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HomeMy WebLinkAbout0918 f &~rrower and lxnder covenant and agree ae follbwa: 1. Pe~yment ot Principal and Intereat. Eionower ehflll prompdy p~y when due ihe principal of and interest on the indebtecineas evidenced by the Note, prepayment and late charg~ as provided in the Note, and the principal of and intereat on any FLture AdvAncea secured by thia Mortgage. 2. ~nda for Te?xes and Ineurance. Subject W app{icable Ixw or to a written waiver by l.ender, Rorrower ahnll pay to I.ende~ on the day monthly inetsllments of principal end intereat are paynble under the Note, until the Note ie paid in full, a sum (herein "Funda") oqual to one twelfth of the yearly taxea and assesamente which may attain priority over thia Mortgatce, and ground renta un the Pru{?eAy, if any, plus one twelfth of yeaTly premium installmenta for hazard insurance, plus onetwelfth of yearly premium instnllme~ta for mortgage inaurance, if any, all ea reaeonably estimated initially and from time to tia~e by [.ender on the basis of aeaesamenta and bilta and rn~+sonable estimates tfiereof. The FLnde ahall be held in an institution the deposita or accounts of which are ineured or gueranteed by a Federal or State agency (including I.ender if Lender ia such an inatitution). I.ender ahaU apply the Funda to pay eaid taxea, asaeaemente, insurance premiums and ground tenta. I,ender may not charge [or ao holding and applying the Funds, analyzing said account, or verifying and compiling said asseaamenta and bills, unleas L.ender paya Borrower interest on the ~nda and applicable law permita I.ender to make such a charge. Borrower and l.ender may agree in writing at the time of execution of this Mortgage that intereat on the Fu~da ahall be paid to Borrower, and unlese auch agreement is made or applicable law requirea such intereat to be paid, I.ender ehall not be required to pay E3orrower any interest or earninge on the Funds. L.ender ahall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debite to the Fnnde and the purpoae for which each debit !o the Funda waa made. The Funds are pledged as additional aecurity tor the sume aecured by thie Mortgage. If the amount of the ~nds held by I.ender, together with the future monthly installments of Funds payable prior to the due dates of taues, aseesementa, insurance premiume and ground rnnts, ahall exored the amount required to pay said ta:ea, assesamenta, inaurance premiuma and ground renta sa they fall due, auch e:cesa ahall be, at Borrower s option, either pmmptly repaid to Borrower or credited to Borrower on monthly installmenta of flinde. If the amount of the Funde held by I.ender ahall not be eufficient to pay taxea, assesamente, iasurance premiuma and ground rents as they fall due. BoROwer shall pay to I,ender any amount ncr.~essary to make up the deficiency within 30 days from the date notice ia mailed by Lender to liorrower requesting payment thereof. t`pon payanent in full of all sume aecured by this Mortgage, Lender shall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, l.ender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any Funds held by i.ender at the time of application as a credit againat the sums seeured by thia Mortgage. 3. Application of Paymenta. Unless applicable law providea otherwise, all paymente received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by I.ender firaCin payment of amaunts payable to Lender by 8orrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liene. Borrowershall pay all tnxes, asaessments and other charges, fines and impositions attributable to the Property which may attain a priority overthis Mortgage, and leasehold payments or ground rentx, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, whe~ due, directly to the payee thereof. BorroveeT shall promptiy fumiah to lxnder all notices of amounts due under this paragraph, and in the event Burrower shall make payment directly, Borrower ehnll promptly turnish to I,ender receipts evideAcing auch payments. E3orrower shall promptly disrharge any lien which has priority over thisll'IoriRaqe; pmvided, that E~orrower ahall not be required to discharge any sucfi lien so long as Borrower shal{ agree in writing to the payment of the ubligation secured by ,uch lien in a manner acceptable to I.ender, or ehall in good faith contest such lien by, ordefend enforcementofauch lien in, legal proceeciings w•hich operate to prevent the enforcement of the lien or forfeiture uf the F'roperty or any part thereof. 5. Hazard Insurence. Borrower shall keep the improvementa now exiating or hereafter etected on the Property insured against loss by fire, hazarde inctuded within the tetm "eatended coverage; ' and auch other hazards as Ixnder may requim and in such amounts and for such periods as Lender may require; provided, that Lender ahal) not requirn such coverage amount e:ceeding the minimum, as may berequired by state or federal regulations governing activitiea ofi.ender, or that amount of coverage required to pay the aums secured by this l~tortgage, whichever is the greater. The insurance ca?rier providing the insurance shall be chosen by Borrower subject to approval by [.ender, provided, that such appro~ al shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof shali be in form acceptable to I~ender and shall include a standard mortgage clause in favor of a nd in form accepteble to Lender. I.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, &?rrower ahall give prompt notice to the insurance carrier and Lender. Lender may make proof oi loss if not made promptly by Borrower. Unleae L,ender and Borrower otherwiae agree in writing, inaurance pcooeeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ restora6on or repair is not economically feasible or if the aecurity of this Mortgage would be impaired. the insurance proceeda shall be applied i to the sums secured by thia Mortgage, vrith the excesa, if any, paid to Borrower_ If the Properiy ia abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier ofters to aettle a claim for ; insurance benefite, Lender is authorized to collect and apply the insurance proceeda at I.ender's option either to restoration or repair of the ` Pmperty or the sums secured by this Mortgege. Unleas Lender and Borrower otherwise agree in writing, uny such application of proceeds to principal ahal{ not extend or postpone the due date of the monthly inetaliments referred to in paragrapha 1 and 2 hereof or change the amount of such inetallments. If under paragraph 18 hereof the Property ie acquired by I.ender, all right, title and interest of Borrowerin and to any insurance policies and in and to the procet.ds ~ thereof reaulring from damage to Property prior to ihe sale or acquisition shall paes to Lender to the extent of the auma secured by this ; tifortgage immediately prior to such sale or acquiaition. ~ 6. Preservation and MaintenanceotProperty; Leaseholde; Condominums; Planned Unit Developmenta. Borrowerahall keep ( the Property in goai repair and ehall not commit waste or permii impairment or deterioration of the Property and ahall comply with the provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Korrower ahall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documenta. If a ; condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and aRreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgage as if 1he rider were a part hereof. ~ 7. Protection of Lender's 3ecarity. lf Borrower faila to perform the oovenants and agreemente contained in this Mortgege, or if any action or proceeding ia commenced vrhich meterially affect8 Lendei a interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Ixnder at Lendee s option,upon notice to Borrower may make euch appearancee, diebnree euch sume and take auch action ae ie neceseary to protect Lender e intereet, including, but not limited to, diabureement of reaeonable attomey'a fees and entry upon the Property to malce repairs. If I.endez reqnired mortgage inaurance as e rnndition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiume required to maintain such inaurence in effect until such time ae the requirement tor auch inaurance terminatea in accordance with Boaower'e and I.ender'e 3 written agreement or applicable Law. Borrower ahall pay the amount of ell mortgage inaurance pmmiume in the manner provided under Paragraph 2 hereoE. Any amonnte dieburaed by Lender perauant k? thia paragraph 7, with interest thereon, ehall beoome additional indebtedness of f3orrower eecured by thia Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounte ahall be payable upon notice from Lender to Borrower requeating payment thereof, and ehall bear interest fmm the date of disbureement at the rate payable from . time to time on outettu?ding principal under the Note unless payment of intereat at auch rate wouid be contrary to applicable law, in which event such amounts ahall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in this paragraph 7, ehall ° require Lender to incur any expense or take any aMion hereunder. ; ~ ~U5 ~ ~17 ~ . ~ ~