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HomeMy WebLinkAbout1017 Borrowe~ a~d l.ender cove~ant and agree aa followe: ~ 1. Payment ot Principal and Interest. E3orrowe~ shall prompUy pay when due the principal of and interes? on the indeb/edneas evidenced by the NoLe, prepayment a~d late charges aa provided in the Note, and the principal of and intereston any F~ture Advancea secured by this MortgaYe. 2. F~tnds for Taxea and Inauranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to l.ender on the day monthly installments ot principal and interest are payable unde~ ihe Note, until the Note ia paid in full, a sum (herein "Funda"1 equal to ono- twelfth of the yeady taues a~d assesementa which may attain priority over thie Mortgage, and ~round rents on the Properly, ifany, plua one twelRh of yeatly premium inatallmenta for hazard inaurance, plua onetwelfth o[yearly premium installmente tor mortgage inaurance, if any, all as reaeonably eatunated initially and from time to time by l.ender o~ the basia of aseessmenta and biUe nnd rnasonable eatimates thereof. 'Rie P1?itds ahall be heW in an inatitudo~ the depoaite or accounts of which are inaured or guaranteed by a Federal or State ageacy (including Lender if I.eader ia such an institution). Lender ahall apply the ~~ds to pay eaid taxes, aseeeaments, ineurance premiuma and ground rPats. Lender may not charge [or so holding and applying the ~nds, analyzing aaid account, or verifying and compiling eaid aseeasmenee and bills, unless I.ender pays Borrower i~tereet on the Funda and applicable law peranita I.ender to make euch a charge. Borrower and [.ender may agree in writing at the tiWne of e:ecution oi ttiie Mortgege that intereat on the ~nde shall be paid to Borrowe~, and unleas such agreement ia made or applicable Iaw requiree auch i~tereet W be paid, I.ender ahall not be required to pay Borrower any intereat or eamings oa the fi~nds. I.ender shall give to Botrower, without charge, an annual acoountiag of the Funde ahowing credits and debita to the Funds and the purpose for which each debit to She Funda was made. The Funda ate pledged ea additional eecurity for the sumB eecund by thie Mortgage. ~ If the amount of the PLads held by [.ender, together with the future monthly inatallmenta of Funds payabie prior b the due datea of tazes. assesamenta, inaurance premiums and ground renta. ahall e:~aed the amount required to pay said ta:ea. asseesmenta, inaurance premiume and ground reats as they fall due, such eac~q ahail be, at Bonower'e option, either promptly repaid.to Borrower or rredited w Borrower on monthly inatallmenfa of Flinds. If the amount of the Flusda held by I.ender ahall not be aufficient to pay taxea. aaeesamenta, ineurance premiums and ground renta as they fall due. Borrower shall pay to [.ender any amount neceaeary to make up the deficiency within 30 daya firom the date notice is mailed by I.ender to Borrower reyuealing payment thereof. Upon payment in fu1) of all suma eecured by this Mortgage. I.ender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie eold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita aoquisition by Lender, any ~nda held by Lender at the time of application ae a credit against the sums eecured by thie Mortgage. 3. Application ot Payments. •Unless applicable law provides otherwiae, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Fnture Advancea. 4. Chargee; Liena. Borrower ahall pay all taxes, assessments and other chargea, fines~and impositions attributabie to the Property which may attain a priority over this 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 Eiorrower muking payment, when due, directly to the payee thereo[ Borrower shall promptly furnish to Lender ail notices of amounts due under ?his paragraph, and in the event Burrower shall make payment directly, Eiorrower ahall promptly fumiah to Lender rereipts evidencing such payments. Borrower shall promptly dischsuge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Rorrower shall agree in writing to the payment of the obligalion secured by such fien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enforcernent of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof . 