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HomeMy WebLinkAbout0918 ' s l3orrower and I.ende~ covenant aad agree as follows: • 1. Psyment of Principal and Intere~t. Borrower shall prompdy pay when due the principal of and iMeresi on the indebtednees evidenced by the Note, prepayment and late charges as provided in the Note, and the principal otand interest on eny Fl~ture Advances secured by thu Mort~age. 2 Ftinds for Tazea and Insuraace. Subject to applicable !aw or to a written wuiver by Lender, I3orrower ahall pay to l.ender on the day monlhly inaLallme~tr otprincipal and intereat are payable under 1he Note, until the Note ia paid in full, a eum (heroin "Funds") equal to one twelflh of the yearly taxes and aaseasmenta which may attain priority over lhis Mortgage, and ground rents on the Property, i[any, plua one twelfth of yearly premium inatallme~ts for hazard inauraace, plus onetweltth of yearly premium inetailmenta for mortgage inaurance, if any. all as reasonably e8timated initially and from time to time by I.endet on the basie of aseeaements and billa and reasonable eatimutea thereof. 'ilie Phnds shall be heW in an inatitutioa the deposita or acoounta of which an insured or guaranteed by a Federal or State agency (including Lender if Lender ia such an inatitution). Le~der ahall apply the Funds to pey eaid taxea, aaeeeaments, ineuranoe premi~una and ground rents. I.ender may not charge for so holdin~ and applying the Flrnds, analyzing aeid account, or verifying and rnmpiling said asseesment8 and bills, unleea Lender pays Borrower intereet o~ th~ F~nds and applicable law permits I.ender to make euch e charge. Borrower and Lender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the ~nda ehall be paid to Borrower, and unlees such agreement ia made or applicable law requires such interest to be paid, Lender ahall not be required to pey Borrower any interest or earnings on the flinde. Lender ahall give to Borrower, without charge, an annual acoounting of the Funds showing credits and debits to the Funda and the purpose for which each debit to the ~nde was made. The Funde are pledged as additional security for the suma eecured by this Mortgage. If the amount.:f the Fl~nda heid by I.ender, together with the tuture monthly inatallmenta of Funds payable prior to the due dat~ee otteses, aeseeamente, inaurance premiume and ground rents. ehall e:c~ed the amount required to pay said taxea, asseasments, inaurance premiums and ground rente as they fall due, such eacoess shall be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on monthly installmente of Ftinda. If the amount c?f the Funds held by I.ender shall not be sufficient to pay ta~cee, aesesementa, inaurance preminms and ground renta as they fall due, Borrower shalt pny to L.ender any amount neceaeary to make up the deficiency within 30 daye from the date notice ia mailed by L.ender to Borrower requesting payment thereof. Upon payment in fuU of aU eums secured by this Mortgage, Lendsr shall pmmptly refund to Borrower any funda held by Lender. If under ' paragraph 18 hereof the Property is eold or the Property ie otherwise acquired by Lender. I.ender ahall eDply, no later than immediately prior ' to the eale of the Property or ite soquisidon by Lender, any ~nda held by Lender at the time of application as a credit againat the auma secured by thia Mortgage. 3. Applicadon of Payments. Ualeas applicable law providea otherwise, all paymente received by l.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender fira! in payment of amounfs payable to Lender by Borrower 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 Advances. 4. Charges: Liene. Borrower ahall pay all tazes, asaesamenta and other chargea, fines and impositions attributable to the Property which may attain a priority over thie Mottgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furniah to [.ender a!1 noticea of amounfs due under thia paragraph, and in the event Borrower shall make payment direcdy, Borrower ahall promptly fumish to I.ender receipta evidencing such paymenfa. Borrower ehall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diecharge any such lien so long as Borrower shail agree in writing to the puyment of the obligation secured by such lien in a manner acceptable to I.ender, or ahall in good faith conteat such lien by, ordefend enforcementof 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 Insurance. Borrower ehall keep the improvementa now e~isting or hereafter erected on the Property inaured against loss by fire, hazarda included within the term "eactended coverage," and auch other hazards se Lender may require and in such amounts and for such perioda ae Lender may require; provided, that Lender shall not require euch ooverage amount exceeding the minimum, as may be required by state or federal regulations governing aetivitiea of Lender, or that amount of ooverage required to pay the aums a!