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HomeMy WebLinkAbout0864 t K Borrower and Lender covenant end agre~e aa folluwe: . ` 1: P~yment ot Princlpal and Interest. I3orrower ehall promptly pay when due ihe principal of and intereat on the indebtedneae ; evidenced by /he Note, prepayment and late chargee ae provided in the Note, and the principal of and intereat on any Future Advances eecured by this Mortgage. _ 2. El~nda tor Ta~tes utd I~surance. SubjM to applicable Inw or to a written waiver by I.ender, Borrower ahall pay to t.ender on the day ; monthly instalimente of principal and intereat are payable under the Note, until the Note ie paid in full, a eum (hecein "Ptinds"1 equal w one ' twelfth of the yearly taxee and aesc~sementa which may attain priority over thia Mortgage, and ground rents on the I'ruperty, if any, plus one ~ ' twelfth of yearly p:emium instalhne~ta for hazard inauri?nce, plue onetwelfth ofyearly p~emium inatallmentx for mortgage inaurance, if any, aU as reasonably eatimated i~itially and from time to time by I.ender an the basis of assessmenta and bills Und masonnble estimates thereof. ~ Tha blinda shaU be held in an inatitution 1he deposita or accounta of which are insured or guaranteed by a Federal or 3tate agency ' (including l.ender if l.ender is such an inatitution). l.ender ehall apply the ~nda to pay aaid taxee, aasesamenta, inaurance prerniuma and ground reats. Lender may not charge for eo holding and applying the ~nde, analyzing aaid account, or verifying and rnmpiling eaid asaesement8 and bills, unless Lender paye Borrower interest on the Funda and applicable law permita l.ender to make auch a charge. Borrower aad I.ender may agree in writing at the time of execution of thie Mortgage that intereat on the F1~de ahall be paid to Borrower, and unleas ~ such egreement is made or applicable law requirea such iatereet to be paid, I.ender ahall not be required b pay Iiorrower any intereat or i eaminga on the ~nds. l.ender shaU give to Borrower, without charge, an annual accounting oithe Funda ahowing credits and debits to the ~ FundB and the purpoee for which each debit to the ~nde waa made. The Funds are pledged as additional security for the auma eecured by thie ~ Mortgage. . ~ If the amount of the Ftinds held by Lender, together with the future monthly inatallmenta of Funds payeble prior to the due datee of taxea, ~ asaessmente, inaurance premiums and ground rents, ahall exc~ed the amount required to pay said ta:es. assesements, insurance premiume ~ and ground oenta as they faU due, auch e:ceas shall be, at Borrowe~'s option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of fliade. If the amount of the Funds held by Lender ahall not be aufficient to pay taxes, assesementa, inaurance premiums and ground nnte as they fall due, Borrower ahall pay to I.ender any amQUnt neceseary to make up the deficiency within 30 days from the date nodce is mailed by Lender to Borrower requeatinq payment thereof. Upon paymenL in full of all auma secured by this Mortgage, Lender ahall pmmpUy refund to Borrower any funds held by Lender. V under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any F~nda held by I.ender at the time of epplicalion as a credit against the sums eecured by thie Morfgage. _ 3_ Application of Paymente. Unlesa applicable law provides otherwlse, all paymenta received by Lender under the Note and pasagrapha 1 and 2 hereof shall be applieci by Lender first in payrnent of amounte 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 interest and principal on any Future Advancea. Charges: Liens. Borrower shail pay all taxea, assessments and other charges, finea and impc~sitions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or grovnd mnts, 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. Bor?ower shall promptly fumish to I.ender ; all notices of amounts due under this paragraph, and in the event I3orrower shall make payment directly, F3orrower shall promplly fnmish to i l.ender receipts evidencing such psiyments. Borrower shall promptly dischnrRe any lien which has priority over this MortKage; provided, that ~ Itorrower shall not be required to dixcharge any such lien ao long as Borrawer shall agree in writing to lhe p3yment of the obligption secured by s~ch lien in a manner acceptuble to Lender, or shall in good fAith contest euch lien by, or defend enforcement of such lien in, lega) proreedings which operate to prnvent the enforcement of the lien or forfeiture of the Properiy or finy part thereof_ ' 5. Hazard Ineuraace. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insured against losa by s fire, hazards included within the term "extended rnverage," and such other hazards as Lender may require and in such amounta and for such periods aa Lender may require; provided, that Lender ahall not requirn such rnverage amount exceeding the minimuro, as may berequired by st • te or federal regulations goveming adivities of I.ender, or that amount of coverage required to pay the aums secured by.this Mortgage, whichever is the Rreater. ~ The insurance carrier providing the insuranm shxll be chosen hy Borrower subject to approval b~ I:ender; pmvided, that such approval ahall not be unreasonably withheld. All premiums on insurance {wlicies shall be paid in the manner pm~~ided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making papment, when due, dirertly to the insuranrn carrier. All insnrance policiea and renewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of ' and in form acceptable to I.ender. I.ender ahail have the right to hold the policies and renewals thereof, and Borrower shall promptly furniRh to ixnder all renewal noticea and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance carrier and L.ender. Lender may make proof of losa i[ not made prompdy by E3orrower_ Unleas Lender and Borrower otherwise agree in writinq, insurance proceeds shall be applied to restoration or repair of the Property ' damaged, provided such resWration or repair is economically feasible and the security of this Mortgaqe is not thereby impaired. If such j restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance procExeda shal l be applied ~ to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ reapond to I.ender within 30 days from the date notice is mailed by I.ender to Borrow~r that the inaurance carrier ofi'ers to setde a claim for ~ inaurance benefita, I~?der "is authorized to rnllect and apply the inaurance proceeda at Lender's option either to restoration or repair of the Property or the suma secnred by this Mortgaqe. Unlc~s Lender and Borrower otherwise agree in writing, any such application of proceeds to pri ncipal ahall not extend or postpone the due ~ date of the monthiy installments referred to in paragraphe 1 and 2 liereof or change the amount of euch instalimenta. If under paragraph 18 hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to.any insurance policiea and in and to the pioceeds thereof reaulting from damage to Property prior to the saie or acquiaition shatl pass to t.ender to the extent of the sume secured by thia Mortgege immediately prior to such sale or aoquisition. 6_ Preservation and Maintenance otProperty: Leaseholde; Condominums; Planned Unit Developmente. Borrowerahall keep the Prnperty ie good rnpair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform ali of Borrower's obligations under the declaration or covenants creatingor goveming the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit develupment, and conatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereoL Protection of Lender'e Secutity. If Borrower faile to perform the oovenants and agreemente rnntained in thie Mortgage, or if any action or procce~ing ie commenced which materially affects Lender'8 intereet in the Property, including, but not limited to, eminent domain. insolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent~ then Lender at Lender'e option,upon notice to Borrower may make euch appearancee, dieburee euch eums and tai~e auch action aa i8 neceasary to protect Lender's interest, ~ including, bat not limited to; diebureement of reseonable attomey's fees and entry upon the Property to mal~e repaire. If Lender required ~ mortgage insurance as a rnndition of ineking the loan eecured by Lhie Mortgage, Borrower ehall pay the premiume required to maintain ench insurance in effect until each time ae the requirement for euch insurance terminates in accordance with Borrower's and Lende~'e ~ writL~ agreement or applicable [.uw. Borrower ehall pay the amount of all mortgage inaurance premiuma in the manner pmvided under paragraph 2 hereoL ~ ~ ~ Any amounte diebureed by Lender perauant to thie paragraph 7, with intereat thereon, shall become additional indebtedneee of r ~ ~ Borrower eecured by thie Mortgage. Unleas Bonower and Lender agree to other terms of payment, auch amounte shall be payable upon ~ notice from [.ender to Borrower requeating payment" thereof, and shall bear intereat from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleas payment of intereet at auch rate would be contrary to applicable law, in which ~ tvent such amounta ehall bear interest at the highest rate permisaible under applicable Iaw_ Nothing contained in thie paragraph 7, shall ~ require Lender to incur any expense or take any action hereunder. ~ . ~ ~ . ~ 9~~r 302 rA+;~ ~U`! ~ . ,~y ~ ~ . - .