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HomeMy WebLinkAbout0133 . Borrower and I.ender covenant and a~run a~ folluwr 1. P'yme~t ot Priacipal ~nd lptere~t. Borrower ehell pmmptly pay when due the principal of and intere~t on the indebtedneas evidenced by tha Note. prepayment end late charger ea provided i~ the Note, and the principal ot and i~ter~t on any Futum Advances securcd by thiu Mort~age. 2. E~nda for T~ces and lnsuranoe. 3ubject to applicabte law or b s written waiver by l.rnder, t3orrower ehall pay to l.ender on the day monthly instalimenb ot principal and interest are payable under the Note, until the Note ia paid in fuU, e aum (herein "I~nds") equal to one twelfth of the yearly taxee and.assessmenta which may attain priurity over this Moriga~e, and ground renta un the E'roperly, if any, plus one twelRh of yearly premium inetallments [or hazard insurance, plus onetwelfth ofyearly premium installmenta for mortgage insurance, if eny, all ae reasonably estimated initially and trom time to time by I.ender on the basia of aseeasmenta and bills aod reasonable eetimates thereof. The FLnds shall be held in an in~titution the deposita or accounts of w}iich are insured or guaranteed by a Federal or State agency (including I.ender it I.ender iu such an institution). l~ender shall apply the Funda to pay eaid taxes, easeaaments, iruuranoe premiums and ground ronta. Lender may not charge tor so holding and applying the FLnd~, analyzing said account, or veritying and compiling seid aaseesmen4 and bilb, unleaa I.ender peys Borrower interest un the F~nds and epplicable law permits Lende~ to make such a charge. Borruwer and I.ender may ngrae in writing at the titne ot eaecution of this Mortgage that interest on the Funde ehall be paid to Borrower, and unleea ~uch agrcement is made or applicable law requires such i~tereat to be paid, I.endet shall not be requi~+ed to pay Borrower any interest or e~rnings on the ~nda. Lender ahall give to Borrower, without charge, an annual accaunting of the Funds showing credits and debits to the Funds and the purpose for which ench debit to the ~nda was made. The ~unde are pledged as additional security for the sums eecured by this Mortgage. lf the amount of the El~nda held by Lender, together with the futuce monthly instellments of Funde payable prior to the due datea of tanea, assessments, insurance premiums and ground renta, shali excred the amount required to pay said taxes, asaeaements, ineurance premiuma and ground rents aa they lall due, such e:oas ahall be, at BoiTOwer s option, either ptomptly repaid to Borrower or credited to Borrower on monthly instsllmenb of Flrada. If the amount of the Funda held by Lender shaU not be sufficient to pay ta~ces, asaessments. ineurance premiums and ground rents as they fall due, Borrower shell pey to I.ender any amount neceeeary to make up thedeficiency within 30 daya fmm the date notice is mailed by L,ender to Borrower requeating payment thereoL Upon payment in full of all eums secured by this Mortgage, I.ender shall promptly refund to Borrower any fundn held by Lender. I[under paragraph 18 hereotthe Property is sold or the Property is othervriee acquired by Lender, Lender ahall apply, no leter than immediately prior ~ to the sale of the Property or its aoquieition by Lender, eny F~nds held by i.ender at the time of application as a ctedit against the eume eecured by this Mortgage. 3. Application ot Payments. Unleas applicable law provides othenriee, all paymenls received by l.ender under the Note and paraqrephs 1 and 2 hereof shal) be applied by Leoder firat in payment of amounte payable to Lenderb~ikittov?er under paragraph 2 hereof, then to interest {wyable on the Note, then to the principal ot the Note, and then to interest and principal oa any Future Advancea. 4. Chargee; Liens. Born,wer ahall pay all taxes, assrasmenls and dher charKea, finea and impositbA~aYtnl~utable to the f'roperty w hich may attain a priority over thiaMortgage, and leasehold payments ur gmund renta, if any, in the ~nar?no~prwWed under paragraph 2 hereof or, if not paid in such manner, by fiurrower mnking payment, when due, directly to the payee lherqui ~ccp~r rhali promptly furnish to l.ender all noticea of amounts due under thia paragraph, and in the event Borrower ahell make paymeh't direcrtly,Botrower shall prumptly fumiah to I.ender receipt8 evidrncing euch paymente. F3orruwer ahall promptly diacharge any lien which hae pnority e~rer this Mortgage; provided, that [iorrower ehall not be required k?dischazge any such lien so long :~a Korrower shall ~gree in writing to the paymenl of the ubligation aecured by auch lien in a manner acceptable to I:ender, or shall in good faith contest such lien by, urdefend enforcement of such lien in, lc~a1 procecdinga . which operate to prevent the enforcement of the lien or forfeilure of the Properly or any part thereof. 