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HomeMy WebLinkAbout1005 Borrower and I.ende~ covenu~t and ngree us folluwa: l. E'aym~nt of f'rincipai and IntereBt. l3orn?wer ahall p~mpdy {x?y when due Ihe p~ncipal of und interrat un the indebtedneaa evidenced by the Note, prepayment and late chargea ua provided in the Nute, a~d the principal of a~d inte~eat on any F uture Advn~cea secured by this Mortgage. 2. F'unde [or Taxea and I~surance. Subyect to upplic~ble luw or to a writtrn waiver by i.ender, Burruwer shall ptiy tu l.ende~ on ihe duy moothly instullme~ta of principal uod intereat are payable u~der the Note, until the Nute ia paid in full, a sum (herrin "Fundei equnl to one twelfth of the yearly tuxea und i?asessmentx which muy attuin priurity over thia l1lortgnge, und ground rentx on the l'ruprrty, if any, plus one- twelRh of yearly premium installments [o~ hazard insur~nce, plus one-twelfth ofyearly premium inatuilmenta for murtguge insurt~nce, if uny, all as reASOnably eatimuted initialty ~nd from time to time by I:ender on the baaie of ussessments .~nd bills und reusunuble ~tim~tes thereuf. The Funds ahall be held in an inatitution the deposita or accounts of which are inaured or quaranteed by a Federal or State agency ~including Lender if Lender ia such an inatitution). l~ender shall npply the Funda to pay eaid tAxea, assesamenta, insurance premiums nnd ground rente. I.ender may not charge for eo holding and Applying ihe Funds, analyzing said account, or veritying and compiling suid asseeamenfe and biUs, unleas I.ender pays Borrower i~terest on the Funda and applicable law permita l.ender to make such a charge. l3orrower and l.ende~ may agree in writing at the time oC execution of thie Mortgage that intereat on the F unda shall be paid to E3orrower, and unlesa such agreement ia made or applicable law requirea such intereat to be paid, I.ender shall not be required to pav Borrower Any interest or earnings on the F~nds. l.ender ahall give to Borrower, without charge, an annual aceounting of the Funds shuwing credits and debits tu the Funda and the purpoae for which each debit to the Funds was made. The F unds are pledged as udditional security for the suma secured by thie Mortgage. If the amount of the l~'unda held by l.ender, together with the future monthly inatallments of Funds payable prior to the due dates of taxee, asseasments, insurance premiuma and ground rents, shall excted the amount required to pay said taxes, assessments, insurance premiums and ground mnta as they fall due, auch excess ahall be, at E3o~rower'a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of Funds. If the amount of the Funds held 6y I.ender ahall noi be aufficient to pay taxes, asaessments, inaurance pmmiume and ground rents as they fall due, Borrower ahall pay to l.ender nny amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Ixnder to Borrower requesting payment lhereof. Upon payment in full of all aums aecured by this Mortgage, Lender ahaU promptly mfund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Properiy is otherwiae acquired by I.ender, Ixnder ahall apply, no Ipter than immediately prior to the sale of the Property or ita acquisition by I.ender, any Funds held by Lender at the time of application tia a credit against the suma secured by thie Mortgage. 3. Application of Paymente. Unless applicable law pwvides otherwiae, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by I.ender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargea; Liens. Borrower shall pay all tnxes, assessments ~nd otherrharges, fines t~nd impositions attriUutable to the E'mperty which may attain p priority over this Mortgage, and leasehold payments orgrc~und rents, if ~ny~, in the manner pro~ ided under p:iragraph'L hereofor, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borrower sh:~ll promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shaU make payment directly. l3urroK er shall ~romptly furnish to l.ender receipts evidencing such payments. Rorruv?er shall promptly discharge any lien which hus priority u~~er this Atorik.