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HomeMy WebLinkAbout0097 t3orrower ~+nd Ixnder covenaM and ag~re as [olluwe: 1_ Payment of Principal and Intereet. Eiorn~wer shull p~mpUy pay when due /he principa! of and intereat un Ihe indeGtedneae evidenced by the Note, prepayment and late chargee as pn~vided in the Note, anci the principal c,f and intereeton nny Future Advs~nces aecured by this Mortgage. 2. ~de fot Tasee and lneurance. Subject to appliceble law or tu a written waive~ by I.enJer, Born~w•er ah~ll pay tu t.ender un the day monthly inatallmentn uf principal and intereat are payable under the Note, until the Note ia paid in full, a aum ~herein "Funda") equal to one twelfth of the yearly taxes and assesamenta which muy attui~i p~iurity over this MortgAge, and ground rents on the Pruperty, itany, plua one twelRh of yea~ly prnmium inetalimente for hazard insurance, plua onetweltlh of yearly premium instt~llmenta for mortKage inaurunce, if any, eU ae reasonably eatimated inilially and from time to tirne by lxnder on the buais of nsseasmenta nnd bills und reasonable eatimates thereof. The Ftinda shall be held in an institution the depoaite or accounta of which are inaured or guaranteed by a Rederal or State agency (including I.ender if I.ender is auch an institution). l.ender shall apply the unda to pny said taxes, asseaamente, inaurance premiuma and ground rente. l.ender may not charge for eo hotding and applying the Funda, analyzing eaid account, or verifying and compiling said asaeeemeats and billa, unleae l.ender pays Borrower interest on the Funda and applicable law permita l.ende~ to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage that interest on the F unda ahaU be paid to F3or~ower, and unlesa such agreement is made o~ applicable law requires auch intemst to be paid, l.ender shaU not be required to pay Borrower any intereat or earninga on the Ftinde. l.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credita and debita to the Funda and the purpoee for which each debit to the Funds was made_ The Funda are pledged as additional security forthe euma eecured by thie Mortgage. If the amaunt of the Funda held by I.ender, together with the future monthly inatallmenta of Funda payable prior to the due datea of ta:es, asaesamente, inaurance premiuma and ground rente, shall excred lhe amount required to pay said taxes, aseessments, insurance premiuma and ground renta as they fall due, auch exceas ahall be. at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallmente of Ftinde. If the ainount of the Funde held by Lender shall not be aufficient b pay taxes, aeseasmenta, inaurance premiuma and ground renta se they fall due, Borrower ahall pay b Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to E3orrower requeating payment thereof. Upon payment in full of all suma eecured by this Mortgage, I.ender shall promptly refund to Borrower any Cunds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwiee acquired by Lender, I.ender ahail apply, no later than immediately prior to the eale of the Property or ita acquisition by Lender, any Funde held by I.ender at the time of application as a credit againat the euma secured by thia Mortgage. ' 3. Applicetion of Paymenta. Unlesa applicable law provides otherwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by I.ender fimt in payment of amounta payable to I.ender by Borirower under paragraph 2 hereof, the~ to intereet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargea; Liens. E3orrowershall pay all tuxes, assessments and other rharges, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or gn+und rents, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Bom?wer making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to l.ender all notices of amounta due under this parnRraph, nnd in the event Borrower shall make paymrnt directly, &~rruwer shall promptly furniah lo 1 xnder receipts evidencing such paymenta. Iionower shnll promptly dir,chaige any lien vvhich has priority over this Mort~CaQe; provided, that F3orrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to l.ender, or shnll in good faith contest such lien by, ordefend enforcement ofsuch lien in, legat proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard lnsurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insured against loss by fire, hazarde included within the term "extended coverage," and such other hazards ae Lender may require and in such amounta and [or auch periods as Lender may req~ire; provided, that [.ender ahall not require such coverage amount exceeding the minimum, as may berequired by state or [ederal regulations governing aclivities of l.ender, or that amount of coverage reyuired to pay the sums secured by thia Murtgage, whichever is ihe greater. The inaurance carrier providing ihe insurance shall be chusen by Borrower subject to appruvai by Ixnder, provided, that such approval ahall not be unreasonably withheld. All pmmiums on insurancr ~~licies ~hall be paid in the mannet pro~•ided under paraKraph 2 hermf or, if not paid in such manner, by E3orrower making payment, w~hen due, directh• to the insurance carrier. Al! inaurance policiea and renewala thereof ehall be in form acceptable to I.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender ehall have the right to hold the policies and renewals thereof, and Borrowerahall promptly furnish to ~.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt riotice to the insurance carrier ~ and Lender. I.ender may make proof of loas if not made promptly by Borrower. i Unlesa Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property E damaged, provided such restoration or repair ia economically feasible and the aecurity of this Mortgage ia not themb} impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeda shaD beapplied ; to the eums aecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daya from the date notice is mailed by Lender to Borrawer that the insurance carrier offers to settle a claim for ' inaurance benefita, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either te reatoration or repair of the ~ Property or the suma secured by this Mortgage_ ~ Unleas [.ender and Bonower otherwiae agree in writing, any such application of proceeda to principal shall not extend or postpone thedue ~ date of the monthly inetailmente referred to in paraqraphs 1 and 2 hereof or change the amount of auch inatallments. [f under paragtaph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of E3orrower in and to any inaurance 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 auma aecured by this K i4ortgage immediately prior to auch sale or aoqnisition. ~ 6. Preaervation aad Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ehall not commit waete or permit impairment or deterioration of the Property and ahall comply with the a provisiona of any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower shall perform all of Borrower a obligations under the declaration or covenants creating or governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider is executed by Bor.ower and recorded together with this Mortgage, the wvenants and 4 agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider wem a part hereof. 7. Protection of Lender'e 3ecurity. If Borrower faile to pertorm the covenante and agreementa rnntained in this Mortgage, or if any x aMion or proceeding ia commenced which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, _ ineolvency, oode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at I.ender'e option,upon notice to Borrower may make euch appearancee, dieburee euch aume and take auch action as ia neceaeary to protect Lender'e intereet, including, but not limited to, diebureement of reasonable attorney'e fees and entry upon the Property to make repairs. If Lende: required - mortgage ineurance ae a condition of making the loan aecured by thie Mortgage, Bonower ehall pay the premiuma required to maintain euch ineurance in effect until auch time as the requirement for such inaurance terminates in accordance with Borrower's and Lender's written agreement or applicable Lew. Borrower ahall pay the amount of all mortgage ineurance premiutne in the manner provided under paragraph 2 hereof. - My amounte diabursed by Lender persuant to thie paragraph 7, with intereet thereon, ehall bec,~ome additional indebtedneea of Borrower eecured by this Mortgage. Unleae Borrower and Lender agree to other terms of payment, euch emounte ehall be payable upon " notice from Lender to Borrower requeating payment theteof, and ahal) bear interest ftom the date of diabursement at the rate payable firom time to time on outetanding principal under the Note unleas payment of intereet. at euch rate would be contrary to applicable law, in which i~ event euch amounts ahall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph shall ~ require Lender to incur any expense or take any aMion hereunder. a S7 ~ 9~ : . g~~~~ 4.~,,.~ ~ ~ ~ ~ , - - - ~ _ _ ~~M, _ - ~ : -~~f ~s~ ~ -~7"' - . _ _ _ . . ~ ~