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HomeMy WebLinkAbout1021 } t f Borrower and I.ender covenant and agree as fopows: ~ ~ 1. Payment ot Principal snd leterest. AoROwer shall promptly pay when due the pri~cipal o! and interest on the indebtedneaa evidenced by the Note, prepaymentand late charges as pe~ovided in 1he Note, and the pri~cipal of and interest on any ~ture Advences eecured ~ by this Mortgage. 2. I~utds for Ta:es and Insu~ance. Subject to applicable law or to a written waiver by I.ender, E3orrower shall pay to l.ender on the day monthly inat~?llmenta of principal and intereat are payable under the Note, until the Note ia paid in full, t? aum (herein "~nde") equal to oae twelfth of the yearly taxes and asacasmenta which may u/tain priority over this Mortgage, and ground rents on Ihe Property, if any, plua one twelRh of yearly premium inatallmenta for hazard insurance, plus onetwelflh of yearly premium installments for mortgage inaurance, if any, all ae rnasonably eatimated initially and from time to time by I.ender on the boais of asseasmente and billa and reasonable estimatea thereof. '1Le Fltnds ahal! be held in an institudon the depoeits or accounta ot which are ineured or guaranteed by a Federal or Stete agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said ta:ea, asseasmente, insuranoe premiums and ~ ground renta. Lender may not charge tor so holding and npplying the ~nda, analyzing said account, or verifying and compiling said ~ ~ asaeeemenfa and bills. unleea I.ender paya Borrower intereet on the ~nds and applicable law permits Lender to make euch a charge. Borrower and I.ender may agree in w riting at the time of executio~ of thia Mortgage that intereat on ihe ~nda shall be paid to Eiorrower, and unleas ' auch agceement is made or applicable law requiree such intereat to be paid, Lender shall not be required to pay Borrower any intereat or eaminge on the ~nds. Lender ahall give to Borrower, without charge, an annual accounting of the ~nda showing credits and debits to the Funds aad the purpoee for which each debit to the ~nde wea made. The Funda are pledged as additional aecurity for the sums secured by this ~ Mortgage. ~ If the amount of the ~nda held by Lender. together with the future monthly installmenta of Funde payable prior to the due dates of t~ea, aaseasmenta. inaurance premiu~na and ground renta, ehall ezcaed the amount required to pay said taxea, a$aeasmente, insurance premiume and ground rents as they fall due, auch exceee shall be, at Borrower'8 option, either pmmpdy repaid to Borrower or credited b Borrower on monthly inetallmenta of Flinds. If the amount of the fl?nds held by Lender ahall not be enfficient to pay taxee, seseasmenta, inaurance premiums and ground renla es they fall due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all auma aecured by thie Mortgage. Lender shall promptly refund to Borrower any funds held by I.ender. If under pacagraph 18 hereof the Property ie sold or the Piroperty is otherwiee acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquiaition by [.ender, any ELnds held by Lender at the time of application se a credit against the aums eecured by thia Mortgage. - 3. Applieatioa of Peymenta. Unless applicable law provides otherwise. aU paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall 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 of 1he Note, and then to interest and principal on any fi~ture Advances: 4. Charge8; Liene. Borrowershall pay a1l taxes, as.sessments and olherchargea, fines and impositions altributable to the Property which may attain a priority over this Mortgage, and lessehold paymenta or ground rents, if any, in the msinner pmvided under paragraph 2 hereof or, if nol 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 amounts due under this paragraph, and in the event I3orrower shall make payment directly, Borrower shall promptly furnish to [xnder receipta evidencing such payments_ Borrower ahall promptly discharge any lien which has priority over this MortgAge; provided, that ~ Borrower shall not be requited to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by { such lien in a manner aeceptable to I,ender, or ahall in good faith contest such lien by, ordefend enforcementof such lien in, leqal proceedings which operate to prevent /he enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in such amounta and for such ; periods aa Lender may require; provided, that Lender shall not require such coverage amount e:ceeding the minimum, as may be required by ~ state or federul regulations governing activitiea of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. ' • ~ . The insurance carrier providing the insurance shali be chcisen by Borrower subject to approval by Ixnder, provided, that such approval ~ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the m:~nner pn~vided under paragraph `l fiereof or, if not paed in such manner, by ~3orrower making payment, when due, directly to the insurance carrier. All insurance policiea and renewala thereof shall be in forca acceptable to Lender and shall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptiy furnish to _ i.ender all renewal noticea and all receipts of paid premiums. In the event o~loss, Borrower ehall qive pmmpt notice to the insurance carrier and Lender. I.ender may make proof of losa if not made promptly by Borrower. . _ ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ' damaged, provided auch reatoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such • ~ reatoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be epplied ; to the sums secured by thia Mortgage, with the excess, if any, paid to Borrower. If the Propedy is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 days from the date notice is mailed by Lender to Borrow er that the ineurance carrier ofters W setde a claim for ~ ineurance benefite, L,ender ia authorized to collect and apply the insurance proceeds at Lender's opdon either to restoration or repair of the Ptoperty or the aums secured by this Mortgage. ~ ~ Unlees L.ender and Borrower otherwise agree in writing, any snch application of proceeda to principal ehall not extend or postpone the due ~ date of the monthly inatallments referred to in paraqraphs 1 and 2 hereof or chanqe the amount of such installments. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the aums aecured by this ~ Mortgage immediately prior to auch sale or soquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shell comply with the provisione of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower ahall perform all of Borrower's obligations nnder the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and constituent dceumente. If a condou?inium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgage as i[the rider were a part hereof. 7. Protection of I.ender's 3ecurity. If Borrower feile to perform the o~venants and agreements contained in thie Mortgage, or if any action or proceeding ie commenoed which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, ineolvency, aode enforoement, or arrangementa or proceedings involving a bankrupt or deoedent, then Lender at Lender'e option,npon notice to Borrowet may make such appearances, disburee euch eums end take euch action aa ie necesaary to pmtect Lender's intereat, ; ~ inclnding, bnt not limited to, diebureement of reasonable attomey's feee and entry upon the Property to make repaire. If Lender required mortgage insnrance aa a condition of making the loan secured by thia Mortgage, Borrower shal) pay the preminms required to maintain ~ such ineurance in effect nntil such tune as the requirement for auch insurance terminatee in aocordance with Borrower'e and Lende~s ~ written agrcement or applicable Law. Borrower ehall pay the amount of all mortgage insurance prnmiume in the manner provided under = paragraph 2 hereof. - ~ Apy amounte diebureed by Lender perauant to thie peragraph 7, with internet thereon, ehall become additional indebtedneas of ~ Borrower secnred by thie Mortgage. Unleee Boaower and Lender agree to other terme of payment, auch amounte ahali be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ahall bear interest from the date of diebureement at the rate payable from ~ time to time on outatanding principal under the Note unleee payment of interest at such rate would be rnntrary to applicable lew, in which event euch ~mounta ahall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph ahall ~ require Lender to incur any expenee or take any action hereunder. ~ , ~~oK 303 L~~~ 1020 ~ ~ ~ . ~ ~ ~ . ~ ~ , ~ ~ _ a~ _ r r . ~ t~s. , ,r_,. - "rr. :a>.~'. ?~~,s ~'~s'