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HomeMy WebLinkAbout0593 fiorruwer and l.ender covenant and ag~ee as folluwa: l. Payment ut Principal and Intereat. I3orn,wer shall pn,mptly pxy when due the principal uf and intereat on the indrbtxdneaa evidenced by the Note, prepayment and lnte chargeu as provided in the Note, and the principal uf und intereat on any F'uture Advttncea srcured by thia Mortgage. `l. F`unds for Taxe~ and Insurance. Subjeci to appliceble law or tu a writlen waiver by l.ender, F3orrower aht~ll puy to l.ender on the day monthly inatallments ui principal and intereat are payable under the Note, until the Nose ia paid in full, a eum (herein "Funda") equal to one- twelfth of the yea~ly taxea and aaeeaamenta which may nttain priority uver this Murtgage, and ~und mnta un the Pruperty, if uny, plua one twelRh of yearly premium installments for hazard inaurnnce, plus onetwrifth of yearly premium installmenta for mortgage inaurance, itany, aii as rcaaonably estimated initiully e+nd from time to time by I.ender on the bataie of asaeasmenta and billa and reasanable estimutes thereof. The ~nde ahall be held in an institution the depoeits or accounta o! which are insured or guaranteed by a Federal or State agency Iincluding l.ender if l.ender ie auch an inetitution). l.e~der ahall apply the Funds to pay said taxes, aseesaments, insurance premiums and ground rente. [.ender may not charge for eo holding and applying the Funde, pnalyzing said account, or verifying and compiling said aaaeesmenta and bills, unlese l.ender paye 13orrower intereat on the Funds and applicable law permita (.ender to makeeuch a charge. l3orrower and I.ender mey agree in writing nt the time of execution of thie Mortgaqe that intereat on the F unda ahall be paid to Borrower, s~nd unieae auch agreement ie made or applicable law requiree auch intereat to be paid, l.ender ehall not be required to pay Borrower any interest or earninge on the Fl~nda. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing ctedits and debits to the Funds and the purpoae for which each debit to the Funda was made. The Funda are pledged as additional eecurity fortheauma scrured by thie Mortgage. I[ihe amount of the Funda held by I.ender, together with the [uture monthly inatallmenta of Funda payabte prior to the duedatea of taxes, aasesementa, insurance premiuma and ground renta, ahal) excxd the amount requind to pay aeid taxes, aseessmente, insurance premiuma and ground mnte as they tall due, auch e:cesa ehail be, at Borrower's option, either prompdy repaid to 13orrov~rer or credited to ~orrower on monthly inetallmente ot ~t~de. If the amount of the Funda held by I.ender ehull not be eu~cient to pay taxea, assessmenta, inaurance prerniuma and ground rente as they fall due, F3orrower ehall pay to I.ender any amount necessary to make up the defciency within 30 days from the date notice ia mailed by [.ender to Rorrower requeating payment thereof. Upon payment in full of all auma eecured by this Mortgage, l.ender ehall promptly refund to Borrower any funda held by l.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquieition by l.ender, any Funds held by I.ender at the time of application as a credit againsl the sums secured by this Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwiee~ hU paymenta received by l.ender under the Note and paragrapha 1 and 2 hereot shull be applied by Lender firat in gayment of amounts payable to [.ender by Borrower under paragraph 2 hereof, then to inlerest payaUle on the Note, then to the principal of the Note, and then to interest and principal on any Futurn Advances. 4. Chargea; l.iena. E3orrowershall pay all tuxes, as:iessments and other rhargea, tSnes and im{wsitions attributable to the Pruperty which m.~y attain a priority o~~er this Htortgage, and lef?sehold puyments or grvund rentr~if any, in the manner provided under purugraph 2 hereofor, if not paid in such manner, bt~ Borrower making pa~~ment, when due, directly to th ~payee thereof. BoEruwer shall promptl~ furnish to I.ender all notices of nmounts due under this par~~raph, and in the event F~rmwer shall`make pay'ment directly, E3orrbweT ahall promptly fumish to 1 xnder receipts evidencing such payments. Rorrower sh111 promptly discharge any lien which has priority over this 111ortgaqe: provided, that l3urrower shali not be required lodischarge any such lien so long as t3urrower shali agree in writinK to the payment of the obliRi~tion xrcured by such lien in a manner acceptable to I.ender, or shall in Kood fnith contest such lien by, or defend enforcement oCsuch lien in,lrgal proceedings u•hich operate to pre~~ent the en[orcement ot the lien or lorteitum of the Property or any part thereof. 