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HomeMy WebLinkAbout0813 • Bo~ower and I.ender covenant and a~eo as foUowr 1. Psymeat ot Principal and Intereo~ Borrower shall promptly pay when due the principal of and intere~t on the indebtednew evidenoed by the Note. Drepayment and lata charRea as provided in the Note, and the principal of and intereet on any ~Lturo Advance~ secured by thia Morf~ags. 2. Funds for Tase~ and Insurenoe. 3ubject to applicable law or to a written waiver by I.ender, E3orrowe~ shall pay to l.ender on the day monthly inatallments of principal and interest are payable under the Nole, until the Note u paid in full, a sum (herein "I~'unds") equa! ?o ona ; twelith of the yearly taxes and assea~menb which may attain priority over lhia Mortga~e. and ~ound re~ts on the Properly, i[any. plus ont twelfth otyearly prEm':ur.s iasts!ltQeais far hazard'enaurs.^.ct, plua onetweltth otyeerly pranium installments for mort~age iosuranca. if any, ; all as reasonably estimated initially and from time to lime by L.ender on the basis of asseasments and bills and reasonable eatimates thereoL The F1~nds she~ll be held in an institution the depwits or aocount~ of which en inaured or ~ueranteed by s Federal or 3tate aQency • (including Lender if Lender is such an uutitution). Le~der ~hall apply the Fund~ to pay said texc~. aaseaaments, iruuranoe premiumi and ground renLs. Lender iaay not charQe f~ w holdin~ and applying the I~ndi, analyzing said accoun~ or verifying and compiling eaid ~ ea~e~smeaf~ and bi14. unle~s Lender pays Borrower interest on the F~nda and applicable law pennits I.ender to malce auch a charge. Borrower and Lepder msy s~ree in writing at the tune of e:ecutio~ ot this Mortge~e that intere~t o~ the Funda shall be paid to Borrower, and unlew such a~reement u msde or applicabk law requires such interest to be paid, Lender shap not be required to pqy Borrower any inter~st or eamings oa the ~nds. I.ende~r shall give to Borrower, without charge, an annual ecoounting of the Funde ehowing credits and debits b the Funds and the purpoee for which each debit to the Funde waa mada. The Funds are pledged as additional security for the sums ~ecured by this Mort~age. . If the amount of ths ~nds held by L.ender, together with the future monthly installments of Funds payable prior to the due detes o[taues, essessments. inauranoe pmpiums and ground rents, shall exozed the amount required to pay said tasea. asseasments, inaurance premiwn~ and gmund renta as thcy tall dua. snch exce~s shaU be. at Borrower s option. either pmmptly repaid to Borrower or credited to Borrower on monthly installment~ o! Plinds. If the amount ot the Funds held by Lender shall not be sufficient to pay taxe., asaessments, insuranoe premiuma and ground rents aa they fall due, Borrower shap pay to Lender any amount neceseary to make up the deficiency within 30 days from the dete notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in ftill of all suma secured by thia Mortgage, Lender ahall promptly refund to Borrower any funds held by [.ender. If under paragraph 18 hereof the Property is wld or the Property ie otherwiee acquited by L.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or its aoquisition by [.ender, any I~nda held by Lender at the time of application aa a credit againat the sume secured ; by this Mortgage. 3. Appllcation of Payments. Uniess applicable law pmvidea otherwise, all paymenta received by L.ender under the Note and paragraphs 1 and 2 hereo[ ehall be applied by I.ender firat in payment of amounta payable 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 intereat and principal on eny Future Ad~ances. ` 4. Charges; Liens. Borrower ahall pay ell taxea, a~sessmenta and other chargee, finea and impoeitione attributable to lhe Properly which ~ may attein a priority over this Morigage, and leaaehold payments or ground.rente, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner. by Borrower making payment, when due, directly to the payee thereaf. Borrowerahall promptly furniah to I.ender all noticea o[amounts due under thie paragraph, and in the event Borrower ehall make payment directly. Borrower ahall pmmptly [urniah to l.ender receipla evidencing such paymenta. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required to diecharge any auch lien so long ae E3orrower ehall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good taith conteat such lien by, or detend enforcement of auch lien in, legai proccedings • which operete to prevent the enforcement of the lien or forfeiture ot the PropPrty or any part thereof. 