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HomeMy WebLinkAbout0534 ~ ~t Boero.er sad Lender cove~ant and a~ ae follows: 1. P~yw~ent of Prlncipal aad lnterest. Borrower ahall pmmptly pey when due the principal ot and intereat on the indebtednees ev~de~sa~ed 6y t!~ Note. pnpayment and late chargea as pmvided in the Note, and the principal of and i~tereat on any ~ture Advances secured b7? thi~ Ma~t~a~e- 2 FWadr toe Tues and Ineuranoe. Subject to applicable law or b a writte~ waiver by [.endrr, Borrower shall pay to l.ender un the day o~thly inatal~b~ of principal and interest are payable under the Note, until the Note is paid in fuU, a aum (herein "~Lnds") equal to one tweiRh ottbe yearly ta:ee and aaseeaments which may attain priority over this Mortgage, and ground mnta on the Property, if any, plua one- twdAh of yearly pre~nium inatalimente ior hazard ineurance, plua onetwelfth of yearly premium inatallmenta for mortgage insurance, if any. all ar iea~oaably estimated initially and firoru time !o time by l.e~der on the baais o[ asseasmenta and biiia and reaaonable eeulnatea thereof. Tbe Ftund~ ~hall be held in an institution the daposita or accounts of which are insurod or guaranteed by e Federal or State agenry (inclo~n~ Lender if Lender ia auch an~inatitution). I.ender ehall apply the F`unda to pay said taxea. aesesements. insuranoe premiums and sroand rea4. Lender may not charge for so holding and applying the ~?nds, analysing aaid account, or verifying and oompiling said a~eats and bills, unless Lender pays Borrower interest on the ~nde and applicable law permita Lender to make such a charge. Borrowa and Lmder may agree in writiag at the time of execution of this Mortgage that intereat on the ~nda ehall be paid to Borrower, and unless ~od~ ase~eemeat u made or appUcable law requires auch interest to be paid, I.ender ahap aot be required to pey Borrower any interest or earninp on the Funds. I.endet ahall give to Borrower, without charge, an annual accounting ot the Funda ahowing credita and debits to the Ftiaon~ aad the pnspoae for which each debit to 1he F~nds wae made. The Funda are pledged aa additional security for the aums aecured by this Murtaage. ' Itttu amount of the ~nde held by Lender, together with the future monthly inatallmenta of ~nda payahle prior to the due datee of t~ee. anie~ments. ins~aance prsmiums and ground rents. ahall exc~ed the amount requir+~d to pay said ta:ee, aaeesemenis, lueuinu~r jl[rUll4liia and ground~ts aa they fall due, auch e:cess shaU be, at Borrower's option, either pmmptly repaid to Borrower or.credited to Borroweron monthly iastsUments of FLnds. If the amount of the Funda held by Lender shall not be sufficient to pay ta:ea, aesessmenta, ina~uance premimna aad gronnd renta as they fall due, Borrower shall pay to Lender any amoun! neceaeary to make up the deficiency within 30 days irom tbe date aotice ia mailed by I.ender to Borrower requeating payment thereof. Upon payment ia full of all auma secured by thia Mortgage, Lender ehall prompdy refund to Borrow~ any funda held by Lende~. lf under paragraph 18 bereof the Property ia eold or the Property is otherwise acquired by Lender. I.ender ahall apply, no later than immediately prior to t6e aale of the Pmperty or ite aoquiaition by Lender. any fi~nda held by l.ender at the time of application as a credit againat the eume eec~ued bY this Martgage. ~ 3. Applieation of Peyments. Unlese applicable law provides otherwiee. all paymenta received by Lender under the Note aad paragraphs 1 and 2 hereof ehall be applied by Lender firet in payment of amounte payable to L.ender by Borrower under paragraph 2 hereof. then w intereat payable on the Note, then to the principal of the NoLe, and then to interest and principal on any Future Advanoee. Cherges; Li~ns. Borrower ahall pay all taxes, asseasmenta and other chargea, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renta. if any, in the manner provided under paragraph 2 hereof or, if aot paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices oi amounta due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furnish to Let~der n~ceipts evidencing such payments. Borrower ehall promptly discharge any lien which has priority over this Mottqage; provided, that Borrower shall not be required to discharge any s~ch lien so long as 8orrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedinge ~shich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5_ Hazard Insurance, Botrower shali keep the improvements now e~cisting or hereafter erected on the Property insuretl againat losa by 5re, hszards included within the tern? "e:tended coverage; ' and euch other hazards as Lender may require and in such a.mounte and f.,e nucl. pQiods as Lender may require; provided, that Lender ehall not require such coverage amoun! exceeding the minimum, as may be required by state or federal