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HomeMy WebLinkAbout0077 Borrower and l.ende~ covenanl and agree as followa: 1. Payment ot I'rincipal nnd Intereet. Born~wer ahNll promptly pay when due the p~ncipal of and intereat uo the indebtcdneae evidenced by the Note, prepayment and lxtechargra ae provided in the Note, and the principal of s~d intemat oo any F1~ture Ad~ nnces secured by this Mortgage. 2. F~tnds for Tnxes and Inauranee. Subject to appticable It~v?• o~ to a written waiver by I.ender, tiorrower ahall pay to I.ender un the day monthly i~atallmenta of principal and inte~eat are payable under the Note, until the Nute ia paid in full, a sum (herein "Fund4") equal to onP twelfth of the yearly tfucea and asaeasmente which may attnio priority over this Mortgage, and ground rentx on the Pruperty, if aoy, plus one twelRh of yearly premi~~m i~etallments for haza[d inaurance, plus onPtwelfth ofyeA~ly premium instnllmenta for mortgnge inaurunce, if nny, ail ua reueonably eatimated initiallp and from time to tirue by I.ender on the baais of t~saeasments and bills and reasonable estimutes thereof. The ~nda ahall be held in an inatitution the depoaita or accounte oi which an insured or guaranteed by a Federal or State agency (including Lendet if l.ender is auch an inatitution). I.ender ahall apply the Funds to pay snid taxee, assesamenta, inaurance premiums and ground rente. I.ender may not charge for eo holding and applying the F~nde, analyzing said account, or verifying and compiling said asaea~ments and bille, unlesa I.ender pays Rorrower interest on the F~nds und applicable law permita I.ender to make such n charge. Born,wer and I.ender may agree in writing at the time of execution of this MortRaQe that intereat on the Funde ahall be paid to Borrower, and unless euch agreement ia made or applicable law requirns euch intereat b be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the Flrnda. Lender ahall give to Borrower, without charge, an annual accounting of the Funds ahowin~ credita and debits to the Funde and the purpoae tor which each debit b the Funds was made. The Funde are pledged as additional srcurity for the euma secured by thie Mortgage. If the amount of the FLnda held by [xnder, together with the tulure monthly inetallmenta of Funda paynble prior to the due datea of tazes, aeaessmenta, ineurance prnmiuma and grouud rents, shall excred the amount required to pay said taxea, asaesamenta, insurance premiuma and ground rente as they faU due, such exceae ahail be, at Borrower's option, either promptly repaid to F3orrower or credited to Borrower on monthiy inatallmente of Funda. If the amount of the Funde hetd by Lender ahall not be sufficient to pay taues, assessmente, inaurance prn~niums and ground renta aa they fall due, Borrower ahall pay to L.ender any amount necessury to make up the deficiency within 30 days fmm the date notice is mailed by Lender to F3orrower requesting payment thereof. Upon payment in full of all auma secured by thie blorlgage, [.ender ahall promptly refund to Borrower any funds held by I.ender. lf under paragraph 18 hereof the Property is sold or the Properiy is otherwise acquired by L.ende~, [.ender ahall apply, no later than immediately prior to the sale of the Property or ite acquiaition by I.ender, any ~nda held by l.ender at the time of application as a credit againat the sums secured by this Mortgage. 3_ Applieation of Yaymenta. Unleas applicable law providea otherwiee, all payments received by Le~der under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firxt in payment of amounts payable to Lender by F3orrower 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 aliy Future Advances. 4. Charges; Liens. E3orrower shall pny all taxes, assessments and other chaVges, fines tmd impositions xttributable to the Pmperty which mAy altain a priority over thia Mortgage, and leasehold pnymentx or ~Crcwnd rents, if anv. in the manner provided under paragraph'l hemofor, if not paid in such manner, by Bormwer making payment, when due, directly to the payee thereof. Bormwer shall promptly furnish to l.ender all notices of amountx due under this paragraph, and in the event Korrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. Iiorrower shaU prumptly dischargr i~ny lien which has priority over this Mortgage; pmvided, that Korrower shall not be required to discharge zny such lien so IonK ~y Rorruwershall agree in writing to the p.~yment of the obligation secured by ,uch lien in a manner acceptable to Ixnder, or shxll in good faith rnntest xuch lien by, or defend enforcrment of such lien in, ic~al pruceedinKs which operate to preverst the enforcement ot the lien or fircfeiture ot the Property or .~ny part thermf. 