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HomeMy WebLinkAbout0040 Borrower and l.ender covenant and agree ae follows: 1. Payment ot Pri~cipal and Iaterest. Borrower shall promptly pay when due the principal of and interest on the indebtedneas evidenced by the Note, pnpayment and late charges ae pmvided in the Note, and the principa) of and intereat on any Fliture Advancea secured by this Mortgage. 2. PLnda for Ta~ces and Ineurance. Subject to applicable law or to a written waiver by I.ender, Bortrower shnll pay to I.enderon the day monthly installmenta of principal and interest are payable under the Note, until the Note is paid in full, a eum (herein "FLnds") equal to one. twelRh of the yearly taxee and aaseaaments which may ultain priority over this Mortgage. and ground rents o~ the Property, if any, plua one twelfth of yearly premium installmente for hazard ineurance, plua or?etwelfth ofyearly pcemium installments for mortgage inaurance, if any. all as reasonably estimated initially and from time to time by I.ender on the basis of asseaementa and bills and reasonable estimatea thereof. The fi~nds shall be held in an inatilution the deposita or accounts of which are insured or guaranteed by a Federal or State agency (including I.ender if I.ender ie auch an inetitution). I.ender ehall apply the Funde to pay said taxee, assesements, inaurance premiums and ground rents. L.ender may not charge for eo holding and applying the ~nds, analyzing eaid account, or verifying and compiling said aseeaements and bills, unleae I.ender peya Borrower interee! on the Ftinda and applicable law permita Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of thie Mortgage that intereet on the ~Lnda ahall be paid to Borrower, and unleas such agreement ie made or applicable laar requires auch interest to be paid, Lender ahall not be required to pay Borrower any intereat or earninge on the ~nde. Lender ahall give to Borrower. without charge, an annual accounting of the ~nda ahowing credita and debita to the Funde and the purpose for which each debit to the Funda wae made.'11ie Funde are pledged aa additional.aecurity [or the auma secured by this Mortgage. If the amount of the ~nde held by I.ender. together with the future monthly inatalimente of Funda payable prior to the due datea of taxes, aeeesamenta. insurance premiums and ground renta, ehall exc~red the amount required to pay said taxee, aeaeeaments, insurance premiuma and gronnd renta aa they fall due, auch ezceas ehall be. at BoiTOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of fi~nds. If the amount of the Funde held by Lender shall noL be aufficient to pay taxea, aseessments. inaurance premiume and ground renta aa they fall due, Borrowet ehall pay.to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requesting payment thereof. _ Upon payment in full of all sums aecured by thie Mortgage. Lender ahall promptly refund to Borrower any funde held by Lender. lf under paragraph 18 hereof the Property ia sold or the Property ia otherwise acquired by I.ender, Lender shaU apply, no later than immediately prior to the sale of the Property or ita aoquisition by Lender, any ~nde held by Lender ~t the time of applicetion as a credit againat the sums secured by this Mortgage. 3. Applieation of Paymeata. Unless applicable law provides otherwiae, all payments received by Leader under the Note and parsgraphs 1 and 2 hereof ahall be applied by I.ender firat in payment of amounta payable to Lender. by Borrower under paragraph 2 hereof, then to inter~st payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargee; Liene. Borrower ahall pay all taxes, assesamenfs and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph'L hereof or, if not paid in such manner, by Bortower making paymenl, when due, directly to the payee thereof. Borrower shall promptly furniah to Ixnder all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly fumish to Lender receipts evidencing such paymenta_ Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that ~ Borrower shall not be required to discharge 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 I.ender, or shall in good faith contest auch lien by, orde[end enforcement of such lien in, IegAl proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any pari thereof 5. Hazard Ineurance. Borrawer shall keep the improvementa now existing or hernafter erected on the Property insured againat loss by fire, hazards inclvded within Ohe term "e:tended coverage," and xuch other hazarde se Lender may require and in such amounts and for such perioda as Lender may require; provided. that Lender ahall not require auch rnverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activitiea of L.ender~ or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by t3orrower subject to appmval by l.edder, pmvided, th~t such appruval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance camer. All insurance policiea and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. L.ender ahall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipta of paid prnmiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made promptly~by Borrower. Unless Lender and Borrower otherwiae agree in writing, inaurance proceeds shall be applied to rnetoration or repair of the Property ; damaged, provided euch restoration or repair ia economically feasible and the aecurity of this Mortgage is not thereby impaired. If such M restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeds shall be applied i to the sums secured by this Mortgage, with the excesa, if any, paid to Borrowes~ If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offera to setUe a claim for G inaurance benefite, I.ender is authorized to rnllect and apply the insurance proceeda at Lender e option either to restoration or repair of the E Property or the aums eecured by this Mortgage. Unleas I.ender and Borrower otheiwiee agree in writing, any auch application of proceeda to principal ahall not extend or postpone the due y date of the monthly instalimente referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ r hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any ineurance policiea and in and to the proceeda i thereof resalting from damage to Property prior to the sale or acquieition ahall paas to Lender to the eatent of the sums eecured by this ; Mortgage immediately prior to such sate or soquisition. ` 6. Preeervation and Maintenanceof Property; Leaseholds; Condominume; Plenned Unit Developmente. Borrowerahall keep Y the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmpiy with the ~ r proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage ie on a unit in a oondominiura or a planned unit development, ;x Borrower ahall perform all of Bortower e obligationa under the declaration or covenanta creatingoi governing the condominium or planned ~ unit development, the by-laws and regulatione of the condominium or planned unit development, and rnnatituent documente. If a ; condominium or planned unit development rider ia execnted by Borrower and recorded together with thia Mortgage, the covenants and ~ agreements of such rider sha11 be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as i€the = rider were a part hereoL > Protection of I.ender'e Securi If Borrower faila ta _ ty. perform the oovenante and agreemeate contained in this Mortgage, or if any action or proceeding ie rnmmenced which materislly affecte Lender'a interest in the Property, iacluding~ but not limited to, eminent domain, ` ineolvency, oode enforcement, or arrangements or proceedinga iavolving a bankrupt or deoedent, then Lender at Lender's option,upon notice to Borrower may make euch appearances, dieburee euch eums and talce euch action ae ie neoeaeary to protect Lender s in~t, induding, but not limitsd to, disbureement of reasonable attomey e fee9 and entry upon the Property to make repairs. If Lender required mortgage ineurance ae a condition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiume required to maintain - ench ineurance in effect until such time se the requirement for auch inaurance terminatee in accordance with Borrower'e and Lender's written agreement or applicable Law. Borrower shali pay the amount of all mortgege inaurance premiuma in the manner provided under paragraph 2 hereof. = My amounte diebursed by Lender pereuant to this paragraph 7, with intereat thereon, ahall beoome additional indebtedness of Borrower secured by thie Mortgage. Unlees Borrower and Lender agree to other terme of payment, auch amounts shal) be payable upon ~j netice from Lender to Borrower requeeting payment thereof, and aha11 bear interest from the date of diabureement at the rate payable from - time to time on outetanding principal under the Note unleee payment of interrat at auch rate would be contrary to applicable law, in which ~ event auch amounte ahall bear interest at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall require Lendet to incur any e:penee or take any action hernunder. ~ s . 3CG~. J1~S =.iG: `t~ ~ ~ i ~ =