Loading...
HomeMy WebLinkAbout0605 • • Burn?wer and l.rnder covenant a~d ag~ee ae followe: 1. Payment of Prlncipal end Intereet. E;orrower ahall promptly pny when due the principal of nnd intereat on the indcbtedneae evidenced by the Note. prepeyment and lute chargea as pmvided in the Note, and the principal of and ioterrat on any Futu~e Advnncee serured by this Mortgage. ~ ~ 2. ~nde tor Tases and inaurance. Subject to applicnble law ur tu a writtrn waiver by l.ender, f~,rrower ehull puy ta I.ender un the duy monthly inatalimenta of pri~cipal und intereat are paynble under the Note, until the Note is paid in full, a aum Ihrrein "h unds"> equul to one twelRh of ihe yearly tuxea and ueseaaments which muy ultain priority over this Mortgage, and ~uund ~entx un the E'iroperty, if uny, plua on~ twelfth of yearly premium inatallmenta for hnzurd ineurance, plus onetwelfth ofyearly prrmium inati~llments for mortgage i~aurnnce, if any. ull ae reasonably estimated irlitially and from time to tirne by I.ender on the baais uf c~exexamenta and billa und reuawiable eatimates thereuf. The ~nds eihall be held in an institution the depoeite o~ accounte of which am inaured or guaranteed by a Federal or State agency (including Lender if l.ender ia such an inetitution). Lender ahall apply the Funda to puy auid taxes, asaesamenta, inaurance premiume and ground renta. l.ender may not charge for eo holding and applying the !~'unda, analyzing said account, or verifying and compiling aaid asaesaments and bills, unlesa l.e~der paye Borrower intereat on the Funds and applicable law permits l.ender to make auch a charge. Borruwer and Lender may agree in writing at the time of execution of thie Mortgnge that intereet on the Funda ahall be paid to Burrower, and unlesa auch agreen~ent is made or applicable law requires euch intereat to be paid, l.ender shall not be required to pay Botrower any intereat or earninge on the Funda. I.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing crrdits and debits to the Funda and the purpoee for which euch debit to the Funds wae made. The Funda am pledged as additional aecurity for the auma secured by thia Mortgage. If the amount of the F~nda held by Lender, together with the future monthly installments of Funds payable prior to the due datea of taxee, asseaementa, inaurance premiuma and ground renta, ahall excxd the amount required to pny said taxea, usxe8aments, insurance premiuma and ground rent8 ae they fall due, auch exceaa ahall be, at Eio~rower's option, either promptly mpaid W Borrower or credited to F3orroweron monthly inetallmenta of Ftinda. If the amount of the Funde held by l.ender ehall not be sufficient to pay La:ea, aseesaments, inaurance premiuma and ground rente as they fall due, Borrower ahall pay to Lender any Amount neceseary to make op the deficiency within 30 daya from the date notice is mailed by [.ender to Borrowerrequesting payment thereof. Upon payment in full of all auma aecured by this Morigage, I.ender shall pmmpdy refund to E;orrower any tunds held by l.ender. lf under paragraph 18 hereo[the Property is aold or the Property is otherwise acquired by [.ender, l~ender ahnll apply, no later than immediately prior to the aele of the Property or ita acquisition by I.ender, nny ~nda held by I.ender at the time oiapplicntion as a credit against the sums secured by this Mortgage. 3. Applieation ot PaymPnte. Unlesa applicable law provides otherw~se, aU payTnents received by I.ender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firRt in payment of amounta payable to I.ender by E3onower under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liens. E3orn?wer ahall pay all taxes, asseavments and other rharKcx, fines and impusiti~sns a/tributable to t~e f'roperty which may attnin a priority over this Mortgage, and lea~hold payments or gmund rents, if any, in ?he manner provided under paragraph 2 hereof or, if not paid in such manner, by f3orroK er making payment, when due, directly to the payee thereof. Herrower shuli promptly furnish to I.ender all notices of amounts due under this paragraph, and in the e~ ent E3orrower shall m~ke paymen/ directly, BorroN•er shall promptl~ [umish to I.ender receipta evidencing such payments. E3orrower ahall promptly discharge any lien which h.