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HomeMy WebLinkAbout0291 E3orrower and l.ende~ covenant and agree ae follows: 1. Payment of f'rincipal and Interest. Borrower ahull pn,mpUy pay when due the principal of nnd intereat on the indrbtedneeie evidenced by the Note, prepayment and latecharges aa provided in the Note, und lhe principal of and internet on any F uture Advuncea aecured by thie Mortgage. 2. Elinda for Ta:es aad Ineurance. Subjert to ppplicable luw o~ to a written waiver by I~ender, liorrower e~hull pay to I.endrr on the day munthly inatallmenta of principal und intereeit are payable under the Nute, until the Note ia paid ~n full, A sum Iherein "N unds") ryual to une twelfth o[ the yearly taxea and seisexsmentx which mny attain priority u~•er thie Murtgage, and gruund rents un the f'ruperty, if any, ptue une twelRh of yearly premium instalimenta for htuard inaurance. plus onetwelfth of yearly premium inataliments for mortgage insurance, if any, ail xe reasonably estimated initiaUy and hom time to time by t.ender on the basis of usaessments nnd hills s+nd reaxonuble estimatks Ihereof. The Flncis ehall be held in an institutiun the depoeits or accounts of which are ineured or guaranteed by a~ederal or Stale Agency (~ncluding Lender if [.ender ia such an inetitution). l.ender shall upply the Funda to pay eaid taxea, psaesamenta, inaurance premiums and ~ound rente. I.ender may not charge tor eo holding and applyi~g lhe Funda, analyzing said account, or verifying and compiling aaid aeseaamente and bille, unleas I.ender pays Borrower intereat on the Ftinds and applicable law pennita I.ender to make auch a charge. Eiorrower and l.ender may agree in writing at the time of execution o( this Morlgage that intereat on the F~nds ahall be ps~id to 13orrower, and unless auch agreement is made or applicable law requires such intereat to be paid, I.ender ehnll not be required to pay Eiorrower any interest or earnings on the ~nda. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing rredita and debita to the runde and the purpose for which each debit to the Funda was made. The Funds are pledged as additional security for the sums aecured by this Mortgage. If the amount of the F~nde held by Lender, together with the future monthly inatallmenta of E~ unds payable prior to the duedatea of tuxea, asaesaments, inaurance premiuma and ground renta, ahal! excred the amount mquired to pay said taxea, asseasmenta, inaurnnce premiuma and ground rente as they fall due, such excesa shail be, et Borrowei s option, either promptly repaid to E3orrower or credited to Eiorroweron monthly inetallmenta of F~nds. If the amount of the Funde held by I.ender ehall not he eutficient to pay taaea, aeiseasmente, insurance premiums and ground rente as they fall due, Borrower shnli pav to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borruwer requesting payment thereot. Upon payment in full of all suma eecured by this Mortgage, I.ender shall promptly refund to Borrower any funde held by l.ender. lf under paragraph 18 hereof the Property is eold or the Property is otherv~~se acyuired by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or ite acquieition by I.ender, any Funda held by l.ender at the time of application as a credit againat the sums secured by this Mortgage. 3_ Application of Paymenta. Unleas applicable law pmvides otherwise, all payments received by Ixnder under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firxt in payment of amounta payabie to Lender by I3orrower under paragrsiph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charKes, finex and impositions:+ttributaible to the Pmperty which may attain a priority over this Mortgage, and leaxehold payments or ground rents, if nny, in the manner provided under paraRraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borruwershall promptly furnish to I.ender all notices of amounta due under thia paragraph, and in the event BorruH~er shnl) make payment direcdy, Burrower shall promptly furnish to I,ender receipts evidencing such payments. Bormwer shall promptly discharge any lien which hns priority over this Mort~age; provided, that Borrower shall not be required to discharge any such lien so long as &?rrower shall aqree in writing tu the payment of the obligation secured by such lien in a manner acceptable to [.ender, or shall in Kood faith cvntest such lien by, or defend enforcement ~?f such lien in, le};al prcx~eedinKs w•hich operate to prevent the enforcement of the lien or forfeiture of the Ymperty or any part thereof. 