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HomeMy WebLinkAbout0822 Borrower and l.ender cove~ant and agme aa follows: 1. Payme~t ot Prlncipal attd Interes~ Borrower ehall promptly pay when due the principal of and intereat on the indebtedness evidenoed by the Note, prepayment and late charges as pmvided in the Note, and the principal of and intereet on any ~ture Advancea eecured by thie Mort~age. • 2. ~Lt~ds for Tasea and Ineuranoe. 3ubject b applicabie law or to a written waiver by txnder, E3orrowe~ ahall pay to l.ender on the day monthly inatallmente of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "Funda") equal to one~ twelRh of the yearly taxes and aeaeaamente which may attain priori/y over thia Mortgage, and ground renta on the Property, if a~y, plue~ onc twelfth of yearly premium inetallmenta [or hazard inaurance, plua onetwelfih of yearly premium inatallmente for mortgage i~aurance, if any, all as reaeonably eetimated initially and from time to time by I.ender on the basia of aseesaments and billa and reueonable eatimates thereof. The ~ds shaU be held in an institution the deposita or accounta of which are inaured or guaranteed by a Federal or State agency (including I.e~der if Lender ia such an i~stitution). l.ender shall apply the Funda to pay said taxea, aeeea8mente, insurance premiums and ground rents. Lender may not charge for eo holding and applyit~g the PLnde, analyzing eaid account, or verifying and compiling said ~ asseasmente and bills. unleas Lender pays Borrower intereet on the ~nde and applicable law permita Lender to meke auch a charge. Bonower and Leader may agree in writing at the time of execution of thie Mortgage ti~st intereat on the ~nda ahall be paid b Borrower, and unlesa auch agreement ia made or applicable law requires euch intereat to be paid, I.endeT ahall not be required to pay Borrower any intereat or earninge on the ~nda. Lender ehaU give to Borrower, without charge. an annual accounting otthe Funds ahowing credita and debits to the ~nds and the purpoee for which each debit to the Ftinds wae made. The Funda are pledged as additional aecurity for the sume eecured by thie t Mortgage. . . If the amount of tl~e ~nda held by Lender, together with the future monthly inatallmente of Funda payable prior to the duedatea of taxes. asaesaments. inaurance premiume and ground renta, ahall ex~ed the amount required to pay said ta:ea, assesamenta, inaurance premiume y and ground rent8 as they faU due, such eaccese ahall be, at Borrowei s option, either pmmptly repaid to Borrower or credited to Borrower on monthly inetallmenta of FLnde. If the amount of the Funde held by Lender ehall not be sufficient to pay ta~cea, aeeeasments, insurance premiuma nnd ground rents ae they faU due, Borrower ehall pay to Lender any amount neceseary to make up the deficiency within 30 daya from the date notice ia mailed by L.ender b Borrower requeeting payment the~reof. Upon payment in full of all aums secured by thie Mortgage, [.ender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or its soquisition by Lender, any fi~nds held by i.ender at the time of application as a credit against the sums aecured by thie Mortgage. 3. Application of Payments. Unleae applicable law providee otherwise, all paymenta ceceived by Lender under the Note and ; paragrapha 1 and 2 hereof ahaU be applied by L.ender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargee; Liena. Borrower ahall pay all taxes, asseasmenta and other charges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if xny, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly fumiah to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing such paymenta. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge any such lien ao long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, or defend enforcement of auch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or anv part thereof. ~ 5. Hazard Insurance. Borrower ahall keep the unprovements now exiating or hereafter erected on the Property insured againat lasa by fire, hazards included within the term "e:tended coverage," and euch other hazards ea Lender may requirn and in such amounts and for such periods as Lender may requirn; provided, that I.ender ahall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the aums secured by this Mortgage. whichever ia the greater. The inaurance carrier providinq the insurance shalt be chosen by Borrower subject to approvat by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereo[or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof ahall be in form acceptabie to Lender and shall include a atandard mortgageclause in favorof and in fortn aoceptable to I.ender_ Lender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal noticea and aU receipta of paid premiume_ In the event of losa, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly by Borrower. I! Unlesa Lender and Borrower otherwiee agree in writing, insurance proceeds ehall be applied to restoration or repair of the Property i damaged, provided auch reatoration or repair is economically feasible and the security of this Mortgage ie not thereby impaired. If such ~ restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeda shall be,applied ~ to the euma eecured by this Mortgage, with the e:ceae, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to " respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offere to eetde a claim for ~ insurance bene6ta, Lender is authorized to collect and apply the inaurance proceeda at Lendei a option either to restoration or rnpair of the ' Property or the suma secured by this Mortgage. ~ Unlees Lender and Borrower otherwiee agree in writing, any such application of procceda to prinripal ehall not extend or poatpone the due ~ date of the monthly instalimente referred to in paragraphe I and 2 hernof or change the amount of auch installments_ If under paragraph 18 ~ hereo[ the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds ~ thereof reaulting from damage to Property prior to the eale or acquisition ahall pass to i.ender to the eztent of the aume eecured by this ~ Mortgage immediately prior to such eale or aoquieition. = s. Preservaaon and Maincenance of Property; I.eaeeholde; Condominums; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waste or pem?it impairment or deterioration of the Property and shall a.,omply with the ~ proviaiona of any leaee if this Mortgage is on a leaeehold. If thia Mortgage is on a unit in a condominium or a planned unit development, ; Borrower ehall perform all of Borrower'a obligationa~rnder the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit development ridet ie executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreementa of euch rider ehall be incorporated into and shall amend and suppiement the covenants and agreements of this Mortgage as if the P rider were a pert hereof. ~ Protection of Lender's Security. If Borrower fails to perform the oovenanta and agrcemente oontained in thia Mortgage, or if any ~ action or proceeding ie commenced which materislly affects I.ender's interest in the Property, including, but not limited to, eminent domain. ` = ineolvency, oode enforcement, or arrangements or pmceedings involving a banlm~pt or decedeat, then Lender at Lender's option,upoa s notioe to Borrower may make auch appearances, disburee snch euma and take such action ae ie neceseary to protect L.ender's interest, 3 - including, but not limited to, disbarsemeat of reasonable attorney's fees and eatry upon the Property to make npairs. If Lenda required j mortgage ineurance as a condition of ineking the loan eecured by thie Mortgage, Borrower ahall pay the premiums required to maintain euch ineurance in effect until such time ae the requirement for such inaurance terminatea in acxordance with Borrower'B and Lendde written agreement or applicable Law. Borrower ahall pay the amoun! of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. Any amonnts diabnreed by Lender persuant to thia paragraph 7, with interest thereon, ahall become additional indebtedaeas of ` } Borrower eecured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, auch amounta aha11 be payabie upon - ; notice from I.ender to Borrower requeeting payment thereof, and shall bear interest from the date of diebursement et the rate payable trom ~ time to time on outetanding principal under the Note unlees payment of interest at such rate would be oontrary to applicable law, in which event euch amounte ehall bear intereat at the higheat rate permiaeible under appticable law. Nothing contained in this paragraph 7, shall ~ require I.ender to incur any expenee or take any ection hereunder. x ~ t L+ ~ ~ l ''~E p~ " ~fCr ~ ~ ~ ~ ~ r.~ - , ~ F a~ . N~.~_~~~: ~ , - ~ ~