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HomeMy WebLinkAbout0603 Borrower and Lender covenant and agree as follows: 1. Pa~rmeat ot Priacipal and Iatereat. Borrower shall promptly pay when due the principal of end intetest on the indebtednesa evidenced by the Nota, prepayment and late charges as provided in the Note, and the principal of end interest on any Future Advances eecured by this Mott~age. 2. P1u~do tor T~ea and Iaeuranoe. Subject to applicable law or to a written waiver by I.ender, Borrower ehall pay to l.ender on the day monthly inatallments oiprincipal and intecest are p~yable under the Nota. until the Note ia paid in full. a eum (herein "Ftinda") equal to one , twelRh of the yearly taxee and aaseasments which may ~ttain priority over this Mortgage, and ground rents on the Property, if any, plue one ~ twelRh otyearly pnmium inatallments for hazard insurance, plue onetwelRh of yearly pre[nium inatalimente for mortgage inau~ance, if any, i all ea reasonably eetimate~d iaitially and from time to time by l.ender on the baeie of assesaments and billa and reaaonable eetimates lhereof. { The P1~nds shall be held in an institution the depasifs or acoounte of which are inaured or guaranteed by a Federal or State agency ~ (including Lender if Lender is such an institution). Lender shall apply the ~nda to pay said tazes, aseeasments, insurance premiuma and ! ground rents. Lend~ may not charge for so holding and applying the FLnda. analyzing aaid account, or verifying and compiling said. ~ assesameat8 and bills, unlesaLender pays Borrower interest on the F~nds and applicable law permite Lender to make auch a charge. Borrower ~ and Lender may agree in vvriting at the time of execution of this Mottgage that intereat on the I~nda ahall be paid to Borrower, and unleae ~ ench agreement is made or applicable law teqniree such intereet to be paid, Lender shall not be required to pay Borrower any intereat o: ~ earninga on the I~nds. Lender ehall give to Borrower, without charge, an annual accounting of the fi~nda showing credits and debite to the Funda and the purpoee for which each debit to the ~nda was made.'R~e ~nds are pledged as additional eecwrity for the eums eecured by this Mortgage. . If the amount of the Fl~nda held by Lender. together with the future monthly inatallmenta of ~nds payable prior to the due datee of tauee, asseeamenfs. inauranoe preaaiume and ground rente, ahall e~coeed the gmount required to pay said tazea, aseeasmente. insurance premiuma and gronnd renta as they fall due, snch e:cesa ahall be, at Borrowei s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of Flinds. If the amount of the I~nds held by Lender shall not be eufficient to pay ta:es, seseeamente, insurance p~emiume and ground renta ae they fall due, Borrower ehell pay to Lender aay amount necessary to cr.ake 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 sums aecured by thia Mortgage, Lender ahall prompdy refund to Borrower any funda held by I.ender. lf under paragraph 18 hereof the Property ia gold or the Property ie otherwiae acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite aoqaisition by Lender, any FLnde held by Lender at the time of application ae a credit againat the auma secured ~ by thia Mortgage. 3. Application of Paymeata. Unleae applicable law pmvidea otherwiee, all paymentn received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to [.ender by Borrower under paragraph 2 here~of, then to interest gayable on the Note, then to the principal of the Note. and then to interest and principal on any ~ture Advancea. 4. Chargee; Liene. Borrower ahall pay all taxes, asaessmenta and other charges, fines and impositions 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 auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnish to I.ender all noticea of amounte due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender reoeipta evidencing auch payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that j Borrower ehaU not be required to diecharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by ~ such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, or defend enforcement of such lien in, legal procei.dings ' which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inauraace. Borrower ahall keep the impmvemente now exiatiag or hereaRer erected on the Property insured against losa by fire, hazards included within the term "e:tended ooverage; ' and auch other hazarda as Lender may require and in such amounts and for such periods as Lender may require; p*ovided. that Lender ehall not requirn such ooverage amount e:ceeding the minimum, as