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HomeMy WebLinkAbout0705 Borrower and l.ender covenant and agree as iollowe: 1. Payment oi Principal eAd Intereet. Borrower ehall promptly pay when due 1he principal of and intereat o~ the indebtedneae evidenced by the Note. prepayment and late charges as provided in the Note, and the priacipal of and interest on any Ftiture Advancee secured by this Mortgage. ~ ' ~ 2. Ptitnde for Tasea and Ineurance. Subject w applicable law or to a writte~ waiver by I.ender, Born?wer ahall pay to I.e??der on the day monthly inetallmenta of principal atid interest are payable urtdcr the Note, u~til the Note ia paid in fuU, a aum (hereir? •'Flinds") equal to one twalfth of the yearly taxee and eaeeasmenta which may attai~ priority over ih:s Mortgage, and ground renta un the Property, if any. plua ono- twelfth of yearly premium inatallmente for hazard inaurance, plua onetwelRh ofyearly premium inatallment~ for mortgage insurance, if any, all ea rPasonably estimated initially and trom time to time by Lender on the basie of aaaeesmenta a~d bills and reasonable eatimates thereof. ; The Fl~nds shall be held in ea institution the deposits or accounts of which are inaured or guaranteed by a Federal or State agency ; (including Lend~ if I.ender ia such an institution). Lender sha11 apply the Funda to pay said taxes, eaeesamenls, insurance premiuma and ground nnts. I.ender may not charge for so holding and applying the ~tnds. analyzing said account, or verifying and compiling said asseasments and bills, unlesa Lender peys Borrower interest on the Flrnda and applicable law permite Lender to meke euch a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that inter~t on the FLnde shall be paid to Bormwer, and unleaa auch agreement ia made or applicable law requires such intereet to be paid, Lender ahaU not be required to pay Borrower any irttereat or earninga on the Ftinds. Lender ehall give to Borrower, without charge, an an~ual accounting of the F~nde ahowing credits and debits to the Flmds and the purpoee for which each debit to the F~nda was made. The Funds are pledged as additional eecurity for the aums secured by this Mortgage. If the amount of the Ptinda held by Lender, together with the future monthly inetsllmente of Funda payable prior to the dae dates of taues. asseeamenta. inayrance premiums and ground rente, ahall euozed the amou~t required to pay esid taxea. aesesemente. inaurance premiume and ground rents as they fall due, such exce~a shall be, at Bontower s option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta o[ ~?nde. If the amount of !he Funda held by Lender ehaU not be eufficient to pay taxea, aeeeaamenta, ineurance premiume and ground rents as they fall due. Borrower ahall pey to I.ender any amount neceasary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requeating peyment thereof. Upon payment in full of all euma secured by this Mortgage. I.ender ehall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any F~nda held by Lender at the time of application as a credit againet the sums aecured by this Mortgage. 3. Applicadon of Peymente. Unleas appticable law providee otherwiae, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firet in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to intereat and principa! on any Future Advancea 4_ Charges; I.iene. Borrower ahall pay all taxes, assesaments und other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents. if any, in the manner provided under paragraph 2 hereof or, if not paid in such manaer, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all notices of amonnte due under this paragraph, and in the event Borrower ahall make payment directly, Borrower ahall promptly furnish to Lender receipta evidencing such payments. Borrower shall promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lie~ in a manner acceptabte to Lender, or shall in good faith contest such lien by, or defend entorcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part theceof. 