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HomeMy WebLinkAbout0630 Borrower and Lender covenant and agree as follows: 1. Payment of Priaclpel et~d latere~~ Borrower shall promptly pay when due the principal of and interest on the indebtedneas evidenced by the Note, prepayment and latecharges aa pmvided in the Note. and the principal of and inlernat on any F~ture Advancea secured bY this Martgage. 2 P~uads [or Texes and Iasuranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shaU p~y to l.ender on the day monthly inataliments of principal and intereet are payable under the Note, unW the Note is paid in full, a sum ~hernin "Funds") equal to one- twelfth of the yeerly taxes and asaeeamenta which may attain priority over this Mortgege, and ground rents on the Property, if any, plue one twelith of yeatly premium installmente for hazard insurance, plua one-twelRh of yearly premium inataliments for moctgage inaurance, if any, all as reaeonably e8timated initiaUy and from time to time by I.ender on the bpsia of aear,ssmenta end bills and reasonable eatimates thereof. 1l~e Fhnda shall be beld in an institution the deposita or acrnunfa of which are insured or guaranteed by a Federal or Slate agency (including Lender if Leader ia euch an institution). Lender ahall apply the Funds to pay said taxea, aeaesementa, inaurance premiums and gronnd reats. I.enda may not charge for so holding and applying the F~nds, analyzing said account, or verifying and compiling said aasessments and billa. unleea I.ender pays Borrower intereat on the Fluida and applicable law permite l.ender to make such a charge. Borrower and Leader may agree in writiag at the time of e:ecation of thia Mortgage thet intereat on the ~nda shall be paid to Borrower, and unleea such agreement is made or applicablc law requirea auch interest to be paid, I.ender ahall not be required to pay Borrower any intereat or earnings on the flu~ds. Lendes shall give to Borrower, without charge, an annual accounting of the ~nda ahowing credits and debite to the Funds and the purpose for which each debit to the ~nds wae made. The ~nde are pledged se additional eecurity for the auma secured by thia Mortgage. If the amount of the ELnda held by Lender. together with the future monthly inetallmenta of Funde payable prior to the due datea of taxes, eaaeeamenta, inanrance premiuma and ground rents. ahall exazed the amount required to pay said tazes, assesamente, inaurance premiums and ground renta es they fall due, sach e~[cess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inetallments~of Pbnds. If the amount of the Ftiu?de held by Ler.der shall not be auf~icient to pay taxea, asseasmenta, inaurance premiume end gronad rent~ as they fall due. Borrower ahall pay to Lender any amoun! neceesary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requeeting payment thereof. Upon payment ip fnll of all auma eecured by this Mortgage; L.ender ehall prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property ia otherwiee acquired by Lender, Lender shall apply, no later than immediately prior . to the sale of t6e Property or ite aoquisition by Lender, any ~nda held by Lender at the time of application as a credit against the aums secured by this Mortgage. 3. Application of Payments. Unlees applicable law provid~ otherwiae~ all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragreph 2 hereof. then to interrat payable oa the Note, then to the principal of the Note, and then to inter~st and principal on any I~ture Advances. 4. Charges; Liens. Borrower shall pay all taxes, aesesements and other chargge, Snes and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directiy to the payee thereof. Borrower shall promptly furnish to Lender all aoticee of amounts due under thia paragreph, and in the event Borrow~ shall make payment directly, Borrower ahall promptly furniah to ` Lender receipta evidencing s~ch gayments. Borrower shall promptly diacharge any lien which hae priority over this Mortgage; provided, that Borrower shall not be required to discharge any auch lien so long as Borrower shall agtee 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, or defend enforcement of such lien in, legal proceedings which operate to prev~t the enforcement of the lien or furieiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvemente now e:iating or hereafter erected on the Property inaured againet loss by fire. hazarde included within the term "eactended coversge," and auch other hazards aa Lender may require and in auch amounts and for such ~ periads se I.endet may require; provided. that Lender shall not require such oovetage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage requited to pay the auma eecnred by this Mortgage, whichever is the greater. ~ The insurance carrier providing the insurance shall be chosen by Borrower aubject to approva! by l.ender, p~uvided, that such approva) shall not be