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HomeMy WebLinkAbout0057 . ~ Borrower and I.ender cove~ant and agree ae followe: l. Payment of Principa! snd Intere~t. Borrower ehall prompUy pay when due the principal of nnd interest on the indebtedness evide~ced by the Note, prepayment and Iate charges us provided in the Note, and the principal of and interest on any ~ture Advancea eecured by this Mortgage. 2. ~nde tor Tanes and Ittaurance. Subject b applicable law or to a written waiver by I.ender, Horrower shall puy to l.enderon the day monthly inetallmenta of principal and interest are payable under the Note, until the Note ia paid in full, a sum (herei~ "Funda") equal to one~ twelRh of the yearly taxee and aaseasmente which may attain priority over this Mortgage, and ~rou~d renta on the Property, if any, plue one twelfth of yearly premium inatallmenta [or hazard inaura~ce, plus onetwelRh ofyearly premium installments for mortgage inaurance, if any, ail ae reaeonably eatimated initialty and from time to time by l.ender on the basis of assesaments and bilis and rerisonable estimates thereof. Tfie ~nde ahall be held in an inatitution the deposita or accounte of which are inaured or guaranteed by a Federal or State agency (including I.ender if Lender ia euch an inetitution). Lender ahall apply the F~nds t~i pay eaid taxee, aaseaamente, insurance premiuma and ground rents. I.ender may not charge for eo holding and applying the Fl?nde, analyzing said account, or verifying and compiling said aeseasments and bills, unlese L,ender paye Borrower interest on the Funds and applicable law permits L.ender to make such a charge. Bormwer and I.ender may agree in writing at the time of execution of this Morlgage that intereat on the ~nda ahaU be paid to Borrower, and unleaa auch agreement is made or applicable law requirea auch interest to be puid, Le~der ehall not be required to pay Borrower any interest or earnings on the Flinda. Lender ahall give to BoTrower, without charge, an annual accounting of the F unde showing credits and debits to the Funde and the purpose for which each debit to the ~nda was made. The Funds are pledged as additional security for the sums aecured by this Mortgage. If the amount of the F~nde held by Lender, together with the future monthly inatallments of Funds payable prior to the due datee of ta~ces. aaeeaemente. inawance premiume and ground rents, ahall excred the amount required to pay said taxes, asseasmenta, insurance premiums and ground rente as they fall due. euch e:ceae ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenis of I~nde. If the amount of the Funde held by Lender ahap not be aufficient to pay tanea. aseesaments, insurance premiums and ground rents as they fall due. Bornower ehall pay to Lender any amount neceasaryr to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requesting payment thereof. Upon payment in full of all aums eecuredby this Mortgage, Lender shall prompdy refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or its soquisition by Lender, any ~nda held by Lender at the time of application as a credit againat the suma securrd by this Mortgage. • - 3. Application of Paymente. Unlese applicable law provides otherwiae, all payments received by Lender under the Note and paragraphe 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 intereat payable on the Note, then to the principai of the Note, and then to intereet and prinripai on any Future Advancea 4. Chargea; Liene. Borrower shal) pay all taxes, assessmenta and other chargea, finex and impositions attributnble to the Property which may attain a priority over this Mortgage, and leasehold payments orgtound renta, if any, in the manner pmvided underparagraph'l hereofor, if not paid in such manner, by Borrower making payment, when due, direcUy to the payee thereof. Borrowershall promptly furniah to I.ender al) noticea of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; pro~ ided, that f3orrower shall not be required to discharge any such lien so long as Borrower shali agree in writinq to the payment of the obliqation secured by such lien in s manner acceptable to Lender, or shall in good faith contest auch lien by, ordefend enforcement of such lien in, leRal proceedings which operate to prevent the enforcement of the lien or forfeiture of the P~operty or any part thereof. ' 5. Hazard Ineurance. Botrower ahall keep Uie improvemenls now existing or hereafter erected on the Property insured against loss by fire, hazarda included within the term "e:tended'coverage." and auch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by state or federal regulatione goveming adivities of Lender, or that amount of coverage required to pay the sums secuied by this htortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by I.ender, provided, that such approeal shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner provided under paraKraph 2 hereof or, if ' not paid in such manner, by Borrower making payment, ~vhen due, directly to the insurance carrier. I~ All inaurance policies and rnnewals thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clauae in favor of ~ and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and $orrower ahall promptly furnish to i.ender all rnnewal notices and all receipts of paid prnmiuma. In the event of loas, Borrower shall give ~rompt notice to the inaurance carrier ; and L,ender. L.ender may make proof of loas if not made promptly by Borrower. ; Unlesa Lender and Borrower othenvise agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property damaged, provided such testoraiion or repair ia economically feasible and the security of this 1Vlortgage ia not thereby impaired. If such ~ restoration or repair ia not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the s~uns secured by thie Mortgage, with the e:cesa, if any; paid to Borrower. If the Property is abandoned by Borrower, or if Borrowei faila to respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the inaurance carrier otiera to setUe a claim for ~ insurance benefits, Lender is authorized to collect and apply the inaurance proceeda at Lender's option either to restoration or repair of the ~ Property or the auma secu~ed by thia Mortgage. ; Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ahall not eatend or postpone the due ~ date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 F hereof the Property ie acquired by Lender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof teaulEing from damage to Property prior to the sale or aoquisition ehall pase to Lender to the e:tent of the aums aecured by this , Mortgage immediately prior to auch eale or aoquieition ? 6. Preaervation and Maintenance of Property; Leaseholde; Coadominume; Planned Unit Developmente. Borrower a'~all keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ' provisions of any tease if this Mortgage ia on a leseehold. If thie Modgage ia on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenanta creatinQor governing the coddominium or plauned ; unit deeelopment, the. by-lawa and tegulationa of the condominium or planned unit development, and conatituent documents. If a _ condomininm or planned unit development ridet ia executed by Born,wer and recorded together with thia Mortgage, the oovenanta and ~ aRreementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgage au~ if the a rider were a part hereof y 7. Protection ot I.ender'e 3ecurity. If Borrower faile to perjorm the oovenente and agreemente contained in thia Mortgage, or if eny ~ action or proceeding ie commenced which materially affects Lender e intereet in the Property, including, but not limited to. eminent domain, ~ ineolvency, oode enforcement, or arrangements or procxedinga involving a baakivpt or decedent, then L.ender at L.ender'e option.upon notice to Borrower may make euch appearances, disburee auch aume and take such artion as ie neoeesary to protect Lendet'e intereat. including. but not limited to. diabureement of reasonable attomey'8 feee and entry upon the Piroperty to meke repaire. If Lender required mortgage ineurance as a condition of ineking the loan eecured by thia Mortgage, Borrower ahall pay the premiuma required to maintain ~ such ineurance in effect until auch time ae the requirement for auch ineurance terminatea in accordance with Borrower'e and Lendei'e - writtea agreement or applicable Lew. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereoL ~ My amounte dieburaed by I.ender pereuant to this paragraph 7, with intereet thereon, shall beoome additional indebtednese of Borrower eecured by this Mortgage. Unleae Borrower and Gender agree to other terme of payment, auch amoante ahal) be payable upon 3 notice from L.ender to Borrower requesting payment thereof, and ehall bear intereat from the date of diabursement at the rate payable from ~ time to time on outatanding principal under the Note unleae pay~nent of intereat at auch rate would be rnntrary to applicable law, in which ~ event euch amounta ehall bear intereet at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall require Lender to incur any expenae or take any action hereunder_ ~ Y ~ ~ 3CG! ~oU 'a~~: 5 / . u ~ , . _ , . - _