5. Hazard Ineurance. Sorrower shall keep the improvementa now existing or hereafter erected on the Property inaured againat losa by fire, hazards included within the term "e:tended coverage; ' and ssuch other hazards aa Lender may require and in such amounta and for such periods as I.ender may require; provided, that Lender ahall not requirn such rnverage amount exceeding the minimum, as may be required by state or federal regulations goveming activitiea ot Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the greater_ The insurance carrier providing the insurance shall be ch~en by F3orrower subject to appmval by l.ender, pro~•ided, th~t such approva) j shall not be unreasonably withheld. All premiums un insurance policies shall be paid in the manner providcd under paraKraph 'l hereof or, if , not paid in such manner, by E3orrower making pxyment, w•hen due, directly t~, the insurance carrier_ ' All insurance policiea and rnnewais thereof ahaU be in form acceptable to Lender and shall include a standard mottgage clause in lavor of I and in form acceptable to I.ender. I.enderahall have the right to huld the policies and renewala thereof, and Borrowerahall promptly furnish to ?.ender all renewal notices and al) receipta of paid premiuma_ In the event of loss, Born~w•er shall give prompt notice to the insurance carrier i and L.ender. Lender may make proof of loss if not made promptly by Borrower. ' . } Unlesa C,ender and Borrower otherwiae agree in writinq, insurance proceede shall be applied to restoration or repair of the Property - damaged, provided such restoration or rnpair ia economically feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the aecurity of this Mortgage woutd be impaired, the insurance proceeds ahall be applied ' to the eums secured by thie Mortgage, with the excess, if any, paid to Borrower_ If the Property ia abandoned by Borrower, or if Iiorrower faila to e respond to Lender within :t0 days from the date notice is maited by I.ender to Borrower that the insurance carrier offers !o eettle a claim for ~ ineurance benefits. I.ender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the ~ Propetty or the aums secured by this Mortgage. a Unless [.ender and f3orrower otherwise agree in writirtg, any such application of procceda to principal shall not extend or poatpone the due ~ date of the monthl y inataliments referred to in paragraphs 1 and 2 hereof or change the amount uf auch inatalimente. If under paragraph 18 i hereof the Property ie acquired by Lender, all riqht, title and interest of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acqwsition ahaU pas8 to L.ender to the extent of the auma secured by this biortgage immediately prior to auch sale or soquisition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the pmviaiona of any lease if this Mortgaqe is on a leasehold. If thie Mortqage ia on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and. rnnatituent documente. If a z condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the eovenants and agreements of such rider shall be incorporaled into and shall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. 7. Protection ot Lender'e Security. Tf Borrower faile to perform the rnvenante and agreemente rnntained in thia Mortgage, or if any % action or proceeding ie commenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then I:ender at Lender's option,upon ~ notice to Borrower may make such appearancea, dieburee euch aums and take euch action ae is neceaeary to pmtect Lender's interes~ ~ s~ including, but not limited to, dieburaement of reasonable attorney'e feea and entry upon the Property to make repaire. If Lender required , mortgage ineurance ae a rnndition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiume required to maintain ~ snch insurance in effect until auch time aa the requirement for euch ineurance terminatee in. accordance with Borrower's and Lender e written agreement or applicable I.aw. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under - peragraph 2 hereof. ~ My amounts diabursed by Lender perauant to thie paraqraph 7, with interest thereon, ahall become additional indebtednesa of F3orrower eecured by thie Morigage. Unleaa Bonower and Lender agree to other terma of payment, such amounts aha1) be payable upon - - notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date of dieburseroent at the rate payable from time to time on outetanding principal under the Note unleHe payment of intereet at such rate would be contrary to applicable law, in which r~; ~ event euch amounta shall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in this paragraph 7, shali ~ require Lender to incur any expenae or take any action hereunder. • . ~ 60iR P~fE 5~~, y . - - , . ~ - - - _ _ . . ~ . .