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HomeMy WebLinkAbout0219 . Bormwer and L,ender covenant and agree aa tollows: 1. Paymeat of Priacipal and Intetes~ Borrower shall promptly pay when due the principal oi and internst on the indebtedneas evidenced by the Note. ptepayment and late charges as provided in the Note, and the principal of and inte~eat on any ~tnre Advancea eecured by thia Mortgage. 2. [~nds ~or T~ucea and Iaeuranoe. Subject to ap~licable law or to a written waiver by l.ender. Borrower ehall pey to l.ender on the day monthly installments of pri~cipa) and intereat are payable under the Note, until the Note is paid in ful1, a sum (herein "~nda") equal to one twelfth of the yearly taxee and aesesamenls which may attain priority ove~ thie Mortga~e. and ground rents on the Property, i[any, plus one twelRh of yearly premium installmenls for hazard ir~surance, plus onetwelRh of yearly premium inetallments for mortgage inaurance, i[any. aU as reasonably eatunated initially and from time to time by Lender on the besis of essessmente and bille and reasonable estimatee thereof. The fi~nds shell be held in an inatitution the depoeits or accounta of which are ins~ued or guaranteed by a Federal or State agency ' (including I.ender if Lend~ is such aq institution). Lender ehall apply the ~nds to pay said tasea, asseaaments, inaurance preraiuma and ground 4ents. l.ender may not charge for so holding and applying the fi~nde, analysing said accounl, or verifying and rnmpiling eaid assessments and bills, unleae I.ender pays Borrower intereat on the Flrnds and applicable law permita Lender to make auch a charge. Bot~ower and I.ender may agree in writing at the time of e:ecution of this Mortgage that interest on the ~nds shall be paid to Borrower. and u~s, . euch agrcement is made or applicable law requires such intereat to be paid, Lender ehall not be required to pay Botrower any intereat or` ` earnings on the FLnde. Lender ahall give to Borrower, without charge, an annual acoounting of the Funda showing credits and debits to the Flinds and the purpoee for which each debit to the F~nds was made.'lUe Funds are pledged ae additional aecurity for the aume secured by this ' Mortgage. Iilhe amount of the ~nds held by I.ender. together with the future monthly inatallmente o[ ~nde payable prior to the duedatea of t~ea, essessmente. insurance premiume and ground renfe, shall e~[azed the amount required to pay eaid ta:ea, aeaeeaments. insurance premiuma and ground nnts as they fall due. auch e:oess shall be, at Borrower s option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funde. If the amount of the ~nds held by Lender ahall not be eufficient to pay tazes, seaeesmenta, insurance premiums and ground rents aa they fall due, Borrower shall pay to Lender any amount neceeaary to make up the deficiency within 30 daye from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aume secured by this Mortgage. I.ender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie eold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the aale of the Property or ite aoquieition by Lender. any Funda held by Lender at the time of epplication as a credit against the aume secured by thie Mortgage. 3. Application of Payments. Unlees epplicable law providee otherwiee, all paycnents received by I.ender under the Note and ; paragtaphe 1 and 2 hereof shaU be applied by I.ender first in payment of amounts payable to I.ender by Burrower under paragraph 'L hereof, - then to intereet payable o~ the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea 4. Charges; Lieas. Borrower ahall pay all taxes, aesesementa and other charges, finea and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground rentB, if any, in the manner provined under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, din~ctly to the payee thereof. Borrower shall promptly furnish to I.ender aA noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to I.ender reoeipts evidencing such paymente_ Borrower ehall pmmptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the paymenE of the obligation secured by such lien in a manner acceptable to L.ender, or ahall in good faith contest such lien by, or defend enforcement of such lien in, iegal procecdinga which operate tu prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the impmvements now exiating or hereafter erected on the Property ineured againet losa by fire, hazarde included within the term "eatended ooverage." and auch other hazarda as I.ender may require and in such amounta and for auch periode as Lender may require; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regulatione goveming activitiea of Lender, or that amount of coverage required to pay the aums