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HomeMy WebLinkAbout0908 Borrowe~ and l.ender rnvenant and egree as follows: 1. Payment of Prit~cipal and IaLercat. liorrower ehall promptiy pay wheo due the principal of and intereat on the indebtedneas evidenced by the Note, prepayment and latechargea aa provided in the Note, and the pri~cipal uf and intereat o~ any ~ture Ad~ ancee aecured by thia Mortgaga. 2. P~nde fot T~es and Insurance. Subjeet tu applicable law or to e written waiver by l.ende~, l3orruwer ehall pay to l.ender on the dqy monihly inatallmeols of pnncipal and intemet are payable under the Note, until the Note ia paid in full, u aum Ihe~ein "M unda") eyual to one IwelRh of the yearly taxea and aeaesaments which may attain priority over thie Mortgage, and gruund rente on the Property, itany, plue one- twelflh of yearly premium inatallmente for hazard insurance, plus onatwelfth of yearly premium inatallmenta for mortgage ineurance, if any. all ae reasonably estimated i~itially and from time to time by I.ende~ on lhe baeis of aseesaments and billa and reuaunable eetimates thereof. The F1nde ehall be hetd in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if I.ender ia such an inatitution). I.ender ehall apply the Funda to pay aaid taxea, aseesaments, insura~ce premiume and ground rente. Lendec may not charge for so holding and applying the ~nds, analyzing alaid account, or verifying and compiling eaid asaessmenes and bills, unleas Lender pays Boarower inte~est on the ~nde and epplicable law permite I.cnder to make such a cherge. Borrower and I.ender may agree in writing at the time of eaecution of this ModgaSe thet interest on the F~nda ahall be paid to Iiorrower, and unless auch agreement ie made or applicable law requires such intereat to be paid, I.ender shall not be required to pay Borrower any intereet or eaminge on the FLnds. I.ender ehall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to lhe Funds and the purpose [or which each debit to the ~nda waa made.'11~e Funds are pledged as additional security for the auma secured hy this Mortgage. If the amount of the ~nds held by Lende~, together with the future monthly inatallmente of Funde payable prior tn the due datea of taxee, aseesemente, inaurance premiums and ground rente, ahall e:c~ed the amount reyuired to pay said taxea, asaeasmente, insurance premiuma and ground rente as they [all due, such e:cese shall be, at Bo?TOwer's option, eithec prompUy repaid to Borrower or credited to Borrower on monthly installmenta of ~nde_ [f the amount of the Funds held by Lender ahall notbe sufficient to pay ta:ea, aseesaments, inaurance premiwna and ground rents ae they faU due. Burrower ehall pay to Lender eny amount neceaeary to mate up the deficiency within 30 days from the date notice is mailed by l.ender to Borrower oequesting payment thereof_ Upon payment in full of a11 enms aecured by thia Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. lf under paragraph 18 hereof the Property is eold.or the Property is otherwiee acquired by Lender, Lender shall apply, no later tt?an immediately prior to the sale of the Property or ita aoquiaition by Lender, any ~nda held by Lender at the time of application ae a credil againat the aums secured by thie Morfgage. 3. Applicatioa of Payments. Unleas applicable law provides otherwiee, all payments received by [.ender under the Note and paragrapha 1 and 2 hereof shall be applied by [.euder firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liene. Borrower ahall pay all tauee, aseessments and other chargea, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehoid paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if nol paid in such manner, by Borrower making payment, when due, directly to tt~e payee thereof. Borrower shall promptly fumish to Lender all notices of amounts due under thia paragreph, and i~ the event Borrower shall make payment directiy, Botrower ahall promptly turnish to [.ender receipts evidencing auch p~yments. Borrower shall promptly discharqe any lien which has priority o~ er this Mortgage; provided, that E3orrower ahall not be required to discharEte any auch lien so long as t3orrower ahall agree in writing to the payment of the obligation secured by such lien in a mannez acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcemencof such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof. 5. Hazerd Insurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazarda included within the term "exfznded coverage," and e~uch other hazards as Lender may require and in auch amounta and for