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HomeMy WebLinkAbout0596 , ~ ~ . , . , . • Borrower and l.ende~ covenant and a~rree as [ollows: ~ 1. Payment ot Priacipal and Intereat. Borrowe~ ehall pmmptly pay when due the principal oi and intereet on the indebtedneee evidenced by the Note, prepayment and late charges as provided in the Note, and the principal otand interest on any Future Advances eecured by thia Mortga~e. 2. I~tnd~ tor Tazes and l~surance. Subject to applicable law or to a written waiver by I.ender, E3orrower ehall pay to I.ender on the day ~n monlhly inetallments of principal and intereat are payable u~der the Note. until the Note ia paid in full, a sum (herein "Funds"> equal to o~e > twelfth of the yearly taxes and aeaeasmente which may attain priority over this Mortgage, and ground rente on the Property. if any. plua one- twelfth of yearly premium inetallmenta for hazard inRUrance, plus ono-tweifth ofyearly premium inatallmenta for mortgage ineurance, if any, aU as reasonably eetimated initially and tso~n time to ti?ue by I.e~der on the baeie of asseasmenta and billa end reasonable eetimatea thereof. Tt~e PLnds ahall be heW in an institution the deposifa or acoounts of which are insured or guaranteed by a Federal or State agency (including Lender if L.endar is euch an inatitution). Lender ahall apply the ~nds to pay said taxes, aseeaementa, ineurance premiums and g?ound nnts. Lendes may not charge for so holdin~ and applying the ~nds, analyzing eaid account, or verifying end rnmpiling seid asseeements and bilb, unlesn I.ender pays Borrower intereat on the ~nda and applicable law permite Lender to make auch a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that inte~eat on the FLnds ahall be paid to Borrower, end unlees auch agreement is made or applicable law requires auch inteseat to be paid, Lender ahall not be required to pay Borrower any intereet os earnings on the PLnds. Lendes shaU give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debiLa Lo the Funds and the purpoee for which each debit to the Ftinde wae made. The Funde are pledged ae additional eecurity for the awns eecured by thia Mortgage. If tha amount of the fi~nde held by Lender, together with the future monthly installmenta of Funds payable prior to the due dates of taxea, aseesamRnta, inauranee premiums and ground rente. shall e:c~ed the amount required to pay said ta:ee, aeeesamenta, inaurance premiums and ground renea as they fall due, euch e:cess ahall be, at Borrower's option, either prompdy repaid to ~3orrower or credited to Borrower on monthly instalimente of ~nde. If the amount of the Funde held by I.ender shaU not be sufficient to pay tazes. seeesamenta, insurance pre~iuma and ground rents se they fall due, Borrower shall pay to I.ender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed hy Lender to Borrower requeating payment thereof. Upon pay~nent in full of all euma eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwiee acquired by Lender. L.ender ehall apply, no later than immediately prior to the eale of the Property or its aoquisition by Lender, any I~Lnds held by I.ende~ at the time of applicetion as a credit against the aume aecured by thia Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwiee, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by l.ender first in payment of amounts payable to Lende~ py Borrower under paragraph 2 hereof, - then to interest payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liene. Borrower ahall pay all taxes, nasessments and other chargee, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or (cround renta, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by f3orrower making paymenf, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Iiorrower shall promptly furnish to l.ender receipta evidencing such payments. Boerowe* shall promptly discht~rge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required to diacharge any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, ur defend enforcement of such lien in, legal proceedinga which oper~te to prnvent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the improvemente now exiating or hereafter erected on the Property insured against losa by fire, hazarde included within the term "e:tended rnverage," and auch other hazards aa Lender may require and in such amounts and for such perioda as Lender may require; provided. that Lender shall nat require such ooverege amount e:ceeding the minimum. as may be required by atate or federal regulatione goveming activitieg of Lender, or that amount of coverage required to pay the aums eecured by thie Mortgage, whichever ia the greater. The inaurance carrier providing the insurance shaD be chusen by l3orrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinq payment, when due, directly to the insurance carrier. ~ All inaurance policiea and rnnewale thereof shall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of , and in form aoceptable to Lender. Lender ahall have the tight to hold the policies and renewals thereof, and Boaower ahall promptly furnish to ~ i,ender all renewal notices and all receipts of paid premiums. In the event of losa. Borrower shall give prompt notice to the inaurance carrier ~ and Lender. Lender may mske proof of loss if not made promptly by Borrower. Unless L.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such reatoration or repair is economically feasible and the eecnrity of thia Mortgage ia not thereby impaired. If auch ~ restoration or repair ia not eoonomically feasible or if the security of thie Mortgage would be impaired, the inaurance proceeds shall be applied to the auma eecured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to i respond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to setde a claim for ineurance benefite, Lender is authorized to collect and apply the inaurance prooeeds at Lender e option either to reatoration or repair of the ~ Property or the auma secured by thie Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any euch application of proceeds to principal shall not eztend or postpone the due ~ date of the monthly inetallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 ~ hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof resulting from damage to Property prior to the eale or acquisition shall pasa to Lender to the extent of the eums secared by thie Mortgage immediately prior to auch sale or aoquisition. 6. Preservation and Maiatenance of Property; Leaeeholds; Condominums; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Propedy and ehall rnmply with the proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrowei s obligatione under the declaration or rnvenants creatingor governing the condominium or planned unit development, the bylawa and regulationa of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreementa of such rider ahall be incorporated into and shall amend and supplement the covenants and agreemente of this Mortgage as if lhe ~ rider were a part hereof. Protection of Lender's 3ecvrity. If Borrower faile to perform the aovenante and agreements ooatained ia this Mortgage, or if any ~ action or proceeding is oommenced which materially affecte I.endei s interest in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangements or proceedinge involving a banimipt or deoedent, then Lender at Lender'e option,upon ` notice to Borrower may make such appearancee, disburae such auma and take euch aclion as is nec~eary to protect I.ender's intereet, ~ including, but not limited Lo, dieb~raement of reaeonable attorney's fees and entry upon the Property to make repairs. If I.ender requised ; mortgage ineurance ae a conditiop of making the loan secured by thie Mortgage, Borrower shall pay the premiums required to maintaia + ~ such insurance in effect until snch time as the requirement for euch ineurance terminates in accordance with Borrower's and I.ende~s ~ writtea agrcement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the menner provided under paragraph 2 hereof. ~ ~ My amounte diabureed by Lender pereuant to this paragraph 7, with intereet thereon, ehall beoome additional indebtednees of ~ Borrower secured by thie Mortgage. Unlees Borrower and Lender egree to other terms of payment, auch amounte ehall be payable upon ~ notice from Lender to Borrower requesgng payment thereof, and ehall bear intereet from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereet at such rate would be aontrasy to applicable Iaw, in which ~ event such amounts ehall bear intereat at the higheet rate permieeibie under applicable law. Nothing rnatained in ihis paragreph 7, ahall : ~ require Lender to incur any e:penee or take any action hereunder. ~ ~ ti ~ $~~2~~ 59~ ' - ~ _ - - ~ z, . ~ . Y"^~ ~ ~ ~ 3 ~ ~.r - L-, . ,N~ ~r . . ~ ~ s~ ~~G~rv.w~'