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HomeMy WebLinkAbout0597 Horruwer and l.ende~ covenant and aRree ai folluws: 1. Payment of Pei~cipal end Intere~t. Hom~we~ ahall promptly pay when due lhe principal of and in?erest on the indebtedneeis evidenced by the Nota, prepeyment and latecharges aa provided in the Note, and the principal of and interesto~ eny ~ture Advancea secured by thii Mort~age. 2. I~nds fo~ T~ea and Inrursnce. Subject to applicable Iaw or to a written waiver by l.ender, Horrower ehali pay to l.enderon the day monthly installmenta of principal and interest are payable under the Note, until the Note is paid in full, a aum lherein "Funds") equal to one twelfth of the yearly taxes and asaeasments which may attain priority over thie Murtgage, and gn,und rents on the Property, itany, plw onc tvvelfth of yearly premium installmenta for hazard inaurance, plus onetwelfth ofyearly premium instailmenta tor mortgage ineurance, if any, ali as reawnsbiy estimated initially and trom time b iime by l.ende~ on the basis of asseseme~ta and bills and reasonable estimatee thereot. The Eltndi shall be held i~ eu~ inetitution the deposits or accounb of which are inaured or guaranteed by a Federal or State agency (includias Lender if [.ender is such an inatitution). I.ender shall apply the F unds to pay said ta:es, aasesaments, inaurance premiums and ground nnb. Lender mayr not charge for so holding and applying the ~nds, analyang said account, or veritying and compiling said asses~menta and bills, unlese L.ender peys Borrower interest on the Flinds and applicable law permits l.ender to make such a charge. Borrower e.ud l.ender may agree in writing at the time of execution o[ this Mortgage that interest on the Mlrnda ahaU be paid to Borrower, and unleas ~uch a~reement is made or applicable law requires such interest to be paid, Lender ehall not be required to pay Eiorrower any intereet or earninQs o~ the ~nds. Lender ehall give to Borrower, without charge, an annual acoounting of the Funds showing credits and debits to the Ftinds and the purpose for which each debit to the ~nds waa made. The Funde are pledged aa additional security [or the aums secured by this MortgaQe. If We amount of the Ftinde held by L.ender, together with the future monthly inatallmenta of Funda payable prior to the due dates of taues, aa~essment~, inaurance premiums aad ground renta, ehall excaed the amount required to pay said taxes, aeaesamenta, insurance premiums and ground nnts as they fall due, such e:ce~as shail be, at Borrower s optioo, either promptly repaid to Borrower or credited to Borrower on monthly installmenta of Fl~nd~. If the amount of the Funde held by Ixnder shall not be aufficient to pay ta:ea, aseeeaments, ineurance premiums and groiu~d rente aa they fall due, Bormwer ahall pay to Lender any amount neceaaary to make up the deficiency within 30 daye from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all aums secured by this Mortgage, I.ender ehall prompdy refund to Eiorrower any tunda held by IPnder. If under paregraph 18 hereof the Property is eold or the Property is otherwise acquired by Lender, Le~der ahall apply, no later than immediately prior , to the sale of the Property or ite acquisition by Lender, any ~nde held by I.end'er at the time of application ae a credit againat the eume eecured by this Mortgage. 3. Application of Paymente. Unleas applicable law providea otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereot ehall be applied by I.ender firat in payment of amounte paysbie 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 internst and principal on any Future Advancee. 4. Charges; Liens. Bor[ower shall pay all taxes, assessments and other rhargea, finea and impositione attributable to the Property which may attain a priority over this Mortgage, and leanehold payments or ground rents, itany, in the manner provided under paragraph 2 hereof or, it not paid in such manner, 6y t~rruwer making payment, when due, directly to the payee Chereof. Borrowerahall promptly furnish to I.ender ~ all noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly turniah to l,ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which hHa priority over thia Mortgage; pmvided, that - f3orrower ahall not be required to diacharge any such lien ao long ass Eiorrower shali ngree in writing to the payment uf the obligation secured by such lien in a manner acceptable to I.ender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvemen4a now e:isting or hereafter erected on the Property inaured ugainet losa by fire, hezards included within the term "e:tended coverage." and auch other hazards as [.ender may require and in such amounts and for such periods ar Lender may require; provided, that Lender ehaU not require such ooverage amount exceeding the minimum, as may berequired by state or [ederal regulationa governing activities of Ixnder, or that amount of coverage required to pay the aume aecured by this Mortgage, whichever ie the greater. The ineurance carrier providing the inaurance ahall be choaen by E3orrower subject to approval by I.ender, pmvided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies r~hall be paid in the manner pmvided ander paraKraph'l hereof or, if not paid in auch manner, bv Borrower making payment, when due, directly to the inaurance carrier. i All insurance policies and renewala thereof shali be in form acceptable to Lender and shall include a atandard mortgage clause in favor of E and in form acceptable to Lender.