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HomeMy WebLinkAbout0826 Borirower nnd l.e~der covenant a~d agree na folluws: 1. Payment ot Principal end lnterest. Borrower ahall promptly pay when due the principal of a~d intrrext on the indebtednesse evidenced by the Note, prepayment and latechargee as proviaed in the Note, and the principal of nnd interest on any Future Advances aecured by this Mortgage. 2. ~nde [or Taxee and lnaurance. Subject to applicable law or to a written waive~ by I.ender, Borrower shall pny to l.ender on the day monthly installmenta of principal and interest are payable under the Note, until the Note ia paid in full, a sum (herein "F unds") equal to one twelRh otthe yearly taxes and assesxments which may attain priority over this Mortgage, nnd ground rents on the I'rupecty, if any, plus one lwelfth of yearly premiam inataliments for hazard insurance, plus onrtwelfth of yearly premium inatnllmenta fur mortgnge insu~ance, if any, all ae reasonably estimated initially and from time to tirne by l.ender on the bs~ais of assesaments und bills and rensoneble estim~tex thereof. 71?e ~nda ehall be held in an inatitution the depoeita or accounte oi which are inaured or guaranteed by a Federal or State agency (including L.ender if Lender is such an inatitution). Lender shall apply the Funda to pay said taxes, assesamenta, inaurance premiums and ground rente. l.ender muy not charge for eo holding and applying the Fl~nde, analyzing said account, or verifying and compiling aaid asseasmenLs and bills, unleae l.ender paye Borrower interest on the Funda and applicable !uw permita l.ender to make auch a charge. Borrower and l.ender may agree in writing at the time of execution of thia Mortgage that interest on the Funds ahall be paid to BotroNer, ~nd unleas auch agreement ia made or applicable Iaw requiree such intereat to be paid, Lender ahall not be required to pay Borrower any intereat or earninga on the F~nde. l.ender ahall give to Borrower, without charge, an annual accounting otthe Funda ahowing credita and debita tu the Funde and the purpoee for which each debit to the Funda was made.ll~e Funds are pledged aa additional security for the aums eecured by this Mortgage. If the amount of the Flinda held by L.ender, together with the future monthly instaltmenta of Fun~d~spa, ~abl priol to e duedatea of taxes, asseaementa, inaurance premiums and ground tents, shall excred ihe amount eeq^aiTed tb~lay 6~IH t~4~T~~sse~en~naurance premiums and ground renta aa they fall due, auch exceas ehall be, at Bo~tower'a option, either proroptly ~oy~or credited to Borrower on monthly installments of F~nde. If the amount of the Funds held by Lender ehall not be s ci~t j~qp~~ ayeeasmenta, inaurance premiums and ground rents se they fall due, Borrower ahall pay to [.ender an amoan~ n~ o Aj~k from the date notice is mailed by I.ender to Borrower requestin y P~e deficiency within 30 days 8 Payment the~paf. +.K .i:.. ~?-~"t•o•+ • Upon payment in fuU of all sums eecured by thia Mortgage, Lender shall prom~d~+ re[und to Boelower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by~.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any ~nds held by Ixnder at the time of application as a credit against the auma secured by this Mortgage_ 3. Applieation of Paymenta. Unless applicable law provides otherwiae, all payments received by Lender under the Note and . paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 'l hereof, then tc? intereat payable on the Note, then to the principa! of the Note, and then to interest and principal on any Future Advances. 4. Chargea; Liens. Borrowershall pay alt taxea, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this 111ortgage, and leasehold payments or Kround rents, if nny, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to [xnder ap notices of amounts dne under this paragraph, and in the event i3orrower ahall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. F3orrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that E3orrower shall not be rzquired to discharge any such lien so long as Borrower shail agree in writinR to the payment of theobliKation secured by such lien in a manner acceptuble to Lender, or shall in good faith contest such lien by, ordefend enformmenl of such lirn in, legal procerdings which operate to prevent the enforcement of the lien or forfeitum of ihe Property or any part thereof ~ 5. Hazard Ineurance. Borrower shall keep the irapmvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and ~uch other hazards as Lender may