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HomeMy WebLinkAbout0634 Borrower and Lender covenant and aRree aa followt: ' 1. Psyment ot Priacipal u~d Iatere~~ Borrower shall promptly pay whe~ due the principal of and inteteat on the indebtedneas evidenced by the Note. prepayment at~d late charr~es as pmvided in Ihe Note. and the principal of and intersat on any ~ture Advances secured by this Mort~a~e. 2 FLnds for Teu[es and Ie~ursace. Subj~t b applicable law or to a written waiver by Lender, Borrower ahall pay to I.ender on the day monthly inatallmente of principal and i~terest are payable under the Nota. unW the Note ia paid in full. a sum (herein "~nda") equal to one twelRh of the yearly taxes and aescsamente which may attai~ priority over thia Mortgage. and g~ound rents on the Properly. if any, plua ont twelEth of yearly premium inatallmenta for hasard ineuranoe, plus onetwelfth of yearly premium inatallmente for mortgage inaurance. if any, nU ad reasonebly eetimated iaitially and fro~n time to time by Lender on the besia of asaeasmenta and bills and reasonable estimates thereoL The P1u?ds shall be held in an institation the deposib ot aooount~ of which are inaured or guaranteed by a Federal or State agency (including Lendes if Lend~ is auch an inatitution~ I.ender shall apply the Funds to pay aaid taxes. aeeessments. insurance premiums and ground nnt~. Lender may not charge for so hoiding and applying the P~nds. analyzing said acooun~ or verifying and rnmpiling aaid aeaesamenta and billa. unless Lender pays Borrower inte:est on the ~nds aad applicable law pemuta I.endsr to make auch a charge. Borrower and Lender me~y agree in writing at the time of executioA oi this Mortgage that interest oa the I~nda shall be paid to Bormwer. aad unless such agrcement is made or applicable la~r requires such interest to be paid. Lender ahall aot be required to pay Borrower any intereat or eamings on the fi~nda. Lender ahall give to Borrower. rvithont charge. an annual aooounting of the Funds ahowing credits and debits to the ~nds and the purpose for which e~ch debit b the Fl~nds was made. The Funds ara pledged as additional security for the suma secured by thia Mortgage. If the amount of the Ftinds held by Lender, togeWer with the future monthly instellmeats of F~?nda payable prior to the due dates of t~es, assessmenb. inaaranoe premiums and ground re~te. shall exoaed the amount required to pe~y said taxea. aaeeasmeata, insurancE premiuma and gronnd rents as Lhey fall due. snch ezoees shaU be, at Bonower's optioa. either prompdy repaid to Borrower or credited to Borrowu on montWy installments of ~1nds. If the amount of the ~nds held by Lend~ ahall not be eufficient to pay ta~ces, aaseesmeata, ins~uance pnminms and ground renta as Wey fall due. Borrower ahall pay to L,ender any amount neceseary to make up the deficiency within 30 days from the date notioe is mailed by Leader to BorroweT requesting payment thereof. Upon payment in fuU of all eums secured by this Mortgage, I.ender ahall pmmptly retund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is wld or the Property is otherwiee acquired by Lender, I.ender elisll apply, no lata than immediately prior to the eak of the Property ~ its aoquiaition by Lender. a~y F1nda held by Lender at the time of application as s credit againat the auma secured by thia Mortgage. 3. Application of Payments. Udess applicsble law pmvides otherwiee, all paymente received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by I.eader fuat in payment of amounts payable to Lender by Bormwer under paragraph 2 hereof, thea to intereet payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancee. 4. Charges; Ldeas. Bormwer ahall pay all ta:ea, aseesamenta and other charges, finea and impoaitiona attributable b the Property which may attain a priority over thie Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly fnmish to I.ender all notices of amonnta dne vnder thia paragraph, and in the event Borrower shall make payment directly, E3orrower shall promptly furnish to ~ Lender receipts evidencing auch paymenta. Borrower shall p~omptly diacharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any such lien ao long as Borrower ahall agree in writang to the payment of the obligation secured by auch lien in a manner aooeptable to Lender, or ahall in good taith contest such lien by, or defend enfon~ement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrowez ehaU keep We impmvementa now e:iating or hereafte3r erected on the Property ineured against losa by fire, hazards included within the term "eztended coverage.° and anch other hazards as Lender may require and in such amounte and for such. perioda as Lender may require; provided. that L•ender shall rwt require ench ooverage amount ezceeding the minimum, as may be required by ~ state or federal irgnlations governing activitiea of Lender. or that amount of coverage required to pay the auma secured by thie Mortgege, whichever is the greater. 