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HomeMy WebLinkAbout0260 . Borrowe~ and l.endfr covenant and agree aa foUows: 1. Paymeat ot Principal and Inteses~ Borrower ahall promptly pey when due the principal of and intereat on the indebtedneas evidenced by the Note, prepayment and late chargee as pmvided in the Nots. and the principal of and interest on any Fl~ture Advances secured by this Mortga~e, 2~nde ior Twzes aad Insuranoe. 3ubject to applicable law or to a written waiver by l.ender, Borrower shall pay ta l.ender on the de~yr monthly inetallmenta of principal and interest are payable under the Note. until the Note ie paid in full, a su~,(herein "~nds") equal to ono- twelith oithe yearly taxee and asxeaamenta which mey attain priority over thia Mortgage, and ground re~te on the Property, if any, plus one- twelRh of yearly premium installmenta fo~ hasard ineurance, plue onetwelRh of yearly premium inetaUmente for mortgege ineurance, if any, all aa reasonably eatimated initially and firom time to time by I.ender on the basis of asaeasments ~nd bilis and reasoaable eatimatee thereof. The Plusds ahall bc held ia en institutian the deposits or acxounta of.which are insured or guaranteed by a Federal or State agenry (including Lender if Lender ir auch an institution). Leader ehall apply the Funda to pey said ta~cee. assessments, ineuranoe premiums and ground nnts. Lenda may not charge for so holding and applying the PLnds. analyzing aaid accoun~ or verifying and compiliag eaid aseeesmenta snd bills. unleee Lender pays Borrower intereat on the ~nda and applicable law permits L.ender to make auch a charge. Borrower and Leader msy agree in ~vritinQ at the tuae of ezecution of this Mortgage that interest on the ~nda ehall be paid to Borrower, and unleas such agrcement is made or applicable law require~ such inten~et to be paid. I.ender ehall aot be required to pay Borrow~ any intereat or eatnings on the F~u~ds. Lender shall give to Borrower, without charge, an annual acoounting of the F~nds showing credita and debita to the F~ads and the purpoee for which each debit to the F~?nda was made. The Funds are pledged as addiHonal aecurity for the eums eecured by this Mortgage. ' If the amount of the Phnds held by Lender, together with the future monthly inetallmenta of Funde payable prior to the due datea of tazes, aeae8ements, insuranoe premiums and ground renta. ahaU e:caed the amount required to pay said taxee, aeseaements, iriaurance premiuma and gro~u?d rents ea they fall due. such e:cees shaU be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monihly inatallments of P1~nds. If the amount of the Ptinde held by Lender ahall not be eufficient to pay t~ea. aseeasmente, insurance premiuma and ground nnte aa they fall due. Borrower ahall pay to Lender any amount neceaeary to malce up the deficienry within 30 days from the date notice ia mailed by L.ender ta Borrow~ requeating payment thereof. Upon payment in full of all eums eecured by thie Mortgage, I.ender ahall pmmpdy refund to Borrower aay funds held by I,ender. Uunder paragraph 18 hereof the Property is sold or the Ptoperty ia otherwiee acquired by I.ender, I,ender ahall apply, no later than immediately prior to tiie sale of the Pt~operty ~ ita aoquiaition by Lender, any ~nda held by Lender at the time of applica tion as a credit againet the eume secured by this Mortgage. 3. Applieadon of Payments. Unleea applicable law pmvidea otherwise, all payments received by Lender under the Note and pacagrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounta payable to i.ender by Borrower under paragraph 2 hereof; ; then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liena. Borrowerahell pay all taxea, assessmenta and other chargea, fines and impositions attributable to the Property which may attain a priority ov~ this Mortgage, and leasehold payments or ground rente, if any, in the manner provided under paragraph 2 hereof or, ~ if not paid in such manner, by Borrower making paya~ent, when due. directly to the payee thereof. Borrower ahall promptly furnish to Lender ~ all notioes of amounts due under thia paragraph, and in the event Borrower shail make payment directly, Borrower shall prompdy furnish to I.ender reoeipta evidencing auch paymente. Borrower sha11 promptly dischtuge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation aecured by anch lien in a manna soceptable to I.ender, or shall in good faith contest auch lien by. or defend enforcement of such lien in, legai proceedings ; which op~ate to prevent the enforcement of the lien or forfeiture of the Property or any part thereot. 