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HomeMy WebLinkAbout0701 Fiorrower and l.ender rnvenant and agree ae followe: I. Payment of Principal and Interest. Borrower ahall promptly pay whe~ due the principal of and inteteat o~ the indebtednese . evidenced by the Note, prepayme~t and late chargee ae provided in the I3ote, and the principal of and interest on arty I~'uture Advancee secured by this Mortgage. 2. Funde for Ta~ces and Inourance. Subject to applicable Iaw or to a written waiver by l.cnder, Iiorrower shall pay to l.ender on the day ~ monthly instnllmente of principal and interest are payable under the Note, until the Note is paid in tull, a sum (herein "~nds") equal to one twelfth of the yearly taxea and assesements which may attain priority over thia Mortgage, and qround rente on the P~operty, if any, plua one~ ~ tvirelRh of yearly premium. inatallments tor hazard inaura~ce, plus onetwelRh of yearly premium inataUmenta for mortg~ge ineurunce, if any, ; aU as reaeonably eatimated initially and from time to time by l.ender on the baais o[essesaments and billa and reaso~able estimates thereof. ; The I~nds ehall be held in an institution the deposits or eccounts of which are inaured oT guaranteed by a Federal or State agency (including I.enda if I.ender is such an inetitation). L.ender shall apply the Funds to pay seid taxes, aaseeamenta, ineurance premiuma and ground re~ts. Lender mqy not charge for so holding and applying the ~nds, analyaing eaid accoun~ or veritying and compiling aaid asseeamenta and bills, unleas l.ender pays Borrower intereat on the Fti?nds and applicable law permits I.ender to make auch a charge. Borrower and Lender may agree ia writing at the time of execution of thie Morigage that it?terest on the ~nda ehall be paid to Borrower, and unleea such agreement is made or applicable law requirea auch intereat to be paid, Lender shall not be required to pay Borrower any intereat or earnings on the FLnda. Lender ahall give to Borrower, without charge, an annuel accounting of the Funda ehowing credite and debite to the Funds and the purpoee for which each debit to the ~nda was made.'I~e Funds are pledged as additional eecurity for the auma secured by thie Mortgage. If the amount of the Fl~nda held by Lender, together with the future monthly inatallmente of Ftinda payable prior to the due dates of taxee. aaseesmente, insurance prnmiuma and ground rente, shaU exozed the amount required to pay said taxee, asseeamente, inaurance premiuma and gmund rents as they faU due, such exceas ahall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly insteUmente of I~qde. If the atnount of the Fun~is held by I.ender ehall not be aufficient to pay taxea. aseesamente, ineurance premiums and ground rents ae they fall due. Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 daya from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in tull of all suma secured by thia Mortgage. I.ender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 henof the Property is eold or the Property ie otherwise acquired by I.ender, Lender shaU apply, no later than immediately prior to the sale of the Property or ita eoquieition by Lender, any PLnds held by Lender at the time of application ea a credit againat the aums aecnred by thie Mortgage. ~ 3. Applieation of Payments. Unlese applicable law providea otherwise, all paymenta received by Lender under t~e Note and paragraphs 1 and 2 hereof ahaU be applied by Lender firat in payment of amounta peyable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the NoLe. then to the principal of the Note, and then to intereat and principa) on any Future Advancea. 4. Charges; Liena. Borrower shall pay all taxes, asseesmenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mort~~age, and leasehold paymenta 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 thereoE Borrowershal) promptly fumish to l.ender all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ehall promptly furnish to I.ender receipts evidencing such payments_ Borrower shall promptly discharge any lien which has priority aver this Mortgage; provided, that - Borrower shall no! be required to discharge any auch lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceectings which operate to prevent the enforcement of the lien dr forfeiture of the Property or any part thereof. 5. Hazard lneurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property inaured againat loas by fire, hazarda included within the tetm "eYtended rnverage," and auch other hazarda as I.ender may require and in such amounts and for such periods ae Lender may require; provided, that Lender shall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulatione goveming activities of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. The insurance carrier providing the inaurance shall be chosen by Borrower subject to approval by Ixnder, pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paragraph 'l hereof or, if not paid in such manner, by Borrower 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 mortgaqe clauae in favor of x and in form acceptable to L.ender. [.ender shaU have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and aU receipte of paid premiume. In the event of loea, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of losa if not made promptly by Borrower. ~ Unless Lender and Borrower otherwiee agree in writing, inaurance proceeds ahall be applied to restoration or rnpair of the Property damaged, provided auch restoration or repair ia economically feasible and the secasity of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feseible or if the eecurity of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the aume aecured by thia Mortgage, with the e~cesa, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to l.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier of~ers to settle a claim for inaurance benefits, Lender is authorized to collect and apply the inaurance proc~eeds at Lender's option either to reatoration or repair of the i Property or the aums eecured by this Mortgage. ~ Unleae Lender and Borrower otherwise ag~ee in writing, any such application of proceeda to principal ehall not extend or poetpone the due t date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any iasurance policies and in and to the proceede ~ thereof resulting from damage to Property prior to the sale or acquieition ahall pess to Lender to the eztent of the suma eecured by thia _ s, Mortgage immediately prior to such eale or acquiaition. ; 6. Prese;vation and Maintenance of Property; LeaBeholde; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good tepair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaions of any leaee if this Mortgage ie on a leaeehold_ If this Mortgage is on a unit in a oondominium or a planned unit development, s Borrower ahall perform all of Borrower e obligations under the declaration or covenanta creatingur governing the condominium or planned ~ unit development. the by-laws and regulationa of the condominium or planned unit development, and oonatituent documente. If a il condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof ' ~ 7. Protection of Lender'e Security. If Borrower fails to perE'orm the aovenante and agrcements ooatained in this Mortgage, or if any action or proceeding is commenced which materially affecte Lendei e intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency, uode enforcement, or arrangementa or proceedings involving a banim~pt or deoedenf~ then Lender at Lender's option,upon ; notice to Borrower may make auch appearances. dieburee enc6 aums and take snch action aa is neoeeeary to protect Lender's interea~ a including, but not limited to, diebursement of reaeonable attorney's feee and entry upon the Property to malce repaire. If Lender required morlgage insurance ae a rnndition of maldng the loan eecured by thia Mortgage, Borrower ahall pay the premiums required to maintain ench inenrance in effeet nntil ench time ae t6e requirement for such ineurance terminates in acrnrdance with Bonower'e and I.eader'e - written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inawance premiume in the manner provided under ; ParagraPh 2 hereoL . - My amounte diebureed by I.ender pereuant to thia paragraph 7, with intereet thereon, ehall beoome additional indebtedneae of ' - Borrower eecured by thie Mortgage. Unless Borrower and L.ender agree to other terma of payment, such amounte ehall be payable upon ~ notice from Lender to Borrowet requeeting payment thereof. and ahall besr interest from the date of disbureemeni at the rate payable from time to time on outatanding principal under the Note unleae payment of interest at such rate would be oontrary to applicable law, in which ; event euch amounte ahall bear intereet at the higheat rate permiseible under applicable law_ Nothing contained in thie paragraph 7, ehall require Lender to incur any expenee or take any acLion hereunder. ; ~ ~ ~ ~ ~oo~ 3U1 ~01 ~ - ~ 1: _ ~ - _ - _ _ ~ . . _ .._l r"5f w..Y .~-Z S.S ~ ~ ~7~ royr_ ~ `r~ ' ^2 ;~gy~'ra4'~' t. 2~~.~:J~-^+ ~'t': .~'z'.t,S~'Ys"_~:.~t`i~..+' - _ `~-~'s~~ _ - - ~ . . _ -