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HomeMy WebLinkAbout0519 . - ~ . ~ - 0 Borrower a~d Lende: covenant and agree as followe: 1. Payment o[ Prtncipal and tntereat, f3orrower ehal) promptly pay when due the principal of and interest on the indebted~rae evide~ced by the Note, prepayment and latechargea as provided in 1he Note, a~d the principal of and intereat on any Future Advances aecured by this Mortgage. 2. Ftinds for Taxes and Insurance. Subject to applicable law or to a written waiver by I.ender, I3orruwer ahall pay to I.ender on ?he dny monthly installments of principal and intereat are payable under the Note, until the Note ie~ paid in full, n sum (herein "Funda") equal to one twelfth of the yearly tau~ and asaeaementa which may attuin priority over this Mortgf?ge, and ~ound rents on the Property, if any, plua one- twelfth of yearly premium installments for hazard inaurance, plus o~etwelfth ofyearly premium instalimenta for mortguge i~aurance, if any, all as reasonably eatimated initially and from time to time by l.ender on the basis of assesame~ta and bille and reasunnble estimates thereof. The FLnde ahall. be held in an institution the depoaite or accounts of which ere inaured or guaranteed by a Federal or State agency (including Lender if Lender is such an inBtitution). Lender shnll appiy the Funda to pay said taxes, asaeasmenta, ineurance premiuma and ground rents. Lender may not charge for eo holding a~d applying the ~nde, analyzing said account, or verifying and compiling said asaeaements and billa, unlesa l.ender pays Borrower intereat on the Funda end applicable ~aw permits I.ender to make auch a charge. Borrower and I.ender may agree in writing ~it the time ot e:ecution of thie Mortgage that intereat on the Funda ahall be paid to Borrower, and unleas euch agreement ie made or applicable law requires such intereat to be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the FLnde. L.ender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debita to the ~nde and the purpoee for which each debit to the Funda veaa made. The Funda are pledged as additional security Cor the aums secured by this Mortgage. If the amount of the Ftinds held by I.ender, together with the future monthly inetallmente otFunds payable prior to the due dates of ta~cea, aseeasmente, inaurance premiuma and ground rents, shall exct~ed the amount required to pssy said taxes, assesaments, insurance premiuma and ground renta ae they fall due, such excese shall be, at Borrower'e option, either promptly repaid to Borrower or credited to Born,wer on monthly inatallments of ~nda If the amount of the Funde held by Lender ahall not be sufficient to,pay taxea, assesamenta, insurance premiums and ground rente se they fall due, Borrawer ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to ~3orrower requeating paymenl thereof. Upon payment in full of all auma secured by this Mortgage, Lender ahall promptly rnfund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ie otherwise acquired by Lender, Lender ahafl apply, no later than immediately prior to the sale of the Property or ita aoquisition by Lender, any Funds held by L.ender at the time of application as a credit against the sums aecured by this Mortgage. 3. Applieation of Peymenfs. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender fimt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any FuEure Ad~~unces. 4. Cbarges; Liens. Borrower shall pay al) tuxes, assessments and other rhurges, fines and imposilions atiributable to the Property w•hich may attain a prioiity over this Mortgage, and leasehold p~yments or ground rents, if any, in the manner provided under paragraph `L hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Ixnder all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrow•er shall promptly fumish to [.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the pRVment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part ihereof. 5. Hazard IneuraAce. Borrower ahall keep the unprovementa now existing or hernafter erected on the Property insured against loss by fire, hazar~e included within the term "e:tended coverage," and euch other hazards as Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender ahall not requirn such coverage amount exceeding the minimum, as may be required by atate or federal regulations governing activities 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 insurance shall be chosen by Borrower.subject to appro~•al by I.ender, provided. that such approval ~ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pro~•ided under parakraph 'L herev~f or, if i not paid in such manner, by Borrower making payment, when due, directly to the insurance carr6er. ~ . All inaurance policiea and renewals thereof shall be in form acceptable to Lender and shaU include a atandard mortgage clause in favor of ~ and in form acceptable to Lender. Lender shall 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 premiums. In the event of loss, Bornower shall give prompt notice to the insurance carrier and I.ender_ L.ender may make proof of loas if not made promptly by Borrower. ~ Unlesa I.ender and Borrower otherwiee agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property ~ damaged, provided auch reatoration or repair ie economically feasible and the security of this Mortgage is not thereby impaired. If such reatoration or repair ie not eeonomically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied to the auma secared 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 Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the insurance carrier of'f'ers to settle a claim for insurance benefits, I.ender ie suthorized to collect and apply the insurance proceede at I.ender e option either to restoration or repair of the Pmperty or the auma eecured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application otproceeda to principal shall not extend or postpone the due date of the monthly inatallments referred to in paragrapha I and 2 hereof or change the amount nf euch installmente. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof reeulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the e:tent of the sums aecured by this ~ Mortgage immediately prior to such sale or aoqniaitiQn. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower sh$11 keep the Property in good repa'u and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaions of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit devebpment, Borrower ehali perform all of Borrower's obligatione under the declaration or covenanta creatingor governing the rnndominium or planned ~ unit development, the bylaws and tegulationa of the condominium or plan~ed unit development, and conatituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and agreementa of such rider shall be incorporated into and ahall 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 fails to perform the oovenante and agreementa contained in thia Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender'e interest in the Propetty, including, but not limited to, eminent domain, ~ insolvency, aode enforcement, or arrangemente or p~dings involving a banknipt or decedent, then Lender at Lender'e option,upon notice to Borrower may make euch appearanaee, disburee auch aume and take such action ae is neoeseary to protect Lender's intereet, including, but not limited b, dieburaement of reaeonable attorney'e feee and entry upon the Property to make repaire. If Lender required j mortgage ineurence as a rnndition of making the loan eecured by thie Mortgage, Borrower ahall pay the premiums required to maintain ench ineurance in effect until such time ae the requirement for euch iaeurance terminatee in aocordance with Borrower e and Lende~s written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner provided under ~ peragraph 2 hereof. :4 My amounta disbureed by Lender pereuant to thie paragraph 7, with intereet thereon, shall beoome additional indebtedneaa of ` Borrower eecured by thie Mortgage. Unleea Bonower and L,ender agree to other terms of payment, euch amounte shall be payable upon _ notice fiom Lender to Borrower requesting payment thereof, and ehall bear interest from the date of dieburaement at the rate payabie from " time to time on outatanding principal under the Note uniese payment of intereat at auch rate would be contrary to applicable law, in which = event euch a~unts shall bear intereat at the highest rate permisaible under applicable Iaw. Nothing contained in thit~ paragraph 7, ahall require Lender to incur any e:penee or take any action hereunder. - s~ - ~ ~~p~~ . ~J`/l~ r~1?[ V . ~ ~ _ - - ~ _ w , ~ _ ; ~ ~ ~ ` ; ~ ~ ~ ~ : ~ ^ rE `~~~+,~"~~~~~~~~~'~..:':.~.:,;'c - '`_~"r~.'' ~ 3