may be required by atate or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. ; The inaurance carrier providing the insurance shall be chosen by Borrower subject to appmval by Lender, pmvided, that such approval ; shaU not be unreasonably withheld. All premiuma on insurance policies shail be paid in the manner pmvided under paragraph'l hereof or, if j not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. i ' All inaurance poGcies and renewala thereof aha11 be in form acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form acoeptable to Iender. I.enderahall have the right to hold the policies and renewala thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipta of paid premiuma. In the evenL of loae, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loes if n~t made prompdy by Borrower. i Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to reatoration or repair of the Property ~ damaged. provided sueh reatoration or repair ia economicaliy feasible and the eecurity of this Mortgage ie not thereby impaired. If such ~ restoration or repair is not eoonomically feasible or if the eecurity of this Mortgage would be impaired, the inaurance praceeds ahall be applied to the euma secared by thia Mortgage, with the e:cess, if any. paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to ~ ~ reapond to I.ender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier offets to seWe a claim for ? ~ inaurance benefita. Lender is aathorized to collect and apply the inaurence proceeds at Lender'a option either to restoration or repair of the ; Property or the sama eecured by this Mortgage. ~ ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of pra.~eeda to principal ahall not eatend or poatpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ia ecquired by Lender. all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds ; thereof resulting firom damage b Property prior to the aale or acquiaition shall pass b Lender to the extent of the eume eecured by thie ~ Mortgage immediately prior to auch eale or aoquisition. 6. Preeervation and Mainteaance of Property; I.esseholds; Condominums; Planaed Unit Developmente. Borrower ehall keep ~ the Property in good repair and ahall n~ commit waste or permit impairment or deLerioration of the Propedy and ahall oomply with the proviaions of any lease if this Morlgage ia on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower'e obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and aonatituent dceumente. If a rnndominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreementa of such rider shall be incorporated into and shall amend and aupplement the covenante and agreemente of thia Mortgage as if the ~ rider were a part hereof. _ 7. Protection ot I.ender'~ Secnrity. If Borrower fails to perform the ooveaants and agreements oontained in this Mortgage. or if any ~ ection or procxeding is commenced which materially affecte Lender'e intereat in the Property, induding, but not limited to, eminent domain, - insolvency, oode enforcement, or ~rrangements or pmoee~inge involving a banlQUpt or deoedeat, then Lender at Lender's option,upon ~ notice to Borrower may make such appearanoes. diaburse auch aums and take auch action as ie necessary to protect I.ende~'s interest, ' including, but not limited to, diebureement of reesonable attomey's fcee and entry upon the Property to me1~e repairs. If I.ender required ~ mortgage ineurance as a condition of making the loan secured by this Mortgage, Borrower ehall pay the premiums required to maintain ~ sach insarance in effect until such tune se the requirement for auch ineurance terminates in aocordance with Borrower's and Lendds ' ~ written agreement or applicable Law. Borrower ehall pay the a~nount of all morlgage insurance premiums in Lhe manner provided under ~ paragraph 2 hereof. '1 Any amonnta disbureed by Lend~ persuant to this paragreph with intereat thereon, a h a l l b e c ome a d d ition a l ia de b t e dness o f . ~ Borrowrr secvred by thie Mortgage. Unlesa Borrower and Lender agree b other temns of payment, auch amounte shall be peyable upon notice from Lender to Borrower requeeting payment thereof, and ehaU bear intereat from the date of diebursement at the rate payable from time to time on outatanding principal under the Note unleae payment of interest at such rate would be contrary to applicable law, in which i event such amounts shall bear interest at the higheat rate permiseible nnder applicable law. Nothing rnntained in this paragreph 7, ehall ~ ~ require Lender !o incur any Pacpenee or take any action hereunder. ~ j ~ Su~~ 3(17 ~!C_. UO3 ' ~ _ . _ _ , ~ ~ ~ .