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HomeMy WebLinkAbout0523 . _ Borrower and Lender covenant a~d agree as follows: 1. P~yment o! Princfpal a~d l~terest. Borrower ahall prompdy pay when due the principal o[ and interest on the indebtednese evidenoed by the Note, prepayment and lete charges as provided in the Note, and the principal of and intereat on any ~Lture Advancee secured by this Mortgage. ' 2. FLnds for Tuee and Insurance. Subject to applicable law or to a written waiver by l.ender. E3orrower ahall pay to l.ender on the day monthly installments of principal and interest are payable under the Note, uotil the Note ia paid in full, a aum (herein "Funds") equal to one twelRh of the yearly taxee and asseasments which may attain priority over thie Mortgage, and ground renta on the Property, if any, plus une twelfth of yearly premium inatallraents fo~ hazard inaurance, plus onetweltth otyearly pmmium i~atallments fo~ morlgage insurance, if any. all as reasonably eatimated initially and from time to time by l.ender on the basis of assessmente und billa and reasonable eatimates'thereof. The fi~nds shall be held in an inatitution the depoeite or accounta of which ate ineured or guaranteed by a Federal or State agenry (including [.ender if Lender ia auch an institution). Lender ehall apply the Funds to pay aaid taxee, aesesaane~ta, insurance premiume and ground rents. Lender mqy not charge for eo holding and applying the Funda, analyzing eaid account, or verifying and compiling said aseeeaments and bills. unleae Lender pays Borrower interest on the ~nda and applicable law permita lxnder to make euch a charge. Borrower ~ and Lender may agree in writing at the time of e:ecution of thia Mortgage that interest on the ~nda ahall be paid to Borrower, and unleas auch agrcement ie made or applicable law requires auch interest to be paid, I.endeT shall not be required to pay Borrower any interest or earnings on the ~nds. I.ender shall give to Borrower. without chsrge, an annual accounting of the Funda showing credite and debite to the ~nde and the purpoee for which each debit to the ~nda viras made. The Funda are piedged as additional security for the suma eecund by this Mortgage. ~ If the amount of the ~Lnda held by Lender, together with the future monthly installments of Funds payable prior to the due datee of ta:ea, aeeesemente. insurance premiume and ground rente, ahall exc~ed the amount required to pay said taxes, assesameats, inaurance pmmiuma and ground rents as they fall due, such eaceae shall be, at Bo~TOwei s option, either prompdy repaid to Borrower or credited to Borrower on monthly instalimente of I~nda. If the amount~,of the Funds held by Lender ahall not be sµfficient to pay taxee, asseasments, insurance premiuane and ground renta as they fall due, Borrower shall pay to I.ender any amount neceasary to make up the deficiency within 30 days fcom the date notice is mailed by I:ender to Borrower requesting payment thereof. ~ Upoa payment in fuU of aU sums aecured by this Mortgage, Lender shal! promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, Lender ahal! apply, no Iater than immediately prior to the eale of the Property or ita aoquisition by I.ender, any Funda held by I.ender at the time of application as a credit againat the sums secured by this Mortgage. ~ 3. Application of Paymente. Unlesa applicable law pmvidea otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firxt 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 Future Advances_ 4. Charges; Liene. Borrower ahall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground mnta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Botrower making payment, when due, directly to the pay ee thereof. Bart+ower sliall promptly furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Bottower shall promptly fumish to I.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge anyc such lien so long as Borrower shaU agree in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shall in good faith cuntest such lien by, ordefend enforcement of.such lien in, legal proceedings which operate tq prevent the enforcement of the lien or forfeitnre of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the unpmvements now eaisting air hereafter erected on the Property insured against losa by fire, hazarde included within the term "extended rnverage," and guch other hazards aB L.endrr may require and in such amounts and for such perioda as Lender may require; provided, that Lender ehall not require such ooverage amount e:ceeding the minimum. as may be require~ by atate or