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HomeMy WebLinkAbout0027 Borrower and I.ender cove~ant and agree ae tollows: 1. Payment o[ Prittclpal snd ltttere~t. Borrower shall promptly pay when due the principul of and intereat on the indebtedneea evidenced by tha Note, prcpayment and late chargee as provided in the Note, and the principal of and intereet on any Ftiture Advances aecured by thia Mortgage. ' 2. PLndr foe Tazee and lnaurance. Subject to applicable law or to a written waive~ by l.ender, Borrowe~ ahall pay to I.ender on the day monthly installmente of principal and intereet are payable under the Note, until the Note ir paid in full, a aum (herein "h~nds") equxl to o~~ tweltth of the yearly taxee and a8se8aments which may attain priority over this Mortgage. and grouhd renta on the Propedy, i[any, plue one~ twelRh of yearly premium inatallments for.hazard inaurance, plua onetwelfth of yearly premium inatallme~tu for mortgage~inaurance, if any. all as reaeonably eatimated initially and from time to time by l,ender on the baaie of assessments and billa and reasonable e8timatea thereo! The FLnds shall be held in an inatitution the depoaits or accounts of which ase insurEd or guaranteed by a Federal or State agency (including Lender if Leader is auch an inetitution). Lender shall apply the F'unda to pay eaid taxes, aeaesamente, inaurance premiwne and ground rents. I.ender may not charge for so holding and applying the ~?nds, analyzing said account, or verifying and compiling said assessmenLs and bille, unleaa I.ender paya Borrower intereet on the Ftinds and applicable law permits I.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this MoKgage that interest on the F~nde shall be paid to Borrower, and unleas ' such agreement is made or applicable law requires such intereat to be paid, Lender shall not be requiced to pay Borrower any intereat or earnings on the Fl~nds. I.ender ahaU give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to the Flu?da and the purpoee for which each debit to the Funda was made. The Funda are pledged ae additional eecurity [or the eume eecured by this Mortgage. ' If the amount of the FLnda held by Lender, together with the future monthly inatallmente of Funda payable prior to the due dates of ta~cea. aseeasments, inaurance preiniume and ground rente. ehall e:cxd the amount required to pay said taxea. aeeeasments, ineurance premiums and ground reata ae they fall due, auch exceas ahall be, at Borrowei a option. either pmmpdy repaid to Borrower or credited to Borrower on monthly inetallmente of F~nde. If the amount of 1he ~nda heid by Lender ahall not be aufficient to pay taxes, aseesaments, ineurance premiums and ground renta as they fall due, Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30 days , from the date notice is mailed by Lender to Bonower nquesting payment thereof: Upon payment in full of all suma eecured by thia Mortgage, Lettder ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is sold or the Property ie otherwise acquired by Lender. I.ender shall apply. no later than immediately prior to the eale of the Property or ite aoquisition by Lender, any Pbnds held by Lender at the time of application as a credit againet the auma secured by thia Mortgage. 3. Application of Payments. Unleae applicable law providea otherwise, all paymen:s received by Lender under the Note and paragrapha 1 and 2liereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereat payable on the Note. then to the principal of the Note, and ihen to intereat and principal on any Fut~ue Advancea. 4. Charges; Liews. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall prompUy fumish to I.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; ptovided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of theobiigation secured by such lien in a manner acceptable to I_ender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceedings which operate to ptevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the impmvementa now existing or hereafter erected on the Property insured against loss by fire, hazarde included within the term "e:tended coverage,° and snch other hazard$ as Lender may require and in such amounts and for such ptriods as Lender may require; provided, that Lender shall not require such coverage amount exceeding e minimum, as may be required by state or federal mgalations governing activities of L.ender, or that amount of coverage required to pay~he suma secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insnrance ahall be chosen by I~rrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheW. All premiums on insurance policies shall be paid in lhe manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to ihe insurance carrier_ All ineurance poli:ies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clauae in favor of in form acceptable to Ixnder. Lender ahall have the right to hold the policies andrnnewals thereof, and Borrower shall promptly fumish to i.ender all renewal notices and all receipta of paid prnmiums. [n the event of loss, Bornower shall give prompt notice to the insurance carrier ; and Lender. Lender may mske proof of loas if not made prompdy by Borrower. ~ Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~ damaged. provided such restoration or repair is economically feasible and the eecurity of thie Mortgage is not thereby impaired. If such reetoration or repair ia not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied ~ to the eums eecured by thia Mortgage, with the e:ceas, if any, paid to Borrower_ If the Property ie abandoned by Borrower, or if Borrower fails to ~ reapond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a daim for ~ inaurance benefits, Lender is authorized to rnllect and appiy the inaurance proceeds at Lender's option eithet to restoration or repair of the PraperLy or- the auma secured by this Mortgage. ~ Unleae L.ender and Borrower otherwiae agree in writing, any such application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property is aoquired by L.ender, all right, tide and interest of Borrower in and to any ineurance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the eale or acquisition ehall paes Lo Lender to the extent of the suma eecured by this Mortgage immediately prior to such aale or acquisition. 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Plaaned Unit Developmenta. Borrower shall keep ~ the Property in good rnpair and ehall not commit waste or petmit impairment or deterioration of the Property and ahall rnmply with the provisions of any lease if this Mortgage ia on a leaeehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, ~ Boaower shal) perform all of Borrower'e obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regalations of the condominium or planned unit development, and conatituent dceumenta. If a ~ condomini~un or planned unit developmenE rider ia eaecuted by Borrower and recorded toget}ier with thia Mortgage, the oovenants and agreementa of auch rider ahall be incorporated into and shall amend and supplement the covenanta and agreements of thia Mortgage as if the ~ rider were a part hereof. Protection ot Lender's Secucitq. If Borrower fails to perform the oovenanta and agreemente oontained in thie Mortgage, or if any ~ action or proceeding is commenced which materially affecta I.ender'a intereat in the Property, including, but not limited to. emineM domain, insolvency, oode enforcement~ or arrangemente or proceedinge involving a bankrupt or deoeden~ then Lender at I.ender's option,upon notice to Borrower may malce such appearances, dieburse euch sums and take such action ae ie ncoeseary to protect Lender'e intereat, including, but not liauted to, diebureement of reasonable attorney'a feee and entry upoa the Property to make repaire. If Lender required _ mortgage inaurance ae a condition of making the loan aecured by this Mortgage, Borrower ehall pay the premiuma requir~d to maintain ~ such ineurance in effect nntil euch time as t6e requirement for euch insurance terminatee in acoordance with Borrower'a and Lender's written agreement or appUcable Law. Borrower ahall pay the amount of all mortgage insurance premiume in the manner provided under I ~ paragraph 2 herpof. -I Any amounte dieburaed by Lender pereuant to this paragraph 7, with intereet thereon, shall beoome additional indebtedneae of , I Borrowe~ eecured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch emonnte ehall be payable upon ~ ~ notace from Lender to Borrower requeating payment thereof, and shall bear intereat from the date of diabureement at the rate payable from ~ s~~ time to time on outstanding principal under the Note unleee payment of intereat at such rate would be oontrary to applicable law, in which ! ~ event such amonnta shall bear intereat at the higheat rate permiaeible under applicable law. Nothing rnntained in thie paragraph 7, ehall • ~ require Lender to incar any expense or Lake any action hereunder. - ~ ~ ~ . - aa~K 301 ~hcF ~ 2?' ~ ~ ~ ,y,;~~ - : ~ ; _ ~ :.>a