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HomeMy WebLinkAbout0600 t3orrower and l.ender covenant and agrec as followa: 1. Psyment o! I'rincipal and Inter~st. Borrower shalt~ promptly pay when due the principal of and interest un the indebtednese evidenced by ihe Note, prnpayment and late chargea as providzd in the Note, and the principal of and intereat on aay Futum Advancea aecured by-thia Mortgage. 2. i~tiutda tor Tases and Ineurance. Subject to applicnble Is~w o~ to a written waiver by l.ende~, Iiurruwer shall puy to l.ender on the day monthly inatallme~ta of principal and intereat are payable under the Nute, until the Note is paid in full, a aum (herein "Funde") equal to one twelfth of the yearly taxes and uaseaamenta which may attain priurity over thia Mortgage, and ground renta un the I'roperty, if any, plua one- twelfth of yearly premium inatallments for h~zard inaurance, plus onetwelRh of yearly premium installments for mortgs~ge insurance, if any, all as reasonably eatimated initiAlly and from time to tirr~r by I.ender on the basis of assessmenta nnd bille and reussonnble eatimates thereot. The ~nda ahaU be held in an institution the deposita or accounta of whiCh are inaured or guaranteed by a Federal or State agency 1~ncluding I.ender if [.ender ie such an inatitution). l.ender ahall apply the Funds to pay said taxes, assessmente, inaurance premiuma and ground renta. Lender may not charge for eo holding and applying the ~nda, analyzing said nccount, or verifying and compiling said aseesamenLs and bi?ls, unleea Lender pays Borrower intereet on the P~nde and applicable law permits l.ender to make auch a charge. E3orrower and I.ender may agree in writing at the time of execution of thie Mortgage that interest on the F'~nda ehall be paid to Borrower, and unlesa auch agreement is made or applicable law requires such interest to be paid, Gender ahall not be required to pay Borrower any interest or earninga on the Funde. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debits to the Funda and the purpose for which each debit to the Funda was made. The Funda are pledged as additional security for the aums eecured by thia Mortgage. , If the amount of the Flinds held by Lender, together with the tuture monlhly inatal Iments of Funds payable prior to the due datea uf tuea, asaeasmenta, inswance prnmiuma and ground rents, ahall excred the amuunt required to pay said taxes, asaeasmente, insurance premiuma and ground rente as they fall due, euch exceas ahall be, at Bo~tower's option, either promptly repaid to Borrower or crediled to E3orrower on monthly installments of Funda. If the amount of the Funda held by Lender shall not be sufficient to pay taxea, assesaments, insurance premiume and ground renta as they fall due, Borrower shali pay to l.ender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Fiorrower requeating payment thereoL , Upon pr?yment in full af all eumx secured by thia Mortgage, [.ender shall promptly refund to E3orrowe~ any funds held by I,ender. If under • paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, Lender shall apply, no later than immediately prior to the sale of the Ptoperty or ite acquisition by Lender, any ~nds held by Lender at the time of application as a credit againat the sums secured by this Mortgage. _ 3. Apptication of Payments. Unlese applicable law pmvidea otherwise, aU payments received by L,ender under the Note and paragrapha 1 and 2 hereof shatl be applied by Lender firxt in pnyment of amounts payable to Lender by E3orrower under paragraph 2 hereof, then to interest payable on the Nofe, then to the principal of the Note, and then to interest and principal on any Future Advancea_ 4. Charges; Liene. E3orrower shall pay ttll taxes, assessments and other charges, fines and imposilions attributable to the Properiy ~vhich may attain a priority over this hlortgxge, and leasehold pa_r'ments or gmund rnnts, if~ny, in the manner provided under paragraph `L hereof or, if not paid in such manner, by E3orrower making payment, when due, direcEly to the payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under this paraRraph, nnd in the event Rorrower 3ha1t make payment directly, BorroK er shall prompdy fumish to [ xnder receipts evidencing such payments. f3orrower shall promptly dischnrge nny lien which has priority over this Mortgage; pmvided, that Borrower shall not be required to discharge any surh lien sa long as Borrower shall agree in writinR to the payment of the obligation secured by such lien in a mnnner acceptable to Lender, o~ shall in Rcwd faith contest such lien by, ordefend enforcement of st~ch lien in, legal procecdings which operate to prevent the enforcement of the lien or forfeiture of thc E'roperty or any part lhereof. 5. Hazard Insurance. Borrower shaU keep the improvementa now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch perioda as Lender may require; pro~~ded, that l.