federal tegulations governing activitiea of Lender, or that amount of rnverage required to pay the aums becured by this Mortgage, whichever ie the greater. The insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by Lender; provided, that such appmval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pm~ ided under paragraph 2 hereof or, if ' not paid in such manner, by Borrower malcing payment, when due, directly to the insurance carrier. ' All insurance poGcies and renewala thereof ahall be in form acceptable to L.ender and ahall include a atandard mortgage claase in favor of and in for~ acceptable to Lender. I.ender ahall have the right to hold the poliriea and renewals thereof, and Borrower shall promptly furnish to i.ender sU renewal noticee and all receipts of paid premiume. In the event of loss, Borrower ahall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made prompt3y by Borrower. ~ Unlese Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to resioration or repair of the Pcoperty i ~damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired_ If such ~ reatoration or repeir ie not economically feaaible or if the eecurity of this Mortgege would be impaired, the insurance proceeds ahall be epplied ~ to the sums aecured by thie Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower faila to ° respond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ ineurance benefite, Lender is authorized to rnllect and appiy the insurance proceeds at Lender s option either to restoration or repair of the ~ Property or the suma eecured by this Mortgage. Unleas Lendet and Borrower oiherwiae agree in writing, any such applicatioa of proceeds to principal ahall not extend or postpone the due date of the monthly inatsllments referred to in paragrapha 1 and 2 hereof or change the amount of euch inatallmenta. If under paragraph 18 hereof the Property ia aaquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeda ~ thereof ceeulting from damage to Property prior to the sale or acquieition ehall paas to I,ender to the e:tent of the suma eecured by this Mortgage immediately prior to such eale or aoquiaition. ~ 6. Preservetion and Maintenance of Property; Lease6olde; Condominums; Planned [,'nit Developmente. Borrower ahail keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the " proviaions of any lease if thie Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform atl of Borrower's obligationa under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~ condominium or plenned unit development rider ia executed by Borrower and recorded together with thia Mortgage. the oovenanta and agreements of auch rider shall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgage as if the ~ rider were a part hereof. • ~ 7. Protectlon of I.ender't Securltr. If Borrower faila to perform the oovenante and agreemente oontained in this Mortgage, or if any action or proceeding ia commenced which materially affects Lender e interest in the Property, including, but not limited to, eminent domain, ~ insolvency. oode enfotcemenL. ot arraagements or prooeedings involving a banlmipt or decedent, then Lender at Lender's option,apon : notice to Borrower may make euch appearances, dieburse auch sums and taice euch action as is neceesary to protect L.ender ~ interest, ~ inclnding, bnt not limited to. diabureement oi reasonable attoraey a fees aad entry upon We Property to make npairs. If Lender required ~ mortgage ineurance aa a condition ot making the loan eecured by thie Mortgege, Borrow~ ehall pay the premiums teqnired to maintaia s eoch inaurence in effect ~ntil euch time as Lhe requirnmeat for such insarance terminatee in accordance with Borrow~'s end I.ende~s ~ writt~en agreement or appGcabk Isw. Borrower ahall pay the amount of all mortgage inaurance premiums in the mannK provided unda ~ paragraph 2 hereoL - a My amounte disbureed by Lender pereuant to thie paragraph 7, with intemet thereon, shall become additioaal indebteditess of ~ Borrower secared by thia Mortgage. Unleas Borrower and Lender agree to other terms of payment, such amounts shall be payable upon ~ notice firom Lende~ to Borrower requesting psyment fhereof, and ehall bear internat from the date of diebursement at the rate payable irom time to time on outetanding principal under the Note unlese payment of interest at euch ~ate would be oontrary to applicable Iaw. in which ~ event euch amounta ehall bear interest at the higheet rate permieeible under eppiicable law. Nothing rnntained in this peragraph 7. e6all require I.ender to incur any e~cpense or take any action hereunder. ; RK 295 `5~