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HomeMy WebLinkAbout0856 Borrower and I.ender covensnt and agree as folbws: 1. Paymeat ot Ptlaclpsl and Iatereat. Borrower ahall pmmptly pay when due the principal o! and intereat on the indebtedness evidenced by the Note. ptepayment end late charges es provided in the Note, and the principal of and intereeton any Future Advancee secured by this Mortgage. Z.11nde for Tasea and Insursnoe. Subjed b epplicable law or b a writlen waiver by I.ender, Aorrower ahall pay to l.ender on the day monthly inatalimenta of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Ilinds") equal to ono- twelfth of the yearly tauea and aeeeesments which may attain priority over this Mortgage. and ground renta on the PropeKy. if any. plue one- twelRh of yearly pretnium installmente for hazard ineurance, plus one~twelRh of year~yr premium inatallmente for mortgage ineurance, itany, all ae reasonably estimated initially and from time b time by Lender on the basis oi esaeeaments and bille and reasonable estimates Ihereof. 'ILe PLnds shall be held in an institution the depoeits or acoouats of which are ineured or guarantead by a Federal or 3tate agency (including Leader if Lender ie such an institution). I.ender ehall apply the Flmds to pay said t~ea, asseeame~te, insuranoe premiuma snd grouad nnts. Lender may not charge for so holding and applying !he F1nds, analyzing said account, or veriEying and compiling eaid aa8eesments and bills. unlees Lender pays Borrower inte~reat on the Funde and applicable law pernuts L.ender tn make auch a charge. Borrower and I.ender may agree in writinB at the time of e:ecution of thia Mortgage that intereat on the Funda shall be paid b Borrower, and unlees such egreemen! ia made or appGcable law requires such interest to be paid, Lender shall not be required to pay Borrower any i~tereat or earnings on the ~nds. Leader shall give to Borrower. without charge. an annual aoco~u?ting of the fi~nds showing credits and debita to the I~1u?da and the purpoee for which each debit to the P1~nda wae made. The ~ unds are pledged as additional eecurity for the aums secured by this Mortgage. If the amount of the Fl~nds held by Lender; together with the futan monthly inetallmenta of Funda payable prior to the due dates of taxee, aeseeamente, ineuranoe premiuans and ground rents. sball exazed the amount required to pay said ta:ea. assessonents, inaurance premiums and grow~d nnts as they fall due. such ezoees ehall be. at Borrower a optioa, either prompdy repaid to Borrower or credited to Borrower on monthly installmenta of I~nds. If the amonnt ot the P~nds held by Lender ehall not be aufficient to pay taxes. aseeesments, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 daya from the daLe notice is mailed by Lender to Borrower requesting payment the~eof. Upon payment in fiill of all sume aecured by thia Mottgage. Lender shaU prompdy refund to Borrower at?y funda held by Lender. ffunder paragraph 18 hereof the Pcoperty is eold or the.Property is otherwise acquired by Lender, Lender shall apply, no later thaa immediately prior to the sale of We Property or its soquieition by Lender, any ~nda held by l.ender at the time of applic~tion aa a credit againat the auma eecured by thia Mortgage. : . , 3. Application of Payments. Unleee applicable law pmvidea otherwiae. ell paymente received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firet in payment of amounte payable to Lendei~by Borrower under paragraph 2 hereof, then to inteeest payable on the Note, then to the principal of the Note, and then to iatereat and principal on any Future Advancee. 4. Charges; Liens. Borrower shall pay all tauea, assesamenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments 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 thereof. Borrower shall promplly furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower ehall promptly furnish to [.ender reoeipts evidencing such paymenis. Borrower ahall promptly discharge any lien which has priority over thie I~~ortgage; provided, that Borrower ahaU not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or ahall in good faith contest such lien by, or defend enforcement 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. Hezar~d Insuranoe. Borrowe= shall keep the impmvementa now euiating or hereafter erected on the Property inaured against loss by - fire, hazarda included within the term °eztended coverage." and such other hazards se Lender may require and in such amounte and for anch ;~eriods ea L.ender may require: provided, that I.ender ahall not require auch ooverage amount e:ceeding the minimum, as may be required by atate or federal regnlationa governing activitiee of I.ender, or that amount of coverage required to pay the aums sec~red by this Mortgage, whichever ia the greater. The insur~?ce carrier providing