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HomeMy WebLinkAbout0918 Borrowe~ and l.ende~ covenant and agree as follows: 1. Payment ot Princlpal and Interest. Borrowe~ shall promptly pay when due the principal of and intemat on the indebtednese evidenced Dy the Note, prepayme~t and late chargea as provided in the Note, snd the principai of nnd intereat o~ any ~ture Advances secured by this Mortgage, , 2. Ftitnds for Ta~ces and Ineurance. Subject to applicable law or to a written waiver by I..ender, Eiorrowe~ ahall pay to l.ender on the day mo~thiy inatallments of principal and intemat are payuble under 1he Nute, until the Note is paid in full, a aum (hrrein "Funda") equal to one twelfth of the yea~ly tazes and asseaements which may attAin priority over thia Mortgage, and ground renta on the Property, if any, plua one tweltth of yearly premium installmente [or hazard inaurance, plus onetwelfth o[yearly premium installmenta for mortgnge inaura~ce, itany, all aa reasonably estimated initiaUy and trom time to time by l.ender on the basis of asaeeaments and billa And reaaonable eatimatea thereof. The Ftinda shal) be held in a~ institution the deposita or accounta of which are inaured or guart+nteed by a Federal or State agency (including I.ender if Ixnder is such an inatitution). L,ender shall apply the Funds to pay said taaea, aeseaementa. ineurance premiuma a~d ground rente. L.endes mey not charge for so holding and epplying the H~nda, analyzing said account, or verifying and compiling said asseaaments and bills, unlese I.ender peys Borrower intereat on the FLnds and applicable law permita Lende~ to make auch a charge. Borrower and I.ender matiy agree in writing at the time otexecution of this Mortgage that interest on the ~nde ahall be paid to Borrower, and unleea duch agreeonent is made or applicable law requirea such intereat to be paid, I.ender shall not be required to pay Borrower any intereat or earnings oa the F1nds. l.ender ehall give to Borrower, without charge, an annual acoounting ot the Funda ahowing credite and debita to the Funde and the purpose for which each debit to the ~nde was made. The Funde are pledged ae additional eecurity for the suma secured by thie Mortgage. ~ If the amount of the ~nds held by Lender. togeiher with the future monthly instalimente of Funds payable prior to the due datee of taues. eseesamente, ineurance premiume and ground rents, shall exc~ed the amount required to pay aaid tauea, saeeaements, insurance premiuma and ground renta as they tall due, auch exceae ahall be. at Bo~rower e option. either promptly repaid to Borrower or credited to Borrower on monthly installmenta of F~nde. I! the amount of the Funda held by I.ender ahaU not be aufficient to pay tazea, aseeasments, insurance premiuma and ground renta as they fall due, Borrower ahall pay to Lender u~y amount ne~.~eaeary to make up the deficiency within 30 daye from the date notice is mailed by L.ender to Borrower requeating payment thereof. Upon payment in full of all sums secured by thie Mortgage, [.ender ehall prompdy refund to Borrower any funda held by L.ender. If under paragraph 18 hereof the Property ia sold or the Property ie otherwiee acquired by I.ender, L.ender ahall apply, no later than immediately prior to the sale of the Property or its aoquisidon by [.ender, any Funda held by Lender at the time of application as a credit against the suma secured by this Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwise, all payments received by [.ender under the Note and pareAraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounfs payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to inten~et and principal on any Future Advancee_ 4. Charges; Liene. Borrower ahail pay all ta:ea, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the payee thereof. Borrower ~hall promptly furnish to Lender all noticea of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such paymente. Eiorroveer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, ordefend enforcement ofsuch lien in, legal pro~~eedings which operate W prevent the enforcement of the lien or forfeiture of the Property or uny part therrof. 5. Hazard Iaeurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured againat loss by fire, hazarda included within the term "eatended coverage, ' and such other hazarda aa Lender may requirn and in such ainounts and for such perioda as Lender may requirn; provided, that I.ender shall not require such covetage amount exceeding the minimum, as may be required by atate or federal regulations governing activitiea of [.ender, or that amount of coverage rEquired to pay t6e sums secured by ttiis 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. