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HomeMy WebLinkAbout0106 ' ~ ~ . . ~ Borrower a~d Lender rnvenant and a~ree aa follovw: 1. Paymeat of I'Mnclpal and lnteres~ Borrowei ehall promptly pay when due Lhe principal of and interest on the indebtedneas ` evidenoed by the Note. prepaymeat end late charges as pmvided in the Note, and the principal of and interest on any Pt~ture Advanc~ secured by thie Mort~age. 2. I~nds tor Tuea and Inwrance. Subject to agplicable law or to a written waiver by I.ender. ~3orrower ahall pay to I.ende~ on the day j monthly installmenfs of ptincipal and intereat are peyable under the Note. until the Note ie paid in full. a sum (herein "~nda") equal b one ~ twelRh of the yearly taues and aseessmente which may attain priority over this Mortgage, end ground rents on the Property, if any. plus one~ ~ ~ twelfth of yearly premium installmet~ts for hazard insurance, plue onetwelRh of yearly premium installments for mortgage inaurance, itany. j all as reasonably estimated initially and from time to time by I.ender on the basis of aneeeamenta and bills and reasonable estimates thereof. 'I~e Flinds ahall be held in an institutioA the deposits or socounts of which are inaured or guaranteed by a Federal or State agency ~ (i,icluding I.endar if I.end~ is auch an insacuaon). Lender ahall apply the I~nds to pay said taxee. aeaesamenle. ineurance premiums and ~ ground nnts. Lendes mey aot charge f~ s~ holding and applying the F~nds. analyaing eaid acconnt, or verifying and rnmpiling said ~ asaesameata and bille. unleee Leader pays Borrower interest on the FLnds and applicable law permita I.ender to meke such a charge. Borrower ' and Lender may agree in writing et the titqe of e:ecution of thia Mortgage that interest on t!?e ~nda shall be paid to Bormwer, and unleea ! euch agreement ie made or applicable law requiree such interest to be paid, Lender shall not be required to pay Bormwer any intereet or j eamings on the PLnde. I.ender shall give to Borrower. without charge. an annual accounting of the F~nds showing credits and debite b the fi~nds and the purpoee for which each debit to the I~luida was made. The Funds are pledged aa additional sec~uity for the eume secured by thie ! Mortgege. If Lhe amount of the FLnda held by Lender. together with the future awnthly instalimenta of Fl~nda payable prior to the due datee of texea, f asseeatuents. insuranoe premiums and ground renta. shall e:a~ed the amount required to pay said ta:ea, aseesements, insurance premiums ~ and ground nats as they fell due, snch e:cess shall be, at Bonower a option, either pmmpdy repaid to Borrovr~ or credited to Borrower on ; monthly instaUments of P~nds. If tha emount of the Funds held by I.ender shall not be sufficient !o pay taues. aeeesamenta, insurence i premiums and ground tents as they fall due, Borrower shall pay fo Lender any amount neceesary to make up the deficiency within 30 days ` from the date notice is mailed by I.ender to Borrower requeating payment thereoL - Upon paymeat in full of all sume aecured by thie Mortgege, Lender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Prope~e~ty ie sold or the Property is oti~erwise acquired by L.ender, [.ender ahall apply, no later thaa immediately prior to the sale of the Property or ite aoquiaition by Lender, any Ftinda held by Lender at the time of application se a rredit againat the eams aecured ~ by this Mortgage. ~ - _ : 3. Applieation o! Paymenb. Unless applicable law provides otherwiee. all payinente received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereet peyable on the Note, then to the principal of the Note, and then to interest end principal on any Future Advanc~ea 4. C6arges; Lieas. Borrower ahall pay all ta:es, aseesaments and other chargea, fines and impositiona attributable to the Property which may attain a priority over thia Morlgage, and leasehold payments or ground rents. if any, in the manner provided under paragraph 2 hereof or, if not paid in euch menner, by Borrower making payment, when due; directly to the payee the.reof. Borrower ahall promptly furnish to I.ender all noticea of amounls due under thia paragraph, and in the event Borrower shall make payment directiy, Borrower shall promptly furniah to I.ender receipta evidencing auch paymenta. Borrower ~shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower ahaU not be required to diecharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner aoceptable to I.ender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forteiture ot the Property or any part thereuf. ~ " 5. Hazard Inenrance. Boriower shall keep the improvemente now existing or hereafter erected on the Property inaured againat losa by fire~ hazarda included within the tetm "eutended eoverage," and euch other hazarda as L.ender may require and in such amounta and for such periods as Lender may reqnire; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regulationa goveming