~Ke; provided, that E3orrowe~ shall not be required to discharge any such lien so lonK:~s Rorrowershall agree in writinK to the payment of theobliR~ition secured by such lien in a manner acceptable to Lender, or shall in Rood faith contest such lien by, ordefend en[or~~c~ment of such lien in, ley;al prucerdinKs which operpte to prevent the enforcement of the lien or furfeiture of the Property or any part then~f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hernafter erected on the E'roperty insured 3gainst loss by fire, hazarda included wlthin the term "extended coverage," and such other hazarda as I.ender may require and in such amounts nnd for such periods as Lender may require; provided, that I.ender ahall not require such coverage amount exceeding the minimum, as mny be required by state or federal regulationa governing aMivitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providinR the insuranrn shall be chacen by 13orrower subject tu approv:~l by i.ender, pmvidecl, that such appro~•al shall not be unreasonably withheld. All pmmiums on insurance pulicies shall be paid in lhe m.~nner pn~~~idc~ci un~ler p.iraKr.~ph herc~?f or, if not paid in such manner, by I3orrower making p~yment, when due, directly to the insurance carrier. All inaurance policies and mnewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to [,ender. Lendershall have the right to hold the policies and renewals thereof, and E3orrowershall promptly furnish u, i.ender all renewal notices and all receipta of paid premiums. In the event of toss, Borruwer shali give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nol made promptly by Borrower. ' Unleas Lender and Bonower otherwise agree in writing, insurance proceeds shall be applied to restoration or rnpair of the Property ; damaged, provided such restoration or repair ia economically feasible and the security of this Mortgage is not thernby impaired. If such ~ restoration or repair is not economically feasible or if the security of this htortgage would be impaired, the insurance procecds shall be applied to the aums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Bonow er, or if Borrower fails 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 benefits, Lender is authorized to collect and appiy the insurance proceeda at I.ender s option either to restoration or rnpair of the ~ Property or the sums secured by this Mortqage_ ~ Unless Lender and Borrower otherwise agree in writing, any auch application of pmceeda to principal shall not extend or postpone the due date of the monthly inatallments mferred to in paragraphs 1 and 2 hereof or change the amount of such installments_ If under paragraph 18 hereof the Property ia acquired by I.ender, al! right, title and interest of E3orrowerin and to any insurance policies and in and to the proceeds ~ thereof resulting from damage to Property priar to the sale or acquisition shall pass to Lender to the extent of the suma secured by this ~ Mortgage immediately prior to such sale or acquisition. ~ 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lease i[ this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, f3orrower ahall perform all of E3orrower's obligations under the declaration or covenants creatinKor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mort~age as if the rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Botrower faila to perform the oovenanta and agreemente contained in thie Mortgage, or if any ~ aMion or proceeding ia commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, ~ inaolvency. aode enforcement, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at Lender'e option~upon ~ notice to Borrower may make such appearancee, disburae auch aums and take euch action ae is necesaary to protect Lender s intereet, ~ including, but not limited to, diabureement of reaeonable attorney's feea and entry upon the Property to make repaire. If Lender required ~ mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiume required to maintain 4 such insurance in effect until euch time ae the requirement for such irieurance terminatea in accordance with Borrower's and Lendei a ; written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided under ; paragraph 2 hereof. F Any emounfa diebursed by Lender perauant to this paragraph 7, with intereat thereon, shall become additional indebtedness of ~ fSonower eecured by thia Mort}sage. Unlese Borrower and Lender agree to other terms of payment, such amounfs ahall be payable upon ~ notice from I.ender to Borrower requeating payment thereo[, and ahall bear interest from the date of diabureement at the rate payable from ~ time to time on oufstanding principal under the Note unleae payment of intereet at such rate would be rnntrary to applicable Iaw, in which ~ event auch amounte ahall bear intemat at the higheat rate permiaaible under applicable law. Nothing contained in thie paragraph ehall ~ require Lender k~ incur any expense or take any action hereunder. ~ 5 ~ {~~k.3U~ ~,._1004 ~ ~ . . ~ ~ ~ ~ ~ ~ ~ ~ ~ w~ ,~a. ~~M - _ - -