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HomeMy WebLinkAbout0931 Burrov?er and l.ender covena~t and a~ree as followa: 1. Psytaent o[ Principal and I~terest. Borrower ahall promptly pay when due the principel of and intereat on the indebtedneea evidenced by the Nole, prepayment and latechargee as provided in the Note, a~d the principal of and intereat on any Future Advancea secured by thie Mortgage. 2. ~nds [or Ta:ee and Ineurance. Subject to applicable luw or to a written waiver by I.ender, Borruwer ahall pay to I.e~de~ on the day ' monthly inetaUmenta of principal and intereal are payable under the Note, until the Note ie paid in full, a sum (herrin "Funda") equal to onP twelfth of the yearly taxes and assesarnenla which may attain priurity over thie Mortgage, and ground rr~ta on the Pruperty. if any, plus one twelfth of yearly prnmium inatallmenta for hazard ineurance, plus onetwelfth ofyeady premium instaliments for mortgage inaurance. if any. all ae reasonably eatimated initially and from time lo tirr~e by I.ender on the basie of asseasmenta nnd bilta and ~easonable estimatea thereof. The Fltnda shall be held in an inetitution the deposits or accounte of which are inaured or guaranteed by a Federal or State agency (including I.ender i[ I.ender ie auch an institution). [.ender shall apply the Funds to pay said taxes, aaeessmenta, ineurance premiuma and ground rents. Lender may not charge for eo holding and applying the ~nds, analyzing said account, or verifying and compiling aaid asaeeaments and bills. unlesa I.ender paye Borrower intereat on the Funda and appticable law pern»te I.ender to make such a charge. Borrower and I.ender may agree in writing at the time of execution ot thie Mnrtgage that interest o~ the ~nde ahall be paid to Borrower, and unleas auch agreement ie made o~ applicable law requires such intereat to be paid, Lender ahall not be required to pay Borrower any iaterest or earnings on the ~nds. Lender ehall give to Borrower. without charge, an annual accounting of the Funda showing credits and debite to the Funds and the purpoee for which each debit to the F~nde was made. The Funda are pledged as additional aecurity for the aums aecured by thie Mortgage. If the amount of the ~?nds held by Lender, together with the future monthly inatallmenta of Funda payable prior to the due datea of taxes, aseesamenta, insurance premiums and ground rents, ahall excaed the amount required to pay said taxee, aesesamenta, insurance premiums and ground rents ae they fall due, euch e:c~s ahall be, at Borrower's option, either prompdy repaid to Botrower or credited to Borrowe~ on monthly inetsllments of ~Lnde. If the amount of the Funds held by I.ender ahall not be sufficient to pay taxea, asseasmenta, insurance premiuma and ground rents as they fall due, Borrower ahall oay to I.eoder any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all suma eecured by this Mortgage, Lender ahall promptly refund to Rorrower any lunda held by I.ender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiae acquired by Lender, Lender ahall apply. no later than immediately prior to the sale of the Property or ite aoquisition by I.ender, any ~nds held by I.ender at the time of applicaUon as a credit againat the aums secured by this Mortgage. 3. Applicatioa ot Paymente. Unless applecable law providea otherwise, all paymenta received by I.ender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firat in payment of amounts payable to Lender by Borrower 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. Chargea; Liens. Rorrowershali pay all taxes, a+ssessmenta and other rharges, fines nnd impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or grvund rents; if any, in the manner provided under paragraph 2 her~tor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly fumish to I.ender all notices of amounts due under this paragraph, and in thc event f3orrower shall make papment directly, Borrower shall promptly furnish to Ixnder receipts evidencing auch paymenta. Borrower ahall promptly discharge uny lien which hus priority over this htortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writinR to the payment of the obligation secured by >~ch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the entorcement of the lien or forfeiture of the Property or uny part thereof. 5. Hazard Insurance. Borrower ahall keep the improvementa now egisting or hereafter erected on the Property insured against loss by fire, hazarde included within the term "extended coverage, ' and euch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require auch ooverage amount exceeding the minimum, as may be required by state or federal regulationa goveming activities of Lender, or that amount of cuverage required to pay the sums secured by this Mortgage, whichever is the greater. 'The insurance carrier providing the insurance shall be chosen by Borrower subject to approval hy txnder, pn~vided, that such approval shaU not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvidec! under paraKraph `l hereof or. if ~ not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof shall be in form acceptable W Lenderand ahall include a standard mortgage clause in favorof ; and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereot, and ~rrowe~ shall promptly furnish to ~ Lender all renewal notices and aU receipta of paid prnmiums. In the event of losa, Born~wer shall give prompt notice to the insurance carrier ; and Lender. I.ender may make proof of loea if not made promptly by Borrower. ~ Unlese Lender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair ia economically feaeible and the aecurity of this 111ortgage is not thereby impaired. If such ~ restoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the a~ms secured by this Mortgage, with the ~cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier of1'ers to settle a claim for ~ insurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lender'a option either to restoration or repair of the ~ Property or the sums eecured by this Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly inatallments referred to in paragrapha I and 2 her~eof or change the amount of such installments. If under paragraph 18 r hereof the Property is acquired by Lender, all right, title and internet 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 acquisition shall pass to Lender to the e:tent of the aums secured by this Mortgage immediately prior to such eale or aoquiaition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, E3orrower shall perform all of Borrower'e obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-Iawa and regulationa of the condominium or planned unit development, and conatituent documenta. If a ~ condominium or planned unil development tider is executed by Borrower and recorded together with thie Mortgage, the oovenanta and aKreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the a rider were a part hereof. =t 7. Protection of I.ender'e 3ecurity. If Borrower faila Lo perform the oovenanta and-agreementa contained in thie Mortgage, or if any action or proceeding ie commenced which materially affecta Lender's interest in the Property, including, but not limited to, eminent domain, ineolvency. aode enforcement, or arrangemen.te or proceedinge involving a bankrupt or decedent, then Lender at Lender'e option,upon - notice to Borrower may make euch appearances, diaburee auch anme and take such action ae is neceesarp to protect L.endei e interest, - including, but not limited to, disbureement of reaeonable attorney'e feee and entry upon the Property to make repairs. If Lender required mortgage ineurance aa a condition of making the loan eecured by thie Mortgage, Borrower ahall pay the premiuma required to maintain euch ineurance in effect until euch time ae the requirement for euch inenrance terminatee in accordance with Borrowei e and Lender's written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ` Any amounte diaburee~ by Lender pereuant to this paragraph 7, with intereat thereon, ahall beoome additional indebtedneee of ~ E3orrower eecured by thia Mortgage. Unlees Bonower and Lender agree to other terme of payment, auch amounte shall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear intereat from the date of disbursement at the rate payable from r: time to time on outatanding principal under the Note unlees payment of intereat at auch rate would be oontTery to applicable law, in which event auch amounte shall bear interest at the higheet rate permiaeible under applicable law. Nothing contained in this paragraph 7, ehall ~ require I..ender to incur any expenee or take any action hereunder. ' ~ go~~ 3U5 ~a~~ 930 ~ , ~ - . ~J ~