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HomeMy WebLinkAbout0318 I3orrower and I.ende~ covenant and agree aa followe: 1. Payment ot Principal and I~tereet. Borrowe~ ahall prompUy pay when due the principal ot an~l interest on the indebtedne8e evidenced by the Nota~, ptepayment and latecharges ae providrd in the Note, sna uie principal otand i~tereaton any F~ture Advancee secund by thie Mortgage. 2. I~titnds for Taxea and Insura~ce. Subject to applicable law or to a written waive~ by l.ender, Borruwer ahali pay to l.ender on the day monthly installmenta oiprincipal and intereat are payable u~der the Note, until the Note ia paid in full, a eum (~~r.~:.-. "~tinde") equal to one twelBh of the yearly ta:ea and ~saeaementa which may atta~o priority uver thie Morigage, and ground renta on the I'roperty, if any, plua one twelRh of yearly premium inatallmente for hazard ineu~ance, plua unetwelRh of yearly premium inelallme~ta for mortgage inau~ance. if any. all ae reaeonably eatimatcd initially and from time to tirr?e by I.ender on the basia of aseesamenta and biils and reasonnble estimatca thereaf. The F~nds ahall be held i~ an inatitutio~ the deposits or accounta of which an insured or guaranteed by a Federal or 3tate agency (including l.ender if I.ender ia auch an institution). Lender ehall apply the Fuada to pay eaid taxes, aseeeameots, inaurance premiuma end ground ~enta. Lender may not charge for eo holding and applying the Ftinds, analyzing eaid account, or verifying and compiling eaid asseeamente and billa, unlese l.ender paya Borrower intereat on the Funda and applicable law permite l.ender to make euch a charge. E3orrower and Lender may egree in writing at the time of execution of this Mortgage that intereet on lhe Flinda ahall be paid to Borrower, and unleas euch agreement is made or applicable law requires such intereet to be paid, I.ender a.hall not be required to pay Borrower any intereat or eamings on the Ftinds. Le~der shaU give to F3orrower, without charge, an an~ual accounting o; ;.~e F zras Ahowing credite and debits to the Funda and the purpoee for which each debit to the Funds was made. The I~ unde are pledged ae additional aecurity for the aume secured by thie Mortgage. If the amount of the F'unds held by l.e~der, together wiEh the future monthly inetallmente of Funda ~ayable prior to the due datee of taues, .;~aPSamenta, insurance premiuma and ground rente, shall e:cxd the amount required to pay said taxea, asaeaemente, insurance premiume and ground renta as they tall due. such e:cess shall be, at Borrower e option, either prompdy repaid to Borrower or credited to Borrower on moothly inaLallmente of ~nds. lf the amount of the Funde held by Lender ahall not be aufficient to pay tau~ee, assessmente, insurance premiuma and ground rente as they fal! due, Borrower ahall pey to I.ender any amount neceeeary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all eume eecured by this Mortgage, i.ender shall prompdy refund to Borrower any fnnde held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by L.ender, Lender Rhall apply, no later than immediately prior to the sale of the Property or ite acquieition by Lender, any ~nds held by [.ender at the time of application ae a credit against the suma secured by thia Mortgage. 3. Application of Paymente. Unleae applicable law provides otherwise, all paymente received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the prinripal of the Note, and then to interest and principal on any Future Advancea. 4_ Charges; Liens. Borrower shall pay all taxes, as.sessmenta and other rharE(ea, fines and im{wsitions attri6utable to the Properiy which may attain a priority over this Mortgage, and leasehold payments or grounu rente, if any, in the manner provided under paragraph 2 hereof ur, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borrower shall ptomplly furnish to t.ender atl notices ~tamounte due under thia paragraph, and in the event Borrower shall make payment directly, [iorrower ahall promptly furnish to Ixnder receipts evidencing such payments. Borrower ahail promptly discharge any lien which has priority o~ er thia Mortgage; pruvided, that Borrower ahall not be required to discharge any such lien so long as Eiorrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith rnntest such lien by, or defend enforcement of such lien in, leqal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pnri thern?f. 5. Hazard Ineurence. Borrower ahall keep the imptovemente now exiating ar hereafter erected on the Property insured against losa by fire, hazarde included within the term "e:tended rnverage," and euch other hazards as I.