7'he inaurance carrier providing the inaurance shall be chosen by Borrower subject to appro~ al by Lender, provided, ~hat 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 suth manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof shall be in form aooeptable to I.ender and shall iaclude a stsndard mortgage clause in favor of and in form aooeptable to I.ender. Lender ahall have the right to hold the policies and renewala thereof. and Borrower shall prompdy furnish to i.eade~r all renewal notices and all reoeipta of paid premiums. In the eveat of lose; Borrower shall give pmmpt notice to the insurance carrier and I.eader. I.ender may make proof of loes if not made promptly by Borrower. Unkae Lender and Borrower otherwiae agree in writing. inaurance proceeds ahall be applied to reetoratioa or repair of the Property ; damaged,~ provided such reetoration or repair is economically feasible and the eecuritg of thia Mortgage ia not thereby impaired. If euch ~ reaLoration or repair is not economically feasible or if the security of this Mortgage wquld be impaired. the inanrance proceeda ahall be applied j to the auma secured by this Mortgege, with the ezceae, if any, paid to Boirow~. If the Property ia abartdoned by Borrower, or if Borrower faile to i reapond to Lender within 30 daya from the date notice is mailed by Leader to Borrower thet the inaurance carrier o~ers to eettle a claim for E inaurance benefita, Lender ia anthorized to collect aad apply the inaurance proceeda at Lender's option either to restoration or repair of the ~ Property or the anms secured by this Mortgage. ~ Unlese Lender and Borrower otherwise agrce in writiaB, any anch application of proceeda to principal shall not eztend or postpone the due date of the moathly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch inetallmente,If under paragraph 18 hereof the Pro}+erty is aoquired by Lender. all righk aue and interest of Borrower in and to any insnrance policiee and in and to the proceeda thereof zraulting from damage to Propezty prior to the sale or aoquisition shall pase to Lender to the e:tent oi the aums aecured by thie Mortgage immediately prior to such eale or aoq~iaition. 6. Preaervation and Maintenanoe of Propeity; I.eaeeholds; Condominume; Ptanned Unit Developmente. Borrower shall keep the Property ia good repair and ehall aot commit waste or permit impairment or deterioration of the Propeity and ehall oomply with the provisiona of any lease if this Mortgage is on a leasehold. If thia Mortgage is on a unit in a condominium or a planned uait development, Borrovrer ehall perform all of Borrower e obligations under the declaration or oovenante creatingor governing the condominium or planned unit development, the by-lawe and regulations of the condominium or planned unit deyelopment, and rnnetitneat documents. If a oondominium or planned unit devetopment rider ia ea~ecuted by Borrower and recorded togethe~ with thia Mortgage, the oovenanta and agreements of such rider ehaU be incorporated into snd ahall amend and supplement the rnvenanta and agreements of thia Mortgage as if the ~ rider were a part hereof. 7. Prot~ection of Lender's Securitp. If Borrower fails fo pdrfarm the wv~anta and agreem~ta oontained in thi~ Mortgage. or if any action or prooeeding is commenoed which matrrielly et~ects I.ender's intereet in the Pe+operty. including, bnt not limited to. eouinent domain. insolvency. oode eaforr~ent, or arrangements or pmoeediags involving a banlQUpt or deoedeat~ then Lender at I.eader's option,npon ~ notice to Borrower may make anch appearanoes. diabnrse ench snma aad take sqch action as is neoessary to protect Lender s interest, = inclodiug, b~rt not limited to, disbnrsement of reasonable attorney's fees and eatry apon the Property to make repairs. If I.ender required ~ mortgage inaurance aa a condition of malring the loen secured by this Morfgage, Borroaer ehall pay the premiums required to maintein ~ snch inenrance in'effed nntil sach time as the requirement for ench insurance tezminates in aocordance with Borrower's and I.enda's ~ writte~ agreement ~ applicabk Law. Borrowei shall pay the amonnt of all mortgage insurance premiums in We mannez provided unda ~ paragraph 2 hereof. My amannte diebnraed by Lendez pereuant to thia paragreph 7, with int~erest thereon, shall beoome additional indebtednesa of ~ Borrow~ secnred by thia Mortgage. Unleee Borrower end Lender agree to other terms of payment, snc6 amounta ehall be payable upon ~ notice from Lend~ to Borrower requesting payment thereof, and shall bear intereat ~rom the date of diabursemen! at the rate payable fzom time to time on outstanding principal under the Note unlees payment of interest at sach rate would be oontrary to applicable lew, in which ~ event such amounts ahall bear iaterest at the highest rate permiasible ander applicable law. Nothing contained in thia paragreph 7, shall ~ require Lender to incur any e~cpenee or take any action hereunder. ~ ~ ~ ~ ~~R~ 302 F~;F 634 ' ~ - - - ~ ~ - ~ N - _ _ _ ~ ~ . ti ~ ~ ~ _ A.~ _ s~~~. -