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HomeMy WebLinkAbout0684 Borrower and I.ende~ covenant and agree as follows: 1. Pwyment of Principal sAd Interea~ Borrower shall promptly pay when due the principal of and interest on the indebtednesa evidenced by the Note, prepayment and late charges as provided in the Note. and the pri~cipal of and intereet on any ~Lture Advances aecured by thia Mortgage. 2. Ftinds for T~es and Insurance. Subject to applicable law o~ to a written waiver by I.ender, Borrower ahall pay to l.ender on the day monthly installmenta of principal and iaterest are payable under the Note, until the Note is paid in full, a aum (herein "Funda") equal to one twelRh of the yearly ta~cea and aseesamente which may attain priority over this Mortgage, and ground rents on the Property, if any, piue on~ twelfth of yearly premium instullmente for hazard insurance, plua onetwelRh ofyearty premium inatallmenta for mortgage insurance, if any, aU as reaeonably eetimated initially and from time to time by I.ender on the baeis of aesessments and billa and reaaonable estimatee thereof. 'l~e Fl?nda ahall be hdd in an institution the deposits or aooounts of which are insue~ed or guaranteed by a Federal or State agency (including Lend~ if I.end~ is auch an iaetitution). Lend~ shall apply the ~nds to pay said ta:es, aseeasments, ineurance premiuma and ground nnfa. Lender may not charge for so holding and applying the FLnda, analyzing eaid account, os verifyi~g and compiling said asaeesmeats and billa, unlees Lender pays Borrower interest on t}ie Funde and applicable law pemaita Lepder to make auch a cherge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that intereet on the Flinds ahall be paid to Borrower, and unleae •such agreement is made or applicable law requires auch interest to be paid. Lender shall not be required to p~y Bormwer any interest or eamings on the Phnds. I.ender ahall give to Borrower. without charge. an annual accounting of the Ftinda ehowing credita and debits to the ~nda and the purpose for which each debit to the Ftinda waa made. The Funds are pledged ea additional aecurity for the sums eecured by this Mortgage. If !he amount of the F1nds held by Lender, together with the future monthly inetallments of Funds payable prior to the due datee of taxes. asseaementa, ineurance premiums and ground rente, shaU e~cored the amount required to pay eaid taxea. eaeeesments, inaurance premiuma and ground renta aa they fall due. such eacceee ahall be, at Borrower a option, either prompdy repaid !o Borrow~ or credited to Borrower on mu~ttily inetst2ments of Functs. If the amount of the Funas heid by I.ender ahall not be sufficient to pay tauea, aeeeeementa, inaurance premiuma and ground renfa as they fa~l due, Bo wer nhall pay to I.ender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by Lender to ~o~ requeeting payment thereof. . Upon psymeat in full of a}~bu pecuiei~y a age, Lender ehall prompdy refund to Borrower any funde held by Lender. If under paragraph l8 hereof the r y ia otherwiee acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Propertf or~ cq~ ' y er. any ~Lnda held by Lender at the time of application se a credit againat the aums secured by this Mortgage. ~ • ~ ~r • 3. Applieation at`P~r~e applicable law providea otherwiee. all payments received by Lender under the Note and paragraphe 1 and 2 hecea~sh ed by Leader firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereet payable oxjR . then to the principal of the Note, and then to inter+eat and principal on any Future Advancea. 4. Chargea; Lten~.$o er ahall pay all taxes, assessments and other chargea. fines and impositions attributable to the Property which may attain a priority ov ' Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch mann~r, by Borrower making payment, when due, directlp to the payee thereof. Borrower shall promptly furnish to Lender aU noticea of amot?nts due under thia paragraph, and in the event Bocrower shall make payment directly, Borrower shall promptly fumish to L,ender receipts ~videncing auch paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that fiorrower aha11 not 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, or defend enforcement of such lien in, legai proceedings ' which operate to prevent the enforcement of the lien or forfeitue+e of the Property or any part thereof. 