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HomeMy WebLinkAbout0695 Borrowe~ and [.ender covenant and agree se [ollowa: 1. Peyment ot Principal and Interest. Eiorrower ehall promptly pay when due the principal of and intereat on the indebtednese evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal of and inteceat an any FLture Advancee secured by this Mortgage. 2. ~nde [or Taxea and [neurunce. Subje~t to applicable law or to e wriften waiver by I.ender, E;orruwer ahal! pay to l.ender un the day . monthly inatallmenta of principal and intereat iuc payable under the Note, until the Note ia paid in full, a aum (herein "H~nda") equal to one twelfth of the yearly taxee and aaseasmenle which may attuin priority over thie Mortguge, and ground rents un the Propecty, i[any, plue one twelRh of yea~ly premium inatallmente for hazard inaurance, plus one~twelfth of yearly premium i~atallments for mortgage inaurance, if any, all ae reaeonably eetimated initially and from time to time by I.ender on the basis of aesesamenta and biUs and reasonable eatimates the~eo[. The Flmds shall be held in an institution the deposib or accounts of which ere inaured or guaranteed by a Rederal or State agency (including I.ender if Lender is auch an inetitution). Lender shaq apply the Funda to pay eaid taxes, aseesamenta, inaurance premiume and ground nnta. Lender may not charge [or so holding and applying the l~tinde, analyzing said account~ or verifying and compiling said aseeasmenta and bills, unle8a Lender paya Borrower intereet on the Funds and applicable law permits Lendei to make auch a charge. Borrower and l.ender may egree in writing at the time of e:ecution of thie hlortgage that interest on the F~nda shall be paid to Borrower. and unless auch agraement ia made or applicable law requirea such intereat to be paid, Lender shall not be required to pay Borrower any intereat or earninge on the Ftinds. I.ender shall give to Borrower, without charge, an ennual accounting of the Funda ehowing credita and debita to the Funds and the purpoee for which each debit to the Ftinda was made. The Funda are pledged as additional eecurity [oTthe auma eecured by thie i Mortgage. If the amount of the ~nds held by l.ender, together with the future monthly inetallmenta of Funda payable prior to the due dates of taxea, aeeessments, inaurance premiume and ground rente. s6a11 ezored the amount rcquired to pay said taxea, asseasmente, insurnnce premiuma and ground renta ae they fall due, euch excess ahall be, at Borrower s option, either poompdy repaid to Borrower or rredited to Borrower on monthly installmenta of ~nde. If the amount of the Fui?ds held by Lender ahall not be eufficient to pay taxee, asseesmente, insurance premiums and ground rents ae they fall due. B~rrower shall pay to Lender any amount necessary to make up the deficiency within 30 daya from the date notice ie mailed by i.ender to Borrower requesting payment thereof. Upon payaoent in full of all auma eecured by thia Mortgage, Lender ahall prompdy refund to Botrower any funde held by I.ender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by [.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite aoquiaition by Lender, any Funds held by [.ender at the time of application as a credit against the aums secured by thie Mortgage. 3. Applicatioa of Payments. Unlesa applicable law providea otherwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hetrof shall be applied by Lender first in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intemst and principal on any Future Advancea. 4. Charges; Liene. Borrower ahall pay all taxes, assessments and other chargee, fines and impoeitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner~ by Bo~rower making paymeot, when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all notices o[ amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower ahaU promptly furnish to [,ender receipta evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority orer this Mortgage; provided, that Botrower shall not be required to discharge any such lien so long as E3orrower shaU agreein writing to the payment of the obliRation secured by such lien in a manner acceplable to Lender, or shall in good faith contest such lien b~, or defend eniorcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Ymperty or any part thereof. 5. Hazard Inauraace. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured againat loas by fire, hazarda included within the term "e:tended coverage." and auch other hazards as Lender may require and in such amounta and forsuch periode as L.ender may require; provided, that I.ender shall not require such wverage amount exceeding the minimum, as may be required by state or federal regulationa goveming activitiee of I.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier prociding the insurence shall be chosen by E~,rrower subject to appro~•al by I.e~der, proeided, that such appruval , shall not be unreasonably withheld. All pmmiums on inaurance policies shali be paid in the manner pmvided under paraRraph 2 hereof or, if not paid in such manner, by I3orrower making payment, when due, directly to the insurance carrier. ~ All inaurance policiee and rnnewala thereof shall be in [orm acceptable to Lender and shall include a standard mortgage clauxe in favor of ; and in form acceptable to Lender. Lender ehall have the right to hold the policies and renewale thereof, and Borrower shall pmmptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of 1oss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly.by Borrower. ` Unleas I.ender and Borrower otherwise agree in writing, insurance proceeda shall be applied to rnstoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the eecurity of thie 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 proceede ahali be applied ~ to the euma eecured by thia Mortqage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by E3orrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the insurance carrier oftera to aeWe a claim for ineurance benefite, L.ender is authorized to collect and apply the inaurance proceeds at I.ender's option either to reatoration or repair of the Property or the sume secun+d by thia Mortgage. ~ Unleae Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not etttend or poetpone the due ~ date of the monthly inetallmenta referred to in paragraphe 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property is 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 firom damege to Property prior to the sale or aoquiaition shall pasa to L.ender to the extent of the aume secured by this ~ Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and Maintenance of Property; Leseeholde; Condominuma; Planned Unit Developmente. Borrower shall keep - the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a anit in a rnndominium or a planned unit development, 9 Eiorrower ahall perform all of Borrower'e obligationa under the declaration or covenants creatingor goveming the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and rnnetituent documenta. If a condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreements of such rider shall be incorporated into and ahal) amend and supplement the covenanta and agreements of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender'e Security..If Borrower faile to perform the oovenante and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially aftecte Lender'e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon > notice to Borrower may make euch appearances, dieburee auch eume and take euch ection ea is neeeseary to protect L.ender's intereat, including, but not limiLed to, diebu:sement of reasonable attorney'e fees and entry upon the Property to make repairs.lf Lende: required ~ mortgage ineiuance ee a rnndition of making the loan eecured by this Mortgage, Borrower shall pay the premiucae required to maintain ench ineurance in effect until such time ae the requirement for such insurance terminatee in acoordance with Borrower's and Lender'e c~ e= ~ written agteement or applicabie Law. Borrower ehall pay the amount of all mortgege insurance premiume in e manner provi un et paragraph Z hereof. ~ My amonnte disbureed by Lender persuant to thie paragraph 7, with intereet thereon, ehall become additional indebtednesa of ~ Eiorrower eecured by thia Mortgage. Unlesa Borrower and Lender agree to other terma of payment, auch amounte ahall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intereet from the date of disbureement at the rate payable 5rom ~ time to time on outetanding principal under the Note unleea payment oP interest at auch rate would be contrary to applicable 1aw, in which ~ event such amounte ahal) bear intereat at the highest rate permieaible under applicable law. Nothing contained in thia paragraph ehall reqyire Lender to incur any expenee or take any action hereunder. ~ , ~ ~ ~.ri 3U5 _ sg ~ 4 ~ ~ ~ ~ >'Zi