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HomeMy WebLinkAbout0048 Borrower and I.ender covenan? and agree as [oUowa: 1. Payment of Principal and Intereet. Rorrower ehall prompUy pay when due the principal of and interest on the indebted~eas evidenced by the Note, prepayment and late chsrgea aa provided in the Note, a~d the principal of and interest on any H~ture Advancea eecured by this Mortgage. 2. Ftitnda for Taxee and Insurance. Subject to applicable law or to a written waiver by l.ender, E3orrower ahall pay to I.ender on ihe day monthly inataltments o! principal and intereet are payable under the Note, until the Note ia paid in full, a eum (herein "I~~unda") equal to one twelfth of the yearly taxes and assessmenta which may attain priority over this hiortgage, and ~und renta on the Property,, if any, plua one twelfth o[yearly premium installments [or hazard inaurance, plue onetwelRh ofyearly premium iostHlimenta for mortgage ineurance, if any, all as reaeonably eatimated initially and from time to time by I.ender on the baeia of aesesaments and bills and reaaonable eatimates thereoL ~ The FLnde shall be held in an inetitution the deposite or accounta of which are ineured or guaranteed by a Federal or State agency (including Lender if I.ender ia such an inatitution). Lender ahall apply the Funda to pay said taxea, aseessmenta, inaurance premiums and ground rents. Lender may not chprge for eo holding and applying the ~?nde, analyzing aaid account, or verifying and compiling aaid asaesxmertte and bills. unlese I.ender pays Borrower interest on the ~nda and epplicable Iaw permite Lender to meke such a charge. Borrower and I.ender may agree in writing et the time of e:ecution of this Mortgege that intereat on the Funde shall be paid to Borrower, and unleas auch agreement ie made or applicable law requiree auch inlereat to be paid, Lender ahall not be required to pay Borrower any intereat or earninga on the ~nda. I.ender shall give to Borrower, without charge, an annual aocounting oflhe Funda ahowing credita and debits to the Funde and the purpose for which each debit to the ~nda waa made. The Funda are pledged as additional aecurity for the eums secured by thie Mortgege. If the amount of the ~nda held by I.ender, together with the future monthly installmenta of Funda payable prior to the due dates of taxes. se9eaaments, inaurance premiums and ground renta. ehall exczed the amount required to pay said taxea, assesaments. insurahce premiuma and ground rente as they faU due. such exceae ahall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of fi~nda. If the amount of the Funde held by I.ender ahall not be aufficient to pay taxes, asaesamenta, insurance premiume and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days - from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon peyment in full of all auma eecured by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite soquisition by Lender, any ~nds held by Lender at the time of application as a credit againat the sums secured by thie Mortgage. 3. Application of Paymente. Unleae applicable law pmvidea otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender fimt 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 interest and principal on any Future Advances. 4. Chargee; Liens. Borrower shall pay all taxes, assessments and other charges, finea and impositions attributable to the Property which may attain a priority over this Murtgage, and leasehold payments or grouqd rents, 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. Botrov?er shall promptly furnish to Lender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish tc. I.ender receipts evidencing such payments. Born?wer shal) promptly discharge any lien which has priority over this Morigage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of thcobligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement of suc#~ lien in, legal proceedingx which opgrate to prevent the enforcement of the lien or forfeitum of the Property or any part thereoL ~ , 5. Hazard Insurance. Bortower shall keep the impmvementa_ now exi$ting or hereafter erected on the Property inaured against losa by fire, hazar~s included within the term "eztended rnverage," and auch other hazards as L.ender may require and in such amounta and for such periods as Lender may require; provided, that Lender shall not requirn auch 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 sums secured by this Mortgage, whichever is the greater. ~ The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, pn?vided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the mnnner provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, directly to the insurance carrier. ~ All insurance policiea and renewala thereof shall be in form acceptable to I.ender and ahail include a standard mort~age clause in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ i,ender all renewal notices and all receipta of paid premiums. In the event of losa, Borrower shall give prompt notice to the insurance carrier i and Lender. Lender may make proof of loss if not made promptly by Borrower. ! Unleae Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to reatoration or repair of the Property ~ E damaged, provided such restoration or repair is economically feasi~le and the security of this Mortgage is not thereby impaired. If such F reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the auma secured by thie Mortgage, with the excese, 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 is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefite, Lender is suthorized to collect and apply the inaurance proceeds at Lender s option either to reatoration or repair of the ~ s Property or the sums aecured by thia Mortgage. - Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shall not extend or postpone the due ~ date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all righl, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reenlting from damage to Property prior to the sale or aoquisition ahall pass to I.ender to the e:tent of the auma secured by this htortgage immediately prior to such sale or soquiaition. ~ 6_ Preeervation and Maintenance of Property; Leaaeholda; Condominume; Planned Unit Developmente. Borrowershall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ; provieiona of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development,~ ~ Bonower ahall perform all of Borrower's obligations under the declaration or covenanta creatingor qoverning the condominium or planned ~ unit -development, the by-laws and regulations of the condominium or plnnned unit development, and conatituent documents_ If a ~ condominium or planned unit development rider ia executed bY Borrower and recorded together with this Mortgage, the oovenants and agreements of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgageas if the rider were a part hereof_ ~ 7. Proiection of Lender's 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in thie Mortgage. or if any action or proceeding is commenced which meterially affecta Lender's intereat in the Property, including, but not limited to, eminent domain, - ineolvency, oo~e enforcement, or arrangemente or proceedinge involving a bankrupt or deoedent, then Lender at Lender'e option,upon ~ notice to Borrower may make auch appearances, dieburee such aume and tate such action se ie neceseary to protect Lende~e interest, including, but not limited to, disbnreement of reaeonable attorney's fcee and entry upon the Property to make repaire. If I.ender required mortgage inaurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain 3 ench ineurance in effect until euch time ae the requirement for auch insurance terminates in accordance with Borrower'e and Lendefe written agreement or applicable Law. Borrower ehall pay the amount of all mortgege inaurance premiume in the manner provided under ~ paragraph 2 hereof. ; Any amounte diabureed by LendeT pereuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneea of ` Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, auch amounts ehall be payable upon notice from Lender to Bormwer requeeting payment thereof, and ahall bear interest from the date of diebureement at the rate payable from ' time to time on outetanding principal nnder the Note unleas payment of intereat at auch rate would be contrary to applicable law, in which event auch amounta ahall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, Bhal1 require [.ender to incnr any expenae or take any action hereunder. ~ . ~ ~ ~ ~ ° k 3U8 ~~~f ~48 ~ 5ocr ~ . . , ~ ~ ~ r ~ , ~ ~ r.. _ _ _ - - _s.