Loading...
HomeMy WebLinkAbout0503 Borrower and I.ender covenant and agree as follows: 1. Payment of Principal and Iatereet. Borrower ahaA proroptly pay when due the principal of and interest on the indebtedneae evidenoed by the Note. prepayment and late charges as pmvided in the Note, and the principel of nnd i~tereat on any Fliture Advancea secured by this Mortgage. 2. F`unds for Te~es and Ineurance. Subject to applicable law or to a written waiver by l.ender. Borrower ahall p~y to I.ender on the day ~ monthly inatallments of principal and intereet are payable under t1~e Note, until the Note ia paid in fuU, a sum (herein "~~da") equal to one twelRh of the yearly taxea and asseeameats which may attain piriority ove~ this Mortgage, and ground rente on the Property. if any, plus one- twelRh of yearly premium inatallmente for hassrd ineurance, plua onetwelRh of yearly premium inatallments for mortgage insurance, i[any, all as rraeonably eetimated initially end trom time to time by Lender on the baeie of asaessmenta and bills and reasonable estimates thereof. The Plinds shaU be held in en institution the deposits or aocounta of which are inaured or gua~anteed by a Federal or State agency (including I.end~ if Lender ie auch an institution). Lender ahatl apply the Funda to pay said tazes, asseesments, inaarance premiums and ,aroiu?d rents. Lender mayr not charge for so holding end applying the I~nds, analyzing said accoant, or verifying and compiling aaid aseessments and biW, unleas Lender pays Borrower intereet on the Ftinde and applicable Iaw perp4ite Lender to make euch a charge. BoROwer and I.ender may agree in writing at the time of e:ecution of thia Mortgege that intereat on the ~nde shall be paid b Borrower, and unless soch agrcement is made or applicable law requires such interest b be paid, I.ender shall not be required to pay Borrower any intereet or earnings on the ~nds. L,ender ehaU give to Borrower, without charge, an annual accounting o! the ~nde ehowing credits and debita to the Funds and the purpoee for which each debit to the ~nda was made.'11~e Ftinda are pledged as additional eecurity for the aums eecured by thia Mortgage. If the amount of the I~Lnds held by Lender, together with the future monthly inatallmente of Funde payable prior to the due datea of taxea, aseeeaments, inaurance premiuma and ground rente. shall e~[aaed the amount required to pay said ta:ea, aeaeeamente. inaurance premiums aad ground rente as they fell due.. auch ~oesa ahall be, at Borrower a option, either promptly repaid to Borrower or c~edited to Borrower on monthly inataUments of ~nda. If the amount of the ~nda held by Lender shaU not be aufficient b pay tauea, asseasmente, inenrance premiums and ground nnLe as they fall due, Borrower ehaU pay to Lender any amount neceaeary to make up the deficiency within 30 deye from the date notice ia mailed by Lender to Borrowrr requesting payment thereof. Upon payanent in full of all aums eecured by this Mortgage, Lender shall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Propedy is soW or the Ptoperty is otherwiae acquired by Lender, I.ender shall apply, no later than immediately prior to the eak of the Property or ita soquisition by Lender, any Fl~nde held by Lender at the time of application as a credit againat the awns aecured by thia Mortgage. 3. Appli..aNv~ a~f ~r'a~.uenis. Unleae appGcable law providea otherwise, all paymente received by Lender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender fust in payment of amounts payable to I,ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. thea to the principal of the Note, and then to iatereat and principal on any Future Advances. 4. Charges; Liene. Borrower ahall pay all taxea, asseesmenta and other charges, finea and impositions attribatable to the Property which may attain a priority over this Mortgage. and leasehold payments or ground renta, i[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 fiirnish to Lender all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment direcdy, Borrower shall promptly furniah to Lender receipts evidencing such payments. Borrower ahall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall aot be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Ineuranoe. Borrower shall keep the improvemente now exiating or hereafter erected on the Property insured against loss by fire. hazarde included within the term "e~ctended coverage.