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HomeMy WebLinkAbout0768 E3orrower and l.ender covenant and agree as follows: 1. Payment ot Priacipal and Ipteres~ Borrower shall pmmpdy pay when due the principal of and iaterest on the indebtedneas evidenced by the Note, prepayment a~d late charges as pmvided in the Note. and the p~ncipal of and interest on any ~ture Advancea aecured by this Mortgage. . 2. ~Lt~ds for Taues and Inaurance. Subject to applicable law or to a written waiver by l.ender. Horrowrr ahall pay to I.ender on the day monthly inatallments of principal and iaterest are payable under the Note, until the Note ie peid in full. a sum (herein "Ftinda") equal to one tweltth of the year~y taxes and aseeasmente which may attain priority over thia Mortgege, and ground rents on the Property, if any, plus one~ twelfth o[yearly premium installmente for hazard insurance, plua onetwelRh of yearly premium installmente for mortgage ineurance, if ar~y, all es reasonably estimated initially and trom time to time by l.ender on the baais ot asaessments and billa and reasonable estimatea thereoL The Ftitnds ehall be heW in an institution the deposits or accounta of which an it~aured or guaranteed by a Federal or State agency (including Lender if I.ender ia auch an institution). I.ender ehall apply the ~u?ds to pay said taxes. easessments, insurance premiwne and grouad rents. Lender may not charge [or so holding and applying the PLnde, analyzing said aocount, or verifying and compiling said ~ aeseeawente and bills. unlees Lender pays Bormwer interest on the Flinds and applicable law permite Lender to make euch a charge. Borrower i and I.ender may agree in wtiting at the time of e:ecution of thia Mortgage that intereet on the Funde shall be paid b Borrower. and unleas auch agreement ia made or applicable law requirea auch intereat to be paid. Lender sha11 not be required to pa~y Borrower any intereet or ; earaings on the FLnds. Lender shall give to Borrower, without charge. an annual acoounting of the Funda showing credits and debita to the Funds and the purpose for wbich each debit to the Ftinda wea made. The Funda are pledged as additional eecurity for the sums eecured by thia Mortgage. ; If tl~e amount of the I~nds held by Lender. together with the future monthly installmente of fl~nda payable prior to the due datea of tanee, ~ assesementa. inaurance pnmiuma and ground renta, shall exceed the amouat required to pay said laxes, aaeesementa, inaurance premiums ; and ge+ound rente aa they fall due, euch ea~ceae ehall be. at Borrower'a option, either promptly repaid to Borrower or credited to Bormwer on ; monthly instaUmenta of Plinds. If the amount of the Funds held by Lender shall not be aufficient to pay taxea. aaeeasments, inaurence premiuma and ground renta as they fall due, Borrower shall pay b Lender any amount neceseary to malte up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums eecured by ~his Mortgage, Lender ahall promptly refund to Borrower any funde held by Lender. If under ` paragTaph 18 hereof the Property ia sold or the Pioperty ie otherwise acquired by Lender, Lender ahall apply, no later than immediately prior ' eo the sale of the Property or its aoquiaition by I.ender, any F}unda held by I.endeT at the time of application ae a credit againet the e~nns eecured ~ by this Mortgage. • . _ 3. Application of Paymeats. Unless applicable law providea otherwiae, al! paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firet in payment of amounLa payable to Lender by Borrower under paragraph 2 hereof, - then to iaterest payable on the Note, then to the principal of the Note. and then to intereat and principal on any Future Advancea 4. Chargee; I.iene. Borrower ahall pay all taxes, assessments and other charges, finea and impoeitions attributable to the Property which may attain a priority over thie 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 promptly furniah to Lender - all noticea of amounta due under this ara t p graph, and in the event Borrower-shaU make payment directly, Borrower shall promptly fumish to [xnder receipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that ~ E~arroQ er ahall not be required to diacharge 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 i.ender, or shall in good faith contest such lien by, or defend enforcement of auch lien in, legat proceedings which operate to prevent the enforcement af the lien or forfeiture of the Property or any part thereof. - ~ 5. Hazard Insursnce. Borrower shall keep the improvements now ezisting or hereafter erected on the Property ineared against lose by F rz, hazarda included within the term "extended coverage,° and auch other hazards as Lender may rrquire and in such amounte and forsuch periods se Lender may require; pmvided, that L,ender ahell not require such ooverage amount eaceeding the minimum, ae may be required by state or federal regulationa governing