5. Hasard Ineurance. Borrower shall keep the improvementa now existing or hernaRer erected on the Property insured against loss by fire, hazarda included within the term "extended coeerage," and ~uch other hazards as I.ender may require and in such amounts and for such periods as [.ender may require; pm~~ded, that I.ender ahaU not reyuire such coverage amount exceeding the minimum, as may be required by state or federal mgulatione~ governing activitiea of I.ender, or that amount of coverage required to pay the suma secured by this hlortgage, whichever ie the greater. The insurance carrier providing the insuramr shall tw chusen by Borrower subjecK to approval by I.ender; pm~•ided, that such npproval shall not be unrnasonably withheld. All premiums on incurance pc,licies shall be paid in the manner pruvideci under paragraph 2 hereof or, if ~ot paid in such manner, by f~rrower makinK pa~ ment, when due, dirertly to the insurance carrier. Al) insurance poliries and renewals thereof shali be in form acceptable to L,ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewala thereof, and ~iorrowerahall promptly furnish to ' i.ender aU renewal noticea and all receipta of paid premiums. In the event of loss, fiorruwer shall give prompt notice to the insurance carrier and L.ender. Lender may make proof of loss if not made pmmptl~ by E3orrower. - ~ Unless Lender and Borrower otherwise agree in writing, insurance pra.~eeds shall be applied to restoration or repair of the Property damaged, provided such reatoration or repair is economically feasible and the security of this INortgage is not themby impaired. If auch restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums aecured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by E3orrower, or if ~3orrower fails to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier of~ers to settle a c?aim for j inaurance benefits, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either to restoration or repair of the r Property or the aums secured by this Mortgage. ~ Unless [.ender and Borrower otherwise aRree in writing, any such application of proceeds to principal shail not extend or postpone thedue ~ date of the monthly installments rePerred to in paragraphs 1 and 2 hereof or chanqe the amount of such installments. If under paragraph 18 e hereof the Property is acquired by Lender, all right, title and interest of Bornower in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to auch sale or acquiaition. ~ 6. Preeervation and Maintenance of Property: Leaseholde; Condominume; Planned Unit Developmenta. Borrower shalt keep ~ the Property in good repair and ehall not commit wasie or permit impairment or deterioration of the Property and shall comply w~th the pro~~aions of any tease if this ~Iortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a pianned unit development, ;:t F3orrower ahall perform ail of Borrower'a obligations under the declaration or covenants creatinKor governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider is executed by Borrow•er and recorded together with this Mortgage, the covenante and ~ agreements otauch rider shnll be incorporated intr? and shali nmend and supplement thecovenants and aqreementsof this Mortgnqe as ifthe rider were a part hereof. = 7. Protection of Lender's 3ecurity. If Borrower faile to perform the rnvenante and agreementa rnntained in thia Mortgage, or if any ~i action or proceeding ia commenced wh'tch materially affecte Lender'e intereat in the Property, including, bnt not limited to, eminent domein, ineolvency, oode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender et Lender'e option,upon notice to Borrower may make auch appearances, diaburee such eums and take euch action se ie necessary to protect Lender'e intereet, _ including, but not limited to, diebursement of reasonable attorney's fees and entry upon the Property to make repairs_ If Lender reqnited mortgage ineurance as a condition of making the loan aecured by thia Morigage, Borrower ehall pay the premiume required to maintain such ineurance in effect until snch time as the requirement for such ineurance terminates in accordance with Borrower'e and Lender'e ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiuma in the manner provided under I " paragraph 2 hereof. ~ ' My amounte diabursed by Lender pereuant to thie paragraph 7, with intereet thereon, shall become additional indebtednese of = Borrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terma of payment, auch amounte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ehall bear interest from the date of disbureement at the rate payable from time to time on outatanding principal under the Note un?esa payment of intereet at auch rate would be rnntrary to applicable law, in which event such amounta ahall bear intereat at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph 7, ehall require Lender to incur any expense or take any action hemunder. ~ ~ =7y ~ R~ 3U4 4 77 . ~ ~ ~ ~4G~ , - a.~, ~ ~•v g,. ~ a ~ ~ ~ ~ F ~ ~ u. ~~~,~:w . -