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HomeMy WebLinkAbout0023 Borrower and lender covena~t a~d agree as follows: 1: Peyme~t ot Principal and lntere~t. Borrowe~ ehall prompUy pay when due tha principal of arid ioterest un the indebtedneea evidenced by the Nota, prepayment and late charges as provided in the Note, and the principal of and i~tereat on any Fliture Advancea secured by this Moregage. ' 2. F~nds for Tauee and Ineurat~ce. Subject to applicable law or to a writte~ waiver by I.e~der, Borrowerahull pay to l.ende~ on the day monthly inatallme~ta of principal and intereet are payable under the Note. until the Note is paid irt full, a eum (herein "Ftinda") equRl to oao- twelfth of the yearly tax~e and aeeeaements which may attain priority over thia Mortgage, a~d g~uund renta on the Property, if any, plus one twelfth of yearly p~emium installments tor hazard ineurance, plua onetwelRh ofyearly premium inataliments for mur/gage inaurance, if any. all as reasonably eatimated initially and from time to time by l.ender on the baeie of assesements and billa and reasonable estimatea thereof. 71~e FLnds shaU be held in an institution the deposita or accou~ts oi which are ineured or guaranteed by s Federal or State agency (includir?g Lender if l.ender is euch an institutioN. I.ender ahall apply ihe ~nda to pay eaid taxes, aasesaments, insurance premiums and ground renta. l.ender may not char~ge for so holding and applying the ~nds, analyaing eaid account, or veri[ying and compiling said aeeeeamente and billa, unleas Le~der pays BoROwer intereat on lhe ~nda and applicable law permite I.ender to make such a charge_ Borrowe~ and Leader may agree in writing at.the time of e:ecution of thia Mortgage that interest on the I~1nda aha}1 be paid to Borrower, and unleea euch agreement is made or applicable law requiree such intereat to be paid, I.ende~T ehall not be requiced to pay Burmwer any intereat or ` earninga on the Funds. l.ender shall give to Borrower, without charge, an annual accounting of the I~nda ehowing credits and debita to the Funds and the purpoee for which each debit to the Flinda was made. The Funds are pledged ae additional eecurity for the aume secured by this Mortgage. If We amount of the fl~nds held by Lender. together with the future monthly inetallments of Funda payable prior to the due datee of taxee, assesaments, inaurance premiuma and ground renta, ahall exc~ed the amount required Lo pay said taxes, aseeeaments, inaurance premiume and ground renta as they fall due, such e:ceas ehall be, at Borrower's option, either pmmpdy repaid to Borrower or crediLed to Borrower on • monthly installmenta of FLnda. If the amount of the Funda held by Lender shaU not be aufficient to pay taxea, asaesaments, insurance premiume and ground rents ae they fall due, Borrower a}iall pay to I.ender any amount neceesary to make up the deficiency within 30 days from the date notice ie mailed by Lender b Borrower requeating payment thereof. Upon payment in tull of eA aums aecured by thia Mortgage. Lender shall prompUy refund to Borrower any funda held by Lender. If under paragraph 18 h~eof the Property is sold or the Piroperty isoth~rwiae acquind by Lender, Lender ehall apply, no later than immediately prior to the sale of the Property or ita aoquieition by Lender. any Funde held by Lender at the time of apptication as a cmdit againet the aume secured by this Mortgage. ~ 3. Applicatioa of Payments. Unleas applicable law providee otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by I,ender firet in payment uf 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 intereat and principal on any Future Advances. 4. Charges: Liene. Borrower ahall pay ali taxea. asaeasments and other charges, finea and impositions attributable to the Properiy which ; may attain a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under paragraph 2 heteof or, : if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3orrower shall promptly fumish to I.ender 3 all noticea of amounte due under thia paragraph, and in the event Rorrower shall make payment directly, Borrower shall promptly furnish to Lender receipta evidencing such payments. Borrower ahall prompdy discharge any lien which has priority over this Mortgage; provided, that i Borrower shall not be required to discharge any such lien so long as i3orrower ahall aqree in writing to the payment of the ubligution secured by ; such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings ; which operate to prevent the enforcement of the lien or Corfeitum of the Pmperty or any part thereof. ; 5. Hazard Insuraace. Borrower shall keep the improvementa now exiating or hernafter erected on the Property insured against loss by ~ fire. hazarda included within the term "extended coverage," and auch other hazarde as Lender may require and in such amounte and for auch + ~eriode as