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HomeMy WebLinkAbout0818 I } r Borrower and I.ender covenant and agne ao fotlows: 1. Payment ot Principal and latere~t. Eiorrower shaU promptly pey when due the principal of a~d inte~t on the indebtednees evidenced by the NoLe, prepayment and late charges as provided in Ihe Note, and the principal of and interest on any Future Advancea eecured by thu Moctgage. . ~ 2 I~tnds [or Tasea and Inouranoe. Subject b applicable law or to a written waiver by L.ender, Bormwer ahall pay to l.eoder on the day monlhly inetalimenta of principal and intereet are payable under the Note, until the Note ia paid in fiill, a sum (herein "Funde"? equal to uno- twelfth of the yearly taxes and aeaceeme~te which may attain priority over this Mortgage. and ground rente on the Property. if any. plus on~ twelRh of yeerly premium installments for hazerd inaurance, plue onetwelfth of yearly premium installmenta for mortgage inauraace, i[any, all as reasonebly eatimated initially and from time to time by I.ender on the basia of aaseasmenta and billa end reasonable estimate8 thereoL The P1~nds ahall be held in an institution the deposits or socounts of which are insured or guaranked by a Federal or State agency : (including Lender if I.ender is such an inatitution). Leoder ahall apply the Funds to pay said ta:ee, assesamenta, insurance premiums and Bround renta. Lender may not charge fot so holding and applying the ~nds, analyzing said account, or verifying and compiling said aaseaements and bills, unleea L.ender pays Borrower intereat on the Ftinds and applicable law permita I.ender to make euch a ch arge. Borrower and Leadet may agree in writing at the time o! execution of this Mortgage that inlerest on the Ftinds ahaU be paid to Borrower, and unlees auch agrcement ia made or appiicable law requires auch i~Lerest b be paid, I.ender shall not be reqnired b pay Borrower any interest or earninga on the I~nd~. I.ender ahall give to Borrowa. without charge, an annual aceounting of the Ftinds showing credita and debita to the Funde and the purpoee for which each debit to the ~nds wae made.'ILe Funda are pledged as additional eecurity for the auma eecured by thia Mortgage. If the amount of the Funda held by I.ender, together with the future monthly installmente of Funds payeble prior to the due dates of tazea, seseasments. inearence premiums and geound renta, ahaU e:czed the amount required to pay said ta:es. aseeesmenta. inaurance premiums and ground rents as they fall due, such exoeas ehall be, at Borrower's option, either.promptly repaid to Borrower or credited to Borrower on monthly installmenta of ~nds. If the amount ot the ~nds held by l.ender shall not be aufficient to pay taxea, aseessmente, insurance premiums and ground rente as they fall due, Borrower shall pay to I.ender any amount neceseary to make up the deficiency within 30 daye from the date notioe is mailed by Lender to Borrower requeating payment ther~of. Upon paymeat in full of all anms aecured by lhie Mortgage, Lender ehall promptly ~efund to BorroweT any funde held by [.ender. If under paragraph 18 hereoi the Property is aold or the Property ia otherwise acquired by I.ender, Lender ahall apply, no later than imrinediately prior to the eale of the Property or ite aoquieition by Lender, any ~nds held by Lender at the time of application ae a credit againat the aume secured by thie Mortgage. 3. Applieation of Pa~+ments. Unleas applicable law provides otherwise, all paymente received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to inte~eat payable on the Note, then to the principal of the Note, and then to interest and principal on nny Future Advances. 4. Chargea; Liens. Borrower ehall pay atl taxes, aseesaments and other charges, finee and impoeitiona attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompqy furnish to Lender all noticea of amounta due under thia paragreph, and in the event Borrower shall make payment directly, Borrower shall pmmptly furnish to [.ender rec~eipts evidencing such paymenta. Borrower ahall pmmptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower ehal) not be required to diacharge any such lien so long es f3orrower ahall agree in writing to the payment o[theobligation aecured by such lien in a mannet acceptable to L.ender. or shall in good faith contest such lien by, ordefend enforcement otauch lien in, leqal procecdinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any pari thereof. 