5. Hezard Insurance. Borrower shail keep the improvemente now exiating or hereafter erected on the Propedy ineured againat loes by fire, hezards included within the term "eactended coverage," and auch other hazarde ae I.ender roay require and in such amounta and for such perioda as Lender mey require; provided, that Lender shall not require euch ooverage amount exceeding the minimum, as may be required by etate or federal regulatione goveming activitiea of Lender, or that amount of coverage required to pay the aums eecured by this Mortgage, whichever is the. greater. The insurance carrier providing the insurance ahall be chosen by Aorrower eubject to approval by l.ender, provided, that such approval - ahall not be unreaeonably withheld. All premiume on insurance policies ahall be paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by E3orrower making payment, when due, directly to the insurance carrier. - All inaurance policiee and rnnewale thereof ehall be in form acceptable to I.ender and ahall include a atandard mortgage ciauee in favor of and in form aooeptable to I.ender. Lender ehall have the right to hold the policiea and renewale thereof, and Borrower shall promptly furnish ~o i.ender all renewal notices and aU receipta of paid premiuma. In the event of loas, Borrower shall give prompt notice to the ineurance carrier and Lender. Lender may make proof of lose if not made prompdy by Borrower. Unlese Lendrr and Borrower otherwise agree in writing, insurance proceeds ehall be applied to reatoration or repais of the Property = damaged. provided sach restoration or repair ie economicaUy [eaeible and the security of this MoTtgage ia not thereby 'impaired. If such ' ; reatoration or repait is not economically feasible or if the eecurity of thia Mortgage would be impaired. !he insurance procxeds eha11 be appGed ~ i to ihe Bums eecured by thia Mortgage, with the exceae, if any, paid to Borrower. If the Property ie abandoned by Bortower, or if Borrower faile to reepond to Lender within 30 deys from the date notice is mailed by Lender to Borrower that the insurance carrier oPfera to eetde a claim for i insurance benefits, I.ender is authorized to rnlicct and apply the insurance proceeda at Lende~s option either to restoration or repair of the ~ Property or the auma secured by this Mortgage. ~ Unleaa Itnder and Borrower otherwiee agrce in writing, any such application of proceeds to principal ahall not eutend or poetpone thedue " f date of the monthly inatellmente referred to in paragrapha 1 end 2 hereoi or change the amount of euch installmenta. If under paragraph I8 ~ hereof the Property is aoquired by I.ender, ali right, title and intereet of Borrower in and to any inewance policies and in and to the proceeda k thereof resulting from demage to Prop+erty prior to the 8ale or acquisition shaq paas to I.ender to the e:tent of the sume secured by thie ~ Mortgage immediately prior to such sale or aoquisition. ~ ~ 6. Preaervation aad Maintenance of Property; I.ease6olds; Condomiaums; Ptaaaed Unit Developmeata. Borrower shall keep , ~ the Property in good repair and ahall not commit waste or pennit impairment or deterioretion of the Property and ahall rnmply with the ~ provieions of any lease if thia Mortgege is on a leaaehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, . Borrower ahall perform all of Borrow~'s obligationa under the declaration or rnvenante creatingor governing the condominium or planned f ~ unit developmen~ the by-laws and regulationa of the rnndominium or planned unit development, and oonstituent documents. If a ~ oondominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and i ~ agreemente of euch rider ehall be incorporated into and ahall amend and aupplement the covenants and agreemente of thia Mortgage as if the rider were a part hereof. ; ~ Protection ot Lender's Securit~. If Borrower tails to perform the oovenants and agreements ooatained in this Mortgage. or if sny f ~ action or prooeeding is commenced which mater~ally affects Lende~'s interest in the Property. including, hut not limited to, anina~t dnmain, inaolvency, eode enforoe~en~ or arrangeuunts os prooeedings involving s bankrupt or deoeden~ then Lender at Lender'~ option,upon ~ ~ notioe to Borrower may make ~uch appeeranoe~, dieburse ~uch ~ums and take wch action a~ u neoe~sary to proted I.eude:'~ interest~ inclnding. b~ not limited to, disbnnement of reaaonable attomey's fees and eatry upon the Propedy to mal~e repeir~. If I.ender required = ~ mortgage insuranoe as a oondition of ineking the loen secured by this Morlgage. Borrower shall pay the premiums sequired to maintaiA ° ench insurance in eftect ontil tuch time eu t6e requiremeat tor such inaurance terminates in aocordence with Borrower's and [.endd~ ~ writt~n agreement or applicabk Law~. Borrower shaU pey the amonnt of all mortgage insurance premiums in the manner provided under paragraph 2 hereoL . My amount~ diabu»ed by Lender persuant to this peragreph 7, with intereat thereon. shall bec~ome additiona) indebtednes~ of Borrow~er ~ecvred by this Mortgege. Unleas Borrower and Lender agree to other terma of t rm payment, such amounta shall be payabk upon ~ notice from Lendrr to Borrower requesting payment thereof, and shall bear interest from the dete of disbnrsement at the rate payable irom , time b time oa outatanding principal under the Note unless psy~nent of interest at snch rate would be oontrary to applicable law, in which event such amounts shall bear intrrest at the higheat rate permissible under applicable law. Nothing contained in this paragraph ~hall ~ require I.ender to incur any ~pense or take any action hereunder. ~ « ~ 3 ~ ~ . g!,'~ ~t 2~7p FAGE 3i3 ~ ~ . ; 3 ~ ~ _ : - - ~ ~ ~ 4.~,- ~ ; ~ ~ . . ; ~ ,