~.ender shall have the right to hold the policiee and tenewals thereof, and Borrower shall promptly furniah to i i.ender all renewal noticee and all receipts of paid premiums. In the event of losa, Bormwer shali give prompt notice to the insurance carrier t and Lender. Lender may make proof of loea if not made pmmptly by Borrower. > Unless Lender and Borrower otherwiae agree in writing, inaurance proceeds ahall be applied to reatoration or repair of the Property a damaged~ provided such reatoration or repair ia economically feasible and the security of this Mortgage ia not thernby impaired. If such ; restoration or repeir ia not economically feseible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the sama secured by thie Mortgage, with the exceae, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to ~ reapond to Lender within 30 daya from the date notice ie mailed by I.~nder W Borrower that the~inaurance carrier offera to eetde a claim for ~ insnrance benefite, Lender ia authorized to collect and apply the inaurance proceede at I.ender a option either to restoration or repair of the ~ Property or the aums eecured by thia Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any auch application of proeeede to principal shali not e:tend or poetpone the due _ : date of the monthly inatallmenta referred to in paragraphe 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 " hereof t6e Property is aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the eale or acquiaition ahall pase to I.ender to the e:tent of the eume secured by this ~ Mortgage immediately prior to auch sale or acquiaition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower ahall keep ~ the Property in good repair a~d ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ pmvisions of any leaee if thia Mortgage ie on a lessehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower e obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the rnndominium or planned unit development, and conetituent documente. If a ~ condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thia Mortgage, the covenant8 and ~ri agnements oteuch rider ehall be incorporated into and ahall amend and supplement the cnvenants and aqreements of this Mortgage ae if the _ rider were a part hereof. ~ 7. Protection ot I.ender'~ 3ecurity. If Borrower faiis to perform the oovenante and agreements contained in this Mortgage, or if any ~ action or prooeeding ia commenced which materially affects Lender a intecest in the Property, including, but not limited to, eminent domain, ~ inaolvency, aode enforcemen~ or arrangements or proceedinga involving a bankrupt or deoedent, then Lender at Lendei s option,upon ti'+. aotice to Borrower may make such appearanoes, disburee such sums and take euch actioa es ie neoesaary to pmtect L.ender'a interest, inclnding, but not limited to, disburaement of rea~onable attorney's fees and entry upon the Property to ma1~e repairs. If Lender required . ~ mostgage uuurance ae a condition of ineJcing the loan ee~vred by this Mortgage, Borrower shall pay the premiums required to maintain mch uuuranoe in effect until such time as the requirement for such insurance terminates in accordanoe with Borrowde and I.~dd~ 3 writtm agreement or applicable Law. Borrower sha11 pay the amount ot all mortgage insnrance premiums in the manner provided under paragraph 2 hereoL ; My amounts disbursed by Lender perauant to this paragraph 7, with intereet thereon, shall become additional indeMedness of ' ' Borrower ~ecured by this Mortgage. Unleaa Borrower and I.ender agree to other terme of payment, euch amounte ehall be payable upon I notioe fmm Lender to Borrower requeeting payment thereof, and shall bear interest from the date of disbursement at the rate peyable firom ~ - time to time on outstanding principal under the Note unleea payment of interest at such rate would be oontrary to applicable law, in which event such amounts sha11 bear intereet at the higheet rate permiasible under applicable law. Nothing contained in thia paragraph 7, ehall = requin Lender to incur any eapense or take any action hereunder. , i ~ _ ~ ~ aoGK 297 ~~t 5~5 ~ _ _ ~ v _ .e._~~ . _ ~ ~