~s priority over this blortKF?ge; provided, that Korrower shali not be required to discharge any such lien so long ~x Rorrow•er shall agree in writinK t~~ the payment of the obliKnti~n se~vred by such lien in a manner acceptable to Lender, or ehall in good faith contest such lien by, or defe~d enforcemeM of such lien in, leEtal procrtdinKs w~hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuraace. Borrower ehall keep the improvements now exiating or hereafter erected on the Ymperty inaured againat luss by fim, hazarda included within the term "extended rnverage," and euch other hazards as Lender may require and in such amounls and forsuch periods as L.ender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be required by state ar federal regulations governing activities of L.ender, or that amount of coverage required to pay the aumR secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall tx~ chosen br BorroK•er subject to appru~•al by (.ender: pn?vided, that such approval shall not be unreasonably withheld. All pmmiuma on insurance policies shalf be paid in the manner pmvidect under parxKraph 2 hereof or, if not paid in such manner, by f3orrower making payment, when due, direcdy to the insurance camer. All insurance policies and renewals thereof ahall be in form acceptable to Ixnder and shall include a standard murtgage clause in fa~•or of ; and in form acceptable to I.ender. I.ender ahall have the right to hold the policiea and renewals thereof, and Eiorrower ahall promptly furniah to ; ixnder all renewal noticea and all receipts of paid premiuma. In the event of lose, E3orrower shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property E damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or rnpair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the suma secured by this Mortgage, with the excesa, if any, paid to Borrower_ lf the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 days'from the date notice ia mailed by I.ender to Borrower that the inaurance carrier offera to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the inaurance proceeds at [.ender s option either to resWration or tepair of the ~ Property or the aume secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eatend or postpone the due ' date of the monthly inetallmente referred to in paragrapha 1 and 2 hereof ar change the amount of auch inatallments. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, titte and intereat of Borrower in and to any insurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquiaition ehall pase to Lender to the extent of the auma secured by this Mortgage immediately prior to such sale or aoquieition. 6. Preeervation and Maintenance of Property: Leaseholde; Condominums; Planned Unit L~evelopmenta: Borrowershall keep ~ the Property in good rnpair and ahall not commit waste or permit impairment or deterioration of the Yroperty and shall comply with the ~ proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ~ Borrower ahall perform all of Borrower e obligationa under the declaration or covenants creatinKor governing the condominium or planned ~ unit development, the by-laws and regulalions of the condominium or planned unit development, and constituent docnments. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the rnvenante and w aKreementx of such rider shall be incorporated into and sh:~ll amend and aupplement the covenants and aqreements of this Mortgage as if the rider were a part hereof. 7_ Protection ot I.ender's 3ecurity. If Borrower faila to perform the oovenante and agreemente contaiaed in this Mortgage, or if any action or proceeding ie commenced which-materially affecte Lender e intereat in the Property, including, but not limited to, eminent domain, z3 - ineolvenry, code enforcement, or arrangemente or proceedings involving a bankrupt or decedeat, then T.ender at Lender'e option,upon " notice to Borrower may make auch appearances, diaburee auch snms and take such aMion ae is neceasary to protect Lendei s intereat, - including, but not limited to, diabureement of reasonable attorney'e fees and enlry upon the Property to ma1~e repa'ue. If Lender required mortgage ineurance ae a condition of ineking the loan secured by thie Mortgage, Borrower ahall pay the premiume required to maintain such inaurance in effect until auch time as the requirement for auch inaurance terminatee in aocordance with Borrower's and Lender e - written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereot. - Any amounte diebnrsed by Lender persuant to thie paragraph 7, with intereet thereon, shail become additional indebtedneae of f3orrower eecured by this Mortgage. Unleea Borrower and Lender agree to other terma of payment, euch amounte ehalf be payable upon notice from I.ender to Borrower requesdng payment thereof, and ahall bear interest from the date of disburaement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereet at such rate would be oontrary to applicable law, in which ~ event such amounte ahall bear intereat at the highest rate permiseible under applicable law. Nothing contained in thie paragraph 7, ahall require Lender to incur any expenee or take any action hereunder. ~ 1 ~t ~a~~ 2~'~ ~03 - - ~ ~ _ ~ _ . ~ . - . a