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HomeMy WebLinkAbout0776 Borrowe~ and I.ender covenant and agree as [ollow•a: 1. Peymeat of Priacipal and lateres~ Borrowe~ shail promptly pay when due the principal of and intereat on the indebtedneas evidenced by the Note. prepayment and late charges as provided in the Note. e~d the principal of and interest on any ~ture Advancea eecured by this Mortgage. 2 PLnda for Tases end Inaurance. 3ubject to applicable law o~ to a written waiver by l.ende~, Borrowe~ ahall pay to I.ender on the day monthly inatallmente oiprincipal and intereat are payable under the Note. until the NoLe is paid in full, a sum (herein "F~ndr°) equal to one~ twelfth of the yearly taxes and aasesaments which may attain priotity over thie Mortgage, and ground renta on the Properly, itany. plus one~ twelRh of yearly pcemium inalallments for hazard ineurance, plus onetwelRh of yearly premium installments for n~ortgage inaura~ce, if any, all ae reaaonably eatimated initially and from time to time by I.ender on the basis of asseasmenta and bills and reasonable estimates theteoL ' •'l~e Plrnds shall be held in an inatitution the depoeifa or accounts of which are inaured or guaranteed by a Federal or State agency (including I.ender if l.end~ ia auch an inatitution). I.ender ehall apply the Funds to pay said ta:es. aaseasmenta, insurance premiums and ground reats. Lender may not charge for eo holding and applying the Flinds, analyzing said acrount, or veritying and compiling said assesameata and billa. unl~a Lender pays Borrower intereat on the Ftinds and epplicable law permita I.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the FLnds ehaU be paid to Borrower; and unleae euch agreement is made or applicable law requises such intereat to be paid, Lender ahall not be required to pay Borrower any interest or earnings on the Fhnda. Lender shall give to Bon~a~wer, without charge, an annual accounting of the ~nda ehowing credits and debite to the F unda and the pnrpose for which each debit b the Flinde wae made.'11~e Funda are pledged as additional aecurity for the aums secured by thia Mortgage. If the amount of the fi~nda held by Lender, together with the future monthly inatallmenis of Funds payable prior to the due datee of taxee, asaeeaments, insuranoe premiuma and ground renta, shall exazed the amount required to pay said taxea, aseeesments. inaurance premiume ! and ground rents as they fall due. such e:cesa shall be. at Borrawei a option, either prompt~y repaid to Borrower or credited to Borrower on monthly installmente of FLnds. ff the amouat of the ~nds held by Lender ahall not be enf6cient to pay ta:es, aseesamenta, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount neceeeary to meke up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon payment in fuU of aU sume eecured by thia Mortgage. Gender ahall pmmptly refund to Borrower any funds held by l.ender. If under paragraph 18 hereof the Property ie aold or the Property ie otherwiae acquired by [.ender, l.ender ahaU apply, no later than immediately prior to the aale of the Property or its aoquisition by Lender, any I~nda held by Lender at the time of appGcation as a credit againat the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwiee. all paymente received by Lender under the Note and psragraphe 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal o[ the Nole, and then to intereat and. principal on any Future Advances. 4. Charges; Liens. Borrower ahall pay all taxea, aesesements and other charges, fines and impoaitions attributable to the Properiy which may attain e priority over this Mortgage, and leasehold payments or ground rent~ if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrower shall promptly furniah to I.ender ; all noticea of amounLs due under thia paragraph, and ih the event Borrower ahall make payment directly, Borrower shall promptly [urnish to ' f Lender receipta evidencing auch paymenta. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that ~ Borrower shall not be required to diacharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by = such lien in a manner aeoeptable to Lender, or shall in good faith contest such lien by, or defend enforcement 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 Inauranoe. Borrower shall keep the improvemente now eziating or hereafter erected on the Property insured against losa by fire, hazarda included within the Lerm °e~tended ooverage," and such other hazards ae Lender may require and in such amounts and for auch periods aa I.ender may require; provided, that Lender shall not reqnire auch ooverage amount e:ceeding the minimum, as may be required by state or federal regulatione governing activitiea of Lender. or that amount of coverage