unreaeonably withheld. All prnmiuma on insurance policies ahall be paid in the manner pmvided unc~er paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ! All ineurance policiea and renewala thereof ahall be in form acceptable to Lender and ehall include a standard mortgage clause in favor of ; and in form aoceptable to I.ender. Lender shall heve the right to hold the policies and renewala thereof, and Borrower shaU promptly furnish to i.euder all renewel notioee and all receipts of paid premiums. In the event of loes, Borrower ahall give prompt notice to the insurance carrier - ~ and Lender. Lender may make proof of loas if not made pmmptly by Borrower. ; Unleae Lender and Borrower othe:wise agree in writing. inaurance proceeda ahall be applied to restoration or repair of the Property ! damaged, provided snch reatoration or repair ia economically feasible and the security of thie Mortgage ia not thernby impaired. If auch _ ~ reetoration vr repair ie not economically feaeible or if the security of this Mortgege would be impaired, the inaurance proceeds shall be applied f to the eams eecured by thie Mortgage. with the exceas, if any. paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to ` reepond to Iender within 30 daya from the date notice ie mailed by I.ender to Borrower that the insurance carrier offers to settle a claun for t i inaurance benefits, Lender ie authorized to collect and apply the insurance proceeds at Lender s option either to reatoration or repair of the ; Property or the sums aecured by this Mortgage. ' Unless Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal ahall not eztend or poatpone the due ~ date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of auch insttillments. If under paragraph 18 ~ hereof the Property is aoquired by Lender. all right, tide and interest of Borrower in and to any insurance policies and in snd to the proceeds ~ thereof resulting 5ran damage to Property prior to the eale or aoquiaition ahall pasa to I,ender to the e:tent of the auma secured by this ~ Mortgage immediately ~ior to auch sale or aoquiaition. . 6. Pceservacion and Maincenance ofPropeny; Leaseholde; Condominume; Planned Unit Developmente. Borrowershali keep ~ the Property in good repair and ahall not commit waste or pem~it impairment or deterioration of the Property and shall rnmply with the provisioao af ~zsy lease if thie Mortgage ia on a leaeehold. If thie Mortgage ia on a unit in a oondominium or a planned unit ~ievelopment, - ~ Borrower shall perform all of Borrower's obligationa under the declaration or rnvenants creatingor governing the rnndominium or planned ~ unit development, the by-lawe and regulations of the condominium or planned unit development, and rnnstituent documenta. If a ~ condominium or planned unit development rider ia eaecuted by Borrower and recorded together with thie Mortgage, the oovenants and ~ agreemente of auch ridet shall be incorporated ~nto and shall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider wern a part hereof ~ 7. Protection of Lender'~ Security. If Borrower fails to pe:form the oovenants and agreements oontained in thie Mortgage, or if any - action or ptoceeding is commenced which meterielly affecte I.eader s interest in the Propaty, including, but not limited to, eminent domain, insolvency, aode enforoement, or arrangements or pmc~eedings iavolving a banlmipt or deoedent, thea Lender at Iender's optioa,npon s notice to Borrower may make suc6 appearances, diabaree snch sums and take sueh action as is neceseary to protect I,endet's intere~t, ? inclnding, bot not limited to, diabureement of reaeonable attorney's fces and entry upon the Property to make repeirs. If I.ender required ; mortgage insurance as a condition of making the loan aecured by this Mortgage, Borrower shell pay the premiume reqnired to maintain ~ such insnrance u? effed until wch time aa the requirement for such insurance terminat~ES in aocordance with Borrower'a and Lender s ; written agr~eement or applicable I.aw. Borrower ahall pay the amount of all mortgage inaurance premiums in the menner provided under ; paragraph 2 ha~eof. z Any amounts disbarsed by Lender persuant to this paragraph 7, with intereat thereon, ahall beoome edditional indebtednese of Borrower secured by this Mortgage. Unlese Borrower and Lender agree to other terme of payment, such amounts shall be payable upon ~ notice fr~om Lender to Borrower requeating payment thereof, and ehall bear intereat from the date of diabureement at the rate payable from ~ time to time on outetanding prinripal under the Note unlese payment of interest at such rate would be oontrery to applicable law, in which ~ event such amounts ahall bear intereat at the higheat rate permiseible under applicable law. Nothing contained in this paragraph 7, shall ~ require Lender to incur any e~cpense or take any action hereunder. ~ x 1 4 t ~ . _ - r •3U~' ~ - • Sz9 ~ . ~