5. Hazard Ineuranoe. Borrower ahall keep the improvemente now existing or hereafter erected on the Property insured againet ?osa by ~ fire, hazarde included within the term "~tended coverage," and auch other hazarde ae Lender may r~quire and in such amounte and for such periods as I.endei may require; provided. that Lender shall not require auch ouverage amount e:ceeding the minimum. ae may be required by atate or federal reg~lationa goveming activitiee of I.ender. or that amount of coverage required to pay the aums secured by this Mortgage, whichever u the greater. ~ The insurance carri~ pmviding the inaurailce ahall be chosen by Borrower subject to approval by Lender, provided, that such approval ahall not be unreasonably withheld. All prnmiums on insurance policies ahall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewale thereof ehall be in form acceptable to Lender and shall include a atandard mortgage claoee in favor of ; ' and in form aooeptable to Lender. L.ender ahall have the right tfl hold the policies and renewale thereof, and Borrower shall promptly furnish to ~ i.ender all renewal notio~ and all receipta of paid premiuma. In the event of I~s, Borrower ehal! give prompt notice to the ineurance carrier $ i and I.ender. Lender may make proof of loea if not made promptly by Borrower. ~ ! Unless Lender and Borrower otherwiee agree in writing, insarance proceeda shail be applied to restoration or repair of !he Property i ~ damaged, provided aueh reatoration or rPpair ie economically feasibie and tlie secnrity of this Mortgage ia not thereby impaired. If,such ~ ~ reatoration or repair is not eoonomically feaeible or if the eecurity of thia Mortgage would be impaired, the ineurance proceeds shall be applied ~ to We sume secnred by thie Mortgage, with the exceae, if any, paid to Borrower. If the Propedy is abandoned by Borrower, or if Borrower fails to ' reapond to I,ender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier of~'era to settle a cleim for ? ~ inanrance benefite. Lender is suthorized to collect and apply the inatirance praceedH at Lender's option either to restoration or repair of the ~ ~ Property or the euma eecured by this Mortgage. ; Unleae Lender and Borrower otherwise agree in writing, any such application of penceeda to principal sh~ll not extend or poetpone the due ' date of the montlily inatallmente referred fo in paragrapha 1 and 2 hereof or change the amount of such inetallments. If under paragraph 18 ~ hezeof the Property is aoquired by I.ender, all right, title and interest of Borrower in and to any ineurance poliries and in and to the proceeds thereof resulting from damage to Property prior to the sale or aoquieition ehall pesa to I.ender to the ezLent of the auma eecured by thie Mortgage immediately prior to auch aele or aoquieition. 6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Uait Developments. Borrowe~ahsll keep ; the Property ia good repair and ahall not commit waste or pennit impairment or deterioration of the Property and ahall oomply with the i proviaione of any lease if thie Mortgage is on a leaeehold. If this Mortgage ie on a unit in s oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower 8 obligatione under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-laws end regulatione of the condominium or planned ~nit development. and conatituent documente. If a ~ condominiom or planned unit development rider is e:ecuted by Borrower and recorded togethet with this Mortgage, the oovenante and agreementa of euch rider ahall be incorporated into and ahall amend and aupplement the covenants and agreemente of this Mortgage as if the rider were a part hereof. 7. Protection of I.ender'~ $ecurity. If Borrower fails to perform the aovenants and agrerments contained in thia Mortgage. or if any action or prooeeding ie commenoed whicL materially agects Lende~s interest in tbe Property. including, but not limited to, eminent domain. insolvency. aode enforcement, or arr~wgements or proceedings iavolving a banl~rupt or deoedent, then I.eader at I.ender's option,upon ~ notice b Botrower may make snch appearances, diabnrse such eums and take such action as is neoessary ta proted I,ender's intere~t, ' including, but not limited to~ disboraement of reasonable attoraey's fees and entsy upoa the Property to make npairs. If Lender requiced 1 ; martgage insnrance aa a oondition of making the loan secured by this Mortgage, Borrower shaU pay the pre~minms reqnired to msintain ' ~ ench inso:ance in effect nntil such time as the requirement for snch insuranoe terminates in aooordance with Borrowe~s and Leadds ~ ~ written agreement ar applicabk Law. Borrower ehall pay the amount of all mortgage ineuraace premiums in the manner provided uader ~ 3 PareeraPh 2 hereof. 3 i Any amonnts disbnreed by I.ender persuani to this paragraph 7, with intereat thereon. shaU beovme additional indebtedness of ~ ~ Borrower eecnred by this Mortgage. Unleea Borrower aad Lender agree to other terma of payment, euch amounta ahall be payable upon ~ notice trom Lender to Borrower requeeting payment thereof, and s6a11 bear interest from the date of disbureement at the rate payeble firom ~ ~ time to time on outatanding principal under the Note nniese payment of interest at euch rate would be oontrary to applicable l~w, in which ~ ~ event such aawunts ahall bear interest at the higheat rate permieaible under applicable law. Nothing oontained in this paragraph 7, ehall ~ ~ require Lender to incur any e~cpenee or take any action hereunder. ~ ~ ~ ;~~298 ~ "2~0 ~ ~ ~ ~ ~ , ~ - ~ ' w°'~ . 2~ ~s.- .i..~ ~ =.r t~; . ._..a. . . v.~ ._.:s . _ _ .