such periods as Lender may require; pmvided, that Lender ehall not require euch coverage amount exceeding the minimum, as may be requiredby state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance ahall be chosen by E3orrower subject to approval by I.ender, provided, that such approval ~ali not be unreasonably withheld. All pmmiums on insurance policiex shall be paid in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ahall be in form acceptable to Lender and ehall include a standard mortgage clauae in favor of and in fotm accepteble to Lender_ Lender shall have the right to hoid the policiea and renewals thereof, and Borrower shall prompdy furnish to i.ender all renewal notioea and all receipta of paid premiuma. In the event of loea, Borruwer shall give prompt notice to the inaurance carrier ; and Lender. i.ender may malce proof of loes if not made prompdy by Borrov`er. f Unleas Lender and Borrower otherwiee agree in writing, ineurance proc.~ecda ehall be applied to restoration or repair of the Property ~ damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If auch € reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be unpaired, the ineurance proceeda shall be applied ! to the sums aecur+ed by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to I.ender within 30 days from the date notice ia mailed by L.ender to Borrower that the inaurance carrier offera to settle a claim for ~ insurance benefits, Lender is anthorized to coUect and apply the inaurance proceeds at I.ender's option either to restoration or repair of the ~ Property or the aume secured by thie Mortgage. ~ Unleas L.ender and Borrower otherwise agree in writing, any auch application of proeeeds to principal shall not extend or poatpone thedue ~ date of the monthiy installments referred to in paragraphe 1 and 2 hereof or change the amount of auch instailmenta. If under paragraph 18 . hereof the Property is acquired by I,ender, all right, tide and intemet of Borrower in and to any inaurance poliriea and in and to the proci.~s ~ thereof reaulting from damage to Property prior to the sale or acquiaition shall pase to Lende~ to the extent of the auma eecured by this ~ Nortgage immediately prior to such sale or aoquiaition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmenta. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ provisiona of any leaee if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, . Borrower ahall perform all of Borrower'e obligations under the declaration or covenanta creatingor governing the rnndominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and conetituent documents. If a - ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and ~ agreementa of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ Protection of Lender'e Security. Ii Borrower faile to perform the oovenante and agreements contained in this Mortgege, or if any ~ action or proceeding ia commenoed which materially affects Lender'a interest in the Property, including, but not limited to, emineat domain, ~ inaolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or dscedent, then Lender at I.ender's option,upon ~ notice to Borrower may mahe euch appearances, disburee euch aume and talce such action as ie neoessary to protect Lender's intereet, ~ including, but not limited to, diabureement of reseonable attorney's feea and entry upon the Property to make repairs. If Lender required mortgage inaurance sa a condition of mal~ing the loan eecured by this Mortgege, Borrower shall pay the pre~niume required to maintain ° snch inenrance in effect until euch time as the requirement for euch inaurance terminatee in ac~cordance with Borrower's and Lender's written egreement or applicable Law. Borrower ehall pay the amount of all mortgage inawance premiume in the manner provided under paragraph 2 hereof. ` Any amounte diabureed by Lender perauant to thie paragraph 7, with intereat thereon, ahall beoome additional indebtedneee of Borrower eecured by thia Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounta ehall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebureement at the rate pay able from time to time on outatanding principal under the Note unlees payment of intereat at euch rate would be oontrary to applicable law, in which ~ event such amounte ahall bear intereet at the higheat rate permiasible under applicable law. Nothing contained in thie paragraph 7. ahall require Lender to incur any e:penee or take any action herennder. ~ 5 ~ R~~~ 301 ~Yc~ 908 ~ ; ~ ~ : - _ - _ ~ -f Lat~"4> Y~a~~j 4 ~ `S f r" " f .a5~ ~ fi x:; - . ~ ' " - 7_._.._, _ _s