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HomeMy WebLinkAbout0695 v. ~1 ' ~ . ~A. Borrower and I.ender covenant and agree as [ollows: 1. Payment of Principal t~nd I~terest. Bnrrower ahall prompUy pay when due the principal of and intereat on the indebtcdnese evidenced by the Note. prepayment and late charges ae provided in the Note, and the principal of and interest on any ELture Advancea aecured by this Mortgage. ' . 2. P'unds !or Te~e~ edd Insurance. Subje~t to applicable law or to a written waiver by I.ender, Borrower shall pay to l.ender on the day monthly installmenta of principal and intereet are payable under the Note, u~til the Note is paid in full, a aum (herein "H~nds") equal to ono- twelfth of the yearly ttutes and assessments which may attain priority over this Mortgage, and groun~I renta on the Property. if any, plus or?e twelRh of yearly premium inetallmenta [or hazard inaurance, plus on~twelRh ofyearly premium installmente for mortgage insurance, if any, all as reasonably estimated initially and firom time to time by l.ender on the basis of assesamente and billa and reasonable estimates ihereof. '11ie F1?nds ahaU be held in an institution the depoeits or accounta of which are inaured or guaranteed by a Federal or State ageacy (including I.endar if I.ender is auch an institution). I.ender ahall apply the Fands to pay said taxes, asa:~~ments, inaurance premiuma and ground nnts. Lender may not charge for ao holding and applying the I~nda, analyzing said account, or verifying and compiling said aeaeesmenta and bills, unleas I.ender paya Borrower interest ol~ the ~nde and applicable law permits l.ender to make euch a charge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that intereet on the ~nda shall be paid to Borrower, and unleae such agreement ie made or applicable law requirea euch interest to be paid, I.ender ahall not be required to pay Borrovrer any intereat or earnings on the Ftinds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debits to the Funde and the purpoee for which each debit b the F~nda wea made. The Funde are pledged ea additional eecurity for the sums eecured by this Mortgage. If the amount of the ~nda held by Lender, together with the future monthly installmente of Funda payable prior to the duedatee of txxea, sesesamenta, inaurance premiuma and ground rents, ahall exczed the amount required to pay said taxes, aeseasments, inaurance premiuma and ground rents as they fall due. such excess ahall be, at Botrowei s option, either promptly repaid to Borrower or creditrd to Borrower on monthly inetalimente of Funds. V the amount of the Funda_ held by Lender ehall not be aut~icient to pay t~ea, aseesamenta, insurance premiums and ground renta ae they fall due. Borrower ehall pay to Lender any amount neceaeary to make up the deficiency wifhin 30 daye from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upon payment in full otaU sums eecured by this Mortgage, Lender shall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property ia otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior to the sale of the Property or ite acquieition by Lender, any F~nde held by Lender at the time of application as a credit egainst the auma eecured ~y thia Mortgage. 3. Application of Paymenta. Unless applicable law providea otherwiee, all payments received by I.ender under the Note and paragraphe 1 and Z hereof shall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. lhen to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Futun•Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other chazges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, 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 thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receigts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall ag~ee in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shali in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againat losa by fire, hazarda included within the term "extended coverage; ' and such other hazards as Lender may require and in such amounts and for such periods as [.ender may require; provided, that L.ender shall not require such rnverage amount excceding the minimum, as may be required by - state or federal regulations goveming activitiea of Lender, or that amount of coverage required to pay the sums eecured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval hy Lender, provided, that such approval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner provided under paraqraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewala thereof ahall be in form acceptable Lo Lender and shall include a atandard mortgage clause in favor of and in form acoeptable to Lender. L,ender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all receipts of paid prnmiuma. In the event of losa, Bornower shall give prompt notice to the insurance carrier i and Lender. Lender may make proof of losa if not made promptly by Borrower. , . Unlese Lender and Borrower otherwiae agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property ( damaged, provided euch restoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaiied. If such i reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the inaurance proceede shall be applied ~ to the suma eecured by this Mortgage, with tt~e eacesa, if any, paid to Borrower. If the Property ie abandoned by Botrower, or if Borrower faila to ~ reapond to L.ender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier of~ers to setde a claim for insurance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender's opdon either to rnstoration or repair of the Property or the aums sec~red by this Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahap not eutend or postpone the due date of the monthly instaliments referred to in paragiapha 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 heteof the Property ie acquited by I.ender, all right, title and intereat of Borrower in and to any insurance policies and in and to the Qroceeds . thereof resulting from damagt to Property prior to the sale or acquisition ahall ~asa to Lender to the ex~ttent of the aums secured by this Mortgage immediately prior to auch sale or soquiaition. 6. Preeervation and Maintenance of Propecty; Leaseholda; Condomiuuma; Planned Unit Developmente. Borrower ahall keep the Property in good repaii and ehaU not commit waste or permit impairment or deterioration of the Property and shall comply with the • provisions of any lease if thie Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower a obligations under the declaration or covenanta creatingor governing the rnndominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent dceuments. If a rnndominium or planned unit development nder ia e:ecuted by Borrower and recorded together with thie Mortgage. the oovenanta and agreements of such rider shall ~e incorporated into and ahall amend and supplement the covenants and agreementa of thia Mortgage as if the rider were a parthEreof_ ~ 7. Protection of I.ender's Security. If Borrower fai1a to perform the wvenante and agreemente contained in thie 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, ineolvency, oode enforcement, o: arrangementa or proceedinge iavolving a banlcmpt or deoedent, thea Lender at Lender's option,upon ~ notice to Borrower may make such appearances, dieburae such enms and take auch action as ie neceeeary to protect Lender's interest, ; ~ including, but not limited to, diebunement of reasonable attorney'e feee and entry upon the Property to make npai~. If I.ender required ~ mortgage insurance aa a condition of ineking the loan eecured by this Mortgage, Borrower ahall pay the premiums reqaired to maintain snch ineurance in effect until auch time as the requirement for euch ineurance terminatea in aocordance with Borrower e and Lender's ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiuma in the manner provided under ~ paragraph 2 hereof. . ~ My amounte diebureed by Lender persuant to this paragraph 7, with intereet thereon, ahall beoome additional indebtednese of Borrower secured by thie Mortgage. Unleee Borrower and Lend~rc agree to other terme of payment, euch amounte ehall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from time to time on outstxnding principal under the Note unlees payment of interest at euch rate would be rnntrary to applicable law, in which ~ event such amounts ahall bear interest at the higheet rate permiseible under applicable law. Nothing contained in this paragraph 7~ ehall ~ require Lender to incur any expense or take any action hereunder. ~ ~ ~ tOC1I ~a'7t1 PACf V t~~ ~ . - ~ ' ~ ~r i ` - - - - - y ~~"~fr,-~,~...n"'~ ~ . _ w . . a~' ~ -