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HomeMy WebLinkAbout0697 Bonower and I.e~der covenant and agree ae follows: 1. Payment o! Prlncipal and tntere~~ Fiorrowe~ shaU promptly pay whe~ due the principal ot and inlereat o~ the indebtedness evidenced by the Note, prepayment and late chargea aa provided in the Note, and the psincipal of and intereat on any ~ture Advancee secured by this Morigage. 2. ~nda for Taxeo and Insurance. Subject to applicable law or to a written waiver by l.ender, BoROwer ahall pay to l.ender on the day monthly ir~staUmenta of principal and intereat are payabie ur?der the Note, untit the Note is paid in full, a aum (herein "Funda") equal to one twelRh of the yearly ta~ce8 and aseeasments which may attain priority over this Mortgage, and ground renta on the Property, if any, plus one twelRh of yearly premium installmenta for hazard ineurance, plua onetwelfth o[yearly premium instt~llmente for mortgage inaurance, i[any, all as reaeonably estimated initially and from time to time by I.ertder un the baeie of aseeasmente and bitls and reasonable estimatea thereof. The ~nde shall be held in an inatitution the depoaits or accou~ts of which are inaured or guarant,eed by a Federal or State agency (including Lendet if L.ender ia such an i~atitution). I.ender ahall apply the ~nds to pay eaid laxes, assesaments, ineurance premiuma and ground rents. Lender may not charge for eo holding and applying the ~nds, ana~yzing said accourtt, or verifying and rnmpiling said aeaesemenls and bills, unless Lender paya Borrower interest on the ~nds and applicable law permits I.ender to make euch a charge. Borrower ' and Lender may egree in writing at the time of execution of this Mortgage that interest on the Ftinde shall be paid to Borrower, end unlesa such agreement is made or applicable law requires such intereat to be paid, I.ender ehall not be required to pay Bortow~ ~any interest or earninge on the Fl~nds. I.ender ahalt give to Borrower, without charge, an annual aocounting of the Flcnde showing credita and debita to the , Flinda and the purpoee for which each debit eo the ~nde was made. The ~nda are pledged aa additional eecurity for the sums eecured by this Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly installme~t8 of P'unde payable prior to the due dates of ta:ea. aeseaemenfa. inaurance premiuma and ground rents, shall eaceaed the amount tequired to pay said ta:ea, aaeessments. inaurance preaniums and ground rente as they fall due, such exceae ahall be. at BoiTOwei a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nds. If the amount of the Ptitnds held by Lender ahal! not be aufficient to pay taxee, aeeesamenta, inaurance premiume and ground renfa as they fall due. Borrower ahall pay to Lender any amount neceseary to make up the de5ciency within 30 days from the date notice is mailed by L,ender to Borrower requesting payment th~eof. Upon payment in full of aU snme secured by thia Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. Itunder paragraph 18 hereof t6e Property iB aold or the Pmperty ia otherwiee acquired by I.ender, Lender shall apply, no later than immediately prior to the eale of the Property or ita aoquisition by Lender. any fi~nds held by Lender at the time of application as a credit againat the suma secured by this Mortgage. . . 3. Applieatlon of Paymente. Unlesa applicable law providea otherwiee, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounta payable to L.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and thea to intereet and prinripal on any ~ture Advances. 4. Chargea; Liene. Borrower ahall pay all taxes, assessments and other chargea, fines and impo~itions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymente or ground rents, if any. in the mannerpmvided under paragraph 2 hereof or, if not paid in auch manner. by Borrower making payment, when due, directly to the p~yee thereof. Borrower shall pmmptly furniah to Lender all notioea of amounts due under this paragraph, and in the event Borrower shall make payment directly. Iiorrower shall prompLly furnish to Ixnder receipts evidencing such paymente. Borrower ahatl promptly discharge any lien which hae priority over this Mortgage; provided, that I3orrower ahall not be required to diacharge any auch lien so long as Borrower shall agree in writing ta the payment of theobligation secnred by such lien in a manner acoeptable to Lender, or shall in good faith contest such lien by. or detend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property n~ any part thereuf. . 