5_ Hazard Inaurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured against loss by f?m, hazards included within the term "extended coverage; ' and such other hazards as I,ender may require and in such amounts and for such periods as Lender may require; pmvided, that I.ender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of [.ender, or that amount of co~erage required to pay the sums secured by this blortgage, whichever is the greater. The insurance carrier providinq the insurance shall be chusen by Borrower subject ta approcal by I.ender; pro~•ided, that such appro~~al shall not be unreasonably withheld_ All pmmiums on insurance policies shall he paid in the manner pn~~ ided under paraKraph '2 hermf or, if no? paid in such manner, by Borrower making payment, when due, directl~ to the insurance carrier. ! All inaurance policies and renewals thereof shafi be in form acceptable to Lender and shall include a standard mortgage clause in favor of ~ and in [orm acceptable to Lender. Lenderahall have the riqht to hold the policies and rnnewals thereof, and Bonower ahxil promptly furnish to ~.ender all renewal notices and all receipta of paid premiums. In the event of losa, E3orrower shall giee prompt notice to the insurance carrier and I.ender. [.ender may make proof of loas if not made promptly by Borrower_ ~ Unless Irnder and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair ia econumically feasible and the aerurity of this Mortgage is not thereby impaired_ If such ~ reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower_ If the Property is abandoned by I3orrower, or if Fbrrower faila to respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the inaurance carrier offers to setde a claim for y ineurance benefits, Lender ie authorized to collect und apply the inaurance proceeda at C.endei a option either to restoration or repair of the ~ Property or the auma secured by this Mortgage. ~ Unless I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue ~ c3ate of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Property ia acquired by I.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reeulting from damage to Property prior to the sale or acqu~aition ahall pass to Lender to the eatent o! the auma secured by this :llortgage immediately prior to such sale or acquiaition. ~ 6. Preeervation and Maintenance of Property; Leascholds; Condominume; Planned Unit Devetopments. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairmenl or deterioration of the Property and shal) comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgaqe ia on a unit in a condominium or a planned unit development, ~ };orrower shall perform all of Borrower's obligationa under the declaration or covenanta creatinti or governing the condominium or planned y unit development, the by-lavra and regulationa of the condominium or planned unit devetopment, and constituent dceuments. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the covenanta and ti aKreements of ~uch rider shall be incorporated into and shall amend and supplement the covenanls and ageements of this Mortgage as ifthe ~ rider wern a part hereof. Protection of Lender's 3ecurity. If Borrower faile to perform the covenanta and agreemente contained in thia Mortgage, or if any - action or procec~ding ie commenced which materially affects Lender'a interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, Lhen [.ender at Lender a option,upon " notice to Borrower may maice euch appearances, diaburee euch aume and take euch action as ie necesaary to protect I.ender's intereat, including, but not limited to, diebureement of reasonable attorney'e feea and entry upon the Property to make repaite. If Lender required ~ mortgage ineurance as a condition of making the loan eecured by thie Mortgage, Bonower ehall pay the premiuma required to maintain auch ineurance in effect until such time ae the requirement for auch ineurance terminatee in accordance with I3orrower'e and L.ender s written agreement or applicable Law. Borrower ehaii pay the amount of all mortgage insurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebursed by Lender perauant W this paragraph with intereat thereon, shall become additional indebtedneae of Rorrower eerured by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, auch amounte ehall be payable npon - notice from Lender to Borrower requeating payment thereof, and shaU bear intereat fmm the date of diebureement at the rate payable from ~ time to time on outatanding principal under the Note unleaa payment of interest at such rate would be contrary to applicable law, in which - event auch amounte ahall bear intereat at the higheet rate permiaeible under applicable law. Nothing contained in thie paragraph ehall ~ require I.ender to incur any expense or take any action here~nder. - ~ I 3 k - ~V~ '~L~ ~[!O ~