~cured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by BorroK er subject to approval by Lender, provideci, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if i not paid in auch manner, by Borrower malcing payment, when due, directly to the insurance carrier_ All inearance policiea and renewala thereof shall be in form acceptable to Lender and ehall include a standatd mortgage clause in favor of ; and in form acceptable to Lender. Lender ahall have the right to hold the policiea and renewala thereof. and Borrower ahall promptly furniah to ~ ?.ender all renewal noticee and all reoeipta of paid premiums. In the event of loas, Borrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwiee agree in writing, uisurance proceede ahall be applied to restoration or repair of the Property 1 damaged, provided auch reetoration or repair ia economically feasible and the eecurity of this Mcrtgage is not thereby impaired. If such i reatoration or repair ie not economically feasibte or if the aecnrity of this Mortgage would be impaired, the insurance proceeds shaU be applied _ € to the eume secnred by thia Mortgage, with the e~ccess. if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to ° reapond fo Lender within 30 daye firom the date notice is mailed by I.ender to Borrower that the inaurance carrier oPlers to settle a claim for ~ ineurance benefite. i.ender ia suthorized to collect and apply the inaurance proceeda at Lender's option either to restoration or repair of the ; Propertyr or the aume eecured by thie Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any euch application of proceeds to principal ehall not e:tend or poatpone the due ~ ~ date of the monthly inetallmente refeaed to in paragraphe 1 and 2 hereof or change the amount of euch inatallments. If under paragraph 18 ~ hereof fhe Property ie acquired by Lender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda ' thereof resulting from damage to Peoperty prior W the sale or acquiaition ahall pass to Lender to the extent of the aums eecured by thia ~ Mortgage immediately Qrior to such eale or aoquieition. ~ 6. Preservation and Maintenance of Property; I.easeholde; Condominume; Planned Unit Developmente. Borrower ahali keep ? the PYoperty in good repair and ehall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the ~ provisiona of any lease if thie Mortgage is on a leaeehold. If thie Mortgage ie on a unit in a oondominium or a planned unit development, ~ E3orrower ahail perform all of Borrower'e obligationa under the declaration or covenante creatingor governing the condominium or planned ~ unit developmen~ the by-laws and regulatione of the condominium or planned unit development, and conatituent documenta. If a 5 condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the aovenants and ~ agreements of auch rider shall be incorporated into and ahall amend and supplement the covenants and agreementa of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot I.ender's Secnrity. If Borrower faila to paform the ooveaants and egreements contained in this Mortgage, ar if any action or proceeding is commenoed which matezially affects Leader's interest in the Property, including, but not limited to, eminent domain, - ineolvency, oode enforcement, or arrangements or prooeedinga involving e banl~pt or deoedent, then L.endcr at Lender'a option,npon notice to Borrower may mal~e such appearanoee, disburee anch ann4s and take such action aa is aec~eary to protect Lendez's u?terest, inclading, but not limited to, diabureement of reasonable attorney e fees and entry upon the Property to make repain. If Lender required mortgage insurence as a oondition of ineking the loan secured by thia Mortgege, Borrower shall pay the premiums required b maintain ~ euch inaarance in effect nntil such time as !he requirement for euch insurance terminatea in accordance with Borrower'e and I.tndds written agreement or applicable Law. Borrower shall pay the amoant of all mortgage insurance premiums in the manner provided under ' paragraph 2 hereof. ~t Any amounte diebursed by Lender perauant to thia paragraph 7. with intereat thereon, ahall beoome additional indebtedn~s of , ' Borrower seeured by thia Mortgage. Unlese Borrower and Lender agree to other terma of payment, such amounts shall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear intereat from the date of disburaement et the rate payable from ~ time to time on outatanding principal under the Note nnleae payment of interest at such rate would be aontrery to appliceble law, in which ~ event euch amounts shall bear intereat at the higheat rate permiasibie under applicabie law. Nothing contained in thie parsgraph 7, shall Y require I.ender to incur any eupenee or take any action hereunder. ~ : ~ . Y BOOK ~O4 oACE 9~8 ~ ~ ~ - _ ~ . ~_~M