5. Hazard Ineurance. Botrower shall keep the improvementa now e:isting or hereafter erected on the Property inaured againet loss by fire, hazards induded within the term "eztended rnverage," and euch other hazards as Lender may reqnire and in such amounts and for such petiode as i.ender may reqnire; provided, that Lender ahall not requim auch ooverage amount exceeding the minimum, as may be required by . state or federal regulations governing activitiea of Lender, or that amount of rnverage required to pay the aume secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance ahall be chosen by Borrower subject to approva! by l.ender, provided, that such approval shall not be unreasonably withhetd. All premiums on insurance policies shall be paid in the m~tnner 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 policiee and renewals thereof ahaU be in form pcceptable to Lender and shall indude a atandard mortgage clauae in favor of and in form acceptable to I.ender. Lender ehall have theright to hold the policies and renewals thereof. and Borrower ahall promptly furnish to i.ender all renewal noticee and all receipts of paid premiums. In the event of losa, Borruwer ahall give prompt notice to the inaurance carrier and Lender. Lender may make praof of loss if not made prompdy by Borrower. Unlese L.ender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repair of the Property ; damaged, ptovided such restoration or repair is economically feasible and the security of this Mortgage is not thernby impaired. If such i reatoration or repair ie not economically feasible ot if the security of this Mortgage wouid be impaired, the inaurance proceeda ahall be applied ~ to the aums aecured by this Mortgage, with the eaceas, if any. paid to Borrower. If the Property is abandoned by BoTrowet, or if Borrower faila to ' reapond to Lender within 30 daye from the date nodce ia mailed by I.ender to Borrower that the ineuraRCe carrier offera to setde a claim for ~ insurance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the ~ Property or the eums eecured by this Mortgage. Unlesa I.ender and Borrower otherwise agree in writing, any~such application of proceeda to princtipal ahall not e~ctend or postpone the due ~ date of the monthly installmenta referred to in paragtapha 1 and 2 hereof or c}:ange the amount of auch inatallmente. If under paragraph 18 hereof the Property ia acquired by I.ender, all right, tide and interest of Borrower in and to any insnrance policiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquiaition ahall pasa to Lender to the eztent of the suma secured by this Mortgage immediately prior to auch sale or soquiaition. 6. Preservation and Maintenance of Property; Leaeeholde; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall oomply with the provisiona of any lease if thie Mortgage ia on a leasehoid_ If thia Mortgaqe ia on a unit in a oondominium or a planned unit development, Borrower ehall perfotm all of Borrower's obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or pianned unit development, and rnnetituent docoments. If a oondominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the rnvenante and agreementa of such rider shall be incorporated into and sha11 amend and auppiement the covenants and agreements of thia Mortgage as if the rider were a part hereof. • 7. Protection o! Leader's 8ecurity. If Borrower fails to perform the oo~ enante and agreemente cbntained in thie Mortgege, or if any ection or proceeding is commenced which materially affecte Lende~'e intereat in the Property, including, but not limited to, emineat domain. iasolvency. aode enforcemeat, or arrangemente or pmceedinge invoiving a banlwpt or deoedent, thea Lender at L.ender'e option,upon ~ notice to Borrower may make euch appearances, disburse such aums and talce such action as is neoeaeary to protect Lender's interest, inclnding, bnt not limited to, diebareement ot reaaonable attomey's feea and entry upon the Property to make npairs. If Lender required ; mortgage inaurance as s oondition of making the loan eecnred by this Mortgage, Borrower ahall pay the premiums reqaired to maintain ~ snch inanrance in effect antil such time as the requirement for euch insurance terminatea in aocordance with Borrowet'a and L.ender's ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the menner provided under paregraph 2 hereof. ~ Any amounts diebursed by Lender persuant to thie paragraph with interest thereon, shall become additional indebtednese of ~ Borrower secured by thie Mortqage. iJnlese Borrower and Lender agree to other terme of payment, such amounte ahall be payable upon ~ notice from Lender to Borrower requeating payment thereof. and ahall bear interest from the date oi diabureement at the rate payable 5rom ~ time to time on outetanding principal undet the Note unlese payment of intereat at euch rate would be aontrary to applicable law, in which event snch amoanta ahall bear intereat at the highest rate permisaible under applicable lew. Nothing contained in thia paragraph 7, shall ~ require Lender to incur any expenae or take any ection hereunder. ~ ~ ~ aooK3U3 ~AC~1016 ~ ~ . . ~ - ~ ~ ~ , ' _ _ : . , _ - - - - . ,