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HomeMy WebLinkAbout0700 • ~ ~ . . r ~ . Borrower and I.ender cove~ant and agree as follows: 1. Payment of Prisipal a~d Intereet. Borrower shall promptly pay when due the principal of and intereet on the indebtedneea evidenced by the Note, prepayme~t and lale chargea as pmvided in the Note, and the principal of and intereat on any fi~ture Advancee secured by thia Mortgage. ' 2, Elu~ds for Ta~ces and Ineurance. Subject to upplicable law or to a written waiver by I.ender, Borrower ahall pay to l.ender on the day monthly inatallments of principal and intereat are payable under the Notc, until the Note ia paid in full, a aum (herein "El?nde") equal to one twelRh of the yearly taxes and asaeesments which may attain priority uver thia Mortgage, and ground rnnts on ihe Properiy, if any. ptua one twelfth of yearly premium inetallmenle for hazard inaura~~e, plus onetwelfth of yearly premi~~m inatallmenta tor morlgage inaurance, if any, ~ all as reasonably eatimated initially and trom time to time by l.ender on the basis of assesamenta and billa and reasonable eatimates thereof. The ~Lnds shall be held in an institution the deposits or accounta of which are ineured or guaranteed by e Federal or State agency (including Lender if i.ender ia auch an institution). Lender shall apply the Funde to pay said taxes, aeaesaments, inaurancc premiume and ground rents. Lender may not charge for so holding and applying the ~nde, analyzing eaid account, or veri[ying and compiling eaid aeseasmenta and bills, unleee Lender pays Borrower intereet on the ~nds and applicable law permits I.ender to make euch a charge. l3orrower and Lender may agree in writing at the time of execution of this Mortgage that intereat on the ~nda ehall be paid to Borrower, and unleae euch agrcement is made or applicable law requirea auch intesest to be paid, l.ender ehall not be required to pay Borrower any interest or earnings on the F~nde. I.ender ahall give to Borrower, without charge, eu~ annual accounting of the Funda showing credita and debits to thc Funda arcd the purpose for which each debit to the ~nds was made. The Funda are pledged ae additional aecurity for the eums eecured by thia Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly insLallmenta of Funda payable prior to lhe due datee of taues. aesesaments, insurance premiuu;a ai~d ground renta, ahall e:caed the amount required to pay said taxea, eseeasmenta, inauranoe premiume and ground renta as they fall due, euch ezceae ahall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthty inatallmente of ~nda. If the amount of the Funds held by I.ender ahall not be aufficient to pay taxes, aseeeamente. inaurance premiams and ground rents as they fall due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requeating payment thereoL . Upon payment in full of all aums eecured by this Mortgage, I.ender ehall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwiae acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or ita acquisition by Lender, any Funda held by I.ender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Peymente. Unless applicable law provides otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereot shall be applied by Lender firat in payment of amounta 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 ~uture Advancea. 4. Chargea; Liens. Borrower shall pay all taaes, nssE~ssments and other chargea, fines and impositions attributable to the ~'mperty which may attain a priority over this Mort~tage, and leasehold payments or ground rents, if any, in the manner provided under paragraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. BorrowershaU promptly [urnish to Ixnder all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment duectly, Borrower ahall prompdy furnish to Lender receipta 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 shall 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 contest such lien by, ordefend enforcement of such lien in, legal proceedinga which operate to prnvent the enforcement of the lien or forfeiture of the Pmpetty or any part thereof. 5. Hazerd Inaurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Propedy insared againat loas by fire, hazards included within the term "extended rnverage; ' and auch other hazards as Lender may require and in auch amounta and for such periode as Lender may require; provided, that Lender ahall not require auch coverage amount eaceeding the minimum, as may be required by state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the euma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance sfiall be chosen by F3orrower subject to approval by l.ender, provided, that such approval shall not be unrntisonably withheld_ All pmmiums on insurance policies shall be puid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dinrtly to the insurance camer. All inaurance policiea and renewals th~ereof shall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furniah to i.ender all renewal noticea and all receipts of paid prnmiums. In the event of loea, Borrower ahall give prompt notice w the inaurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. Unleas Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property 6 damaged, provided auch reatoratiun or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired. If such ~ reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the :naurance pr«st.~eds shull be applied to the auma secured by this Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier of~era to settle aclaim for inaurance benefite. Lender is suthorized to rnllect and apply the insurance proceeda at Lender's option either to restotation or repair af the Propert~ or the sums aecured by thia Mortgage_ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ehall not e~ctend or postpone the due _ ~ date of the monthly inatallmenta referred to in paragraphs i and 2 hereof or change the amonnt of such installments. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, tiUe and interest of Borrower in and to any inaurance policiea and in and to the proceede thereof resulting from damage to Property prior to the sale or acquiaition ehall pass to Lender to the eztent of the aums secured by thia ~ Mortgage immediately prior to auch eale or aoquiaition_ 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisiona of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligationa under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-lawa snd regulationa of the condominium or planned unit development. and conetituent documents. If a - condominium or planned unit development rider ia eaecuted by Borrower and recorded together with thia Mortgage, the oovenante and agreements of such rider shalt be incorpotated into and shall amend and supplement thecovenants and agreements of this Mortgage aa if the rider were a part hereof. - ' 7. Protection of Lender's 3ecurity. If Borrower fails to perform the oovenante and agreemente oontained in this Mortgage, or if any ~ action or pmceeding ie commenced which materially affecta I,ender'e intereet in the Property, including, but not limited to, emineat domain. ~ insolvency, aode enforcement, or arrangemente or pmccedings involving a banlm~pt or decedent, then Lender at Lender's option,upon - notice to Borrower may mate such appearancee, dieburee auch aums and take snch action as is neceaeary to protect Lender's intezes~ ` inclnding, but not limited to, diebureement of reaeonable attorney's fcee and entry upon the Property to maice repairs. If Lender required ~ mortgage inanrance aa a condition of mal~ing the loan eecurod by thie Mortgege, Borrower ehall pay the premiums required to maintain ~ ench ineurance in effect until euch time as the requirement for auch ineurance terminates in aocordance with Borrower's and I.ende~s ~ written a~reement or applicable I~w. Borrower shall pay the amount of all mortgage insurance premiuma in the manner provided under ~ paregraph 2 hereoL ~ ~ My amounta diabureed by Lender persuant to thie paragreph 7, with intereet thereon, ahall beoome additianal indebtedneBS of ~ Borrower secured by thia Mortgage. Unleas Borrower and I.ender agree to other terme of payment, auch amounte shall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ahall bear interest from the date of diabureement at the rate payable from time to time on outatanding principal under the Note unlees payment of intereat at auch rate would be oontrary to applicable law. in which ~ event euch amounte ahall bear intereet at the highest rate permieaible under applicable law. Nothing oontained in this paragraph 7, ehall require Lender to incur any e:pense or take any action hereunder. ~ ~R , : ~ . Eoox 296 Fh~~ 698 - ~ ~ ~ . ~ _ ~-,..Y" - > ~ . , _ ~ . . ..~a. v _