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HomeMy WebLinkAbout0036 ; Borrower end Lender covensat and a~ree as followc 1. P~yment ot P~riacipal apd Iatere~~ Borrower shaU pwmptly pay when due the principal oi and interest oa the indebtedneaa evidenoed by the Note. prepayment and late char~es as provided in the Nate, and the principal of a~d intereit o~ any I~ture Advancee aecured ' by thi~ Mor~a~e. 2. Ftinda tor T~uce~ and lnsuraaoe. 3ubject to applicable law or to a written waiver by l.ender. Borrower shall pay to I.ender on the de~y monthly instal4neats of principal aad inte~eat are payable under the Note, u~W the Note ia paid in full. a sum (herein "~~?nds"? equal to onc twelRh of the yearly taxes and aasesemente which may attain priority over this Mort~a~e. aad ground renta on the Propedy. if any. plus on~ twelfth oiyearly premium installments for hazard inaurance, plus ono-ewelRh ofyearly premium inatallmente for mortgage insurance, if any, all as reasonably estimated initially and irom tuae to time by l.ender on the basia of essessments and billa and ~easonable estimates thereof. ; The PY~ad~ shall be held in an institution the deposib o~ acoount~ of which are insund or guaranteed by a Federal or Stste agency ; (including I.ender if Lende~ ia such an insdtution~ LeAder ahall apply the E~nds ta pay said t~ea, asaeasmenb. iaaaranoe premiuma and ground nnts. Leader may not charQe for so holdin~ and applying tl~e Funds, analyzing said aocount, or verifying and rnmpiling aaid easessmeaLe and bil4. utilees I.ender paya Botrower iaterest oa the ~uids a~d applicable law perauts Lender to make ~uch a charge. Borrower ' aad Lender may agree in writing at the time of esecution of this MortgaQe that interest on the I~lsnds ahall be paid to Borrower. and unless such agreemeat is made or appUcable law requires such intez~est to be paid, Lender shaU not be required to pay Borrower any interest or earnings oa the fi~nds. I.end~ ahaU giva to Borrower. withont cherge. an annual aecounting of the I~nds ahowing credits and debits b the E Funds sad the purpwe for which each debit to the P1u~ds was made. The Funda are pledged as additional secu-ity for the suma secured by this Mortgage. If the amount of the fi~nds held by Leader. together with the future monthly inatallments of Funda payable prior to the due dat~es of ta:es. ~ asseseanenta, insnranoe premiums and ground renta, ahall eacc~ed the amount nquired to pay said ta:ea. esseasmenta. inauranoe premiums ; and ground rents as they fall due. such w~oess shnll be. at Borrower s option, either pmmpdy repaid to Borrow~ or ciedited to Borrow~ on ~ monthly installmeats of Flinda. If the amount of the Fund~ heW by Lender shall not be suf5cient to pay t~es. aseessments. ineurancr t premiuma and ground nnts as they fall dae. Borrower ahall pay to Lender any amount neceasary to make up the de6ciency within 30 days from the dale notice ia mailed by Lenda b Botrower requesting payment there~of. ~ Upon paymeat in fuU ot aU suma sec~red by this Mortge~e. I.epder shall prompdy nfund tv Borrower any funds held by i.endrr. If under ~ paregreph 18 hereof the Property is aold or the Property ia otherwise acquired by Leader. I.ender ahall aPPiY. ao later than immediately prior t to the sale of the Property or its aoquisition by Lender. any Fnnds hetd by Lender at the time of appiication as a crPdit against the aums secured ' by this Mortgage. 5 3. Application ot Payments. Unlesa appUcable law provides otherwise, all payaaente received by I.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender firat in payment of amounta payable to Lender by Botrowez under paragraph 2 hereof. then b iaterest p~yable on the Note, thea to the principal of the Note, and then to interest and principal on any ~ture Advanoee. ' Chargee; Liens. Borrower ahall pay all tases. asaesements and other charges, finee and impositions attributable to the Prouerty which ~ may attain a priority over thia Morigage, and leasehold paymente or ground renta, 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 thereof. Borrower shall promptly fi~rnish to Lender : all notices of amounts due under thie paragraph, and in the event Borrower ahaU make payment directly. Borrower ahall promptly furnish to ; I.ender reoeipts evidencing auch payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long aa Borrower shall agree in writing to the payment of the obligation secvred by . such lien in a manner acceptable to Lender, or ahall in good faith conteat such lien by, ordefend enforcement of such lien in, legal proceedings ~ which operate to prevent the e~forcement of the lien or forfeiture of the Property or nny part thereof. ~ 5. Hasard Insuranoe. Bormwer shall keep the improv~nenta now eziating or hereatter erected on the Property insured against loas by ~ fire, hasards iacluded-within the term "e~ctended coverage.