the insurance shall be chasen by Borrower subject to approval by Lender, provided, that such approval shall not be unreaeonably withheld. All premiums on inaurarece policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such mann~, by Borrower making payment, when due, directly to the insurance carrier. All inaurance poficies and renewals thereof ehall be in form soceptable to L.ender and ehall include a standard mortgage clanee in favor of and in form acceptable to I.ender. Lender ahall have the right to hold the policiea and renewala thereof, and Borrower shall pmmptly furniah to i,ender all renewal notices and all receipta of paid premiuma. Ia the event of loes, Borrower shall give prompt notice to the insurance carrier ' and Lender. Lender may make proof of loae if not made pmmptly by Borrower. ~ Unleas Lender and Borrovrc~r otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of the Property damaged, grovided such reatoration or repair ia economically feasible and the security of thia Mortgage is not thereby impaired. If such ~ reaLoration or repair ie not economicatly feseible or if the secnrity of thia Mortgage would be impaired. the insarance proceeds shall be applied ~ to the eume secnred by thie Mortgage, with the ~cess, if any. paid to Borrower. If the Property ie abandoaed by Borrower, or if Borrower fails to ~ reapond to Lender within 30 days ~om the date notice is mailed by Lender to Borrower that the inaurance carrier off'era to aettle a claim for ~ insurance benefite. Lender ie authorized to collect and apply the insurance ptoceeda at Lender's option either to restoration or repair of the Property or the aums aecured by this Mortgage. ~ Unleae Lender and Borrower otherwiae agree in writing, any auch application of proceeda to principal ahallnot ~tend or postpone the due date of the monthly instsllments referred to in paragraphs I and 2 hereof or change the amount of euch inataliments. If under paragraph 18 ~ hereof the Froperty ia aoquired by Lender, all right, title and intereat of Borrower in and to aay inaurance policies and in and to the proceede thereof reaulting from damage to Property prior to the eale or aoquieition shall pass to Lender to the eztent of the ewna secured by thia Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and Mainten~nce of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrower ahall teep the Property in good repair and shall not commit waste or permit impairment or deEerioration of the Property and ahall oomply with the pmviaiona of any lease if thia Mortgage ia on a Ieasehold. If this Mortgage ia on a unit in a aondominium or a planned unit development, Borrower shall perform all of Borrower's obligatione under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and oonstituent documents. If a oondominium or planned unit development rider is e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and agreements of euch rider ahall be incorporated into and ahall amend and aupplement the oovenanta and agreements of lhis Mortgage as if the rider were a part hereoL 7. ProLection of Lender's Secarity. If Borrow~ fails to perform the oovenante and agreements oontained in thie Mortgage, or if eny ~ action or prooeeding ie commenoed which materially effecte Lender's interest ia the Propezty. inclading, bnt not limited to. eminent domain. insolvency, oode enforoement, or arrangemente or pmceedinge involving a banim~pt or decedent, then Lender at Lender'e option,npoa notice to Borrowet may make auch appearanoes, disburee enc6 auma and take such action as ia neceseary to protect Lender's interest, ~ including. bot not limited to. disbursement of reasonable attorney e feee and entry upon the Property b make repairs. If Lender required ~ moitgage inaurance as a condition of makir?g the loan eecured by thia Mort~age, Botrower ehall pay the premiums reqaired to maintain ~ sach insurance in effect until such time as the requirement for ench inaurance terminatea in acoordance with Borrower's and I,ende~s 5 writtefl agreement or applicahle Law. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner provided under ~ DaregrePh 2 hereof. ~ My amounta diebareed by Lenda perauant to this paragraph 7, with intezest thereon, shall beoome additional indebtedneee of ~ Borrower secured by this Mortgage. Unleaa Borrower end Lender agree to othe~r terma of payment, auch amonnte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear inLereet from the date of diebureement at the rate payable from time to time on oatstanding principal under the Note unleee payment of interest at auch rate would be oontrary to applicable law, in which event such amounte shall bear interest at the higheet rate petmieaible under applicable law. Nothing contained in thia paragraph ehall require Lender to incur any ezpenee or take any action hereunder. ~ r'iRK ~0~../ ~i~r LJ~~J ~ - - - - _ - ~