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HomeMy WebLinkAbout0495 Bo~rowe~ and Lender covenant r~d agcee as followe: l. Payment of Principal and [ntere~t. Borrower ahall promptly pay when due the princip~l of and intetest on ?he indebtednees evidenced by the Note, prnpayment and late charges ea provided in the Note, and the principal of and interest on any ~ture Advances eecured by thie Mortgage. 2. 6linds for Ta~ces and Insurance. Subject to appliceble Iaw or to a writte~ waiver by l.endrr, Borrvwer ehall pay to l.e~der on the day monthly installmenta of principal and interest are payable under ?he Note, until the Note is paid in fuU, a aum (herein "Funde") equal to one~ twelfth of the yearly taxes and aaeeasments which may attain priurity over thie Mortgage, and ground renta on the Property, if any, plus one twelRh of yearl y premium installmenta for hazard insurance, plua o~etweiRh otyear?y premium inatallmenta for mortgage in~urance, if any, ~ aU ea reaeonably eetimated initially and from lime to time by I.ender o~ the baais of asee.~sementa and bills and reasonable eatimatea thereot ; The ~nda shall be held in an institution the depoeita o~ accounts ot which are insured or guaranteed by a Federal or State agency (including Lende~ if Lender is such an inetitution). l.ender shali apply the Funda to pay said ta:ea, asseaemente, inaurance premiums and ground rents. l.ender may not charge for so holding and applying the Ftinds, analyung aaid account, or verifying and compiling said neseaemente and bills, unleae Lender pays Borrower intereet on the El?nde and applicable law permits l.ender to make such a charge. Borrower and I.ender may ag~ee in writing at the time of e:ecution ot this Mortgage that interest on the I~nda shall be paid to Borrnwer, and unleas such agreement is made or applicable law requires such intereet to be paid, I.ender ehall not be required to pay Borrower eay inlrrest or earnings on the FLnds. L.ender shall give to Borrower, without charge, an annual accounting of the Funda ehowing credits and debita to the ~nda and the purpose for which each debii to the Flu~de wae made.'ll~e f~nds are pledged as additional eecurity for the euma secured by this Mortgage. If the amount of the ~Lnds held by Lender, together with the future monthly inatallmente of Funda payable prior to the due datee of taxes, aaeeasmente, ineurance premiuma and ground renta, ehall excred the amount required to pay said taxes. asaeasmenta, insurance pmmiums and ground rents as they fall due, such e:ceas ahall be, at Borrower a option, either promptly repaid to Borrower ar credited to Borrower on monthly inatalimente of FLnds. If the amount of the Funda held by Lender ahall not be aut~cient to pay tenea, asaesaments, insurance premiume and gronnd rente as they faU due, Borrower ehall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrowec requesting payment thereof. Upon payanent in full of all eums secured by thie Mortgage, I.ender ahall promptly refund to Borrower any funde held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiee acquired by I.ender, Lender ahall apply, no Iater than immediately prior ?o the t~ale of the Property or ita aoquieition by I.ender, any fi~nde held by Lender et the time of application as a credit againat the sums eecured by thie Mortgage. . F 3. Applieation ot Paymeats. Unleas applicable law provides otherwiae, all paymenta received by Lender under the Note and p~regraphe 1 and 2 hereof ehall be applied by Lender firet in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the prinripal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liens. Borrower ahall pay all taxea, aesesamenta and other rharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if at~y, in the manner provided under paragraph 2 hereo[or, if not paid in auch manner. by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to l.ender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directiy, Rorrower ahall promptly fumiah to l.ender receipts evidencing such paymenta_ Borrower shall promptly discharge any lien which has priority ove~ this Mortgage; provided, that Rurrower shall not be required to diacharqe any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforrnment of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurence. Borrower ehall keep the impmvementa now e~tiating or hereafter erected on the Property inaured againat losa by fire, hazarde included withia the term "e:Lended coverage,". and euch other hazards ae Lender may require and in such amounte and forsuch perioda ae [.ender may require; provided, that I.ender ahall not require such ooverage amount e:ceeding the minimum, aa may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the