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HomeMy WebLinkAbout0826 , Borrowe~ and Lender cove~ant and agree aa folbws: 1. Payment ot Princlpal and lnteree~ Borrower ehall promptly pay when due the principal of and intereat on the indebtednees evidenced by the Note, prepayment and late chargee ne provided in the Note, and the principal of and interest on any ~ture Advances aecured by thia Mortgage. 2. Flutde tor Tasea and lneurance. Subject to applicable (aw or to a writtet~ waiver by Lender, Borrowerahall pay to l.enderon the day monthly inetallmenta of principal and interest are payable u~der the Note, until the Note ia paid in fuU, a eum lherein "l~~nds") equal to one twelfth of the yea~ly tax~ and asaessmente which may atlain priority over this Mortgage, and gn?und rents on the Property, if any, plua on~ twelfth of yearly premium inataUments [or hazard inaurance, plua onetwelfth of yearly premium inatal lmente fos mortgage inaurance. if any. all as reaaonably estimeted initially and from time to time by I.ender on the basie of aeseasmenta a~d bitls and reasonable eatimates thereof. The ~nds shall be held ia an inatitution the depoails or accounts ot which are insured or guaranteed by a Federal or State agency (including [.ender if Lender ia anch an inetitution). i.ender ahail apply the Funda to pay said taxes, assesament~?, inaurance premiuma and ground rents. Lender may not charge for so holding and applying the FLnda, analyzing said account, or verifying and compiling said asaessments and bills, unlese Lender pay-s Borrower interest on the Runds and applicable law permits Lender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage that intereat on the ~nda ahall be paid to Borrower. and unleea such agreement ia made or applicable law requires such intereat to be paid, Lender ehall not be required to pay Borrower any intereat or earnings on the ~nds. I.endar ahaU give to Borrower, without charge, an anaual accounting of the Funda showing credits and debits to the Funds and the purpoee for which each debit to the F~nds wae made. The Funds are pledged as additional security for the aums secured by this Mortgage. If the amount of the Fl~nda held by Lender, together with the future monthly inet~~enta of Funda payable prior to the due datea of taxes, aeaeesmenta. inaurance premiums and ground rente, ahall exazed the amount required to pay eaid taxea, asaesamenfe, inaurance premiums and ground renta ea they tall due, euch e~cees ahall be, at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly inetallmente of F'unds. If the amount of the Ftinda held by Lender ehall not be euf5cient to pay ta~ces, aeseasmente, inaurance premiums and groand rents as they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requeating payment thereof. Upon payment in fiill of all suma eecured by thia Mortgage, Lender ahall pmmpUy refund to Burrower any funda hetd by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by I.ender, I.ender shall apply. no later than immediately prior to the sale of the Property orit8 acquieition by Lender, any ~nda held by Lender at the time of application as a credit againet the auma secured by thie Mortgage. 3. Applieation of Paymente. Unleas applicable law pmvidea otherwiae. all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts 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 principnl on any Future Advances. 4. C6argea; Lieae. Borrower shall pay all taxes, assessmenta und other charges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments 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, directly to the payee thereof. Borrower ahall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower ahall promptly discharg,e any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any auch lien ao 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 [sith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prnvent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the impmvementa now e:iating or hereafter erected on the Property insured against lose by fire. hazarde included within the term "~tended coveragg; ' and e~uch other hazardB ae Lender may require and in auch amounta and for such periods as Lender may require; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regulations goveming aMivitiea of Lender, or that amount of coverage required to pay the sume secured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to apptoval by l.ender, pmvided, that such approval eha11 not be unteasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, dirertly to the insurance carrier_ ' All insnrance policies and renewals thereof shaU be in form acceptable to L.enderand ehall include a atandard mortgage clauee in favor of and in form acoeptable to Lender. I,ender ahall have the right to hold the policies and renewals thereof, and Bosower shall promplly furnish to i.ender all renewal notices and all receipts of paid premiuma. In the event of loss, Borrower shaU give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ Unlesa Lender and Borrower otherwiee agree in writing, inaurance procecda ahall be applied to restoration or repair of the Property i damaged, provided euch reatoration or repair ie economically fesaible and the eecurity of thie Mortgage ia not thereby impaired. If auch i restoration or repair ie not economically [easible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shail be applied ~ to the sums aecured by this Mortgage. with the exceae, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reepond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for inaurance bene6ts, Lender ia authorized to rnllect and apply the inaurance proceede at I.ender a option either to restoration or repair of the ~ Property or the auma eecured by this Mortgage. ~ Unlese L.ender and Borrower otherwise agree in writin an auch a lication of roc~eda to nnci 1 shall not eztend or ~ 8. Y PP P P~ pa poatponethedue date of the monthly inetallmenta referred to in paragraphs 1 and 2 hereof or chenge the amount of auch installmente_ If under paragraph IS ~ hezeof the Property ia aoquired by I.ender, all right, title and intereat of Borrower in and to any inaurance policiea and in and to the proceeds 4 thereof resulting fiom damage to Property prior to the sale or aoquiaition ahall pass to Lender to the extent of the auma secured by thie ~ Mortgage immediately prior to euch 8ale or acquieition. 6. Preservation and biainteaance of Property; Leaseholds; Condominums; Planned Unit Developmeute. Borrower shall keep ~ the Property in gaod repa'v and ehall not commit weste or permit impairment or deterioration of the Ptoperty and ehall oomply with the ~ proviaions of any leaee if this Mortgage ie on a leaeehold. If thie Mortgage ie on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligatione under the declaration or rnvenants creatingor goveming the rnndominium or planned s unit developmen~ the by-laws and regnlationa of the condomini~un or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreements of auch rider shall be incorporated into and ahall amend and supplement the covenanta and agreemenis of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot Lender's 3ecurity. If Borrower fails to perform the covenanta and agreements oontained in this Mortgege, or if any action or proceeding ie commenced which materially affecte Lender e intereet in the Property, including, but not limited to, eminent domain, ' insolvency, oode enforcement, or arrangements or prooeodings involving a bankrup! or deoedent, then Lender at Lender's option,apoa ; notice to Borrower may make snch appearanoes, disbarse auch eums and teke anch action as is neceseary to protect Lender's interest, f including, but not limited to. disbursement of reasonable attomey's fees and entry upon the Property to meke repairs. If Lender required ~ mortgage inaurence se a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiums required to maintain = such insnrance in effect until euch time as the requirement for euch ineurance terminates in socordance with Borrower's and Lender's ? written egrcement or epplicable I.nw. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under ' paragraph 2 hereof. ' My amounta diabureed by Lender pereuant to this paragraph 7, with intereat thereon, ahall beoome edditional indebtednesa of ~ Borrower secured by thie Mortgage. Unlesa Borrower and Lender agree to other terms of peyment, such amounte ahall be payable upon Y notice from Lender to Borrower requeeting payment thereof, and shall bear intereat from the date of diebureement at the rate peyable from ~ time to time on outatanding principa! under the Note unless payment of intereat at such rate would be oontrary to applicable law, in which ~ event auch amounta ahall bear intereet at the higheet rate permieeible under applicable law. Nothing contained in thie paragraph 7, ahall ' ~ require Lender to incur any e:penee or take any action hereunder. ' ~ t ~ ~ k ~ 6i O~ ~ ,a _ ~~y~ U ~ ~ # ~ ~ _ ~ ; . ~ ~ _ ~.~r,~ . _ , . . . ~ - r . ~