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HomeMy WebLinkAbout0586 ~ Borrower er?d Lender rnvenant and agree as follows: 1. Pwymeat ot Priaeipal and Icitere~~ Borrower ehall promptly puy when due the principal of and interest on the indebtedneas evideaced by the Note. prepayment and late charQee aa provided i~ the Note. and the principal of and intereet on any fi~tun Advancea secured . by this Mort~a~e. 2 I~nda fo~ Taxes end lnsurxnoe. 3ubject to epplicable law or to a writtert waiver by l.ender, Borrower ahall pay to l.ender on the day mo~thly inatallmeats of principal and interest are payable under the Note. until the Note ia paid in [ull. a sum (he~ein "~nds") equal to ono- twelfth of the yearly taxes and asse,semente which may attain priority ove~ this Mortgage. and grou~d rents on the Propedy, if any, plua one~ twelRh of yearly premium inatallments for harsrd insurance, p1uA onetwelfth olyearly premium installmenta for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of asaeasmenta end billa and reaaonable estimates thereoL . 1~e PLnds shaU be held in en inatitution the deposits or acoounts. of which eue ineured or guaranteed by a Federal or 3tate agency (includiag Lende~ if Lender is such an institution). Lender ahall epply the Fundu to pay said taxes. aeseeaments. insurance premiuma and • ground nnts. Lender may not charge [or w holding and applying the Phnde, analyzing said account, or verifying and compiling said assessments and bills. unlese I.ender pays Borrower interest on the ~nda and applicable law permita Lender to make such a charge. Borrower and Lender may agree in writin8 at !he time of execution of this Mortgage that interest on the ~nda ehall be paid to Borrower. and unleae euch a~reement ia made or applicable law requins auch intrrest to be paid. I.ender ahall not be required to pay Borrower any intereat or ~ earuings on Lhe fi~nds. I.ender ahall give to Borrower, without charge, an annual acoounting of the Funds ehowing credits and debite to the i Funds and the purpose for which each debit to the F~nde wae made. The Funde are pledged se additional eecurity for the aume eecured by this Mortgage. ~ • If the amount of the Fl~nds held by Lender, together with the future monthly inetallmenta of Funda payable prior to the due datea of taxea, . asseesmente. uuurance pretniums and ground tenta. ehall ex~ed the amount required to pay esid taxea, assesements. insurance premiums and ground rents aa they fall due, such e~cceas ahall be, at Borrower e option, either promptiy repaid to Borrower orrredited to Borrower on : monthly instaUments of F~nds. If the amount of the Funds held by Lender ehall noL be aufficie~t to pay taxea, aseeeamenta, insurance premiums and gro~nd nats as they fall due. Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting peyinent thereof. , Upon payment in fall of all euma secured by ihis Mortgage, Lender ehall promptly refund to Borrower any funda held by I~nder. V under paragraph 18 hereof the Property ia eold or the Property ie otherwiae acquired by Lender, L.ender ahall apply, no later then immediately prior to the sale of the Property or its aoquiaition by I.ender, any Funda held by Lender at the time of application as a rredit against the ~ume secured by thia Mortgage. ~ 3. Applieation ot Paymente. Unleea applicable lew providee otherwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firet in payment of $mounts 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 intereat and principal on any Future Advancee. ' 4. Chargea; Liens. Borrower ahall pay all taxes, assesaments and other charges, fines and impoaitiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenfs or ground renta. if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee lhereot Borrower shall promptly furniah to I.ender al! notic~ of amounte due under thia paragraph, and in the event Borrower shall make payment directly,.Borrower ahall promptly furnish to I.ender receipta evidencing euch paymenta. Borrower ehall promptly diacharge any lien which has priority over thia Mortgage; provided, that . Borrower ehall not be required to diecharge any such lien eo long as ~iorrower ahall agree in writing to the payment of the obtigation secured by auch lien in a manner scceptable to Lender, or sha11 in good faith contest such lien by. or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hasard Insuranoe. Borrower ehall keep the improvements now esisting or hereafter erected on the Praperty inaured against loss by tire, hazarda included within the term "e:tended coverage," and auch other hazarda ae L.ender may require and in auch amounte and [or auch periods as Lender may reqnire; provided, that I.ender eha11 not require euch ooverage amount e:ceeding the minimum, as may be required by atate or federal regulatione governing activitiea of i.ender, or that amount of ooverage required to pay the sums secured by this Mortgage, whichevet is the greater. The inaurance carrier providing the inaurance ahall be chosen by Borrovrer subjeci to apptoval by I.ender, provided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies shall be paid in the mannet provided under paragraph 2 hereoCor, if f ' not paid in such manner, by Borrower making payment, when due, directly to the inaurance carrier. 