regulationa governing sctivitiea of t.ender, or that amount of coverage required to pay Lhe aums eecured by thia Mortgage, whichecer ia the grester. The insurance carrier providing the insurance shall be chosen by E3orrower subject to approval by I.ender, pro~ ided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pro~ ided under paragraph 2 hereaf or, if not paid in auch manner, by Borrower makinq payment, when due, directly to the insurance ~arrier. All insursnce policies and tenewals thereof sAali be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form aeceptable to I.ender. Lender shall have the right to hold the policiea and rnnewala thereof, and Borrower ahall promptly furnish to i,mder all renewal notioes and all receipta of paid premiuma. In the event of lose, Borrower shall give prompt notice to the insurance carriet and l.ender_ Lender may make proof of loas if not made promptly by Borrower. _ Unlna I~nder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rnpair of the Property c~ama6ed, provided such restoration or repa'v is economically feasible and the eecurity of this Mortgage ie not thereby impaired. If such ~ restoradoa ~ repair is not economically feasible or if the eecurity of this Mortgage would be impaired the ineurance proceeda ahall be applied ~ w the snms secared by thia Mortgnge, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ! respond to Lender within 30 daye from the date notice ia mailed by Lender to Botrower that the inaurance carrier oPfers to setde a claim for ~ iasnrance b~e5ta, Lender ia authorized to collect and apply the ineurance proc~eeda at Lender s option either to reatoration or repair of the ~ Ptoperty or tbe anms eecured by this Mortgage. Unlene Ieader and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not eztend or poatpone the due ~ date of the monthiy inataHments referred to in paragrapha 1 and 2 hereof or change the amount of such installmente_ If under paragraph lA . ~ hereo( We Property ie aoquired by Lender, ali right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof. resalting from damage to Property prior to the sale or acqaiaition ehall pass to Lender to the extent of the euma secured by thia @ ~ortgage immediately prior to such eale or aoquisidon. 6_ Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower shall keep tLe pruperty in good repair and ahall not commit waste or pern?it impairment or deterioration of the Property and shall wmply with the provisions of any leaee if thie Mortgage ie on a leaeehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, Borrowes ahaU perform all oE Borrower'e obligations under the declaration ur covenants creating or governing the oondominium or planned anit dr.veM~t, fhe by-lawe and regulations of the condominium or planned unit development, and rnnatituent docamenta. If a condominium or planned unit development rider is e:ecuted by. Borrower and recorded together with thie Mortgage, the oovenante and agrcementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. ' r ~ 7. Peotection of I.ender's Security. If Borrower faile to perform the aovenant8 and agreemente oontained-~ t~a Mortgage, or if any actioo or prooeeding ia commenced which c~aterielly aKecte Lender's intereat in the Property. including, but not limited to, etninent domain, ~ ~ in~olven~.9, oode mforoement, or arrangements or proccedings involving a banlmipt~or devedenf, then Lender at I.ender's option,upon - notioe to Borrower may malce such appearences, dieburee euch aums and take such action aa is neoeesary to protect I.end~ s interast, a indoding. bat aot limited to, diebureemeat of reaaoaable attorney'a feee and entry upon the Property to meke rspairs. If I.ender reqnired ~ mortaage int~uance as a condition of making the loan secured by thie Mortgage, Borrower shall pay the preminma reqaired to maintain ` ~ocb in~~aace in e~ect until such time as the reqnirement for euch inearance terminatee in accordance with Borrower's and I.eadds ~ ~ writtm agreemmt or applicable Law. Borrower ehall pay the amount of all mortgage ineurance preminms in the manner provided nnder ~ porsaraph 2 hereof. j Any amoaats diabareed by Lender pereuant to thie paragraph with intereet thereon, ahall become additional indebtedneea of , ~ Borrowe~ secvred by thiB Mortgege. Unleae Borrower and Lender agree to other terms of payment, each amounte ahall be payable upon ~ naRioe irom ~.ender to Borrower requeating payment thereof, and shall bear interest from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note unless payment of interest at auch rate would be oontrary to applicable law, in which ~ evmt such amounte shall bear interest at the higheat rate permieaible under applicable law._Nothing oontained in this paragraph 7, shall reqnire I.ender to incur any eYpenae or take any action hereunder. ~ ~ ~ ao~ ~'9~ F,,~ " 534 ~ - _ ~ ~ _ : ~.:v. ~n , ; ; ~ ~ ~ _ ~ ~ .