required to pay the sums aecured by thie Mortgage, whichever ie the greater. - The inaurance catrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder, provided, that sucfi approvAl shall not be unreasonably withheld. All premiuma on inaurance policies shall be paid in the manner pmvided 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 shall be in form acceptable to Lender and ahall include a etandard mortgage clause in favor of and in form aoceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnish to P i,ender all renewal notices and all receipta of paid premiuma. In the event of loas, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender may make.proot of loea if not made promptly by Borrower. ! Unleas Lender and Borrower otherwiee agr~e in writing, inaurance proceeds shall be applied to restoration or repair af the Property j damaged. provided such reatoration or repair ia economically_feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair ie not economically feasible or if the security of thia Mortgage would be impaired, the inaurance proceede ahall be applied ! to the suma secared by this Mortgage, with the exceas, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ' reapond to I.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for 'i inaurance bene5te. L.eader is authorized to collect and apply the insurance proceeda at Lendefe option either to reatoration or repair of the ~ Property or the suma eecured by thia Mortgage. ~ Unleea I.ender and Borrower otherwiee agree in writing, any auch application of proceeds to principal shall not extend or postpone the due ~ date of the monthly inatallmentR referred to in paragraphs 1 and 2 hereof or change the amount of auch instalimente. If under paragraph 18 hereof fhe Property is acquired by Lender, all right, tide and interest of Borrower in and to any inanrance poliriea and in and to the proceeds thereof rES~lting from damage to Property prior to the sale or aoquisition ahall pass to Lender to the ~teat of the aums secured by this Mortgage immediately prior to auch eale or aoquiaition. • 6. Preaervation and Maintenance of Property; I.easeholda; Condominume; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not oommit waste or permit impairment or deterioration of the Property and ehail comply with the proviaiona of any leaee if thia Mortgage is on a leasehold. If this Mortgage is on s unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned ~ ~ unit development, the by-laws and regulationa of the condominium or planned ~u?it development, and conetituent dceuments. If a - condominium or planned unit development rider ie eaecuted by Borrower and recorded together with thie Mortgage, the oovenants and agreements of such rider shall be incorporated into and ahall amend and aupplement the covenanta and agreements of thia Mortgage as if the ~ rider were a part hereof. 7. Protectfon of Lender'e Security. If Borrower fails to perform the wvenanta snd agreementa contained in this Mortgage, or if any action or prooeeding is commenoed which materially affects Lendefs interest in the Property, including, but not limited to, emineat domain. ineolvency. oode enforcement, or arrangements or prooeedinga u?volving a bankrupt or deoedent, then Lender at Lender's option,upon ~ notice to Bonuwer may make such appearanaes, disburee such snms and take auch action as is necessary to proted Lender's interest, including. but aot limited to. diebureement of reasonable attorney'e fees and eatry upon the Property to meke npain. If I.endar required ~ mortgage insurance as a condition of making the loan eecured by this Mortgage, Borrower ehall pay the premiums required b maintain ~ euch insarance in effect nntil euch time as the requirement for euch insurance terminates in accordence with Borrower's aad Lende~s - written agreement or applicable Law. Borrower shall pay the amount of all mortgege inanrance premiums in the mann~ provided under ~ paragraph 2 hereoL ~ Myc amow?te disbureed by Lende~ pereuant to this paragraph with intereet thereon, ehall become additional indebtedaees of ~ Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terma of payment, sach emounte ahell be payable npon ~ notice from I.ender to Borrower requeeting payment thereof, and ahall bear interest fmm the date of diabureement at the rate payable trom time to time on outatanding principal under the Note unleee payment of interest at such rate would be contrary to appiicable law, in which event such amounts ahall bear intereet at the highest rate permieeible under applicable law. Nothing contained in this paragraph 7, shall ~ require Lender to incui any e:pense or take any action hereunder. _ ~ . ~ ~ BCCr 303 r~~~ 775 ~ . ~ 4 = ~ -a ~ ~c,^^~ ~ - ~ ~ ~ ~~,,,.f ~ ~ _ " . ~ _