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HomeMy WebLinkAbout0746 Borrower and I.ender covenant and agree as follows: 1. Psymeat of Principal snd lnterea~ Borrower ahall pmmptly pay when due the prir?cipal of and intetest on the indebtedneea evidenced by the Note. pcepayment and late charQes ae provided in the Note, and the principal of and intereat on any I~tun Advances secured by this Mort~age. 2. ~tnde !or T~ea and I~surance. Subjecl to applicable law or to s written waiver by I.ender, Bortowe~ shall pay to I.ender on the day monthly i~atallmenta of principal and intereat are pqyable under the Note, until the Note ia paid in full, a aum (herein "Flinda") equal to one twelRh of the yearly taxea a~d aseeaaments which may attain priority over thie Mortgage, and ground rente on the Piroperty, if any, plua one~ twelRh of yearly premium installme~ta for hazard inaurance, plua onetwelRh ofyearly premium inatallmente tor mortgege ineurance, if uny, all ae ceasonably esti~neted initially and from time to time by t.ende~ on the baeia of aseeaemente and bille and reasonable estimatea thereof. The ~Lads ahall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federa! or State agency (including Lender if I.ender is such an inatitution). I.ender shall apply the I~nds to pay said taxes, asaeasmertts, inaurance premiuma and gmund rents. Lender ma~y not charge for so holding and applying the F~nds, analyzing esid account, or verifying and compiling said asseesments and bills, unlesa Lender paya Borrowet intereet on the Funds and applicable law pern?its I.ender to make aueh a charge. Borrower and Lendet may agree in writing at the time of execution of thia Mortga~te that intereat un the ~nds ehall be paid to Borrower, and unleas euch agreemertt ia made or applicable law requiree such interest to be paid, Lender ehall not be required to pay Borrower any interest or earninga on the Funds. I.ender shall give to Borrower, without charge, an a~nual accounting of the Funds ahowing credite and debite to the Funds and the purpoee for which each debit to the FLnds wae made. The Funds are pledged aa additional eecurity, for the sums eecured by thie Mortgage. If the amount of the Ftinde held by I.ender, together with the future monthly inatallmenta of Funda payable prior to the due datee of taxea, aaeeasments, insuranoe premiums and groand renta, shaU euoaed the amount required to pay said taxes. aeseasmente, inaurance premiums and ground rente as they fall dne. auch e:cess shall be. et Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nde. If the amount of the Funde held by Lender shall not be aufficient to pay taxes, aseeeamenta, inaurance ~ premiums and ground renta aa t1:ey fall due, Borrower shall pay to Lender any amount necessary to malce up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon paymet~t in full of all euma secured by thia Mortgage. Lender ahall promptly refund to Borrower any funda held by l.ender. If under paragraph 18 heceof the Property is eold or the Property is otherwiee acquired by I.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or its aoquiaition by Lender, any Fanda held by l.ender at the time of application as a credit againat the auma eecured by thia Mortgage. . 3. Applkation of Paymente. Unlese applicable !aw providee othetwiBe, all paymente received by Lender under the Note and paragrephe 1 and 2 hereof shall be applied by Lender first in paymen! of annoanta 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 intereat and principa! on any Future Advancea. 4. Charges; Liens. Borrower ahall pay all taxea, asaessments and other chargea, fines and impositions nttributable to the Property which may attain_ a priority over thia Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by ~3orrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furniah to Ixnder all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment directly, E3orrower shall promptly [urnish to [,ender receipts evidencing such paymente. Borrower ahall promptly diacharge any lien which has priority over this Mortg~ge; provided, that t3orrower ahall not be required to discharge any such lien so long as BorrQwer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enforcemeot 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 lasnrance. Borrower ahall keep the impmvements now exiating or hereafier erected on the Property inaured against loss by fire, hazarda included within the term "extended ooverage; ' and auch other hazards ae I.ender may require and in such amounta and for such perioda as L,ender may require; provided. that Lender shall not requirn such ooverage amount