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HomeMy WebLinkAbout0772 Borro~ver and L.ender covenant and agree as followa: 1. Paymeat ot Principal and lntere~t. Borrower ahall prompUy pay when due the principal of and i~tereat on the indebtedneaa evidenced by Ihe Note. prepayment and late chargee as provided in ?he Note, a~d ths principal of and intereet o~ any fliture Advancea ae~cured by this Mortgege. 2. F1u~ds for Tasea and Ineuranoe. 3ubject to applicable law or to a wrilten waiver by I.ender, Borrower ahall puy to t.ende~ on the dayr mo~thly insta?Imente of principal and intereat are payable under the Note, until the Note ie paid in full, a sum (herein "Fl~nda") equal w one • twelfth di the yeady taxes and easesements which may attain priority over thia Mortga~e, and ground renta on the Property, if any, plua on~ twelRh otyearly premium inatallments tor hazard insurance, plus onetwelfth ofyearly premium inatallments for morigage ineurance, i[eny, all aa reaeonably estimated initially and firom time to time by l.ender on the basis of aaseasmente und biUs and reasonable estimatea thereof. The F~?nds shall be held in eu~ unstitution the deposite o; aocounts of which are ineured or guaranteed by a Federal or State agency (including Lender if I.ender ia such an institution). Lender ehall apply the Funds to pay said taxes, asaesamenta, inaurance premiums and ground rents. I.ender may not charge for so holding and applying the FLnds, analyzing said account, or verifying and compiling said asaeesments end bills. unleas Lender paye Borrower ir?ter~t on the ~nda and applicable law permita [.ender to make euch a ch arge. iior~ower ' and Lender may agree in writing at the tirae of execution of this Mortgage that interest on the F~nds ahall be paid to Borrower, and unlesa auch agreement ia made or applicable law requires auch intereet to be paid, I.end~ ehall not be required to pay Borrower any interest or earnings on the ~~ds. I.ender shall give to Borrower, without charge, an annual accounting of the ~nds ahowing credits and debite to the Funds and the putpoee for which each debit to the ~nde wae made. The Ftinds are pledged se additional eecurity for the sume secured by thie Mortgage. If the acr.ount of the Ftinds held by Lender, together with the future tnonthly inetallmente of Funds payable pcior to the due datee of taxes, aeeea8mente. insurance premiums and ground rnnfs. ehall eac~red the amount required to pay said taxee, asseeamenta, insue~ance premiuma and gtound rents as they fall due. auch e:cess eha11 be, at Boriower s option, eiLher promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of ~nde. If the amount of the I~nde held by Lender shall not be sufficient to pay taxea, aeaesamenta, inaurance premiums and ground rents as they fall due. Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 daya from the date notice is mailed by L.ender to Borrower requesting payment thereof. Upon payment in full of aU auma secured by thia Mortgage, Le~der ahall pmmptly refund to Borrower any funds held by I.ender, lf under paragraph 18 hereof the Property is aold or the Property ie otherwise acquired by I.ender, Lender shall spply, no later than immediately prior to the eale of the Property or ite aoquiaition by I.ender, any ~Lnds held by Lender at the time of application aa a credit against the eums secured by thie Mort'gage. 3. Application of Paymeate. Unless applicable law providea otherwise, all payments received by Lender under the Note and ~ paragraphs 1 and 2 hereof ehall be applied by Lender firet in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then b the principal of the Note, and then to intereat and principal on any Future Advancea 4, Charge8; Liene. Borrower ahall pay all taxes, asaessments and other charges, fines and impoaitions attributable to the Property which may atlain a priority ov~ this Mortgage, and leasehold paymenta or ground rents, if pny, 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. Borrowershall promptly furnish to Ixnder alt notices of amounis due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to [,ender nweipta evidencing auch paymenta. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that ~ Borrower shall not be required to discharge any auch lien so long as Borrower shall agree in writinR to the payment of the obligation secured by . such iien in a manner acceptable to f.ender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legu) proceedengs w hich operate to prevent the enforcement of the lien or forfeiturn of the Properly or any part thereo[. 5. Hazard Ineurance. Eiorrower shall keep the improvementa now existing or hereafter erected on the Property insured against lose by fire, hazarda included within the term "extended coverage; ' and euch other hazards as I.