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Iiorrowe~r making payment, when due, directly to the inaurance carrier_ All inauranoe poliriea and renewals thereof shall be in form acceptable to Lender and ehall include a atandard mortgage clause in favor of and in form acceptable to I.ender. Lendershallhave the right to hold the policies end renewals thereof, and Borrower shall promptly fumish to iender all renewal noticea and all receipts of paid pmmiums. In the event of loss, Borrower shall give prompt uotice to the inaurance carrier ; and Lender. Lender may make proof of losa if not made pmmptly by Borrower. j Unlesa I.ender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to reatoration or repair of the Property damaged, pmvided euch reatoration or repair ia economicaUy feasible and the aecurity of this 11lortgage is not thereby impaired. If such i reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the suma secnred by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to mspond to i.ender within 30 days from the date notice ia mailed by L.ender to BorrovYer that the inaurance carrier ofEere to settle a claim for ~ ineurance benefita, Lender is authorized to collect and apply the inaurance proceeds at L,ender's option either to reatoration or repair of the Property or the suma secured by thiB Mortgage. € Unleas Lender and Borrower otherwiee agree in writing, any such application of proceeda to principal ehall not e:tend or postpone the due ~ date of the monthly inatailmente referred to in paragrapha I and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ia acquired by Leeder, all right, title and intereat of Borrower in and to any inaurance poliriea and in and to the proceeda " thereof reeulting from damage to Property prior to the sale or acquiaition ahall paes to Lender to the eztent of the aums eecured by this ~ Mo e immediatel ~ rtgag y prior to auch sale or aoquiaition. ~ 6. Preeervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ahali comply with the ~ proviaiona of any lease if this Mortgage ie on a leseehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Botrower e obligationa under the declaration or covenante creatingor governing the condominium or, planned unit development, the by-laws and regulationa of the rnndominium or planned unit development, and constituent docwnente: If a ~ rnndominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the covenanta and ~ agreements of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreemente otthis Mortgage as ifthe ~ rider were a part hereof. ~ ~ Protection of Lender's 3ecurity. If Borrower faile to perforni the oovenants and agreemente oontained in thie Mortgage, or if any action or proceeding ia commenced which materially effecta Lender'e intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforoemenl, or arrangemente or proceedinga involving a bankrupt or decedent, then I.ender at Lender e option,upon ~ notice to Borrower may make auch appearancee, diaburee euch aume and take auch action ae ie nec~eeary to protect I.ender'e inter~t, ° including, but not limited to, diebureement of reasonable attorney e fees and entry npon the Property to make repairs. If Lender required ' mortgage ineurance ae a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiums required to maintain ~ auch ineurance in effect until euch time ae the requirement for auch ineurance terminatee u? accordance with Borrower i and Lendera = written agreemznt or epplicable Law. Borrower ehall pay the amonnt of ell mortgage insurance premiuma in the manner provided under paragraph 2 hereoL ~ ~ My amounts disbureed by Lender pereuant to thia paragreph with intereet thereon, ahall become additional indebtedneee of = Borrower secared by thia Mortgage. Unleae Borrower and Lender agree to other terma of payment, euch amounte ahall be payable upon notice from L.ender to Borrower requeeting payment thereof, and ehall bear intereet from the date of diabursement at the rate payable firom - time to time on outatanding prinripal under the Note unleea payment of interest at euch rate would be oontrary to appliceble law, in which ~ event euch amounte ahall bear i~tereat at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph 7. ahall '3 require I.~der to incur any e:penae or teke any action hereunder. . ~ - ~ ~ 3 - ~ • 6~~~ 3U1 P'~F 9~8 ~ ~ ~ ~ - - - wy„'~ 4_ YT~ ~ "-~1-;P' Si> -~.'~e.~`~^c.i= ~`c ~y~': 'N ^ ~ ~ _ ~ . s~. _ __a-"r° <,-~-.s~''~'a`s:.1 :..:f.~e, .a,