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HomeMy WebLinkAbout0491 Hurrowe~ and l.ender covenant and agree as folluws: 1. Payment of Principal aad~ l~tereet. Horrow•er ehnll promptly pey when due the principal uf und interret un the indrbtedorae evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of und intereat on any Future Advnnces aecured by this Morigage. 2. F~nds for Ta:es e~d Insurance. Subject to applicable law or to a written wsiver by l.ende~, Borruwer ahull pt~y to I.ender on theday monlhly inatullmenta of principal and intemet are payable under the Note, until the Note is paid in tull, a aum (herein "Funda") eyuul to one twelfth of the yearly tanea and aaeeaaments which moy attain priority over thie Mortgage, and gruund renta un the Yroperty, if any, plus ont twelRh otyearly premium instaUmenta [or hnzard inaurance, plue onetwelfth of yea~ly premium instullmenls for mortgage insurance, if any, all ae reaso~ably eetimated initially and from time to tirne by I.ender on the baeis o[ assesaments and billa und renaonable estimutes thereof. The FLnda shall be held in an institution the deposita or accounts of which are inaured or guaranteed by e Federal or State agency (including l.ender if Lender is auch an inatitution). l.ender shall apply the Funds to pay said taxea, aeaesiamente, insu~ance premiums and ground rents. I.ender mqy not charge for so holding and applying the Funds, analyzing eaid accounl, or verifying and compiling said aaeeasmente and billa, unlesa [,ender pays Borrower intereat on the Funde and applicabte law permita l.ender to make such a charge. Borrower and I.ender may ngree in writing at the time of execution ot thia Mortgage that intereet on the Ftinds ehall be paid to Borrower, and unleea ' euch agreement is made or applicable law requi~ea auch intereat to be paid, I.ender ahall not be required w pay Borrower any intereat or earnings oo the Fl~nds. Lender ehall give to Borrower, without charge, an a~nual accounting of the Funda ahowing credits and debite to the Funde and the purpoee for which each debit to the Funda wae made. The Funds are pledged as additional security for the aume secured by this Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly inetallmente of Funds payable prior to the due datea of tazee, asseaementa, insurance premiume and ground rents, shall excted the amount required to pay said taxea, asseeamenta, insurance premiume and ground rnnte ae they fall due, euch exceas ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inataUmente ot ~nde. lf the amount of the Funds held by I.ender ahall not be aurccient to pay taxes, aaeesamente, inaurance pmmiume and ground rents ae they fall due, Borrower ahall pay to Lender any amount necexsary to make op the deficiency within :i0 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fuU of all euma eecured by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by [.ender. If under paragraph 18 hereof the Property is eold or the Property is otherwiee acquired by L.ender, t.ender shall apply, no later than immediately prior to the eale of the Property or ita acquieition by l.ender, any ~nde held by Lender at the time of application as a credit aqainat the auma secured by t1~is Mortgege. 3. Applicatioa of Paymente. Unlesa applicable law providea otherwiae, all payments received by I.ender unde~ the Note and paragraphs 1 and 2 hereof shall be applied by I.ender firnt in payment of amounta payable to Lender by Borrov?er under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancee. 4. C6argea; [rens. Borrower shall pay all taxes, assesamenta and other charges, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, i[any, in the manner pmvided under paragr~ph'l hereof or, if not paid in such mAnner, by Eiorrower making payment, when due, directly to the payee there~f Borrowershull promptly furnish to l.ender ail noticea of atnounta due under thia paragraph, and in the event Eiorrower shall make paymenl direcUy, Borrower shall promptl~• furnish to i,ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which hns priority over this btorigage; prnvided, that E3orrower shal) not be required to discharge any sach lien so long as i3orrower shal! agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or shal) in good faith contest such lien by, ordefend enfi?rcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Pruperty or any part thereof. 