exceeding the minimum, as may be required by state or federal regnlationa governing activitiea of Lender, or that amount of coverage required to pay the sums aecured by thia iVlortgage, whichever ia the greater. The inaurance carrier providing the inaurance shnll be chosen by ~3orrower subjeet to appruval by Ixnder; provided, that such approval shall not be unrnasonably withheld. All premiums on insurance poliries shall be paid in the manner pmvided under paragraph 'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and tenewals thereof ahall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewal$ thereof, and Borrower shall promptly furnish to _ i,ender all renewal noticee and all receipte of paid premiuma. In the event of loea, Borrnwer ahall give prompt notice to the insurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. Unlesa I.eader and Borrower otherwiee agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property damaged, provided such reatoration or repair ia economically feasible and the eecurity of thia Mortgage ia not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired. the insurance proceeds shall be applied to the anme eecnred by thie Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower; or if Borrower faila to ` respond to Lender within 30 daye from the date noEice ia mailed by Lender to Borrower that the inaurance carrier of~'ere to settle a claim for i ineurance benefits, Lender is authorized to coUect and apply the inaurance proceede at Lender s option either to reatoration or repair of the ~ Property or the auma eecwed by thia Mortgage. ~ Unlese Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e~ctend or poatpone the due date of the monthly inatallmente referred to in parsgrapha 1 and 2 hereof or change the amount of auch inatallmente. I! under paragraph 18 ~ hereof the Propetty ie aoquired by Lender. all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof reaulting from damage to Property prior to the eale or aoquiaition ahall paes to Lender to the extent of the auma eecured by thia Mortgage immediately prior to such eale or aoquieition_ 6. Preservetion and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the provieions of any lesee if thie Mortgage ia on a leasehold. If thie Mortgage ie on a unit in a condominium or a planned unit development, F3orrower ehall perform all of Borrower e obligationa under the declaration or covenanta creatingor governing fhe condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documenta_ If a ~ condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and ~ aKreementa of euch rider shal l be incorporated into and ahall amend and supplement the covenanta and agreements of thia Mortgage as if the rider were a part hereof. • ~ 7. Protection o! Lender'a $ecurity. If Borrower faila to perform the oovenante and agreemente oontained in this Mortgage, or if any ~ eMion or proceeding is commenced which materially affecte Lendei e intereat in the Property. including, but not limited to, eminent domain, ineolvency, oode enforoement, or arrangements or proc~eedinge involving a baniwpt or deoedent, then Lender at I.ender's option,upon ~ notice to Borrower may make such appearances, disburse such ewns and take snch action as is neoeeeary to protsct Lerider's intereot, ~ inclading, bnt not limited to, disbureement of reaeonable attorney's fees end entry upon the Property to make npairs. If Lender reqnired ~ mortgage insurance as a condition of malring the loan eecured by this Mortgage, Borrower ahall pay the premiums required to maintain ~ such inearance in effect antil ench time aa the requirement for such ineurance terminates in accordance with Borrower'e and I.ende~e ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiume ui the manner provided under ` paragraph 2 hereof. ~ My amounts disbureed by Lender pereuant to this paragraph 7, with interest thereon, shall beoome additional indebt~ednees of ~ f3orrower secvred by this Mortgage. Unleaa Borrower snd Lender agree to other terroe of payment, euch amounts ehall be payable upon ~ notice from I.ender to Borrower requeating payment thereof, and shall bear interest from the date of diaburaement at the rate payable [rom ~ time to time on outetanding principal under the Note unleas payment of intereat at such rate would be oontrary to applicable law, in which ~ event auch amounte ehall bear interest at the higheat rate permiaeible under applicable law. Nothing rnntained in thia paragraph 7. ehall require Lender to incur any e:penae or take any action hereunder. ~ ~ . ~ ~ r ~ _ I ~ 3QCr ~V3 ~aGE 7~~ ~ ~ ~ ~ ~ - - ~:~~,~~~a-~~-.,~. ~ ~ _ ~ _ ~ ~