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender ahall not requirn such ooverage amount exceeding the minimum, as may be required by state or Federal regulations governing activities of Lender, or that amount of coverage required to pay the eums eecured by this Mortgage, whichever is the greater. The inaurance carrier pmviding the insurance shall be chosen by E3orrower subject to approval by l.ender, provided, that such approval shall not be unreasonably withheld. All pmmiums on ineurance policies shall be paid in the manner provided under paraKrapti 2 hereof or, if , not paid in such manner, by I3orrower making payment, when due, directly to the insurance carrier. - All insurance policiea and renewals 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 ehall have the tight to hold the policies and renewals thereof, and Borrower ahall promptiy furnish to i.ender all renewal noticea and all receipis of paid premiuma. In the event of losa, Borrower ahall give pmmpt notice to the insurance cairier and Lender. I.ender may malce proot of loss if not made promptly by Borrower. . Unleea Lender and Borrower otherwise agree in writing, ineurance procecds ahall be applied to restoration or repair of the Property damaged, provided euch restoration or repair ia economically leasible and the eecurity of this Mortgage ia not thereby impaired. If such ; reatoration oT repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance procxeda shall be applied i to the auma sec~red by thia Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier ot'fers to aettle a claim for inenrance benefifs, Lender ie authorized to collect and apply the insurance proceeda at Lender's option either to restoration or repair of the [ Property or the auma secured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ehall not eatend or postpone lhe due date of the monthly installmente referred to in paragraphs 1 and 2 hereof or chenge the amonnt of such inatallments. If under paragraph t8 ~ hereof the Property ia aoquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to Lhe proceeda thereof reeulting from damage to Property prior to the eale or aoquiaition ahall pass to Lender to the extent ot the eums aecured by thia Mortgage immediateiy prior to auch eale or aoquiaition. 6. Preeervation aad blaintenance of Property; Leaseholda; Condominume; Planaed Unit Developmente. Borrower ehall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall oomply with the provisione of any lease if thie Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development. F3orrower ahell perform all of Borrower's obligationa under the declaration or covenants rreatingor governing the condominium or planned unit development, the by-laws and regulationa of ~ the rnndominium or planned unit development, and conatituent documenta. If a condominium or planned unit development rider ia eaecuted by Borrower and recorded together with this Mortgage, the aovenanta and agreements of such rider shall be incorporated irito and shaU amend and svpplement the covenanta and agreementa of this Mortgage as if the rider were a part hereof. 7. Pcotection ot Lender'e $ecurity. If Borrower faile to perform the oovenante and agrcementa oontained in this Mortgege, or if any action or proceeding ie commenced which materially affecte Lender'e intereat in the Property. induding, but not limited to, eminent domain. ~ ineolvenry. mde enforcement, or arrangements or proceedings involving a bankrupt or deoedent, then I.ender at I.ender'e option,upon notice to Borrower may make such appearances, diaburee such sams and taice euch action ae is neoeesary to protect Lender'e interest, ` including, but not limited to, diebureement of reasonable attorney e fcee and entry upon the Property to make repairs. If Lend~ required ~ mortgage inenrance as a condition of making the loan eecured by this Mortgege, Borrower ehall pay the premiums reqnired to maintain ~ euch insarance in effect until euch time as the requirement for such insurance terminates in aocordance with Borrower'e and I.endde ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiume in We manner provided under ~ paragraph 2 hereof. ~ Any amount8 diebureed by Lender pereuant to thia paragraph 7, with intereat thereon, ehall beoome additional indebtedneae of Iiorrower secured by thia Mortgage. Unleae Borrower and Lender agree to other terme of payment, euch amounte eheU be payable upon ~ S notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of diabureement at the rate payable from time to time on outetanding principal under the Note unlees payment of interest at euch rate would be oontrary to applicable law, in which event auch emounte ahall bear interest at the higheat rate permiaeible under applicable law. Nothing oontained in this paragraph 7, ahall require I.ender to incur any e:penee or take any action hereunder. ~ ~ n i ' "s ~ gOG!! ~U3 'rACF - ~ J- 7?1 ~ ~ ~ ~fir _ - - - y' Y . ~ ~ - ~ _ ~ ~=°"~r ~ ' I .-r~ _a _