require and in such amo~nts and for such i periods as Lender may require; provided, that I.ender ahall not require auch coverage amount exceeding the minimum, as may be required by i state or federal regulations governing activitiea of I.ender, or that amount of coverage required to pay the sums secured by this Mortgage, j whichever is the greater. ; The insurance carrier providing the inaurance shall be chosen by Aorrower subject Lc, approval by I.ender, pn~vided, that such approval ~ shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid in the manner pn?vided under paragraph 2 hereof or, if ~ not paid in such mpnner, by F3orrower making pfiyment, when due, directly to the insurance carrier. . ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notice8 and all receipts of paid premiums_ In the event of loss, Borrower shall give prompt notice to the insurance camer and Lender. Lender may make proof of loss if not made promptiy by Borrower. ~ Unlesa L,ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the aecurity of this hiortgage is not.thereby impaired. It such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower. if the Property is abandoned by E3orrower, or if Borrower faile to € respond to Lender within 30 daye from the date notice is rtfailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefits, Lender is authorized to collect and apply the inaurance proceeds at I.ender's option either to mstoration or repair of the ~ Property or the sums secured by this Mortgage. ~ Unleas I.ender and Bortower otherwise agree in writing, any auch application otproceede to principal ahall not extend or postpone the due ~ date of tF:e monthly inatallmenta rnferred to in paragrapha l and 2 hereof or change the amo~~nt of such inatallmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds. ~ thereof reaalting from damage to Property prior to the sale or acquisition ahall pass to I.ender to the extent of the suma secured by this ~ ;b[origage immediately prior to auch sale or soquiaition. ~ 6. Preservation and Maiatenance of Property; Leaaeholds; Condominums; Planned Unit Developmenta. Borrower shail keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahail comply with the ~ proviaions of any lease if thia Mortgage is on a leasehold. If thia Mortgage is on a unit in a condominium or a planned unit developrnent, " Borrower ehall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-lawe and regulations of the condominium or planned unit development, and oonatituent documenta. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and agreemenfs of such rider shali be incorporated into and shall amend and supplement the covenants and agreements of this Mortgaqe as if the ~ rider were a part hereof. ; 7_ Protection of I.ender'e 3ecurity. If Borrower faile to perform the oovenanta and agreemente rnntained in thia Mortgage, or if any action or proceeding ie commenced which materially affecta Lender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente. or proceedinge involving a bankrupt or decedent, then L,ender at Lender'e option,upon notice to Borrower may make e~ch appearances, dieburee auch eume and take such action ea ie neceeaary to protect Lender'e iatereet, including, but not limited to, diebursement of reaaonable attorney'e feee and entry upon the Property to make repaire. If Lender required - mortgage inaurance as e condition of mal~ing the loan eecured by thia Mortgage, Borrower ehall pay the premiume required to maintain 3 euch ineurance in effect until auch time ae the requirement for auch inaurance terminatee in accordence with Borrower e and Ler?der'a j written agreement or applicable Law. Borrower shall pay the amount of a11 mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereoL My amounte dieburaed by Lender pereuant to thia paragraph 7, with intereat thereon, ahall become additional indebtednese of ;y Borrower aecured by this Mortgage. Unlesa Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon - notice from Lender to Bormwer requeeting payment thereof, and ehall bear interest from the date of diebursement at the rate payable from time to time on outstanding principal under the Note unleae payment of interest at auch rate would be oontrary to applicable law, in which ~ event euch amounte ehall bear intereet at the highest rate permisaible under applicable law. Nothing contained in thie paregraph 7, ehall require Lender to incur any e:penee or take any action hereunder. ~ _ ~ _ > ~ . 294 Y~~~ 82~ . ~ - _ - - _ - _ _ ~ ~~~~`~~r-~z~~,: a-~~=~ ..t..:-: . _ i~.,."~~:~~