° and auch other hazarda ae Lender me~y require and in auch amounta and for auch periods as Lender may require; pmvided, that Lender ahall not require euch ooverage amount ezceeding the minimum, as may be required by state or federal regulations governing activitiea of Leader, or thst amount of coverage required to pay the aume eecured by thia Mortgage, whichever ie the greater. The inaurance carrier providing the insurance ahall be chosen by E3orrower subject to appmval by Lender, provided, that such approval shall not be unrnaeonably withheld. All premiums on insurance policies shali be paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clanee in favor of - and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewala thereof. and Borrower ahall promptly furnish to -.endet all renewal aoticee and all reoeipts of paid premiums. In the event of loss. Borrower ahall give prompt notice to the ineurance carrier and Lender. I.ender may make proof of loee if not made prompdy by Borrower. ~ Unless Lender and Borrower otherwiae agree in writing. insuranoe pmc~eeda ahall be applied to reetoration or repsir of the Property ; damaged, prorided such restoration or repair is economically leaaible and the security of thia Mortgage ie not thereby impaired. If eud~ ' ~ reatoration ar repair is aot aconomically feaeible or if the ee~.vrity of this Mortgage would be impaired, the inanrance pmoceda shall be appGed ' ¢ to the sume secured by this Mortgage, with the eaccrsa, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to reepond to Lreflder within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offera to setde a claim for ~ ineurance benefits, Lender is suthorized to oollect and apply the insurance proceeda at Lender a option eith~r to reatoration or repair of the ~ 4 Property or the snma secue~ed by thia Mortgage. . Unleea L.ender and Bosrower otherwiee agree in writing, any such application of proceeda to principal ehall not ~tend or postpone the due ~ date of the monthly installmenta referred tn in paragraphe 1 and 2 hereof or change the amount of auch installmente. If nnder paragraph 18 ~ hereof the Property is aoquired by Lender. all right, tide and intereet of Borrower in and to any inaurance poticie8 and in and to the pmceeda ~ thereof resulting fmm damage to Pmperty prior to the sate or soquiai~on shall paee to Lender to the eutent of the eums secured by this ~ Mortgege immediately prior to such eak or aoquisibion. 6. Preservation and Naintensnce of Property; Leaseholde; Condominume; Planned Unit Developments. Borrower shell keep ; ~ the Property in good repair and ahall nd rnmmit waste or permit impairment or deterioration of the Property and ehall comply with the ~ provieiona of any lease if this Mortgage ia on a leaaehold. If this Modgage ie on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all of Borrower e obligations under the declaration or rnvenanta creatingor governing the condominium or planned ~ uni~ development, the by-laws and regulationa of the condominium or planned nnit development, and constituent docnmenta. If a _ condominium or planned un:t•development rider ia executed by Borrower and recorded together with this Mortgage, We oovenante and ~ agreements of euch rider shall be incorporated into and ahali amend and eupplement the covenants and agreements of this Mortgage aa if the ~ rider were a part hee+eof. - ~ ~ ~ T. Protection of Lender'~ Securitq. It Barr~ow~ fails to pezEorm the oovenanta and agreements contained in this Mortgage, or if any ~ actioa or prooeeding is oommenced which materially affects I.ender's intereat in the Propezty. including, but not limited to, emineat domain, ; 3 insolvmcq. oode ~?fon~ement~ or enangements or praxedings involving a baaimipt or deoeden~ then I.ender at Lender's option,npon € - notice to Borrower may make snch appearanca. disburse such aums and take wch action aa is neoaaary to proted Lendd~ intaeat, inclnding, bnt not limited to. disbarsement of reasonable attorney's fcee and entry npon tbe Property to make repain. If Leader reqnired ¢ € mortBaBe inamanae as e oondition of making the loen secured by this MortBeee. Borrower shall pay the premiums reqnired to maintain ~ such inanranoe in effect ontil snch time as the reqairemrnt for euch insnrance tezminates in aooordanex with Boirower's and I.endds ~ written agreement or applicabk Law. Borrower shall pay the amount of all mortgage iasurance preminms in the mana~ provided nnder ~ ~ ~ PareBraPh 2 hereof. ~ My amounta disbureed by Lendrr persuant to this paragraph 7, with intereat thereon, shall beoome additional indebtedness of f ~ Borrowa secured by this Mortgage. Unlees Borrower and Lender egree to other term~ of payment, such amounta shall be payabk upon ? ~ notioe trom Ler?der to Borrower requeeting payment thereof. and shall bear inteted from the date of disbursement at the rate payahle trom ~ ~ time to time on outstanding principal under the Note unless payment of interest at anch rate would be oontrary to applicable law. in which event snch amounLs shall bear interest at the bighest rate permiasible under spplicable law. Nothing contained in this paragraph 7, ahaU ~ requin I.ender to incur any e:pense or take any action herevnder. ~ ~ ' ~ i~ ~ :K 299 Pa6E - a ~ k 36 ~ : ~ ~ ~ ~ ' - - ' ~~r