5. Hazard Ineuraace. Borrower ehall keep the improvementa now exiating or hereafter erected on the Property insured againat loss by fire, hazarda included within the lerm "e:tended rnverage," and auch other hazards as Lender may require and in auch amounta and for such periods as Lender may require; provided, that L,ender shall not t¢quire such ooverage amount e:ceeding the minimum, as may be tequired by atate or federal mgulations gaveming activitiee of Lender, or that amount of coverage required to pay the sums secured by this Mortgage. whichever ia the greater_ - The insurance carrier pmviding the insurance shall be chosen by Borrower subject to approval by Lender, pmvided, that such approval ' shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in snch manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiee and renewala thereof ahall be in form acceptable to Lender and ehall include a standard mortgage clause in favor of • and in for~n acceptable to Lender. I.ender ehall have the right to hold the policies and renewala thereof, and Borrower shall promptly furniah to i.ender all renewal noticea and all receipts of paid premiums. In the event of loes, Bort+ower ahall give prompt notice to the insurance carrier ' and Lender. Lender may make proof of loas if not made promptly by Borrower. I Unleee Lender and Borrower otherwise agree in writing, inauiance proceeds ehall be applied to restoration or repa'v of the Property damaged, provided auch teatoration or repair is economically feasible and the security of this Mortgage ia no! thereby impaired. If such ~ reetoration or repair is not economically feasible or if the secnrity of thie Mortgage would 6e impaired, the inaurance proceeds ahall be applied ; to the aume secured by fhia Mortgage, with the ea~ceas, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respoad to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to eettle a claim for ; inaurance benefits, Lender ie.authorized to collect and apply the inaurance proceeds at Ls~nder's option either. to reetoration or repair of the - ~ Propertyr or the sums secured by this Mortgage. ~ Unless Lender and Borrower otherwiae agree in writing, any such application of pcoceede to principal shall not e~ctend or poatpone the due ~ date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the procecds ~ thereof resulting from damage to Property prior to the eale or aoquieition shall paea to Lender to the extent of the eums secured by this ; Mortgage immediately prior to such sale or soquiaition. ~ 6. Preeervation and Maintenance of Property; Leaeeholda; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahsll not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the 5 provisione of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a wndominium or a planned unit development. ~ Borrower ahall perfor~n all of Borrower'e obligations under the declaration or rnvenants creatingor governing the condominium or planned $ unit development, the by-law8 and regulations of the rnndominium or planned unit development, and oonetituent documents. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded fogether wit~ thia Mortgage, the oovenante and ~ agreementa of such rider shall be incorporated into and ehall amend and supplement the covenanta and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection ot I.ender's $ecurity. If Borrower tails to perform the oovenante and egreements contained in thia Mortgege, or if any ' action or prooeeding ie oommenced which materially affecta Lender'e intereat in the Property, induding, but not limited to, eminent domain, z insolvency. aode enforcement, or arrangemente or roccedin notice to Borrower ma make euch a p ~~volving a banlm~pt or deoedent, then Lender at L,ender'e option,upon u y ppea:ancee, diaburse ench eume and take such action aa is neceasary to proted Lender'a interest, ~ including, bat not limited to. diabureement of reesonable attomey'e fcee and entry upon the Property to make repairs. If I.ender required mortgage inaurance ae a rnndition of making the loan secured by thia Mortgage, Borrower ahall pay the premiume required to maintain ~ sneh insnrance in effect antil such time sa the requirement for euch ineurance terminatea in accordance with Borrower'e and Lender'e written agreement or applicable Law. Borrower shall.pay the amount of all mortgage ineurance premiume in the manner provided ander paragraph 2 6ereof. My amounts diabureed by ~Lender persuant to thia paragraph 7, with interest thereon. ehall beoome additionel indebt~edness of - Borrower eecured by thie Mortgage. Unleae Borrower and I.ender agree to other terma of payment, euch amounts ehall be payable upon notice trom I.ender to Borrower requesting payment thereof, and shall bear intereet from the date of diabursement at.the rate payable from time to time on outatanding principal under the Note nnless payment of intereet at such rate would be aontrary to applicable law, in which event anch amounta ahall bear intereet at the higheat rate permiseible under appliceble law. Nothing contained in this paragrap6 7, shall require Lender to incur any eupense or talce any action hereunder. ~ ~ ~~~X3U1 ~:,~F ?05 ~ ~ - - ~ ~ _ - ~ ~ ~ ~ . = ~ . , ~ ~ ~F ~s ~ , . ~ - - ' ~ . . . . - . . - rk ~'-4 . .s . . . - .