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HomeMy WebLinkAbout0411 Borrower ertd [.ender rnvenant aad agree aa follows: 1. Peyment of Principal end Intereat. Borrower ehall pmmptly pay when due 1he principal of and intereat on the indebtedneae evidenced by the Note, prepaymeat and late charges ae pmvided in the Note, and the principal of and intereat on any Ftiture Advancee secured by thie Mort~a~e. 2. Ftindo foe Ta=ee and lnaurance. Subjeet b applicable law or to a written waiver by L.ender, E3urrowe~ ahall pay to txnder on the day monihly inatallmenta of principal and intereat are payable under the Note, until the Note ia paid in full, e aum (herein "Funds") equal to one twelRh of the yearly taxes and asaesaments which may attnin priority over this Mortgage, and gmund cente on the Property, i[any, plua one twelRh of yearly premium installmenta [or hazard inaurance, plus ono-twelfth of yeurly premium inatallmente fo~ mortgage ineurance, if any, all as reasonably estimated initially and trom time to time by L.ender on the basis of aeseasmenta and bilis and reasonuble eatimates thereof. The Phnda ~1?all De held in na institution the depoaits or aeoounts of which ace insured or guaranteed by a Federal or State agency (includit?g I.ender if Lender is such an institution). l.ender ahall apply the Funds to pay eaid taaea, aeseeamente, ineurance premiuma and ground rents. Lender may not charge for eo holding and applying the ~nds, analyzing said acco.unt, or verifying and compiling aaid asseeament8 and bille. unleee Lender paye Borrowet intereet on the Funds and applicable law permite I.ender to make such a charge. Borrower and I.endes may agree in writing at the time of e:ecution of this Mortgage that intereat on the ~nda ahell be paid to Borrower, and unleas - such agreement ia made or applicable law requires auch intereat to be paid, Lender ehaU not be required to pay Borrower any intereat or eaminge on the P1~nds. I.ender ahaA give to Barrower, without charge, an annual accounting oT the Flinde ahowing credite and debite to the Funds and the purpose for which each debit to the ~Lnds was made. The Funde are pledged ae additional eecurity for the sume eecured by thia Mottgage. ' If the amount of the Fl?nda held by Lender. together with the future monthly inetallmenta of Funda payable prior to the due dat~ of taxea, seeessmente. ineurance preaniuma and ground rents, ehall exc~ed the amount required to pay eaid ta:ea, assesementa, insurance premiuma and ground rente aa they fall due, such e:ceas ahall be, at Borrower s option, either promptly repaid lo Borrower or credited to Borrower on monlhly installmente of P1~nds. V the amount of the Funds held by I.ender shall noL be aufficient to pay taxea, asaesame~te, ineurance premiums and ground rents as they fall due, Borrower shall pay to l.ender any amount neceaeary to make up the deficiency within 30 days froan the date notice is mailed by I.ender to Borrower requeeting payment thereof. _ Upon payment in full of all aums eecured by fhis Mortgage, Lender ahall prompdy refund to Bormwer any funda held by I~ender. If under paragraph 18 hereof the Property is sold or the Property ie otherwiae acquirrd by Lender, I.ender ahall apply, no lsiter. than immediatrly prior to the eale of the Property or ite aoqaieition by I.ender, any Fnnda held by I.ender at the time of application as a credit againat the aums aecured by this Mortgage. 3. Applicatioa of Payaaents. Unlesa applicabie law pmvides otherwiee. all payments received by Lender under the Note and paragrapha 1 aad 2 hereof ahall be appUed by Lender firat in payment of amounte payable to I,ender by Borrower under paragraph 2 hereof, then to intereet p~yable on the Note. then to the principal of the Note. and then to intemat and principal on any Future Advancea. 4. Charges; Liens. $orrower shall pay all taxea, assesamenta and other chargea, 6nea and impositiona attributable to the Property whicfi may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or. - if not paid in auch manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall pmmptly furnish to l.ender all noticea of amonnts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shell promptly iurnish to Lender receipts evidencing such payments. Borrower ahal) prompdy 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 shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement uf such lien in, legal proreedings which operate to prevent the enforoement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shaJl keep the itnprovementa now exiating or hereafter erected on the Property ineured againat losa by fire. hazarda included within the term "e:tended ooverage." and auch other hazards as Lender may require and in such amounts and for such periode ae Lender may require; pmvided. that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal reguladons governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage. . whichever ie the greater. - The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreasonably withheld_ All premiums on inaurance pc?licies shaU be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by.Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof ahall be in form aoceptable to Lender and ahall include a standard mortgage clauae in favor of and in form aoceptable to I.ender. Lender ahall have the right to hoW the policies and renewals thereof, and Borrower shall promptly fumish to i.ender all renewal notioe8 and all receipta of paid premiama_ In the event of loss, Bonuwer ahall give prompt notice to the insurance carrier and Lender. Lender may malce proof of loea if not made promptly by Borrower. I Unleae Lender and Borrower otherwiee agree in writing, inaurance proceeds ahall be applied to reetoration or repair of the Property ~ E damaged. provided such reatoration ot repair is economically feaeible and the eecurity of this Mortgage is not thereby impaired. If such ~ restoration or repair ia not economically feasible or if the aecurity of this Mortgage would be impaired, the ineurance proceeds shall be applied ~ w the auma eecured by thie Mortgage, with the exceea, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ ~ respond to L.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offera to settle a claim for ~ insurance benefita, I,ender is authorized to collect and apply the inaurance proceeda at Lender s option either to resioration or repair of the Property or the eums eecured by this Mortgage. . Unleae I.ender and Borrowet otherwiae agree in writing, any such application of proceeds to principal ahall not eatend or postpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 hereof the Property ie aoquired by I.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds , thereof reanlting fi~om damage to Property prior to the sale or acquiaition ahall pasa to Lender to the e:tent of the sums eecured by this Mortgage immediately prior to such aale or aaqaisition. 6. Preaervation anel ~aintenance olProperty; Leaeeholda; Condominuma; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower aha11 perform all of Borrower e obligatione under the declaration or rnvenanta creatingor governing the condominium or planned unit development, the by-tawe and regulationa of the condominium or planned unit development, and conetituent documents. If a condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thie Mortgage, the oovenants and agreemente of such rider shall be incorporated into and aha{l amend and supplement the rnvenanta and agreements of thia Mortgage as if the rider were a part hereof. 7. Pcotection of I.ender's Se~urlty. If Borrower faila to perform the oovenants and agreemente oontained in this Mortgege, or if any action or prooeeding is commenced which materially affects Lender e interest in the Property, including, but not limited to, eminent domain. insolvency. oode enforcement, or arrangements or proceedings involving a banim~pt or deoeden~ then Lender at I.ender's option,upon - notice to Borrower may ma1~e snch appearances, disburee such eums and take sach action as is necessary to protect I.endtr's intereat, E including, but not limited to, diebureement of reasonable attorney's fees and entry upon the Property to make repairs. If I.ender required ~ mortgage inanrance as a condition of malrii?g the loan secured by thie Mortgage, Borrower ahall pay the premiums required to maintain I ~ such insarance in effeet ~u?ti! eucli time aa the requirement for euch inenrance terminates in aocordence with Borrowez'e and Lenddo written agreement or appGcable Law. Borrower shall pay the amount of all worigage ineurance premiuma in the menner provided under ~ paragraph 2 hereof. ~ Any amounfa diebureed by Lender persuant to thie paragraph 7, with intereat thereon, ehall beoome edditional indebtedness of ~ Borrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terma of payment, such amounts ehall be payable npon notice from Ler?der to Borrower requeeting payment thereof. end shall bear intereat from the date of diaburaement at the rate payable from - time to time on outstanding principal ander the Note unlees payment of intereat at auch rate would be aontrary to appUcable law, in which event euch amounta shall bear interest at the highest rate permiaeible under applicable law. Nothing rnntained in this paragraph 7, ahall require Lender to incur any e~cpenae or take any action hereunder. - ' BOOK JO3 PAGE 4~,0 ~ . ~ ~ 3=~~. < ~ , , - - . - . . _ - ~ ~ ~