° and euch other hazards as Lender may reqaire and in auch amounts and for auch perioda ea L.ender may require; provided, that I.ender ahall not require auch ooverage amount ezceeding the minimum, as maybe required by etate or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the auma aecured by this Mortgage, whichever ia the greater. The inaurance carrier providing the inaurance shall be chosen by Borrower subject to approva) by Lender, provided, that such approval shall not be unreasonably withheld. A11 premiume 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 insurance policiee and renewala thereof shall be in form accepfsble to Lender and shall inclade a standard mortgage clauee in favor of and in form aoceptable to I.ender. Lendet ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notioee and all receipta of paid premiuma. In the event of lase, Borrower ahall give prompt notice to the insurance carrier ' and Lender. I.ender may make proof of loes if not made pmmpdy by Borrower. j Unleas Lender and Borrower otherwiee agree in writing, inaurance proceede ahall be applied to reetoration or repair of the Property ' damaged, provided euch restoration or repair ia economically feasible and the eecurity o€ thie Mortgage ia aot thereby impaired. If such { restoration or repair ie not eoonomically feasible or if the security of this Mortgage would be impaired, the ineurance proceeds shall be applied ; to the eums aecured by thie Mortgage, with the ezceas, if any. paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to ~ respond to Lender withia 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for - ~ inaurance benefite, I.ender ie anthorized to collect and apply the insurance pmceede at Lender's option either to restoration or repair of the ~ Properly or the suwa secnred by thia Mortgage- ~ Unleae L.ender and Borrower otherwiee agree in writing, any auch application of proceeda to principal ehall not eatend or poetpone the due ~ date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the aa~ount of such inetallmente. If under paragraph 18 ! hereof the Property is acquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the eale or aoquisition shall paea to Lender to the e:tent of the auma eecured by thia ~ Mortgage immediately prior to auch eale or aoq~isition. 3 6. Preeervation and 3laintenance of Property; I.easeholds; Condomiaume; Planned Unit Developmenta. Borrower ahall keep ~ the Property in good repair and ahail not rnmmit waate or permit impairment or deterioration of the Property and shall comply with the ; ~ pmviaiona of any leaae if thie Mortgage ia on a leaeehold. If thie Mortgage ie on a unit in a oondominiam or a planned unit development, , Borrower ehall perform all of Borrower a obligations under the declaration or covenante creatingor governing the rnndominium or planned ~ unit development, the by-lawe and regulations of the condomiaium or planned unit development, and rnnetituent documents. If a g condominium or lanned unit develo ment rider ie ezecute~ b Borrower and recorded - p p y together with thia Mortgage, the oovenants and ~ agreements of auch rider shall be incorporated into and ahall amend and supplement the covenanta and agreementa of thia Mortgage as if the ~ rider were a part hereof ~ 7. Protection of Lender't Security. It Borrower fails to perform the oovenante and agreementa contained in this Mortgage, or if eny ' action or prooeeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcem~t, or errangements os prooeedings involving a banlmipt or deoedent, then Lender at Lender's optioa,upon - notice to Borrower may make such appearancee. disbnrse such euma end take euc6 action aa is ncoessary to pmtect Lender'~ intereat, ~ including, but not limited to, disbursement of reasonable attomeyb fees and entry upon Lhe Property to make repairs. If I.enda required : • mortgage inaurance as a oondition of making the loan eecured by thia Mortgage, Borrower shall pay the premiams reqnired to maintain snch insarance in effect until snch time as the requirement for such insurance terminatrs in aooordance with Borrowa s and I.ender s ? written agreement or applicable I.aw. Borrower ahall pey the amount of all mo rtgage inanrance premiums in the manner provided under ~ paragraph 2 hereof. ; AnY aznonnts disbursed by Lender persuant to this paragsaph 7, with intereat thereoa, ahaU beoome additional indebtedneea of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terme of payment, euch amounte shall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diebureement at the rate payable fzom ' timeto time on outatanding principal under the Note unleas payanent of interest at auch rate would be contrary to applicable law, in which ~ event auch amounta ahall bear interest at the higheat rate permieaible under epplicable law. Nothing contained in this paragraph 7, ehall ~ ~ require I.ender to incur any e:penee or take any action hereunder. ~ : R € "s ~ ~ a ~ `3ps , , _ 503 ~ ~ - -