5. Hazard Ineurance. Borrower ehall keep the improvements now existing or hereafter erected on the Property insured against loas by 6re. hazarde included within the term "extended rnverage," and auch other hazarde as Lender may require and in auch amounte and for such periods as Lender may require; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by atate or federal regulatione governing activities of I.ender, or that amount of coverage required to pay the aums secured by thie Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval shall not be unreasonably withheld. Ali premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by $orrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage ciause in favor of and in form aoceptable to Lender. I.ender shall have the right to hold the policiea and renewala thereof, and Borrower ahali promptly furnish to i.ender all renewal noticea and all receipta of paid premiuma. In the event of loes, Borrower ahaU give prompt notice to the ins~uance carrier and Lender. Lender may make proof of losa if not made prompdy by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance pmceeda shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the eecurity of thie Mortgage is not thereby impaired. If euch restoration or repair is not economically fea8ible ar if the aecurity of thia Mortgage would be impaired, the inaurance prooeeds shall be applied to the euma secured by thia Mortgage, with the excesa, if any, paid to Borrowet. If the Property ie abandoned by Bortower. or if Borrower faila to reapond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to eetde a claim for ineurance benefits, Lender is authorized to coltect and apply the insurance pr«.~eeda at Lender s option either to restoration or repair of the ~ Property or the auma eecured by this Mortgage. . ' Unleas Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shali not eutend or postpone thedue date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Property is soquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceede ~ thereof resulting from damage to Property prior to the sale or aoquiaition ehall pass to Lender to the e~cteat of Lhe aums eecured by this ~ Mortgage immediately prior to such sale or soquiaition. ~ ~ , 6. Preaervadon and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep } the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provieions of any leaae if thie Mortgage ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrowei s obligations under the declaration or covenante creatingor governing the condominium or planned ~ unit developmen~ the by-laws and regulationa of the rnndominium or planned unit development, and constituent documenta. If a ~ condominium or planned unit development rider is eaecuted by Borrower and recorded together with this Mortgage, the oovenants and ~ agreementa of euch rider shall be incorporated into and ehall amend and aupplement the covenanta and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ _ 3 7. Protection ot I.ender's 3ecurity. If Borrower fails to perform the oovenanLe and agreemeate conteined in this Mortgage, or if say ~ action or proveeding is commenced wtuch materially affecte Lender's intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode eaforcement, or arrangemente or prceeedinga u?volving a bankrupt ot deoedent, then Lender at Lender'e option,npon _ ~ .notice to Barrower may mai~e auch appesrances, dieburee auch eums and talce snch action as is necesaary to protect Lendez's interest. ~ inclading, bnt not limited to, diabursement of reaaoaable attorney's fees and entry upon the Property'to malce repairs. If I,enda required = mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiums required to maintain { euch insurance in effect nntil such time as the requirement for such ineurance terminates in aooordance with Borrow~'s and Lender's ; written egreement or applicable Law. Borcower ehall pay the amount of all mortgage ineurance premiume in the manner provided uader ~ Paragi'aPh 2 hereoL ~ ~ - ~ My amounta diebureed by Lender perauant to thia paragraph 7, with interest thereon, shall beoome additional indebtednese of ~ _ Borrower secvred by thie Mortgnge. Unlesa Borrower and I.ender agree to other terma of paymen~ euch amounte ehall be payable upon ~ notice finm Lender to Borrower requesting peyment thereof, and shall bear intereat from the date of diabureement at the rate payable from ' 5 time to time on outstending principal under the Note unlese payment of intereat at such rate would be oontrary to applicable law, in which ~ event euch amounts ahall bear intereet at the highest rate permiaeible nnder appiicable law. Nothing oontained in thie paragraph 7, ehaU ' ~ require Lender to incur any ~penee or talce any action hereunder. - ~ " UV. ~ ~ BaoK F~r,E 697 ~ z~ _ • - - - _ ~ _ . _ - t ~ ~ , ~ ~ ; ° - ~ ~s#.:~ ~ . _ ~ ~ ~ . ~ _ _ ~ e;~ ~ . _ - _ _ e..~ _