5_ Hazard Insurance. Borrower ahall keep the impmvemente now ezis'g or hereaf't~ erected on the Property inaured against loas by fire, hazarde included within the teran "extended rnverage,° and e~uch other hazards as Lender may require and in such amounts and for such periods as Lendez may require; provided, that Lender ahall not require such ooverage amount e:ceeding the minimum. as may be required by state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever ia the greater. The insurance carrier providing the inaurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval shall not be unreseonably withheld All premiums on insurance poliries shall be paid in the manne~ provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ahall be in form aoceptable to Lender and shall include a standard mortgage clause in favor of and in form aoceptable to Lender. Lender shall have the right to hold the policies and renewala thereof, and Borrower ahail promptly furnish to ~.~nder el! renewal notices ~d sll s~eceigts of gsid pxrmiums. :n thc e~ cni of lass, Sazsower shat2 give pmrnpt notite Lo the inaurance carrier and Lender. I.ender may make proof of loas if not made prompdy by Borrower. ! Unlese Lender and Borrower otherwiee agree in writing, inanrance procecds shall be applied to reatoration or rrpair of the Property damaged. provided auch reetoration or repair is economically feasible and the eecurity of this Mortgege ie not thereby impaired. If auch 4 restoration or repair is not economically fesaible or if the eecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied ~ to the swns eecured by thia Mortgage. with the pxcess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 days from the date notice ie mailed by Lender to Borrower that the inaurance carrier o~era to setde a claim [or ineurance benefita, Lender is authorized to collect and apply the insurance proceede et I.ender s option either to restotation or tepair of the { Property or the suma aecured by thie Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of prooeeds to principal ehall not extend or poatpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interPat of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior Lo the eale or aoquiaition shall paes to Lender to the e:tent of the euma secured by this ~ Mortgage immediately prior to auch eale or aoquisition. ; 6. Preservatioa and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower ahali keep € the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lease if thie Mortgage ia on a leaeehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, : Borrower shall perform all of Borrower e obligationa under the declaration or oovenants creatingor governing the condominium or planned ~ unit development, the by-lawe and regulations of the condominium or planned unit development, and oonstituent dceumenfa. If a ~ condominiam or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the oovenante and ~ agreementa of auch rider shall be incorporated into and ahall amend and aupplement the covenants and agreements of this ~iortgage as if the rider were a part hereof. ~ 7. Protection o! I.ender's Security. If Borrower faila to petform the wvenants and agreementa oontained in thia Mortgage, or if any ; ; action or pmc.eeding is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, r ineolvency, oode enforcement, or atrangements or prooeedinga involving a banlmipt or deoedent, then L.ender at Lender's option,npon ~ notice to Borrower may make such appearances. diaburse auch sums and take euch action aa is neceesary to prote~t Lender's interest, ~ ? induding, but not limited to, diabureement of reasonable attorney's fcee and entry upon the Property to make repairs. If Lenda required t mortgage ineurence as a rnndition of mal~ing the loan eecnred by this Mortgage, Borrower shall pay the premiums reyuired b maintain F auch ineurance in effect nntil euch time as the requirement for such ineurance terminates in aa:ordance with Borrower'e and Lende~s ; written agrcement or applicable Iaw. Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided under ; paragraph 2 hereof. Any amounta diebaraed by I.ender persuant to thie paragraph with intereet thereon, ehall beoome additionel indebtednees of i Borrower secured by thia Mortga~e. Unlees Borrower and Lender agree to other terme of payment, auch amounts ehall be payable upon ~ notice from I.ender to Borrower requesting payment thereof. and ahall bear interest ~om the date of diebureement at the rate payable from e time to time on outstanding principal under the Note anleae payment of intereat at euch rate would be oontrary to applicable law, in which ~ event such emounta ahall bear interest at the higheat rete permiasible under applicable law. Nothing rnntained in this paragraph 7, ehall ~ require Lender to incur any expenee or take any action hereunder. ~ ~ s ~ 5 . ~ G~ `JVs . i = ~ s~3 . ~ {