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HomeMy WebLinkAbout0816 F3orrower and Ixnder covenant and agree as followe: 1. Payment o! Pri~cipal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebted~eae evidenced by the Note. prepeyme~t and late chargea aa provided in the Note, and the principal of and internat on any Flrture Advancca securrd by thie Mortgage. 2. F~nda for Teacee and lneurance. Subject to applicable law or to a written waiver by txnde~, f3orrower ahall pay to l.ender on the day monthly inatallmenta o[principal and interest are payable under the Note, until the Note is paid in full, a sum (herei~ "Funda") equal to one twelRh utthe yearly taxes and asseasments which may attain priority over thie Morigage, and ground rents on the Property, if any, plua one twelfth of yearly premium inetallmen4e for hazard inaurxnce, plus onPtwelRh ofyearly premium instaUmente ior mortgage inaurance, if any, all as reaeonebly estimated initittlly and from time to tirc~e by l.ender on the basis of aasesaments and bills and reasonable eatimates thereof. The ~nda ehall be held in an institution the depoeite or accounta of which are inaured or guaranteed by a Federal or State agency (including I.e~der if Lender ia auch an inatitution). Lender shall apply the Funda to pay said taxea, asaesamenta, inaursrnce prnmiums and Ecround rente. Lender may not charge for eo holding and applying the F~nde, analyzing said account. or verifying and compiiing said asaessments end bills, unleas I.ender peye Borrower intereat on the Funda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution o[ this Mortgage that intereat on the ~nda sha11 be paid to Borrower, and unleae auch agreement ia made or applicable law requires such intereet to be paid, Lender ahall not be required to pay Borrowe~ any interest or earninga on the ~nde. I.ender ahall give to Borrower, without charge, an annual acoounting of the Funda ahowing credita and debits to the Funda and the purpoee for which each debit to the Funda wae made. The Funda are pledged as additional eecurity for the suma eecured by thia Mortgage. If the amount of the Funds held by I.ender, together with the future monthly installments of Funda payable prior to the due datee of taxee, aa~eaementa, inaurance premiuma and ground rents, ehall exc2ed the amount required to pay said taxea, asseasments, insurance premiuma and ground rente ae they fali due, such exceas ahall be, at Borrower's option, either pmmptly repaid to Eiorrower or credited to Borrower on monthly installmenta of ~nds. If the amount of the Funds held by l,ender shall not be sufficient to pay taxea, aeseaemente, inaurance premiume and ground rents as they fall due, Borrower ehall pay to Lender any amount necesaary to make up the deficiency within 30 daya from the date notice ia mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of all aums aecumd by thie Mortgage, Lender ahall promptly refund to Borrower any funda held by i.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherv~~iae acquired by I.ender, Lender ahalt apply, no later than immediately prior to the eale of the Property or ita acquisition by Lender, any Funda held by Lender at the time of application as a credit againet lhe sams eecurrd by this Mortgage. . 3. Application of Payments. Unlesa applicable law provides otherwiae, all payments received by Lender under the Note and paragrephe 1 and 2 hereof shall be applied by l.ender fimt in payment of amounta payable to [.ender by Botrower under patagraph 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 Advances. 4. Charges; Liehs. Borrower ahall pay all ts?xes, assessments and other chargea, finea and impositions attributable to the Properiy which ~~iay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under para~aph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shali promptly furnish to t.ender :~ll noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrowershall promptly fumish to 1 xnder receipts evidencing such payments. Iiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Rorrower shall nQt be required to dischazge anv such lien so long as Borrower shall agree in writing to the paymrnt of the obligation secured by ,uch lien in a manner acceptable to I.ender, or shall in good fnith contest such lien by, or defend enforcement ofsuch lien in, legal proceedinRs H~hich operate to prnvent 1he enCorcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurence. Borrower shall keep the improvementa now exiating or hereafter erected on the Property insured againat losa by fire, hazards included within the term "extended coverage," and auch other hazarda as I.ender may require and in auch amounts and for such - periods as Lender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may berequired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums aecured by this ~lortgage, whichever is the greater. ' The insurance carrier providing the insurance shall be chosen by Borrower subject to approv:~l b~ Ixnder, pruvided, that such approval shall not be unreasonably withheld. All premiums on insurancr policies shail be paid in the manner pmvidecf under parugraph 'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to Lender and shal l include a atandard mortgage clause in favor of a nd in fotm acceptable to Lender. Lender shall have the right to hold the policies and renev? als thereof, and Borrower shall promptly fumish to ~ i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insurance carrier ; and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwiae agree in writing, insurance procreds ahall be applied to restoration or repair of the Property damaged, provided euch reatoration or rnpair is economically feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security nf thie Mortgage would be impaired, the insurance proceeds ehall be applied eo the auma secured by this Mortgage, with the excess, if any, paid to Botrower. If the Property is abandoned by Borrower, or if Bornower faila to I re~pond to Lender within 30 days from the date notice ia mailed by L,ender to Borrower that the insurance carrier ot~era to settle s claim for _ ~ insurance benefits, Lender is authorized to collect and apply the ineurance proceeds at I.ende:'s option either to restoration or repair of the ~ Pmperty or the enms secured by this Mortgage. Unieas Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not extend or postpone the due ; date of the monthly installments referred to in paragraphs 1 and 2 hereof ar change the amount of such inatallmente. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest ot F3orrower in and to any insurance policiea and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the sums secured by this ~tortgage immediately prior to such sale or acquiaition. ~ ~ 6. Preaervation and Maintenance of Property; I.easeholda; Condominume; Planned Unit Developmente. Borrower shall keep s the Pro rt pe y in good regair and ahall not commit waste or permit impairment or deterioration uf the Property and shall rnmply with the proviaiona of any lesee if lhie Mortgage ia on a leasehald. If this 1~lortgage is on a unit in a condominium or a planned unif development, ~ I3orrower ~hall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned• g unit developroent, the by-lawe and regulatione of the condominium or planned unit development, and conetituent documente. If a ~ cundominium or planned unit development_rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante nnd k agreements of such rider ehall be incorporated into and shall amend and supplement the covenants and aqreemente of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower faile to perform the oovenante and agreements contained in thie Mortgage, or if any * artion or proceeding ie commenced which materially afferts Lendei e intereat in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or anangemente or proccedinge involving a bankrupt or decedent, then Lender at Lender e option,upon notice to Borrower may malce euch appearancee, diaburae auch aums and ta1~e auch action as is neceesary to protect Lender's intereak ' including, but not limited to, diebursement of reasonable attorney'e fees and entry upon fhe Property to make repaira. If Lender reqvired mortgage ineurance ae e condition of malcing the loan eecured by this Mortgage, Borrower ahall pay the premiuma required to maintain ~ such inaurance in effect until euch time as the requirement for such ineurance terminatee in accordance with Borrower'e and Lender a ; written agreement or applicabie Law_ Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereof. ~ My amounte disbureed by Lender persuant to this paragraph 7, with internet thereon, ehall become additional indebtedneas of ` I3orrower eecured by thie Mortgage. Unleae Borrower and [.ender agree to other terme oi payment, auch amounte ehall be payable upon 3 notice from L.ender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diaburaement at the raLe payable from z ~ time to time o0 outetanding principal under the Nute unieae payment of interest at auch rate would be contrary to applicable lew, in which ~ event euch amounte ehall bear interest at the higheet rate permiaeible under applicable law. Nothing contsined in thia paragraph ehall ~ require Lender to incur any e:pense or take any action hereunder. ~ ~ $J~r ~10 '~7~~ ~ ,