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HomeMy WebLinkAbout0999 E3orrowe~ and I.e~der covenant and agree ae followa: 1. Paymeat of Principal and Intereet. Borrower ehall promptly pay when due the principal of and inteteet on the indebtednese evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and intereet on any Future Advancee eecured by this Mortgage. 2. ~nde [or TaYee and lnaurance. Subject to applicable law or to u written waiver by l.ender, Borrower ahall pay to [.ender on the day monthly installmenta of principal and intereet are payable under the Note, until the Note ie paid in full, a eum (herein "~nde") equal to one tweltth of the yexrly tanes and aeeesaments which may nttain priority over this Mortgage, and g~ound rents on the Property, i[a~y, plus one iwelfth of yearly premium installments for hazan~ inaurance, plus onetwelfth of yearly premium inatallmenta for mortgage inaurance, if any, all ae reasonably estimaled initially and from time to tirne by Lender o~ the basis of assesxments and bills and reaaonable estimates thereof. •The ~nda ahall be held in an inatitution the deposifs or accounte of which are inaured or guaranteed by a Federal or State agency (including I.ender if Lender ia auch an inatitution). I.ender ehall apply the Funda to pay said taxea, asaesamenta, inaurance premiums and ground renta. I.ender may not charge for so holding and applying the ~nde, analyzing said account, or verifying and compiling eaid asseesmente and bille, unleas I.ender paye Borrower intereat on the ~nda and applicable law permite Lender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage that inlereet on the ~nde shall be paid to Borrower, and unless such agreement is made or applicable law requir~ such interest to be paid, l.ender ahall not be required to pay Borrower any intereet or earninge on the ~nde. Lender shali give to Borrower, without charge, an annual accounting of the Funde ahowing credita and debita to the Funde and Lhe purpoae for which each debit to the ~nde was made. The Funda are pledged as additional eecurity for the suma eecured by thia Mortgage. If the amount of.the fi~nda held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due datea of ta~cee, asseeamente, ineurance premiume and ground rente, ahall excaed the amount required to pay said taxes, assesamente, inaurance premiums and ground renta as they fall due, euch e:ceae shall be, at Boi~rower's option, either prompdy mpaid to Borrower or credited to Borrower on monthly instaltments of fi~nde. If the amount of the Funda held by Lender ahaU not be sutficient to pay taues, aseesamenta, insurance pr~emiume and ground rents se they fall due, Borrower ahall pay w Lender any amount necessary to make up the deficiency within 30 d'ays fmm the date notice ia mailed by Lender to Borrovrer requeating payment thereof. Upon payment in full of all sume secured by thia Mortgage, Lender ahall promptly rnfund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiae acquired by L.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite aoquisition by Lender, any Funda held by Lender at the time of application aa a credit a~ainet the sums secured by this Mortgage. 3. Application of Paymente. Unleas applicable law provides otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firet in payment of amounts payable to Lender by 8orrower under paragraph 2 hereof, then to interest payable on the Note, then to the principai of the Note, and then to intereat and principal on any Future Advances_ 4_ Charges; Liens. Borrower shall pay all taxes, asseasments and other charges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and lensehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof ur, if not paid in such manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounts due under this paragraph, and in ihe event BoTrower shall make payment directly, Borrower shali promptly furnish to I.ender receipts evidencing such pay mentti. Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by ~uch lien in a mann~rc accepts~ble to Lender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings w•hich operate to prevent the enforcement of the lien or forfeitum of the F'roperty or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing ar hereafter erected on the Property inaured againat loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in euch amounte and for such periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may berequired by state or federal regulationa goveming activitiea of Ixnder, or that amount of coverage required to pay the aums secured by this Mortguge, ' w•hichever is the greater. ~ The insurance carrier providing the insurance shall be chosen b~• Borrower subject to ~Fproval by ixnder, provided, that such approval . ~ shall not be unreasonabiy withheld. All premiums on insurance policiFS xhall be paid in the manner pmvided under paragraph 2 hereof or, if f not paid in such manner, by E3orroNer making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof ahall be in form acceptable to L.ender and shall include a standard mortgage clause in favor of ; and in form acceptable to L.ender. Lender ahall have the right to hold the po~es and renewala thereof, and Boaower shall promptly fumish to i ~xnder all renewal notices and all receipts of paid pmmiuma_ In the even lose, Borruwer ahall give prompt notice to the insurance carrier ~q and Lender. Lender may make proof of loss if not made promptly by Borrower_ E Unleas Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided auch restoration or rnpair is economically feasible and the security of this Mortgage ia not thereby impaired. If sueh ~ reatoration or repair is not economically feasible or if the sec~uity of this Mortgage wouid be impaired, the inaurance proceeds shall be applied ~ to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower. If the Properiy is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daya ftom the date notice is mailed by Lender to E3orrower that the insurance carrier offers to settle a claim for ~ ineurance benefits, I.ender is authorized to collect and apply the inaurance proceeds at Lendei s option either to restoration or repair of lhe Pmperty or the sums secured by thie Mortgage. ~ Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not extend or postpone the due ' date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prioz to the sale or acquisition shall pase W Lender to the extent of the auma secured by this biortgage immediately prior to such sale or aoquisition. 6. Preservation and Mainteaance of Property; Leaeeholde; Condominume; Planned Unit Developmenta. Borrower shall keep the Property in good repair and shall not rnmmit waete or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lease if thie ~Iortgage is on a leasehold. If thia Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform aA of Borrower e obligations under the declaration or rnvenante creatingor governing the rnndominium or planned unit deveiopment, the by-laws and regulations of the condominium or planned unit development, and constituent dceumenla. If a ~ condominium or planned unit development rider ia executed by "Borrower and recorded together with thia Mortgage, the covenants and v agreementa of auch rider shall be incorporated into and shall amend and supplement the covenanta and agreementa of this Mortqage as if the ~ rider were a part hereof. Protection of Lender'e Security. If Borrower faila to perform the aovenanta and agreemente contained in thie Mortgage, or if any ~ ection or proceeding is commenced which materially affecfa Lender'a interest in the Property, including, but not limited to, eminent domaia, ~ ineolvency, oode enforc~nent, or arrangements or pmceedings involving a baniwpt or decedent, then I.ender at Lender'e option,upon notice to Borrower may make auch appearances, dieburee euch aums and take euch action aa ie necessary to protect Lender'e intereet, `s including. but not limited to, diabaraement of reaeonable attorney's feee and entry upon the Property to make repaire. If Lender required mortgage ineurance aa a condition of making the loan eecured by thie Mortgege, Borrower ahall pay the premiume required to maintain ~ auch insorance in effect until auch time aa the requirement for euch ineurance terminatee in accordance with Borrower's and I.ender'e " ~ written agreement ur applicable Lnw. Borrower ehall pay the amount of all mortgage inaurence premiume in the manner provided under I ~ paragraph 2 hereoL My amounte diaburaed by Lender perauant to this paragraph 7, with intereet thereon, ahall become additional indebtedness of ' ~ Borrower secared by thia Mortgage. Unlese Borrower and L.ender agree to other ierme of payment, such amounte ehali be payable upon ~ notice from Lender to Borrower requesting payment thereof, and ehall bear intereat from the date of di,sburaement at the rate payable from ~ time to 4me on outatanding principal under the Note unlese payment of intereat at auch rate would be contrary to applicable law, in which ~ event euch amounte ehall bear intereet at the highest rate permieaible under applicable law. Nothing rnntained in this paragreph 7. shall ~ require L,er?der to incnr any eapenee or take any action hereunder. ~ ~ ' ~ ~ ~~~~F.310 ~99 ~ . .