~nder may require and in auch amounta and forauch periode ae Lender may require; provided, that Lender shall not require auch eoverage amount exceeding the minimum, as may be required by state or federal regulatione governing activitiea of [.ender, or that amount of covera~e required to pay the aums aecured by this Mortgage, , whichever ia the greater. The insurance carrier providing the insurance shall be chosen by E3orrower subject to approva) by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mannec provided under paragraph 2 hermf or, if not paid in such manner, by Iiorrower making pay~ment, when due, directly to the insurance carrier. A11 ineurance policies and renewals thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form acoeptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnieh to ixnder all renewal notices and al) receipta of paid premiume. In the event of loee, Borrower ahall give prompt notice to the inaurance carrier and Lender.. Lender may make proof of losa if not made promptly by Bonower. Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeds ahal} be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair is economicaUy feasible and the security of th:e :lortgage is not thereby impaired. If such ~ reatoration or repair is qot economically feasible or if the aecurity of thie Mortgage would be impaired, the ineurance proceeda shall be applied ~ to the suma secured by this Mortgage, with the ezcess, if any~ paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daya ftom the date notice ia mailed by Lender to Borrower that the insurance carrier offers to setde a claim for E inaurance benefits, Lender is authorized to collect and apply the inaurance proc~de at Lender e option either to restoration or repair of the { Property or fhe eums secured by this Mortgage. j Unleae Lender and Borrower otherwise agree in writing, any such application of proeeeda to principal shall not e:tend or postpone the due i date of the monthly inetallmente referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. If under paragraph 18 ~ hereof the Property is aoquired by Lender, aU right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or ncquiaition ahall paea to Lender to the eztent of the sums secured by thie Mortgage immediately prior to auch eale or aoquiaition. 6. Preaervation and Maintenaace otProperty; Leaseholda; Condominume; Planned Unit Developmente. Borrower shali keep the Propetty in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall comply with the pmvisions of any.lease if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower ehall perform all of Borrower'e obligatione under the declaration or covenanfs rreatingor governing the condominium or planned unit development, the by-laws and tegulationa of the condomini~un or planned unit development, and conatituent dcenmente. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and a~reements of auch rider shall be incorporated into and shall amend and supplement theco.venants and agreementa of thia Mortgage as if the ~ rider were a part hereof. 7. Protection o! Le~er's 3ecurity. If Borrower faile to perform the oovenants and agreements rnntained in this Mortgege, or if any ~ action or pra,~eeding is rnmmenced which materially affecte L.ender e intereet in the Property. including, but not limited to, eminent domain, ~ insolvency. oode enforcement, .or arrangements or proceedinge involving a bankru~ or dec~edent, then Lender at Lender s option,upon ~ notice to Borrower may make auch appearancea, disbnree such same and take euch action ae ia neceseary to protect I.ender's interest, including, but not limited to, disbureement of reasonable attorney e fcee and entry upon the Property to ma1~e repaire. If I.ender required s mortgage insurance as e rnndition of making the loan aecured by this Mortgege, Botrower ehall pay the premiums required to meintein auch insnrance in eNect until sach time ae the requirement for such ineurance terminates in aocordance with Borrower'e and Le~der's ~ written agreement or applicable I~w. Borrower shall pay the amount of all mortgage ineurance premiuma in the menn~ provided under ~ Y paragreph 2 hereoL ; My amounta diebureed by Lender perauant to thia paragraph 7, with intereet thereon, ahall beoome additional indeM~edness of } P Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounte shall be payable upon ? notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diaburaement et the rate payable from ~ time to time on outatending principal under the Note unlees payment of intereat at euch rate would be rnntr ary to applicable law, in which event auch amounta shall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall ~ require Lender to incur any expense or take any action hereunder. ~ ~ . ~ ~ - . s~2~~ ~ 318 ~ ~ . ~ ~ k, _ ~ . .e'rb, . .z'~ ~ ~ ~ ^ Ks~' _ . . g r. , ~ _ _