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HomeMy WebLinkAbout0209 Borrower and Lende~ covenant and agree as followe: 1. Payment ot PriACipal and lntereat. Borrower shall prompily pay whe~ due the principal of and intereat on the indebtedneas evidenced by the Nota. prepayment and late chergee as provided in the Note, and the principal of and interes! on any Flrture Advancea eecured by this Morfgage. 2. Flaads for Ta:es and Insuraace. Subjeet to applicable law or b a written waiver by l.ender, ~3orrower shall pay b Lender on the day monthly inatallments of principa) and intereat are payable under the Note. unW the Note ie paid in full, a eum (herein "Flrnda") equal to one twelfth of the yearly taxes and aesc~ments which may attain priority over this Mortgage, and ground rents on the Proprrty. if any. plua ont twelfth of yeatly premium inatallments for hazard insurance, plua onetwelfth of yearly premium i~stallments for mortgage insurance, if any. all aa reaeonably eatunated initially and from time to time by L.ender o~ the baeis of aeacssmenta and bills and rnasonable eatimatea thereoL ; The Fti~nda ahall be held in an inetitution the deposits or acoounta of which are insured or guaranteed by a Federal or State aget?cy (including L.ender if l.end~ ia such an inatitution). Lender shall apply the Funds to pay said taxes, aaseeameate, ineurance premiume and ground reats. Lender may not charge for eo holding and applying the bl~nde, analyzing said account, or verifying and rnmpiling said ~ essessments aad bills, unleae I.ender pays Borrowet intereet on the fi~nds and applicable law permite Lender to make auch a charge. Borrower and Leader may sgree in writing at the time of Pacecution of this Mortgage that inter~t on the fi~nda shall be paid to Borrower, and unl~e anch egreement is made or applicable law requiree such interest to be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the fi~nds. Lender shall give to Borrower, without charge, an anaual accounting of the Funda ehowing credits and debita to the Funds and the purpoee for which each debit to the ~nds waa made. The ~nde are pledged aa additional security for the eume secured by thie Mortgage. If the amount of the ~nde held by Lender, together with the future monthly inatallment8 of Funde payable prior to the due dates of ta:es. aeeessments, inanrance premiuma and gtound rents. ahall exaaed fhe amount required to pay eaid taxee. asaessments, ineurance premiuma and ~round rents ae they faU due. euch e:ceea ehall be, at Borrower a option. either prompdy repaid to Borrower or credited to Borrowet on moathly inatallmenta of ~nde. If the amount of the Funda held by Lender ehall not be sufficient to pay t~ea, asseasme~ta, inaurance ~ premiume and ground rents ae they fall due, Borrower ehall pey to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeeting payment thereof. Upon payment in fiill of all auma eecured by this Mortgege, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is othenvise acquired by [.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite aoquisitioa by Lender, any ~nde held by Lender at the tune of application as a credit against the aums aecured i by thia Mortgage. ! 3. ApplIcation of Payments. Unlesa applicable law provides otherwiee. all payments received by Lender under the Note and paragraphs 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 oa the Note, then to the principa] of the Note, and then to intereet and principal on any Future Advances. 4. Chargea;~Liena. Borrow~rahall pay all taxes, assesamenta and other charges, fines and impositions attributable 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 auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shal! promptly furnish to I.ender = all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ehall promptly fumiah to ' Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which hae priority over this Mortgage; provided, that E3orrower ahaU not be required to discharge any auch lien eo long as Borrower shall agree in writing to the payment of the obiig~tion secured by auch lien in a manner acceptable to Lender, or ahall in good taith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the entorcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the unpmvements now existing or hereafter erected on the Property insured againet loss by fire, hazarde included within the term "eatended coverage," and such other hazarde as Lender may require and in such amoanta and for such periods as Lender may require; provided, that I,ender ehall not require such rnverage amount ezceeding the minimum, as may be required by state or federal regulatione governing sctivitiea of Lender, or that amount of rnverage required to pay the