5. Hazard Inaurance. Borrower ehall keep the improvemente now exieting or hereafter erected on the Property ineured againat loae by fire, hazarde included within the term "e:tended coverage," and auch other hazards se Lender may require and in auch amounts and for such periods aa I.ender may requin; provided, that Lender ahall not require such ooverage amount exceeding the minimum, aa may be required by state or federal regulatione governing activitiee of LendeT, or that amount of coverage required to pay the euma eecured by this Mortgage, whichever ie the greater. The insurance carrier providing the inaurance shall be chosen by f3orrower xubjecl to approval b~• l.ender, pmvided, that such approval shall not be unreaeonably withheld. All premiuma on inaurance }wlicies ehall be pvid in the manner provided under paraqraph'L hereof ur, if not paid in auch manner, by Borr~wer makinq payment, when due, directly lo the inaurance carrier. All inaurance policiea and renewale thereof ahall be in form acceptable to Lender and shall include a etandard mortgage clause in favor of and in formr aooeptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, $nd Bort»wer shall promptly furnieh to i.ender ell renewal notices and all receipte of paid premiums. In the event of losa, Borrower ehall give prompt notice to the insurance carrier and l.ender. I.ender may make proof of loea if not made prompdy by Borrower. ~ Unless Lender and Borrower otherwiae agree in writing, ineurance proceeds shaU be applied to reetoration or repair of the Propetty ~ damaged, provided such resLoration or repair ie economically feasible and the eecurity of thie Mortgage ia not thereby impaired. If such ~ reatoradon or repair ia not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeds shall be applied I to the snms secured by thie Mortgage, with the exceea, itany, peid to Borrower. Ifthe Property is abandoned by Borrower, or if Eiorrower fails to respond to I,ender within 30 daya from the date notice ie mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for inaurance benefite, Lender ie suthorized to rnllect and apply the inaurance proceeds at Lender'e option either to restoration or ~epair of the Property or the suma eecured by thia Mortgage. Unlese L.ender and Bo~rower otherwise agree in writing, any such application of proceeds to principal aha11 note:tend or postpone the due date of the monthly installmente referred to in paraqrapha 1 and 2 hereof or change the emount of such inatallmenta. If under parngraph 18 hereof the Property is acquired by Lenda, all right, title and intereat of Borrower in and to any inaurance poliries and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquiaition ehall pass_ to Lender to the e:tent of the euma eecured by this Mortgage immediately prior to euch sale or aoquisition. 6. Preeervation and Maintenence otProperty; Leaseholds; Condominume; Plenned Untt Developments. Borrower ahall keep the Property in good repair and ahall not commit waste or peTmit impairment or deterioratioa of the Property and shall rnmply with the provieions of any leaae it thie Mortqage ie on a leasehold. It this Mortgage is on e unit in a oondominium or a pianned unit development, Borrower shall perform all ot Borrower e obligatione under the dectaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulations of the rnndominiuui or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the mvenente and agreemente of such rider shall be incorporated into and ehall amend and supplement the covenanta and agreementa of thia Mortgaqe as if the rider werc a part hereof. 7. Protection ot Lender'~ Securlty. If Borrower fails to prr[omn the oovenant~ and agreements oontained in thia Mortgage. or if any action or proceedinq ie commenced which materially affecta Lender s intereet in the Property, including, but not Gmited to. eminent domain, insolvency. oode enforoement, or arrangemen4 or proceedings involving a bankrupt or deoedent, then Lender dt I.ender's option,upon notice to Bormwer may make such appearances, dieburee such sums and talce such action as is neoessary to prota.t Lender'~ interes~ including, bnt not limited to, disbursement of reasonable attorney's fces and entry upon the Property to make repaire. If Lender required mortgage insuranoe as a condition of making the loan secured by this Mortgage, Borrower shall paythe premiums required to maintain snch insurence in effect unW such time as the requirement for such inaurance terminates in acoordancx with Borrower's and Lendda ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiucns in the manner provided under ! paragraph 2 hereof. ~ My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedneaa of Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terma of payment, such amount~ shall be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date oi disbursement et the rate payable from time to time on outstanding principel under the Note untese payment of intereet at such rate would be oontrary to applicable law, in which event euch amounts ehall bear intereet at the highest rate permiesible under epplicabie law. Nothing contained in thia paragraph 7, shall require Lender to incur any e:pense or take any action hereunder. ~ (i R eoo~ 2~7 ~ac~ 1~ . 3 . { ~ r . . _ _ ~ x_ . . ~ _ _ = -