secured by this Morigage, whichever is the greater_ The insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by t.ender, provided, that such approval shall not be unreasonably withheld. AU premiums on inaurance policies shall be paid in the manner prnvided under paragraph 2 hereof or, it not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewala thereof ahall be in form acceptable to Lender and shall include a ntandard mortgage clauee in favor of ' and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ' i.ender all renewal notioea and all reoeipta of paid premiuma_ In the event of losa, Borrower shell give prompt nutice to the insurance carrier ; and Lender. Lender may make praof of losa if not made prompdy by Borrower. Unless Lender and Borrower otherwiee agree in writing, insurance proceeds shall be appGed to reatoration or repair of the Property ~ dameged, provided euch reatoration or repttir ia economically feasible and the eecurity of thie Mortgage ie not thereby impaired. If such ; restoration ~ repair ia no! eoonomically feasible or if the security of thie Mortgege would be impaired, the insurance proc~eeda ehall be epplied ~ to the euma eecured by thie Mortgage. with the e~cesa. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offera to aettie a claim for ; inaurance benefifs, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the _ ~ f'roperty or the eama secured by thia Mortgage. _ ~ Unleae Lender and ~3orrower otherwiee agree in writing, any auch application of proceeda to principal ehall noteatend or postpone the due ~ date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amountof such inatallmenta_ If under paragraph 1R ` hereof the Property is aoquired by Lender, all right, tide and intereat of Bormwer in and to any inaurance policies and in and to the proceeds ~ thereof reeulting from damage to Peoperty prior to the eale or aoquiaition ahall paas to l.ender to the sxtent of the auma secured by thia ~ Mortgage immediately prior to auch eale or aoquieition ~ 6. Pceaervation and Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrower ehall keep the Property in good repair and ahell not comm:t waete or permit impairment or deterioration of the Property and ahall oomply with the ~ provisione of any leaBe if thie Mortgage is on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development, ~ Borroveer ahall perform all of Borrower's obligationa under the declaration or covenante creatingor governing the condominium or planned ~ unit developmen~ the by-lawe and regulationa of the oondominium or planned unit development, and conatituent dceumente. If a Y condominium or planned unit development rider ia executed by Bonower and recorded together with thia Mortgage, the oovenants and ~ agreements of such rider shall be incorporated ij.G, and shall amend and supplement the covenants and agreementa of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the oovenants and agreements oontained in this Mortgege, or if any ; action or proceeding is commenced which matezially affects L.ender'a interest in the Property, including, but r.ot limited to, eminent domain, ineolvency. oode enforoement, or arraagements or proceedinga involving a banlm~pt or decedent, then Lender at Lender'a option,npon - notice to Borrower may make auch appearances. dieburee such auma and take auch adion aa is neoeesary to proted I.ender'~ interest, ~ inclnding, but not limited to. disbursemen! of ressoneble ettorney'e feee and entry upon the Property to malce repairs. If Lender required mortgage inaurance ae a coadition ot making the loan secured by this Mortgege. Borrower ehall pay the premiums required to maintain auch insarance in effect until such time as the requirement for auch ineurance tern?ina``ee in aocordance with Borrower's and Lender's a written agreemwt ~ applicable Law. Borrower ehall pay the amount of all mottgage inaurance premiums in the manner provided under PareerePh 2 hereof. ' ~ ~ My amounte diebnrsed by Lender persuant to this paragraph 7, with intereat thereon, ahall beoome additional indebtedneaa of ~ Borrower se~vred by thia Mortgage. Unleas Borrowrr and Lender agree to ot}:er terme of payment, auch amonnte shall be payable upon ~ ~ notice from Lender to Borrower requesting payment thereof, and sF.all bear interest from the date of diabursement at the rate payable ~om ~ ~ time to time on outetanding principal under !he Note nnleae payment of interest at such rate would be oontrary to applicable Iaw, in which I event anch amounts ahall bear intereat at the highest rate permiseible under applicable law. Nothing contained in thie paragraph 7, shall ' reqaire Lender to incur any expense or tai[e any action hereunder. ~ ~ ~ ~ ` ~ ~ ~ooK 310 oA~~ 219 _ ~ ~ ~ ~