sums aecured by this Mortgage, whichever ie the greater. ~ ~ The insurance carrier providing the insurance aha11 be chosen by Borrower subject to approval by Lender, pmvided, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if ~ not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiea and renewala thereof shali be in form acceptable to I.ender and ahall include a standard mortgage clauae in favor of and in form accepteble to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall prompdy furnish to i.ender all renewal notices and all reoeipts of paid premiuma. In the event of loea, Borrower shall give prompt notice to the inaurance carrier ' and Lender. Lender may make proof of loas if not made prompdy by Borrower. Unlesa Lender and Borrower otherwise agree in writing, inaurance proceede ahall be applied to reetoration or repair of the Property j damaged, provided auch reetoretion or repair ia economicaliy feasible and the eecurity of this Mortgage is not thereby impaired. If such ~ reetoration or repair ie not economically feasible or if the security of thie Mortgage would be impaired. the inaurance proceeda shali be applied ~ to the euma secured by this Mortgage, with the exceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Boaower faila to ~ respond b Lender within 30 days from the date notice ia maited by Lender to Botrower that the ineurance carrier of~ers to aetde a claim for ~ inaurance benefits. Lender ie authorized to collect and apply the insurance proceeda at Lender s option either to reatoration or repair of the Property or the auma e~cured by this Mortgage. ~ Unleae I.ender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not extend or poatpone the due € date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of auch installmenta_ If under paragraph 18 ~ hereof the Property ia acquired by Lender, a11 right, tide and interest of Borrower in and to any insurance policies and in and t~o the proceeda ~ thereof reaulting from damage to Property prior to the sale or soquisition ehall paea to L.ender to the e:tent of the eums aecured by this ~ Mortgage unmediately prior to auch eale or aoqaiaition. ~ ~ 6. Preaervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower shali keep ~ the Propetty in good repair and ahall not rnmmit weate or permit itnpairment or deterioration of the Property and shall rnmply with the . ~ ~ provieiona of any lease if this Mortgage ia on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform a11 of Borrower'e obligationa under the declaration or rnvenanta creatingor governing the condominium or planned } unit developmen~ the by-laws and regulatione of the condominium or planned unit development. and rnnstituent documente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenants and ' agreements of auch rider ahall be iocorporated into and ahal) amend and aupplement the covenanta and agreementa of thia Mortgage aa if the ~ rider were a part hereof. ' 7. Protection of Lender's Security. If Borrower faile to perform the oovenanta and agreemente contaiaed in this Mortgage, ar if any ~ action or prooeeding is oommenoed which materially affecls Lender's interest in the Property, including, but not Gmited to, eminent domain, ~ insolvency. oode enforcemen~ or anangemeata or proccedings involving a banlcrupt or deoedent, then I.ender at Iender's option,npon no~ce to Bormwer may make snc6 appearances. disburse ench sums and take anch artion as ia neoeseary to protect Lender'a interest, ~ incinding, but not limited to, disbursement of reasonable attomey's fcee and entry upon the Property to make repaits. If Lender required ' mortgage ineurance as a condition of making the loan eecvred by thia Mortgage, Borrowrr ehall pay the premiums required to maintain = such insurance in effect nntil anch time as the requirement for auch ineurance terminates in aoc:ordance with Borrower's and Lender's ~ writien agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided under ~ paree*ePh 2 hereof. + ' Any amounta diabursed by Lender perauant to thia paragraph 7, with intereet thereon, ehall become additionai indeM~ednees of Borrowa secured by this Mortgage. Unlees Borrovyer and Lender agree to other terme of payment, euch amoants shali be payable upon ~ notice from I.ender to Borrower requeeting payment thereof, and shall bear interest from the date of diebureeinent at the rate payable from . time to time on outetanding principal under the Note unless payment of interest at auch rate would be oontrary to applicable law, in which ; event such amounta ahall bear intereet at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph 7, ehall ~ uire Lender to incur an eu req y pense or take any action hereunder. ; i ~ ° ~ - •310 i . ~ . . 209 ~ ~ ~ ~ ~