activities of Lender, or that amount of coverage required to pay the sume aecund by this Mortgage, whichever ia the greater. - The insurance camer providing the inaurance ahall be chaeen by Borrower aubject to approval by Lender, provided, that auch appmval ' shall not be unreasonably withheld AlI premiuma on insurance policies ehall be p~+id in the manner provided under paragraph 2 hereof or, if ~ not paid in sych manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policiee and rene+vala thereaf ehall be in form acceptable to i.ender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewale thereof, and Borrower shaU prom ptly furniah to ' i.ender all renewal noticee and all receipte of paid premiums. In the event of losa. Borrower ahalt give prompt notice to the inaurance carrier ~ and I.ender. Lender may meke proof of loss if not made prompUy by Borrower. G Unless Lendes and Borrower otherwiee agree in writing, ineurance proceeds shall be applied to reatoration or repair of the Property damaged, provided auch reatoration or repeir is economically feaaible and the eecnrity of thia Mortgage is noL therEby impaired. If auch ( restoration ~ repair is not economically feasible or if the eecurity of this Mortgage wonld be impaired, the ineurance proceeds ahall be applied ; to the euma eecured by thia Mortgage. with the excees, if any. paid to Borrower. If the Property ie abandoned by Borrow~, or if Borrower fails to ~ reapond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that tAe inaurance carrier of'fers to eetde a claim for - ~ insurance benefite, Lender ia anth~ized to collect and apply the inaurance proceeds at Lender s option either to restoration or repair of the j ~ Property or the sums secured by this Mortgage. _ ' Unleae Lender and Borrower otherwise agree in writing. any such application of pmceeds to principal ahall not eztend or postpone the due ; date of the monthly iastallmenta refeetred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmente. If nnder paragraph 18 ' ~ hereof the Property is aoquired by I.ender. ail right, tille and intereat of Borrower in and to any insnrance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the eale or acquisition shall pasa to Lender to the e:tent of the eums aecured by thie ~ Mortgage immediately prior to such eale or aoquisition. . ~ 6. Preeervation and Meintenance of Property; Leaseholde; Condominume; Planned Unit Developments. Borrower ahall keep s the Property in good repair and shall not commit waste or pennit impairment or deterioration of the Property and ehall comply with the ~ proviaiona of any lease if this Mortgege is on a leaeehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall per[orm all of Borrower's obligations under the declaration or oovenants creatingor governing the rnndominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent docvmente_ If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the oovehante and agreements of such rider ehall be incorporated into and ahall amend and supplement the covenants and agreeroents of thia Mortgage as if the rider were a part hereof. § 7. Protection of Leader'~ Securitp. If Borro~ver faile to perform the t~ovenanta and agreements oontained in t,hi~s Mottgage, or it any K action or proceeding is commenced which materially affects I.ender's interest in the Property. including. but not limited to. emiaent domein, insolvency. oode enforcemenk or arrangemenb or prooeedings involving a banlanpt or deoedeat, then I.ender at Lender'~ option.upon ~ natice to Bormwer may make snch appearanoes, disbnrse such anms and take such action as is neo~sary to protect Lender's interest, - ~ inclnding, but not limited to, diabnrsement of reasonable attorney's fees aad entry npoa the Property to malce rtpain. If Leader required ' mortgage insarance as a oonditioa of making the loan secured by this Mortgage. Borrower shall pay the prPminma reqnired to maintain ~ scch insarance in eftect until such time ai the requirement for such insurance t~rminates in aooordance with Borrower'a and Lendels § written agreement or applicabk Iew+. Borrower shall pay the smount of all mortgage inswancx premiume in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to this paragraph 7, with interest thrreon, shall beoome additional indebtedness of ` 3 Borrower secvred by this Morignge. Unlees Borrower and Lender agree to other terma of payment, snch amounta shall be payable upon ~ notice from Lenda to Bon~ower requesting payment thereof, aad shall bear intered from the date of disbursement at the rate payable 5rom ~ time to time on outstanding principal under the Note unless payment of interest at anch rate would be oontrary to applicable law, in which ~ event such amounta aha11 bear intereat al the higheat rate permissible under applicable law. Nothing contained in this paragraph shall ~ require I.ender to incur any e:pense or take any action hereundet. ~ s , `'~`pr 311 106 . - ;