5. Hazard Insuraece. Botrower ahall keep the improvementa now exiating or hereafter erected on the Property inaured against loss by fire, hazarda inctuded within the term "extended coverage," and auch other hazards ae L.ender may require and in such amounts and for such perioda as L.ender may require; provided, that Lender shall not require such coverage amount e:ceeding the minimum, as may be required by state or federal regulations goveming activitiea of Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance ehall be ch~en by Borruv?er subject tc? approval by l.ender, pm~~ided, lhat such approval shall not be unreasonebly withheld. All premiums on inaurance policiea shall be paid in the manner providcrl under paraKr.?ph 2 hereof or, if not paid in auch manner, by E3orrowel making payment, when due, directly to the inaurance carrier. ! All ineurance policiea and renewals thereof ahall be in form acceptable to I.ender and shall include a atan~ard mortgage dause in favor of xnd in fotm acceptable to Lend~. Lender ehall have the right to hold the policiea and renewals thereof, and Borrower shall promptiy furniah to i.ender all rsnewal aoticee and a!1 receipte of psid prcrniums. In the event of loas, Borwwer shall give prompt notice to the inaurance carrier { and Lender_ Lender may make proof of loea if not made promptly by Borrower. Unlesa I.ender and Borrower otherwiee agree in writing, inaiuance proceeda ehall be applied to reatoration or repair of the Property ~ damaged, provided auch netoration or repair ie economically feasible and the security of thia Mortgage ie not thereby impaired. If such restoration or repair ie not economically ieasible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the aema secured by this Mortgage, with the e~cesse, if any, paid to Borrower. I[the Property is abandoned by Borrower, or if f3orrower faile to ~ respond to Lender within 30 daye from the date notice ie mailed by I:ender to Borrower that the inaurance carrier ofters to eettle a claim for insurance benefife, Lender is authorized to rnllect and apply the insurance proceeda at lxnder s option either to restoration or repair of the ~ Property or the auma eecared by thie Mortgage. ~ Unless Lender and Borrower otherwise a in writin an auch a l~cation of roceeds to nnci 1 ahall not e:tend or ; gree g, y pp ' p p~ pa poatpone the due ~ date of the monthly inatallmenfa referred to in paragrapha 1 and 2 hereof or change the amount of such inetallmenta. If under paragraph IS ~ hereof the Property ie aoqnired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the ptoceeda thereof reaulting fran damage to Property prior to the sale or acquieitioa shall pass to Lender to the e:tent of the aume eecured by thia Mortgage immediately preor to euch eale or aaquiaition. 6_ Preaervation and Maintenance of Property; Lesseholde; Condominume; Planned Unit Developmente. Borrower ahall keep • the Property in good repair and shall not rnmmit weste or permit impairment or deterioration of the Property and ehall comply with the ~ ~ provieiona of any lease if thie Mortgage is on s leseehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower e obligations under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development. and conetituent dceumente. If a ~ condominium or plenned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the oovenanta and aKreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ T. Protectlon ot I.eader'e Security. If Borrower faile to perform the oovenante and agreementa rnntained in t.hie Mortgage. or if any .s ection or proceeding ie commenced which materially affecte Lender e intereet in the Property, including, but not limited to, eminent domain, ' ineolvency, aode enforcement, or arrangemente or proccedinge involving a banknipt or deoedent, then Lender at I.ender'e option,upon notice to Borrower may make such appearances, diaburee such aums and take such action as is neceaeary to protect Lender's interest, including, butlnot limited to, diebureement of reasonable attorney'e [eee and entry upon the Property to meke repaira. If Lende~r required ` mortgage insurance as a rnndition of maicing the loan aecured by thie Mortgage, Borrower ehall pay the premiume required to maintsin euch ineurance in effect until euch time as the requirement for such ineurance terminatee in accordance with Borrower's and Lendei'e writLen agreement or applicable [.aw. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. Any amounta diebureed by Lender persuant to thia paragraph 7, with interest thereon, ahall beoome additional indebtednese of - E3orrower eecured by thia Mortgage. Unteee Borrower and [.ender agree to other terma of payment, such emounta ahall be payable upon - notice from Lender to Borrower requeeting payment thereof, and shall bear intereet from the date of diebureement at the rate payable from ~ time to time on outetanding principal under the Note unleas payment of intereet at auch rate would be contrary- to applicable law, in which ~ event such amounta shall bear interest at the higheet rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any expense or take any action hereunder. ~ ~ ~ € - o k 491 . 9or:~ ~(~4 ~ac~ ~ ~ ~ _ . - - - - - - - - Y~_ ~