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HomeMy WebLinkAbout0165 Borrower and [.ender covenant and agme as lollowe: 1. Paymeat ot Priacipal and Intereet. E3orrower shall promptly pay when due the principal of and interest un the indebtedneas evidenced by the Note, prepayment and late chargee as provided in the Note, and the principal of and intereat on any ~ture Advancee secured by this Mortgage. ' 2. F~nde torTaxes and lnaurance. Subject to applicable Iuw or to a written waive~ by I.ender, f3orrowe~ ahall pay to l.ender on the day monthly installments of principal and intereet are payable under the Note, until the Note ia paid in full, a sum (he~ein "Funds") equal to on~ twelfth of the yearly taxea and axsesamenta which may attain priority over this Mortgage, and qrou~d renta on the Property, if any, plua on~ twelRh of yearly pmmium inatallmenfa for hazard insurance, plus onetwelfth ofyearly premium inetallmente for mortguge inaurance, if any, all ae reasonably eatimated initially and from time to time by I.ender on the basis of asaessmenta and bills and reasonabte eatimatea thereof. The Fl~nde ehall be held in an inetitution the deposita or accounte of which are ineured or guaranteed by a Federal or State agency (including I.eader if Lender ie such an inatitution). I.ender ehall apply the Ftinda to payr said ta:ea, asseaements, inaurartce premiuma and ground renta. Lender may not charge for eo holding aad applying the ~nde, analyzing said account, or veritying and compiling said easessmenta and biile, unleae Lender pays Borrower inteteet on the ~nda and applicable law permifs l.ender to make euch a charge. Borrower and I.ender may agree in writing at the tirae of e:ecution of thie Mortgage that intereat on the ~nde shall be paid to Borrower, and unle8a euch agreement ie made or applicable law requires such interest to be paid, Lender ehall not be required to pay Borrowe~ any intereat or earnings on the Flrnda. Lender shall give to Borrower, without charge, an annual accounting of the Funds ehowing credifa and debite to the ~?nds and the purpoee for which each debit to lhe fi~nda wae made. The Funds are pledged as additional aecurity for the aume secured by thie Mortgege. If the amount of the ~nda held by I.ender, together with the future monthly inetalimenta of Funda payable prior to the due datea of taxea. asaesamenta, inaurance premiume and ground rnnta, ahall excYed the amount required to pay said taxes, assesaments, inaurance premiums and ground renta aa they fall due, euch excesa ahall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmente of ~nds. If the amount of the Funds held by Lender ahall not be sufficient to pay ta:ea, aseeasmente, ineurance premiums and ground rents as they fall due, Borrower shal) pay to [.ender any amount neceseary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requeeting payment thereof. Upon payment in full of all aums aecured by thie Mortgage. I.ender shall promptly refund to Borrower any funda held by L.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwiee aoquired by Lender, Lender ahaU spply, no later than immediately prior to the sale of the Property or ite aoquisition by Lender, any Funds held by Lender at the time of application as a credit againat the suma eecured by this Mortgage. . 3. Application o[ Payments. Unlesa applicable law provides otherwiee, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be appiied by Leader first in payment of 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 Futiu~e Advancea. 4. Charges; Liene. Borrower shall pay all taxes, assessmenta and other chargea, fines and impositions attributable to the Property which may atEain a priority over this Mortgage.and leasehold paymenta orgmund mnta, 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 furniah to Lender all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such payments. Borrower shall prompily.discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long as Rorrower shall ~gree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shali 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 forfeiture of the Property. or any part thereof. 5_ Hazard Insurance. Borrower shall keep the improvementa now existing or hereafter erected on the Property insured againat loas by fire, hazarda included within the lerm "e:tended'coverage," and auch other hazards as Lender may require and in auch amounta and for auch periads ae Lender may require; provided, that Lender ahall not require auch rnverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiee of Lender, or that amount o[ coverage requited to pay the sums eecured by this Mortgage. whichever is the greater. The insurance carrier providing the insurance shall b~ c!?osen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraqraph 2 hereof or, if not paid in such manner, by fiorrower making payment, when due, directly to the insurance carrier_ All ineurance policies and renewala thereof ahall be in form acceptable to Lender and shall include a standard mortgage claase in favor of and in form acceptable to Lender. L.ender ahall have the right to hold the policiea and renewala thereof, and Borrower shall pmmptly furniah to . i.ender all renewal notices and all receipta of paid prnmiums. In the event of losa, Borruwer ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. ' f Unlesa Lendez and Borrower otherwiee agree in writing, insurance proceeds ahal) be applied to reatoration or mpair of the Property i damaged, pmvided such restoration or repair ia economically feasible and the security of Lhis Mortgage ia not thereby impaired_ If such reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the auma eecured by this Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to aettle a claim for ~ insurance benefita, Lender is authorized to collect and apply the insurance proc~.~eda at Lender's option either to restoration or repair of the Property or the swna eecured by thia Mortgage. Unless Lender and Borrower otherwise agree in writing, any auch application of pTOCeeda to principal ahall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of E3orrower ia and to any inaurance policies and in and to the pmceede ~ thereof reaulting from damage to Property prior to the aale or acquiaition ahall pass to Lender to the e:tent of the sums secured by thia ~ Mortgage immediately prior to such sale or acquisidon. 6_ Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Ptoperty in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the provisiona of any lease if thia Mortgage is on a leasehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower a obligationa under the declaration or covenanta creatingor governing the condominium or.planned ~ unit development, the by-Iaws and regulationa of the condominium or planned unit development, and conatituent dceumente. If a ~ condominium or planned unit development rider ia ezecuted by Borrower and recorded together with thia Mortgage, the aovenants and ~ agreements of such rider sha11 be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot I.ender'e Se~urity. If Borrower.faile to perform the covenants and agreementa contained in this Mortgage, or if any ~ action or proceeding ia commenced which materially affecla I.ender's intereet in the Property, including. but not limited to, eminent domein, ineolvency. oode enforcement, or arrangemente or procxedinge involving a bankrupt or decedent, then Lender at I.ender s option,upon notice to Borrower may make euch appearances, dieburee euch suma and take auch action es is neceseary to prof~ect L.ender's interesk ~ including, but not limited to, diebureement of reasonable attomey e fees and entry upon fhe Property to make repaira. If Lead~ required mortgage ineurence as a condition of making the loan aecured by thia Mortgage, Borrower ahall pay the premiume required to maintain ~ such ineurance in effect until euch time ae the requirement for euch inaurance terminates in aocordance with Borrower's and Lender'e ~ written agreement os applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragreph 2 hereof. ~ My amounte diebursed by Lender persuant to thia paragraph 7, with intereet thereon, ahall beoome additional indebtedneae of Borrower eecured by thia Mortgege. Unleae Borrower and Lender agree to other terma of payment, auch amounte ehall be payable upon ~ notice from Lend~ to Borrower requesting payment thereof and shall bear interest from the date of dieburaement at the rate payable from ~ time to time on outstanding principal under the Note unlese payment of interest at auch rate wouid be contrary to appticable law, in which ~ event euch amounts ehall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thia paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~ I ~ (i c ~ . _ pLGt 301 ~r.~;E 165 ~ ~ . , - ~ ; - - - - - _ F - - ~ r~ - ~ _ ' ~z - ~ - ~ 'C yy'R'.. ~,a _ ~ ~ ~Pw~~~ l~ . v.' . ._c., _