'I All insurance policiee and renewals Lhereof ahall be in form acoeptable to Lender and shall include a atandard mortgage clauae i n favor of , i and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to ~ i.ender all renewal noticee aad all receipts of paid premiums. In the event of loas. Borrower shall give prompt notice to the insurance carrier . ~ and Lender. Lender may make proof of losa if not made prompdy by Borrower. • { Unless Lender and Borrower otherwiee agree in writing; inaurance proceeda ahall be applied to reetoration or repair of the Property { damaged, provided such reetoration or repair ia economically feaaible and the eecurity of thia Mortgage ia not thereby impaired. If auch ~ restoration or repair ia not economically feasibie or if the aecurity of this Mortgage would be impaired, the insurance proceeds shall be applied to the eume eecured by thie Mortgage. with the eucees, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to E respond to Lender within 30 days from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to setde a claim for _ ~ inaurance benefite, Lender ie authorized to rnllect and apply the insurance proceeda at [.ender e option either to reatoration or repair of the ~ Property or the suma eecnred by thia Mortgage. ~ Unless Lender and Borrower otherwise agree u? writing, any such application of proceeda to principal ahall not e:tend or poatpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of anch inatallmente. If under pa"ragraph 18 hei+~of the Property is aoquired by Lender, all right, title and intereet of Borrower in and to any insurance policies and in and to the proceeda thereof reaultiag 5rom damage to Property prior to the eale or aoquisition ahall pase to I.ender to the e:teni of the auma secured by this Mortgage immediately ptior to such sale or aoquisition. - 6. Preservation and ~aintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ehall not commit wa8te or permit impairment or deterioration of the Property and ehall rnmply with the provieione of any leaee if thie Mortgage ia on a leasehuld. If this Mortgage ia on a unit in a oondominiwn or a planned unit development, ~ Borrower ahall pezform all of Borrower e obligationa under the declaration or oovenanta creatingor governing the condomini~un or plenned unit development, the by-Iawe and reg~iletions of the oondominium or planned unit development, and constituent documenta. If a ~ condominium or planned unit development rider ia ezecute~ by Borrower and recorded toBether with thie Mortgage, the oovenants and agreemente of such rider shall be incorporated into and ahall amend and aupplement the covenanta and agreement8 of this Mortgage as if the ~ rider were a part hereof. 7. Proteetion ot Lender'~ Secarity. It Borrower fails~b perform the oovenant8 and agreementa oontained in this Mortgege. or if any action or piooeeding is commenced which materially affects Lendei s interest in the Property. including. bat not limited to. eminent domain. ~ insolvency. oode enforcement, or arran8emenb or prooeedings involving a bankrnpt or deoedenE. thea Lender at Lender's option,upon ~ noticx to Borrower may mai~e such appearaao~. disburee such eums and take euch action as is neoeasary to p~ot~ed I.endds interes~ ~ including. but not limited to. diebursement of reasonable attorney's feee and entry npon the Property to make npairs. If I.eader required : ~ mortgage ineurance as a oondition of making We loan aecured by thia Martgage. Borrower shaU pay the pre~iums required to mainiain ~ ~ snch insnranoe in effect until euch time as the requirement for such ins~rsnoe terminates in aoc~ordance writh Borro~vei s and I.endds ~ writttu agreement or appGcable Law. Borrower ehall pay the amount of all mottgage iosuTance preminms in the manna p~ovided under PareBraph 2 hereo£ = ~ My amonnts disbureed by Lender pereuant to this paraBrapli 7. with interest thereon, shall become additional indebtedness of ~ ~ Borrower secured by thie Mortgage. Unlesa Borrower and Lender agree to other terme of payment, auch amounta shall be payable npon notice from I.end~ to Bore+ower requeeting payment ~hereof, and shall besr interest from the date of diabursement at the rate payable 5rom _ time to time on outstanding principal under the Note nnless~ payment of interest at auch rate would be oontrary to applicable law. in which - event anch amounts shali bear interest at the highest rate permiesible under epplicable law. Nothing contained itrthis paragraPh 7, shall rt require I.ender to incur any e:pense or tate any action hereunder. ~ ~ . . 6~~!( ~9~ PAGE ~V~ _ . ~