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HomeMy WebLinkAbout0355 E3orrower aod l.ender covenant and agrer as fulluwa: 1. Payment of Pri~clpel and Intereet. Horn?wer ahall pmmptly pay when due the principal ut and intere~t on the indebtednene evidenced by the Note, prepayment and latr chargee as provided in the Note, and the principal uf a~d i~tereet on any Huture Advuncea secured by this Mortgage. 2. H~unde for Taxee and Inauranca. Subject to applicable Inw or to a written waiver by I.ender,l3orn,we~ shall pt~y to l.ender on the day monthly inetsllmenta of pri~cipal a~d intercet are payable under the Note, until the Note ia pAid in full, n aum (herrin "Funda") equnl to one twelRh o( the yea~ly taxea und asscssmenta which muy attain priority uver thia Muriguge, a~d gtound rentx on the l'ruperty, if nny, plus one twelfth of yearly premium inatallmenta for hazard inau~ance, plua o~twelfth ofyearly premium inatiillmcnta for murtKage inaurance, if any, all as reaaonably estimated initially and from time to tia~e bv I.ender on the basis of ussesaments and bille ~nd retisonnble cstimtitea the~eof. The ~nde ahall be held in an institution the deposite or accou~te of which are ineured or guaranteed by a Federal or State agency (including l.e~der if l.ender is such an inetitution). [.ende~ shail apply the Funde to pay said taxes, usaesamente, inaurance pmmiume and ground rents. l.ender may not charge for eo holding and applying the Funds, analyzing said accoUnt, or verifying and compiling said usaeeementa and bille, unlees I.ender pays Eiorrower intereat on ihe Flinda and applicable law permita l.ender to make euch a charge. F3urruwer and I.ender may agree in writing at the time of execution of thie Mortgage thxt intereat on the h~~da ahall be paid to Borrower, and unleas auch agreement ie made or applicable law requiree auch intemat to be paid, I.ender shall not be required to pay Borrower uny intereat or earninga on the ~nde. Lender ehall give to Borrower, without charge, an annuul accounting ot the Funds ahowing credita and debita to the Funda and the purpoee for which each debit to the Funds waa made. The F unds are pledged as additional aecurity for the auma secured by this Mortgage. If the amount of the F~nda held by I.ender, together with the future monthly inat~?llmenta of Funds payable prior to the dne datea of tnxea, asseasmenta, ineurance premiuma and ground rents, aha11 excaed the amount requind to pay said taxes, asaessments, inaurance premiums and ge~ound rents as they fall due, s~ch exceas ahall be, et Borrower a option, either promptly repaid to Borrower or credited to E3orrower on monthly inetallmente of Funda. If the amount of the Funde heid by [.ender shall not be autficient to pay taxea, asseaementa, insurance premiiune and ground rents as they fall due, Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requeating payment thereof. ~ Upon payment in full of ell sums secured by this Mortgage, [.ender ahall promptly refund to Eiorrower any funds held by I.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by Lender, I.ender ahall ~pply, no later than immediately prior to the eale of the Property or ite acquisition by I.ender, any Funda held by I.ender at the Ume of application as a credit against the suma secured by this Mortgage. . 3. Application of Paymente. Unless applicable law providea otherwise, all paymenta -received by l.ender under the Note and paragraphs 1 and 2 hereof ehall be applied by I.ender firtit in payment of amounta payable to I.ender by E3orrower under paraqraph 2 hereof, then to intere8t payable on the Note, then to the principal of the Note, and then to intereat and principal on 1ny Fulure Advances. 4. Chargea; Liene. Borrowerahall pay all tuxea, assessments and othercharges, fines and impositions attributable to the F'roperty which may attain a priority over this Mortgage, and lease~old paiyments or ground rents, if any, in the manner provided under paragrnph'l hereof or, iC not paid in such manner, by E3orrower making payment, when due, directly to the payee therev~f. Borrower shall promptly furnie?h t~i I.ender all notices of amounts due under this parugraph, nnd in the event f~rrov?er sha8 make payment direc:dy, Born?wer shall prumptly furnish to l.ender receipta evidencing such paymenta. I3orrower shail promptly dischar~r any lien which has priority over this Mortgage; provided, th:~t Borrower shaU not be required todischnrge any such lien so long as [iorrower shall aRree in writinQ to the p.~yment of the obliKution secured by such lien in a manner acceptable to l.ender, orshall in good faith contest such ~ien by, ordefend enforc-rmentof such lien in, le*al proceeciinKs which operate to pmvent the enforcement of the lien or forfeiture of the I'roperty or any part thereoL 5. Hazard Inaurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Properly insured againat loxs by fire, hazarda included within the term "extended coverage," and auch other hazards as I.ender may require and in such amounts and for such perioda aa [xnder may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by state or fecler:~t regulationa governing activitiea of [.ender, or that amount of coverage required to pay the sums secured by this MortKage, whiche~er is the greater. The insurance c:?rrier prueiding the insuranm shall be chosen by Rorrower subject to appru~ al by l.