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations goveming activities of Lender, or that amount of coveruge required to pay the sums aecured by this Mortgage, whichever is the greater_ I; The insurance carrier providinK the insuranrn shall be chosen by Borrower subject to approval by I.ender, pmvided, thnt such appro~•al ' shall not be unreasnnnbly withheld. All premiums on insurance policies shall be paid in the manner pro~•ideci under paraKraph 'L hermf or, if i nut paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All inaurance policies and rnnewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in fa~ orof j xnd in form acceptable to Lender. I.ender ahall have the right to hold the policiea and renewals thereof, and E3orrower ahall promptly fumish to k i.ender all renewal notices and all receipis of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insurance carrier s and Lender. Lender may make proof of loss if not made promptly by Borrower. ' Unlesa Lender and E3orrower otherwise agree in writing, insurance proceeds shali be applied to restoration or repair of the Property ; damaged, provided such restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such ! reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied - ~ to the sums secured by this Mortgage, vr~th 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 Bonower that the insurance carrier offera to settie a claim for g insurance benefits, Lender is aothorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the j Property or the aums secured by thia Mortgage_ ; [Jnlesa Lender and Borrow er otherwise agree in writing, anp such application of proceeds to principal shall not extend or postpone the due ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such instaliments. If under paragraph 18 ; hereof the Property ia aoquired by Lender, al) right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds ° thereof resulting trom damage to Property prior to the sale or acqwsition ahall pass to Lender W the extent of the aums secured by this ~ Mortgage immediately prior to such eale or acquisition. 6. Preeervation and Maintenanceof Property; Leaaeholda; Condominuma; Planned Unit Developmenta. Borrowershall keep ; the Property iq good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the = proviaiona of any lease if this Mortgage ia on a leasehold. lf thia Mortgage ia on r~ unit in a condominium or a planned unit development, = Borrower ahall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulatione of the condominium or planned unit development, and conatituent documente. If a ' condominium or planned unit development rider is executed bl Borrower and recorded together with ti,is Mortgage, the covenants and ~ agreements of such rider shall be incorporat.ed into and ahall amend and supplement the covenants and agreements of this Mortgage as i[the ~ rider were a part hereof. , 7. Protection of I.ender'e 3ecurity. If Borrower faila to perform the oovenanta and agreemente contained in thia Morigage, or if any ~ action or proceeding ie commenced which materialiy affecte Lender'e intereat in the Property, including, bnt not limited to, eminent domain, insolvency. oode enfonrment, or arrangemente or praceedings involving a bankrupt or decedent, then Lender at Lendei e option,upon - notice to Bprrower may make auch appearancee, dieburae euch aums and take auch action ae ie neceeeary to protect Lender'e intereet, induding, but not limited to, diebursement of reaaonable attorney'e feee and entry upon the Property to make repaire. If Lender required mortgage ineurance ae a condition of making the loan secared by this Mortgage, Borrower ahall pay the premiume required to maintain = euch ineurance in effect until euch time ae the requirnment for euch inaurance terminatee in accordance with Borrower's and Lendei s ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage insurance premiume in the manner provided under ; paragraph 2 hereof. . . ~ My amounta diaburaed by [.ender persuant to this paragraph 7, with intereat thereon, ahall become additional indebtedneae of : Borrower eecared by this Mortgage. Unlesa Borrower and I.ender agree to other terme of payment, such amounte ahall be payable upon Y notice from Lender to Borrower requesting payment thereof, and ahall bear interest from the date of diabureement at the rate payable from ~ time to time on outatanding principal under the Note unlesa payment of intereet at auch rate would be contrary to applicable law, in which ' event auch amounte ahall bear interest at the higheat rate petmiseible under applicable law. Nothing contained in thie paragraph 7, ahall - requ'ue Lender to incur any expenee or tske any action hereunder. ~ . _ ~~~~K294 600 _ nr ~..~,~.+.~i.~.~''~'a'~'.r '-~~,`^4;.~.'.~~"'~~. ~.'~y:~ ~'?e't~ r-~~