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HomeMy WebLinkAbout0511 E3orrower nnd I.ender covenant and agree as followe: 1. Payment o! Principal and Interest. Born~we~ ahal! promptiy pay when due the principal of and intereut on the indebtednesa evidenced by the Note, prepaycnent and latecharges aa provided in the Note, and the principal of and intereat on any Future Advances secureci by this Mortgage. 2. I~ltnda tor Tasee and Ineurance. 3ubject to applicAble luw or to a written waiver by I.ender, f;orruwer ahaU pay to l.ender on the day . monthly inatallments of principal and interest are payable under the Note, until the Nute ia paid in full, n aum (herein "Fu~ds") equal to one~ twelfth of the yearly taxes a~d ussesamenta which may attain priority over this Mortguge, and ground ~ents un the Property, if any, plus one twelfth of yearly premium inatallmenta fo~ hazard inaurance, plus on~twelRh of yearly premium installments for mortgt~ge insurance, if any, all ae reasonably eatimated initinlly and from time to lime by l.ender on the basie of assessments and biUs and rensontible eslimates thereof. The ~nds eha11 be held in an institution the deposita or accounta af which are insured or guaranteed by a Federal or State agency (including Lender if L.ender ia auch an inetitution). I.ender ahall apply the Funda to pay said taxee, asaesamenta, insurance pmmiuma and ground mnte. l.ender may not charge for eo holding and.applying the Funde, analyzing said account, or verifying and compiling said nssesamenta and billa, unleas I.ender paya Borrower intereat on the F~nds and applicable law permits Lender to make auch a cha~ge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that intereat on the Funds ahaU be paid to Horrower, and unieas such agreement ie made or applicable law requiree auch intereat to be paid, Lender ahall not be required to pay ~3orrower any interest or earninga on the F~nde. L.ender ehall give to Borrower, withoUt charge, an annual accounting of the Funda showing credits and debita to the Funds and the purpoae for which each debit to the ~nds wae made. The Funds are pledged as additional security for theaume aecured by this Mortgage. If the amount of the ~nda held by Lender, together with the future monthly instaliments of Funds payable prior to the due dates of taxes, assessmenta, inauranoe premiuma pnd ~ound renta, shal) excred the amount required to pay said taxea, assessments, inaurance prnmiuma and ground renta ae they fall due. auch e:cesa ahall be, at Boirower'a option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmente of ~nda. If the amount of the Funda held by Lender ahall not be sufticient to pay taxes, assessments, insurance premiums and giround rente as they fall due, Borrower shall pay to I.ender any amount neceasary to malce up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereot. Upon payment in fuU of all aums secured by this Mortgage, Lender shall promptly rnfund to Borrower any funds held by Lender. If under paragraph 18 hereof the P~+operty is sold or the Property is otherwise acquired by Lender, I.ender ahall apply, no }ater ihan immediately prior to the sale of the Property or its acquiaition by Lender, any Funds held by Lender at the time of application as a credit againat the suma secured by this Mortgage_ - 3. Application of Paymente. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahal! be applied by I.ender first in payment of amow~ta payable to I.ender by Borrow•er under paragraph 2 hereof, then to intereat payable on lhe Note, then to the principal of the Note, and then to interest and principal on any Future Advances, d. Charges; Liena. Borrowe~.shnil pay all tnxes, as.sessments and other charges, fines and impositions nttribulable to the Properly which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under par:~graph 2 hereof or, if not paid in such manner, by F3orro~ver making puyment, when due, dire, tly to the payee thereof. Burrower shall promptl~ furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall pmmptly furnish to Ixnder receipts evidencing such pay ments. I3orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that ttorrower shxll not be required to discharge any such lien so long as Borrower shall agree in writing ta the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in Kood faith contest such lien by, or defend enforcerr.ent of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeit~rn of the Properiy or any part thereof. ' 5. Hazard Inaurance. Borrower shall keep the improvementa ~ow existing or hemafter erected on the Property insured against loss by fire, hazarda included within the term "eatended co~•erage; ' and such other hazards as Lender may require and in such amounts and for such periods se Lender may require; pro~~ided, that Lender shall not require s~ch coeerage umount exceeding the minimum, as may berequired by state or federal regulations governing adivities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. • - The insurance carrier providing the insur~nce shall be chosen by Borrower subject to appro~•al by l.ender, pmvided, that such appro~•al shall not be unre~sonably withheld. Alt prnmiums on insurance policies shall be paid in the manner pm~~idecl under paragraph 'l herec~f or, if not paid in such manner, by I3orrower makin~ payment, w•hen due, direcdy to the insurance camer. All insurance policies and mnewals thereof ahall be in form acceptable to Lender and shall include a standard mortgage clause in favor of ! and in form acceptable to L.ender. I.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ i.ender al} renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance camer i and [.ender. Lender may make proof of loas if not made promptly by Borrower. s Unless Lender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to restoration or repair of the Property r damaged, pmvided auch reatoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied t to the sums secured 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 I.ender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier oKers to settle a claim for k insurance benefite, L.ender is authorized to collect and apply the insnrance proceeds at Lender's option either to resEoration or repair of the ~ Property or the aums 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 installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by Lender, ali right, title and interest of Botrov?er in and to any inaurance policies and in and to the proceeds ~ thereof reeulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the extent of the sums aecured by this ` Mortgage immediately prior to such eale or aoquiaition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominuma; Planned Unit Developmenfe. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisione of any lease if this b'lortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, fi Borrower ahall perform all of Borrower's 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 documenta. If a ~ condominium or planned unit development rider is executed by ~3orrovrer and recorded together with thia Mortgage, the oovenant8 and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the ~ rider were a part hereof. ix 7. Protection of I.ender's Security. If Borrower faile to perform the oovenante and agreemente oontained in thie Mortgage, or if any action or prceeeding ie commenoed which materially affecte Lender e intereat in the Property, including, bvt not limited to, eminent domain, y insolvency. oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lendei e option,upon :3 notice to Borrower may make auch appearancea, disburee auch sume and take such action aa is neceseary to protect Lender's intereat, - including, but not limited to, diebureement of reasonable attorney's fees •:nd entry upon the Property to make repaire. If Lender tequired mortgage inaurance ae a condition of making the loan secured by thia Mort~age, Borrower ahall pay the premiume required to maintain auch ineurance in effect until auch tune as the requirement for euch inaurance terminates in accordance with Borrower'e and Lender'e written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insuranoe premiume in the manner provided under paragraPh 2 hereof. . ' My amounte disbureed by Lender pereuant to thie paragraph with intereat thereon, shall become additional indebtednesa of Eiorrower eecured by thia Mortgage. Unlese Borrower and Lender agree to other terma of payment, such amounte ehall be payable upon _ notice from Lender to Borrower requesting payruent thereof, and shall bear interest from the date of diebureement at the rate payable from _ time to time on outstanding principal undeT the Note unleas payment of intereet at such rate would be rnntrary to applicable Isa, in which s~ event ench amonnta ahall bear intereat at the higheat rate permisaible under appiicable law. Nothing contained in thia paragraph 7, ahall n require Lender to incur any expenae or take any action hereunder. ~ ~ ~ ~ = ~ A p 294 _ Pat;~ ~ ~ 5~.i - - - _ , ~ ~ ~ ~ _ ~ - ~ ~ a ~ r _ - ~ ~ , , , ~.w.