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HomeMy WebLinkAbout0505 Bor~ower and [.ender covenant and agree ae follows: 1. Payment of Principal and Intereet. Borrower ahaU promptly pay when due the principal of and interest on the indebtedneae evide~ced by the Note, prepayment and late chargee as provided in the Note, and the principal of and intereat on any Eliture Advancea secured by this Mortgage. 2. ~lu~ds forTaxes and lnsurance. Subject to applicable law or to a written waiver by I.ender, Eiorrower shall pay to l.ender on the day monthly inatallments of principal and intereat are payable under the Note, until the Note ia paid in [ull, a eum (herein "Ftinds") equal to on~ twelRh of the yearly taxes and assesaments which may attain priority over ihis Mortgage, and ground rents on the P~operty, if any, plua one twelfth of yearly premium installmenta for hasard insurance, plua on~twelfth of yearly premium inataUmente for mortgage insurance, if any, all as reaeonably eatimated initially end from time to tirne by I.ender on the basis of assessments and bills and reasonable eatimatea thereof. The F1nds ehall be held in .an institution the deposite or accounta ot which are insured or guaranteed by a Federal oT State agency ?(including Lender if Lender ia such an inatitution). Lender ahall apply the Funds to pay said taxea, aseeasmenta, inaurance premiume and ground rente. Lender may ~ot charge [or eo holding and applying the ~nda, analyzing said account, or vrrifying and compiling said aeveasments and bills. unless Lender paya Borrower intereet on the Funda and applicable law permita Lender to make auch a charge. Borrower an~l Lender may agree in writing at the time of e:ecution of thie Mortgage that intereat on the ~nde shall be paid to Borrower, and unlesa euch agreement ia made or applicable law requires such intereat to be paid, Lender shall not be required to pay Borrower any interest or earnings on the ~nde. Lender ahaU give to Borrovrer. without charge, nn annual accounting of the Funds ahowing credita and debite to the Funda and the purpoae for which each debit to the FLnda was made. The Funds are pled~ced as additional eecurity tor the sums secured by this Mortgage. If the amount of the ~nda held by Lender, together with the futum monthly inatallmente of Funds payable prior to the duedatea of taxee. assesamec?te, insurance premiums and ground renta, shall exc~ed the amount required to pay eaid taxea, assessmente, insurance premiums and graund rents ae they fall due, auch exceea shall be, at Bo~:ower'a option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallments of Fl~nde. If the amount of the Funds held by I.ender ahall not be aufficient to pay taxea, asaeasments, inaurance premiums and ground rente as they fall due, Borrower ahall pay to Lender any amount neceseary• to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in full oiall auma eecured by this Mortgage, Lender ahall promptly refund to Borrovrer any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Properiy is otherwiae acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or ita aoquieition by Lender, any Ftitnds held by Lender at the time of application as a credit against the suma secured by thie Mortgage. - 3. Application of Payments. Unless applicable law providea otherwise, all payments received by Lender under the Note and paragraphs 1 end 2 hereof ahall be applied by Lender firnt in payment of amounfs payable to I.ender by ~3orn~wer under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liens. Borrower ahall pay ali taxes, assessments and other charges, finea and impositions attributsble 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 such manner, by Borrower making payment, when due, directiy to the pAyee thereof. Borrower shall promptly fumish to Lender all notices of amounts due under this paragraph, and in the event Botrower shall make payment directly, E3orrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall promptiy discharge any lien which has priority o~ er this Alortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enfomement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now eaiating or hereafter erected on the Property insured against losa by fire, hszarde included within the term "e:tended coverage,° and x~uch other hazards as Lender may tequire and in such amounta and for such periods aa Lender may require; provided, that Lender shall not requim snch coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiee of Lender, or that amount of coverage required to pay the sums secured by this 11lortgage, whichever is the greater. The insurance carrier providing the insurance shali be chosen by I3orrower subject to approval by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on inaurance 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 inaurance policies and renewala thereof shali be in form acceptable to L.ender and shall include a standard mortgage clsuae in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly fumish to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Bortvwer ahall give promFt notice to the inaurance carrier and [.ender. Lender may make proof of lese if not made promptly by Borrower. ~ Unlese Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoradon or mpair of the Property ~ damaged, provided such restoration or repair is economically feseible and the eecurity of this Mortgage is not thereby impaired. If auch reatoration or repair ia not economically feasible or if the aecurity of this Mortgage would~be impaired, the inaurance proceeda shall be applied € to the suma secured by this Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ reapond to Lender within 30 days from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized fo collect and apply the insurance proceeds at Lender s option either to restoration or repair of the ~ Property or the sums secwed by thia Mortgage. ~ Linleas I.ender and Borrower otherwise agree in writing, any such application of ptoceeda to prinripal shall not extend or poatpone the due date of the monthly inetaliments referred to in pttragraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Property is acquired by Lender. all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeds thereof reaulting from damage to Property prior to the sale or aoquiaition shall pass to Lender to the e:tent of the sums secured by thia ~ Mortgage immediately prior to auch eale or acquisition. g 6_ Preservation and Maintenance of Property; Leaseholde; Condominume; Plenned Unit Developmenta. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahal) compiy with the proviaions of any lease if this Mortgage is on a leaeehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ I3orrower ahall perform all of Borrower e obligationa under the declaration or rnvenants creatingor goveming the condominium or planned ~ ~tnit development, the by-lawe and regulationa of the condominium or planned unit development, and conetituent documente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ aqreements of such rider ahall be incorporaied into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection of I.ender'e Security. If Borrower faile to perform the oovenante and agreemente rnntained in thie Mortgage, or if any - , action or proceeding ie commenced which materially et~ecte Lendei e intereat in the Property, including, but not limited to, eminent domain, - insolvency, oode enforcemen~ or arrangementa or proceedinge involving a bankrupt or decedent, then I.ender at Lender e option,upon t notice to Borrower may ma1~e euch appearancee, disburse such enms and take euch action as is neceesary to prot,ect I.ender's interest, ~ including, but not limited to, diabnreement of reseonable attorney e fees and entry upon the Property to make repaire. If Lender required G mortgage ineurance ee a condition of making the loan eecured by thie Mortgege, Borrower ehall pay the premiuma reqaired to maintain ~ euch ineurance in effect until euch time ae the requirement for euch insurance terminatee in accordance with Borrower'e and I.ende~e ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the mannet provided under ~ a Paragraph 2 hereof. ~ My amounte dieburaed by Lender pereuant to t},ie paragreph 7, with internet thereon, ehall become additional indebtedneae of ~ Borrower secured by thia Mortgage. Unleae Borrower and Lender agree to other terms of payment, euch amounte ahall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear intereat from the date of disbureement at the rate payeble from ~ y~ time to time on outatanding principal under the Note unleas payment of intereet at auch rate would be oontrary to applicable law, in which event euch amounta ahall bear intereet at the higheat rate permiaaible under applicable law. Nothing contained in thie paragraph 7. ahall ' ~ require Lender to incur any expense or take any action hereunder. ~ ~ ~ : ~o - ~~o :-~~L ~05 ~ ~ ~ _