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HomeMy WebLinkAbout0053 l BoROwe~ and L.ender covenant and agree as followe: 1. Peyme~t ot Principal and Interest. Borrower ehall promptly pay when due the principel of and intereat on the indebtedneas evidenc~ed by the Note, pnpayment end late chargee aa provided in the Note, and the principal of and intereat on any ~ture Advancee secured by this Mortgage. 2. ~nde for Tazes and Ineurance. Subject to applicable law or to a written waiver by Ixnder, E3orrower ahall pay to I.ender on the day monthly inatallmenta oi principal and intereat are payable under the Note, until the Note ia paid in full, a sum (herein "F'unde") equal to one twelfth of the yea~ly taxea a~d aaseaaments which may attain priority over thie Mortgage, and ground rents o~ the Property, if any, plua one- twelfth of yearly premium inatallme~ta for hazard inaurance, plua onetwelRh ofyearly premium inatallmenta for mortgage i~aurance, if any, . all as reaeo~ably eetimated initially and from time to time by I.ender on the baeis of asse~aments and bills and reasonable estimutea thereof. '11~e F1nds shall be held in an inetitution the depoeite or accounts of which are insured or guaranteed by n Federal or State agency (including Lender i! Leader is such an inetitution). L.ender ehall apply the Funda to pay said taxea, aeaessments, ineurance premiama and ground rente. Lender may not charge for eo holding and applying the ~nde, analyzing eaid account, or verifying and compiling said asseeaments and bills, unleas I.ender pays Borrower intereat on the ~nda and applicable law permita Lender to make euch a charge.l3orrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that intereat on the Funda shall be paid to Borrower, and unleae such agreement ie made or applicable law requirea auch intereet to be paid, I.ender ahall not be required to pay Borrower any intereat or earninge on the FLnde. Lender ahall give to Borrower, without charge, an annual acrounting of the Funda ahowing credits and debite to the Funde and the purpose for which each debit to the ~nda wae made. The Funda are pledged ae additional security [or the suma secured by thie Mortgsge. If the amount of the F~nde held by Lender, together with the tnture monthly installmenta of Funds payable prior to the due datea of taaea, aseeasments. inaurance premiums and ground renta. ahall exceed the amount required to pay eaid taxes, ageessmenta, inaurance premiume and ground rents ae they fall due, euch excess a6a11 be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly iaatallmente of ~nde. If the amount of the Funda held by I,,ender ehall not be aufficient to p~v taxea, asseasmente, inaurance premiume and ground rents as they fall due. Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requeating payment thereof. Upon payment in fuil of all euma secured by this Mortgage. I.ender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie aold or the Property is otherwiae acquired by Lender, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquieition by Lender, any Funda held by Lender at the time of application as a credit againat the sums secured by thie Morfgage. • 3. Application of Paymenta. Unless applicable law provides otherwise, all paymenta received by Lender under the Note and paragtapha 1 and 2 henwf shall be applied by Lender first 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 intereet and principal on any Future Advancea. 4. Chargee; Liene. Borrower ahali pay all taxea, assessments and other charges, fines and impositions pttributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground 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. Borrower shall pmmptly fumish to Ixnder all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipta evidencing such payments. Borrower shall promptly discharqe any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shal( agrne 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 such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL 5. Hazard Ineurance. Borrower ehall keep the unprovementa now existing or hereafter erected on the Property insured againat loss by firn, hazarda included within the tercn "e=tended coverage," and auch other hazards se Lender may require and in such amounta and for such periode as Lender may require; provided, that Lender ahall not requirn such rnverage amount eaceeding the minimum, as may be required by state or federal regulationa governing activities of I.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the greater. _ The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, pm~ ided, that such approval shall not be unrnasonably withheld. All premiums on insurance policies shall be paid in the mannet provided under paragraph 2 hermf or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance polic'ses and renewala thereof shall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form acceptable to L.ender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly fumiah to i.ender all renewal notices and all receipta of paid premiume. In the event of loss, Borrower shall give prompt notice to the insurance carrier - and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ Unlesa Lender and Borrower othetwiae agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property i damaged, pmvided such reatoration or repair is economically feasible and the aecurity of this Mortgage ia not thernby impaired. [f such E reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied ; to the sums aecured by this Mortgage, with the e:cesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to L.ender within 30 daya from the date notice ia mailed by Lender to Botrower that the insurance earrier of~'ers to settle a claim for ; ineurance benefits, Lender ie suthorized to rnllect and apply the inaurance proceeds at Lender a option either to restoration or repair of the ! Property or the aums eecured by this Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any auch application of pinceede to principal ahall not extend or poatpone the due ~ date of the monthly inatalimenta Teferred to in paragrapha 1 and 2 hereof or change the amount of auch inatailments_ If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds ; thereof reaulting from damage to Property prior to the sale or acquiaition ahall pase to L,ender to the eztent of the suma secnred by this g Mortgage immediately prior to auch sale or acquiaition. g 6. Preaervetion and blaintenance of Property; I.easeholds; Condominums; Planned Unit Developments. Borrowershatl keep a the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the g proviaione of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit de~elopme~t, g E3orrowet ahall perform all of Borrower's obligations under the declaration or rnvenanta creatingot governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent dceuments. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia MoY.gage, the oovenanta and t agreements of such rider aha0 be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if the E rider were a part hereof. ~ 7. Protection of Lender'B 3ecurity. If Borrower faile to perform the oovenanta and agreemente oontained in thie Mortgage, or if any ; action or proceeding ie commenced which materially affects Lender a intereat in the Praperty, including, but not limited to, eminent domain, } insolvency. oode enforcement, or arrangemente or proceedinga involving a banlmipt or decedent, then Lender at Lender's option,upon ~ notice to Borrower may make auch appearancee, dieburee euch eume and take euch action ae ie necessary to protect I.ender a interes~ i including, but not limited to, diabnreement of reaeonable atbmey e fees and entry upon the Property to malce repaire. If Lenda required ~ mortgage inaurance ae a condition of making the loan secured by thie Mortgage, Borrower ahell pay the premiume required to maintain i: euch ineurance in effect until such time se the requirement for euch inaurance terminetes in accordance with Borrower'e and I.ende~e written agreement or applicable Law. Borrower ehall pay the amount ot all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ~ My amounte diabureed by Lender pereuant to thie paragraph with intereat thereon, ahall beoome additional indebtedneas of Borrower secured by thia Mortgage. Unlese Borrower and Lender agree to other terms of payment, such emounte ehall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear interest fn?m the date of diebureement at the rate payable from a time to time on outetanding principal under the Note unleea payment of intereet at auch rate would be contrary to applicable law, in which y event such amounte ehall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall 2 requue Lender to incur any e~cpenee or take any action hereunder. ~ ~ ~ T i a~~~3[18 =ac~ 53 . ~ ~ ~ ~ , _ _ r.. ~