I.ender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be reyuired by . state or federal regulations governing activitiea of L,ender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever ia the greater. . The insurance carrier providinq the inaurance shall be chosen by Borrower aubject to approval by Lender, pmvided, that such ~+pproval ahall not be unreasonably withheld_ All pmmiums on insurance policies shall t,e paid in the manner provided under paragr~+ph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ . ' ' All ineurance policiea and renewale thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of ; and in form acoeptable to Lender. I.ender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly fumiah to i.ender all renewal notices and all receipta of paid premiuma. In the event of loss, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. _ Unlesa Lender and Borrower otherwiae agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided such reatoralion or repair is economically feaaible and the security of this Mortgage is not thernby impaired. If such , ; restoration or repair ie nat economically feasible or if the aecurity of this Mortgage would be impaired, the insuranceproceeds ahall be applied ~ to the aums eecured by thie Mortgage, with the ezcesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to t _respond to Lender within 30 daya from the date nodce ia mailed by Lender to Borrower that the insutance carrier of~ers to eetde a claim tor ~ inaurance benefite, L,ender is authorized to collect and apply the insurance proc~eeds at I.ender a option either to reatoration or mpair of the Property or the sume e,ecured by thie Mortgage. Unleas Lender and Botrower otherwise agree in writing, any auch application of proceeda to principal shall not extend or poatpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amaunt of auch inatallments. If under paragraph 18 hereof the Property ia aaquired by I.ender, ali right, title and intereat of Borrower in and to any inaurance poliries and in and to the proceeds ' thereof reaalting from damage to Property prior to the eale or acquiaition shall paea to L.ender to the eatent of the aums secured by this Mortgage immediately prior to such sale or soquiaition. 6. Preaervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmenta. Borrower shall keep the Propetty in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ahall comply with the pmviaions of any leaee if this Mortgage ia on a leasenold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower a obligationa under the declaration orcovenants creatingor governing thecondominium or planned ~ unit development, the by-lawa and regulatione of the condominium or planned unit development, and conatituent document8. If a ~ condomipium or planned unit development rider ia eaecuted by Borrower and recorded together with this Morigage, the oovenant8 and ~ agreements of such rider ahall be incotporated into and ahall amend and supplement the covenanta and agreementsof thia Mortgage as if the rider were a part hereof. ~ 7. Protection ot Lender's 3ecurity. If Borrower fails to perform the oovenants and agreemeate oontained in thie Mortgage, or if any ~ action or proceeding ie rnmmenoed which materially affects Lender a intereat in the Property, including, but not limited to, eminent domain. ineolvency. oode enforcemen~ or arrangemente•or pmceedings involving a banim~pt or decedent, then Lender at Lender e option,upon ~ notice to Borrower may make auch appearanoes. disburse auch eams and take such action ae ia neceesary to Protect L.ender e interest, ~ including, bnt not limited to, diebursement of reaeonable attorney'e feee and entry upon the Property to malce repairs. If Lender required ~ mortgage ineurance ae a rnndition of making the loan eecared by this Morlgage, Borrower ahall pay the premiums reqnired to maintain : ~ such ineurance in effect until ench time aa the requirement for such ineurence terminatee in accordance with Borrower'e and Lender's _ ~ written agreemeat or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided under ~ paragraph 2 hereot ~ , My amo~wta diebursed by Lender pereuant to this paragraph 7, with intereet thereon, ahall become additional indebtedneae of ~ Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terms of payment, auch amounts ahall be payable upon ~ notice from Lender to Borrower reque~eting payment thereof, end ehall bear intereet from the date of diebureement at the rate payable from time to time on outatanding principal under the Note unleea payment of interest at such rate would be mntrery to applicable law, in which ~ event auch amounts shall bear intereat at the higheat rate permiasible under applicable law. Nothing contained in thie paragraph 7. shall ~ require Lender to incur any expenee or take any action hereunder. ~ - ~ ~ 9UCK ~01 ~ P~~E~ 23 ~ ~ ~ Z ~ v T . _ _ _ _ .sr _mflF ~f 7~ j '~.Y~~ ~ ~ tr-. : . S