activities of Len~er, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. . The insurance carrier providing the insurance shall be chosen by E3orrower subject to approval by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on insuranoe policies shall be paid in the manner pmvided under paragraph 2 hereotor, if not paid in such manner~ by Borrower making payment, when due, directly to the insurance carrieT. All insurance policies and renewale thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clauae in favor of a nd in form aoceptable to I.ender. Lender ahall have the right to hold the poliries and renewals thereof, and Borrower sh all prompUy furniah to i.ender all renewal noticea and all receipts of paid premiums. In the event of loas, Borr~nwer ahall give prompt notice to the inaurance carrier i and Lender. Lender may make proof of losa if not made promptly by Borrower. € Unleea Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property i damaged, provided auch restoration or repnir ia economically feasible and the•eecurity of this Mortgage ia not therehy impaired. If auch ; restoration or repair ie not economicatly feasible or if the eecurity of this Mortgage would be impaired, the insurance pTOCeede ahalt be applied to the sums secured by this Mortgage, with the e:cese, if any. paid to Borrower_ Ifthe Property is abandoned by Borrower, or if Borrower faila to 'I respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to eettle a claim for ~ inaurance benefite, Lender ie authorized to collect and apply the inaurance proceeda at Lender's option either to restoration or repair of.the Property or the auma secured by thie Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any suc.h application of proceeda to principal ehall not extend or postpone thedue ~ date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of aach installmenta. If under paragraph 18 ~ hereof the Property ie aequired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda ~ thereof resulting from damege to Property prior to the sale or acquisition shall pase to Lender to the eztent of the aums eecured by this ~ ~iortgage immediately prior to such eale or aoquisition. 6. Preservation and Maintenance olProperty; Leaeeholde; Condominuma; Plenned Unit Developmente. Borrowerahal! keep she Property in qood repair and aha11 not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaiona of any leaee if thie Mortgage ia on a leaeehold_ If this Mortgage ia on a unit in a oondominium or a planned unit development, E3orrower shall perform all of BqFrower'e obligationa under the declaration or covenante creatingor governing the condominium or planned x unit development, the by-lawe and regulationa of the condominium or planaed unit development, and oonatituent documents. If a ~ condomininm or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the wvenante and aRreements of auch rider ahall be incorporated into and ehall amend and aupplement the covenanta and agreementa of thie Mortgageas if the rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrowez faile to perform the oovenante and agreemenfe contained in thie Mortgage, or if any ~ action or proceeding is oommenced which materially affects Lender's intereet in the Property, including, but aot limited to, eminent domain, _ ineolvency, aode enforcement, or arrangemente or proc~edinge involving a bankrupt or deoedeak then I.ender at Lender's option,npon = notice to Borrower may maice euch appearances, disburee such eums end take such action as is neceaeary to protect L.ender's interest, 3 including, but-not limited to, dieb~reemeat of reseonable attorney'e fcea and eatry upoa the Property to make repairs. If I.euder reqaired 3 mortgage insuranoe ae a condition of mal~ing the loan secured by this Mortgage, Borrower ehall pay the premiums required to maintain : ~ sach inaurance in effect until euch time ae the requirement for such inaurance terminatee in aoco~dance with Borrower'e and Lendds ; written agreement or applicable Lew. Borrower shall pay the amount of all mortgage inaurance pr~iume in the manner provided under ~ € paregrePh 2 herEOf. ~ My amounte diebareed by Lender persuant to thie paragraph 7, ~vith intereat thereon, ehall become additional indebtedness of ~ E3orrower secured by this Mortgege. Unlees Borrower and Lender agree b other terme of payment, such amounte ahall be payable upon ~ notice from I.ender to Borrower requeeting payment thereof, end shall bear interest fram the date of diabursement at the rate payable from ~ time to time on outetanding principal under the Note unlesa payment of interest at auch rate would be o~ntrery to applicable law; in which event such amounte shall bear in~t at the highest rate perrnieeible under applicable law. Nothing oontained in this paragraph 7, shall ~ require I.ender to incnr any e:penee or take any action hereunder. ~ ~ ~ ~ geo~ 3U3 ~acF 76? ~ ~ ~ ~ ~ z~ - - - - _ ~ ; ? x . ~ v ~ : ~ _ .