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HomeMy WebLinkAbout0184 f3orrowe~ und I.ender covenant and agree ae [ullowa: " 1. ~'ayment of Principal snd Intereet. t3orrower ahall promptly pay whrn due the principal of and intrrebt on the indebtednrnx evidenced by lhe Note, prepeyment and late chargea as pruvided in the Note, and the principal of und intemet on any Future Advancea secured by this Mortgage. 2. Fltnde tor Ta:ea and Ineurance. Subjeet to npplicable luw or tu a written waiver by l.ender, fiorrower ehull pa?y to l.ender un the day monthly inetallmenta of principal and intereat am puyable under the Nute, until the Note ia paid in full, a aum Iherrin "'F'unda"1 eyual tu une twelfth of the yearly taxes and aasesamenta which muy attuin priority over thiA Mortgage, and ~[ruund renta on the f'roperty, if any, plus onP twelfth of yearly premium inatallmente for hazard inaurance, plua onPlwelfth o~yearly premium instuilments fur murtgage inRUrunce, if any, all aa masonably eatimnted initially and from time to time by l.ender on the basis of uxsrs;sments and bille and rensont~ble extimutes thereot. The ~nds ehaU be held in an inetitution the depoaite or accounta of which are ineured or gua~anteed by a Fede~al or Slate agency (including [.ender it l.ender is euch an inatitution). l.ender ahall apply the Funda to pay said taxee, asaesamenta, inaurance premiume and ground rente. l.ender may not charge for eo holding and applying the F~nda, analyzing eaid account, or veri[ying and compiling said aeaeaements and bille, unleas I.ender paya Borrowe~ interest on the Funde and applicable law permits l.ender to make euch a charge. Borrower and Lender may agree in writing at lhe time of execution of this Mortgage that interest on the F~nds shall be paid to Borrower, and unlesa euch agrcement is made or applicable law requirea auch intereat to be paid, I.ender ahall not be required to pay Borrower any intereat or earninga on the F1nda. Lender ehaU give to Borrower, without charge, an annual accounting o[the Funda ahowing credits and debita to the Funda and the purpoee [or which each debit to the Ftinds was made. The Funds are pledged as additional eecurity for the euma secured by this Mortgage_ If the amount of the ~nda held by (.ender, together with the future monthly inatallmente of F unda payable prior to the due dates of taxes, asseasmenta, inaurance premiuma and grouad rents, ahaU excxd the amount required to pay said taxea, asseasments, inaurance premiums and ground rents aa they fall due, such e~ceea ehall be, at Bo~TOwer'e option, either promptly repaid to Borrower or credited to Rorrower on monthly inatallments of ~nda. If the amount ot the Funda held by Lender ahall not be aufficient to pay taxea, aasessmente, insurance premiume and ground renta as they [all due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requesting payment thereof. Upon payment in full of ap aums eecured by this Mortgage. [.ender shall promptly refund to ~3orrower any funda held by l.ender. If under paragraph 18 hereof the Property is aold or the Properiy is otherwise acquired by I.ender, I.ender ehall apply, no later than immediately prior to the sale of the Property or ita acquiaition by I.ender, any Funds held by l.ender at the time of application as a credit againet the sums secured by thia Mortgage. 3. Applteation of Peyments. Unleas applicable law provides otherwise, all payments received by Ixnder under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender fimt in payment of amounts payable to Lender by E3orrower under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liena. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable u~ the !'n~perty which ~ may attain a priority over this Mortgage, and (ensehold paymente or qround rents, if any, in the manner provided under pnragraph 2 hereof or, - if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to I.rnder all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Born,wer shall promptly fumish to l,ender receipts evidencing such paymenta. E3orrower shall promptly discharge any lien which has priority o.~er this :1lortaage; provided, that Borrower shull not be required to diacharge any such lien so long as &?rn,wer shall agree in writing to the payment of theobligation securcd by ~uch lien in a manner acceptable to Lender, or ahall in good tAith conteat such lien by, ordefend enforcement of such lien in, tegal procecdinga which operate to prevent the enforcement of the lien or iorfeiture of the Property or any part thereof. 5. Hazard Ineurance. E3orrower ahall keep the unprovements now existing or hereafter erected on the Pruperty inaured aqainst losa by fire, hazarda included within the term "eatended coverage," and guch other hazards as Lender may require and in such amo~nts and for such periods se Lender may require; provided, that Lender ehall not tequim auch coverage amount exceeding the minimum, as may be required by state or federal regulatione governing activitiee of t.ender, or that sinount of coverage required to pay the auma secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by Ixnder, prcn•ided, th~t such approvat shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner pmvidcri under paraRraph 'l hereuf or, if not paid in such manner, by Rorrower making payment, when due, directly to the insurance carrier. All inaurance policiee and renewula thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewala thereof, and Aorrower shall promptly furnish to Lender all renewal noticea and al) receipta of paid premiums. In the event of loss, Born~wer BhaU qive prompt natice to the insurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. Unlesa I.ender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property damaged, provided auch restoration or repair is economically [easible and the security of this Mortgage ia not thereby impaired. If such ; reatoration or repair is not economically fea8ible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the euma secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier of~ers to settle a claim for ? inaurance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender s option either to restoration or repair of the i Property or the sums secured by this Mortgage_ ~ ~ Unlexs Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ehall not extend or poatpone the due F date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change che amount of auch inatallmenta. If under paraqraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting ftom damage to Property prior W the sale or acquiaition ahall pasa to Lender to the eatent of the suma eecured by this ~ Murtgage immediately prior to such sale or aoquiaition. 6. Preeervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Propetty in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisiona of any lease if this Mortgage is on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ E3orrower ehall perform all of Borrower'e obligationa under the declaration or covenante creatinRor governing the condominium o~ planned ~ unit deveiopment, the by-laws and regulationa of the condominium or planned unit development, and rnnstituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, Lhe oovenante and aKreementa of euch rider ahail he incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. r 7. Protection of Lender'e 3ecurity. tf Borrower fails to perfor~n the oovenante and agreernente rnntained in thia Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangemente or proceedinge involving a banlwpt or decedent, then Lender at Lender's option,upon ~ notice to Borrower may make euch appearancee, diaburae euch auma and take euch action ae ie neceeeary to pmtect Lender's intereat, ~ including, but not limited to, diebursement of reasonable attorney'e fcee and entry upon the Property to make repairs. If Lender required , mortgage insurance as a condition of making the loan secured by thie Mortgaqe, Borrower ehall pay the premiuws required to maintain ' euch inewance in effect until such time as the requirement for auch insurance terminatea in accordance with Borrower'e and I.ender's written egreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under = paragraph 2 hereof. - My amounts disbursed by I.ender pereuant to thie paragraph 7, with intereet thereon, ahall become additiona! indebtednese of Iiorrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terma of payment, euch amounte ehal) be payable upon nodce from Lender to Borrower requesting payment theteof, and ahall bear interest from the date of diabureement at the rate payable from ~ time to time on outetanding principal under the Note unleea payment of intereet at auch rate would be rnntrary to applicable law, in which event euch amounte ehall bear intereet at the higheat rate permiseible under applicable law. Nothing contained in thie paragraph 7, ahall - require L.ender to incur any expense or take any action hernunder. ~ ~ . ~'_~`f 3U4 i84 ~ ~ _ _ _ . ~ - ~ ~ : ~ ~ ` ~ - ~ _ . ~ a.~~~'~r'~- ~ ~"~~s .~L~.. " . .'y.`_° y.~~"' "