5. Hazard Inaurance. Borrower ahall keep the improvemente now e:iating or hereafter erected on the Property inaured againet loss by fire, hazards included within the term "eztended rnverage, ' and auch other hazards as Lender may require and in auch amounts and for such perioda es Lender may require; provided, that Lender ahall not require auch ooverage amount exceeding the minimum, es may be required by state or federal reguletione governing activitiea of Lender, or that amount of rnverage required to pay the sums aecured by this Mortgage, whichever is the greater. The iosurance carrier providing the insurance ahall be chosen by Borrower aubject to approva) by l.ender, provided, that such approval shall not be unreasonably withhetd. All prnmiuma on inaurance policies ahall be paid in the manner provided under paraqraph 2 hereof or, if - not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to I.ender and ahall include a standard mortgage clause in tavor of and in form acoeptableto Lendet. Lender shall have the right to hold the policies and renewala thereof, and Borrower shall promptly furniah to i.ender all renewal notic.~s and all re~oeipte of paid premiume. In the everd of loee, Borrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loae if not made promptly by Borrower. . Unleas Lender and Borrower ofherwiee agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided anch reatoration or repair is economically feasible and the eerurity of thie MortgagP is not thereby impaired. If auch ' reatoration or repair ie not eoonomically feasible or if the eecurity of thia Mortgage would be impaired, the inaurance proceede ahall be applied j to the euma secured by this Mortgage. with the e:ceae, if any. paid to Borrower. If the Property is abandoned by Bonower, or if Borrower faila to reapond to Lender within 30 days from We date notioe ia mailed by Lender to Borrower that the ineurance carrier otTers to setde a claim for ~ insurance benefits, Lender is authorized to rnUect and apply the insurance proceeda at Lender's option either to reetoration or repair of the ! Property or the sums secured by this Mortgage. ` Unlesa Lender and Borrower otherwiee agree in writing, any auch application of pmceeda to principal ehall not extend or poatpone the due ~ date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inetallmente. If under paragraph 18 ~ hereof the Property ie aoquired by Lender, all right. tide and intereat of Borrower in and to any inaurance policiea and in and to the proceeds ~ thereof resulting from damage b Property prior to the sale or aoquisition ahall paas to Lender to the e:tent of the suma eecured by this ~ Mortgage immediately prior to auch sale or aoquiaition. ~ 6. Preservetion and ~(aintenance of Property; I.eaeeholde; Condominume; Planned Unit Developments. Borrower ehall keep ~ the Property in good repair and ahall not commit weste or permit impairment or deterioration of the Property and ehall comply with the , provisione of any leaee if thie Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, ~ E3orrower ehell perform all of Borrower e obligatione under the declaration or covenanta creatingor goveming the condominium or planned - unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider ia euecuted hy Borrower and recorded together with this Mortgage, the wvenente and ri agreements of euch rider shall be incorporated into and ahall amend and supplement the covenanta and agreemente of this Mortgage as if the g rider wern a part hereof. ~ 7. Protection ot Lender'~ Security. If Borrowa fails to perform the oovenanta and agreemenb oontained in this Mortgage, or if any ; action or proceeding ie commenaed which mat~rially afiecte Lender's wtereet in the Property, including, but not limited to, eminent domain, : ineolvency, oode enforcement, or arrangements or praxedings involving a bankrupt or decedent, thea Lender at I.ender's option.upon ~ notice to Borrower may make auch appearances. disburse such eums and take such action es ia nec~eary to prot«X Lender's int.erest, - including, bat noi limited to, disbarsement of reasonable attomey's feea snd entry upon the Property to ma1~e npairs. If Lender required mortgage ineurance as a condition of inelcing the loan eecured by this Mortgage, Borrower shall pay t6e premiums required to maintain E euch ineurance in ef~ect until euch time as the requirement for such inaurance terminates in accordance writh Borrower's and L,endels written a~eement or applicable Law. Borrower shall pay ttie amount of all mortgage insurance premiums in the manner prorided under paragraph 2 hereof. ; My eawunts disbursed by Lender perauant to this paragraph with intereet thereon, shall beoome additiona) indebtednees of ` e Borrowrr ~ecured by this Mortgage. Unlees ~orrower and Lender agree to other terms ot paymen~ snch amounte shall be payab)e upon - notice from I.ender to Borrower requeating payment thereof, and shall bear intereat from the date of diebursement at the rate payable from time to time on outatanding principal under the Note nnleas payrnent ot interest at snch rate would be aontrary to applicable law, in which ~ event such amounte aha11 bear intereat at the higheat rate permiaeibte under applicable lew. Nothing oontained in thie paragraph sha11 ~ require I.ender to incur any e:penee or take any action hereunder. ~ G = ~k~~?a~E 818 ' BOG!( ~ ~ s;~ ~ - ~ _ ~ n:~. _ , _ .