gmater_ The insurance carrier providing the insurance ahall be chosen by E3orrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph 'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiee and renewala thereofahall be in form acceptable to Lender and ahall include a etandard mortguge clauae in favor of - and in form acceptable to L.ander. Lender ahall have the right to hold the policiea and renewala thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipte of paid premiums. In the event of loss, Borrower ahall give prompt notice to the inaurance carrier I and L.ender. Lender may make proof of lose if not made promptly by Borrower. i Unleae Lender and Borrower otherwise agree in writing, insure+nce proceede ahall be applied to reatoration or repair of the Property i damaged, provided such reatoration or repair is economically feasible and the eecwity of this Mortgage ia not thereby impaired. If auch ~ reatoration or repair is not eoonomically feasible or if the security of thie Mortgage would be impaired, the insurance proceeds shall be applied ~ to the suma eecured by this Mottgage, with the exceae, if any, paid to Borrower. If the Property ie abandoned by Borrower. or if Borrower fails to ~ reapond to I.ender within 30 days from the date notice ia mailed by Lender to Borrower that the ineurance carrier of~ers to setde a claim for i insurance benefite, Lender ie authorized to collect and apply the insurance proceeda at I.endei s option either ta restoration or repair of the g Property or the sama eecured by thie Mortgage. ~ ~ tJnlese Lender and Borrower otherwiee agree in writing, any euch application of proceeds to principal ahall not e:tend or poetpone the due ~ date of the montlily installmente referred to in paragraphs 1 and 2 hereo[ or change the amount of such inatallmenta. If under ra ~ pa graPh 18 hernof the Property ia aoquired by Lender, all right, tide and interest of Borrower in and to any ineurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquiaition ahall paae to Lender to the extent of the suma secured by thia ~ Mortgage immediately prior to auch sale or aoquieidon. ~ 6. Preservation and Maintenance of Property; Leaeeholde;.Condominuma; Planned Unit Developmente. Borrower shall keep F the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lease if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit ~in a rnndominium or a planned unit development, ~ f3orrower ahall perform all of Borrower a obligationa under the declaration or covenants creatingor governing the condominium or pianned unit deveiopment~ the by-laws and regulations of the condominium or planned unit development, and conetituent dceumente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thie Mortgage, the oovenants and " a~reementa of auch rider shaU be ineorporated into and ahall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Pcotectton of I.ender's Security. If Borrower fails to perform the aovenante and agreements oontained in this Mortgage, or if aay ~ action or proceeding is rnmmenced which materielly affects I.ender e interest in the Property, including, but not limited to, eminent domein, insolvency. oode enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lenda's option,upon notice to Bor~ower may make auch eppearanoes, dieburee auch sums and taice such action as is neceesary to protect Lender's interest, including, but not limited to, diebarsement of reasonable attorney'e fees and entry upon the Property to make repaire. If I.enda~ reqnired - mortgage inaurance as a condition of malring the loan secured by thie Mortgage. Borrower ahall pay the premiums required to maintsin euch insuranoe in eftect nntil such time as the requirement for such insurance terminatee in aocordance with Borrowei s and Lender's written agreement or applicable Lew. Borrower shall pay the amount of all mortgage insurance premiume in the manner provided under paragraph 2 6ereof. My amounte dieburaed by Lender persuant to this paragreph 7, with intereat thereon, ehall beoome additional indehtednees of F3orrower eecured by this Mortgage. Unleas Borrower and Lender agree to other terms of payment, auch amounls ahall be payable upon notice irom L.ender to Borrower requeeting peyment thereof, and ahall bear intereet from the date of diebureement at the rate payable from ~ time to time on outetsnding principal under the Note unlese payment of interest at euch rate would be oontrary to applicable law, in which r'~ event auch amounte ehall bear interest.at the higheet rate permiseible under applicable law_ Nothing contained in thia paragraph 7, shall ~ require I.ender to incur any e:penee or take any action hereunder. ~ f~ ~ ~ k ~4 495 ~ 30C!! ~ ~ _ _ - - - - ~