~~nd~•r; pn~vid~~c1, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall 6e paiid in the manner pro~~idcd under paraKr:~ph Y hcrer?f ur, if not p$id in such manner, by Korrower making payment, when due, directly to the insurance carrier. ; All inaurance policiea and renewals thereof ahaU be in form acceptable to l.ender and shall include a standard mortg~ge clause in favnr of and in form acceptable to Lender. Lender ahall have the right to hold the policiee and renewala thereof, and Burrow er ah~+~l promptly furnish to i i.ender all renewal noticea and all receipts of paid premiums. In the event of loss. Borruwer ahall give prompt notice to thQ insurance carrier ~ and l.ender. Lender may make proof of losa if not made promptly by E3orrower. Unlese Lender and Borrower otherwise agree in writing, inaurance procecds shall be applied to reatoration ot rnpair of the ('ropeKy ; damaged, provided such restoration or rnpair is economically feasible and the aecurity of this MortgagQ ia not thereby impaired_ If such € restoration or repair is not economically feasible or if the security of this Mortgage would beimpaired, the inaurance proceeds shall be applied ' to the auma secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrow er, or if 13orrower fails to i respond to Lender within 30 days from the date notice is mailed by I.ender to I3orrower that the insurance carrier ofters to aettle a claim for ; insurance benefits, [~ender ie authorized to collect and appty the inaurance proceeda at I.ender's option either tn restoration or repair of the € Property or the aums secured by this Mortgaqe_ ~ Unless Lender and Borrower otherwise agree in wjiting, any auch application of proceeda to principal ahall not extend or postpone thedue 3 date of the monthly installmente referred to in paragraphs ! and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ; hereof the Property ia acquimd by I.ender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquiaition shall pass to Lender to the extent of the aums aecured by thiA ~ Mortgage immediately prior to auch saYle or acquiaition. 6_ Preservation and MaintenanceotProperty; Lea[seholds; Condominums; Planned I~nit Uevelopmente. Borrowershall keep ~ the Property in qood rnpair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the g proyiaions of ariy leaae if this Mortgage is on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unil development, ~ Borrower shall perform all of Borrower'a obligations under the declaration orcovenanta creatinRor governing the condominium o~ planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documenta. If a ~ condominium or planned unit development rider ie executed by Borrower and recorde~ together with this Mortgage, the oovenants and ~ agreements of such rider shall t,e incorporated into and shall amend and supplement the covenants and agreementef of thia MortgaKe as if the ~ rider were a part hereof. 3 7. Protection oi Lender's 3ecurity. If Borrower fails to perform the oovenants nnd agreemente rnntained in thie Mortgage, or if any ~ aMion or proceeding ie commenced which materiaUy affecte I.ender's interest in the Property, induding, but not limited to, eminent domain, ineolvency, oode enforcement~ or arrangements or proceedi~ge involving a bankrupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrowet may make euch appearancee, diaburee auch aume and take euch artion as is neceaeary to protect Lender'e intereat, inciuding, but not limited to, diebureement of reaaonable attorney e fees and entry upon the Property to make repaire. If Lender required mortgage ineurance ae a condition of malcing the loan eecured by thie Mortgage, Borrower ahall pay the premiums required to maintain such inaurance in effect until euch time as the requirement for auch ineurance tetminatee in aceordance with E3orrower'a and Lendei e a writtett agteement or applicable Law. Borrower ehall pay the amounr~of all mortgage ineurance premiume in the manner provided under _ paragraph 2 hereof. My amounts diebnreed by L,ender perauant to thie paragraph 7, with intereat thereon, ehall become additional indebtednese of Borrower eecured by this Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounte shail be payable upon :5 notice trom Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of dieburaement at the rate payable from ~ time to time on outatanding principal under the Note unleee payment of intereet at auch rate would be contrary to applicable 1aw, in which > event auch amounta ahall bear intereet at the higheet rate permisaible under applicable law. Nothing contained in thie paragraph ehall ~ require Lender to incur any expense or take any action hereunder. ~ E' B~Gr ~ll~ 355 f ~ b~"F~, - ~ ~ 3 ~ ~ ~ ~ F ~ . Y . i s~ '6~'~" ~ . ~~~6. "~2~"P>'~.'~t-. . . .