enforcement of the lien or forfeitum of the E'mperty or any part thereof. 5. Hazard Ineurance. Borrower shali keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and auch other hazsirds as Lender may require and in auch amoants and for such periods as I.ender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by state or federai regulations governing ad:vities of I.ender, or that amount of coverage requir~ed to pay the suma secured by this Mortgage, . whichever ie the greater. i The insurance carrier providing the insurance shali t?e chosen by Borro~er subject to appro~~al by Ixnder, provided, that such approvai ; shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paraRraph `L hereof or, if ! not paid in such manner, by l3orrower makinR payment, when due, directly to the insurlncr carrier. ~ All inaurance policiea and renewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of F and in form acceptable to L.ender. Lender shall have the right to hold the policies and renewala thereof, and Borrower shall promptly furniah to ~ i.ender all renewal noticea and all receipts of paid prnmiums. In the event of loss, E3orrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if nat made pmmptly by Borrower. ; Unleas Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or repair of the Properfy ~ damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thernby impaired. If such y reatoration or repair is not economically feasible or if the security of this Mortgege wouid be impaired, the insurance proceeds ahall be appiied £ 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 fails to y reapond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to reaturation or repair of the ~ Property or the sume aecared by thie Mortgage. - ~ Unless Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal shall not extend or postpone the due ~ date of the monthly installmente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments_ If under paragraph 18 ; hereof the Prvperty ia acquired by Lender, all right, title and intereat 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 pasa to Lender to the extent of the auma secured by this ~ hlortgage immediately prior to auch sale or aoquisition. ~ 6. Preservation and Mainteaance of Property; Leaseholde; Condominuma; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ? Barrower shall perform all of F3orrower'a obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and conatituent documente. If a r; condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and agreements of such rider shall be ir?corporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereoL ' 7. Protection of I.ender'e Security. If Borrower faile to perforna the oovenanta and agreemente contained in this Mortgage, or if any action or proceeding ie commenced.which materially affecte I.ender'e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrnpt or decedent, then Lender at Lender'e option,upon notice to Borrower may make euch appearancee, diaburee such sums and take such action aB ie nece~eary to protect Lendei s intereet, -3 including, but not limited to, diabursement of reaaonable attorney e fees and entry upon the Property to make repaire. If Lender required _ mortgage ineurance ae a condition of mal~ing the loan secured by this Mortgage, Borrower ehall pay the premiuma required to maintain - ench ineurance in effect until such time ae fhe requ'uement for auch ineurance terminates in accordance with Borrower e and Lender's written agreement or applicable Law. Borrower ahall pay the amount of sU mortgage insurance premiums in the manner provided under ~ paregraph 2 hereof. My amounts diaburaed by I.ender persuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneae of Borrower eecured by thia Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounte ahall be payable upon " notice from Lender to Borrower requeating payment thereof, and shall bear intereet from the date of diebursement at the rate payable from time to time on outstanding prinripal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event auch amounts ahall bear intereat at the higheHt rate permiaeible under applicable law. Nothing contained in thie paragraph ehall ~ i_~ require Lender to incur any expenae or. take any action hereunder. u ~ ' _ S : ~O~ _ : J~~ .~3 ~ , : r - - . . - s - - - - - a ~ : ~ ~ ~ y ~ d 1. _ _ _ ~r . c~" r"''s. - - " '.:1 ~ ' y'.: ~ g ' _ ~ ..,~`'~s~~-«e,+~~~,~~ . ;