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HomeMy WebLinkAbout0535 Rorrower and Iw nder covenant and a~cree aa fullows: 1. Payment of Prlncipal and I~tereet. Borrowe~ ehaU promptty pay when due the principal of and intereet on the indebtedneeza evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal uf and intemst un a~y Fliture Advancea secured by thie blortgage. 2. bl~nds for Ta~cee and lnaurance. Subject to applicnble law o~ tu a writte~ waiver ~y (Ande~, F3orrower shull pay to l.ender on the day monthly inetxUmenta of principal and inte~eat ure pays~ble under the Nute, until the Note is paid in full, a sum (herein "Funde") equal to one twelRh of the yea~ly taxes and assesaments which may attain priatity over thia Mortgage, and ground ~e~tei un the f'iruperty, if any, plua one- twelfth of yearly premium inat~Umenta for hazard insurance, plus onetwelfth ofyearly premium inatallments fo~ mortgnge i~surance, if any, all as reASOnably eatimated initially and frum time to tia~e by [.e~de~ o~ the baais ot asaeasmenta and bills and reusonable eatimutes thereof. The ~Lnds ehall be held in an inatitutioa the deposits or accounta of which are i~eured or guaranteed by a Federal or State agency (including Lender if Lender is auch an inatitution). I.ertder ahall apply the Funda to pay said taxea, aaaeasmente, ioaurance pmmiume and ~round rente. Lender may not charge for eo holding and applying the ~nde, analysing said account, or verifying and compiling said asaeasmente and biUe, unleas I.ender paya Borrower intereat an the ~nda and applicable Iaw permita I.ender to malce auch a charge. Borrower and I.ender may agree in writing at the time of execution of thie Mortgage that interest on the Funda shall be paid to f3orrower, and unleae auch agreement ia made or applicable law requirea auch intereet to be paid, Lender ahall not be required to pay Borrower any interest or earninge on the Ftinde. L.ender ahall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to the Funda and the purpoae for which each debit to the Fnnde was made. The Funde are pledged ae additional eecurity for Ihe auma secured by thie Mortgage. , If the amount of the Funds held by [.ender, together with the future monthly ioatallments of Funde payable prior to lhe due datee of taxee, aseesamenta, insurance premiuma and ground renta, shall excaed the amount required to pay said taxea, asseasments, inaurance premiuma and ground rente se they fall due, auch e:cesa ahall be, at Bortower a option, either promptly repaid to Borrower or credited to 13orrower on monthly inetaAmenta of Ftinda. If the amount of the Funda held by Lender ahall not be sufficient to pay taxes, assesamenta, inaurance premiums and ground rente as they fall due, Borrower ahall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requeating payment thereof. . Upon payment in full of all auma eecured by this Mortgage, Lender ahall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof,the Property ia sold or the Property is otherwiee acquired by l.ender, Lender shaU apply, no later than immediately prior to the sale of the Property or ita acquisition by Lxnder, any ~nda held by l.ender at the time of application as a credit againat the auma eecured by thie Mortgage. ~ 3. Application ot Paymenta. Unlesa applicable law providea otherwise, alt paymente received by I.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firxt in payment of amounts payable to I.ender by fiorrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liene. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to the Propert} which may attain a priority over this Mortgage, and leasehold paymenta or grc?und rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making pnyment, when due, directly to the payee thereoG Borrowerahall promptly furnish to I.ender all notices otamounts due under this paragraph, and in the event Borrower shaU make pay ment directly, Borrower shall promptly furnish to i.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgaqe; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shal) in good faith contest such lien by, ordefend enforcement of such lien in, leqal proceedings which operate to prevent the enforcement of_the lien or forfeitum of the Property or any pa~t thereof. 5. Hazard Insurattce. Borrower shall keep the improvemenfs now existing or hernafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coverage," and euch other hazards aB Lender may require and in such amounta and for such periods as l.ender may require; provided, that L,ender shall not require auch ooverage amount exceeding the minimum, as may be required by state or federal rngulations governing activities of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ia the greater. The inaurance carrier providing the inaurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreasonably~ withheld. All premiums an insurance policies shall be paid in the manner pmvided under paragraph 2 hermf or, if not paid in such manner, by Borrower mxking payment, when due, direcdy to the insurance camer. ~ All insurance policies and rnnewals thereof shall be in form accepta6le to Lender and ahall include a standard mortgage clause in favor ot and in form acceptable to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all receipte of paid premiums. In the event of loss, I3orrower ahall give prompt notice to the insurance carrier and I.ender_ Lender may make proof of loas if not made promptly by Borrower. ~ Unleas Lender and Borrower otherv~-ise agree in writing, insurance proceeds shall L+e applied to restoration or repair of the Property ; damaged, provided such restoration or repair is economically leasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda sha11 be applied ~ to the suma secured by this Mortgage, with the excess, if an ~ y, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice is mailed by Lender to Bonower that the insurance carrier offers to aetde a claim for inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the aums secured by this Mortgage. 3 Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due j date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquisition ahall pase to Lender to the extent of the suma secured by this t Mortgage immediately prior to such sale or acquisition. ` 6_ Preeervation and Maintenance of Property; Leseeholds; Condominums; Planned Unit Developments. Borrowerahall keep ~ the Property in good tepair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the ~ provisions of any lease if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform all o! Borrov~er's obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit develapment, the by-iawa and regulationa of the condominium or planned unit development, and conatituent dceumenta. If a = condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and ~ agreements of such rider ahall be incorporated into and ahall amend and supplement thecovenantsand agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's 3ec~rity. If Borrower fails to perform the oovenante and agreementa oontained in thie Mortgage, or if any action or proceeding ia rnmmenced which materially affecte Lender e interes! in the Property, including, but not timited to, eminent domain, Q insolvency, aode enforcement, or arrangemente or proceedings involving a banlwpt or deoedent, then L.ender at L.ender'e option,upon ~ notice to Borrower may make euch appearancee, diaburae such euma and take ench action as ie neceesary to protect Lender's interest~ a including, but not limited to, diabureement of reasonable attorney'g fees and entry upon the Property to meke repaira. If I.end~ required ; mortgage ineurance as a rnndition of making the loan.secured by thie Mortgege, Borrower shall pay the premiume required to maintain - anch ineurance in effect until euch time as the requ'vement for euch ineurance terminates in aooordance with Borrower's and Lender'e written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ~ My amounte diebureed by Lender perauant to this paragraph 7, with intereat thereon, ehall become additional indebtednese of Borrower eecured by thia Mortgage. Uniese Bonower and I.ender agree to other terma of payment, euch amounts ahall be payable upon ~ notice firom Lender to Borrower requesting payment thereof, and shall bear intereat from the date of diebursement at the rate payable from time to time on outatanding principal under the Note unlese payment of intereat at auch rate would be o~ntrary to applicable law, in which event euch amounte ahall bear interest at the higheat rate permiseible under applicable lew. Nothing rnntained in thie paragraph 7, ahall ~ require Lender to incur any eapenae or take, any action hereundet. ~ 4 a3 ~ 5~ •3U1 ~ 535 ~ ~ ~ y.. - _ _ _ - ~ ' ~ _ z ~ ~~~~x~~ - z ~ w ~ s