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HomeMy WebLinkAbout0439 ~ Borrower and I.eader covenant and agree as followr ~ 1. P~?yment ot Prlacipel and Intere~~ Borrower shall prompdy pay when due the principal oi and intarest on the indebtedness evidenced by the Note. prepayment and late charges ai provided in the Note, and tha principal of and intereet on any ~ture Advances secured by this Mortgage. 2. PLnd~ for Tesea Aad lasuranoe. Subject b applicable law or to a written waiver by Lender, Borrower shall pay to L.ender on the day monlhly inatallmenN of principal and interest are payable under the Note, unW the Note ia paid in full, a aum (herein "FLnda'~ equal to one twelfth of the yearly taxee and assesamenLs which may attain priority over this Mortgage, and ground renta on the Pmperty. if any. plus ont twelRh of yearly premium inatallments for hazard insurance. plus ono-twelRh of yearly pnmium installments [or mortgage insurance. iiany, all ae reaaonably estimated initiaUy and tkom time to time by Lender on the basis of aa~eaemenia and billa and reaeonable estimates thereof. The Plinds shall b~ held in an inatitution the deposita or aornunts of which are insured or guaranteed by a Federal or State agency (includiag Lender if Lender is such an uutitution). Leader ahall apply the F~nds to pay said taxes. aeeeaements. ineurance premiums and ground nnts. Lender may not charge for w holding and applying the Plinds, analyzing~said aocoun~ or verifying and rnmpiling said esseaements and biUs. unle~a L.ender pays Borrowrr intereet on the PLnds and applicable law permits Lender to make such a charge. Borrower aad Leader may agree in writing at the time of e:ecution of thia Mortgage that interest on the fl~nds shall be paid to Borrower. and unlese euch egreement ie made or applicable law requires wch interest to be paid. I.ender ahall not be required to p~yy Borrower any interest or ear~ings on the P~nds. Le~da shall give to Borrower. without charge, an annual acoounting of the Funds ahowing credits and debits to the I~ads and the purpose for which each debit to the ~nds was made. The I~nds are pledged as additional eecurity for the auma secured by this Mortgage. - - If !hg amount of Lhe F~nds held by Lender. togetlter wiih the fulus+e manthly inatallmen~e of T~ndn payable prior tn the due datea of tazes, asseeamenta. inaurance pnmiume and ground rente. ahall ea[oaed the amount required to pay said ta:ea, aseeaemente. inaurance preaniums and grouad rente aa they fall due. such excesa shall be. at Borrower's option. either pmmpdy repaid to Borrower or credited to Borrower on monthly installments of I~nda. If the amount of the ~nde held by Lender ehall not be aufficient to pay taxes, aseeeaments, ineurance prewiums and ground renfa aa they fall due, Borrower ahall pay to Lender any amount neceeeary to make up the deficiency within 30 daye from the date notice is mailed by Lender to Borrower requeeting payment thereof. ~ Upon payment in full of sU aume secured by thia Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Pi^operty ia eold or the Property is otherwise acqnired by Lender. Lender ahall apply, no later than immediately prior to the sale of the Propedy or its aoquisition by I.ender, any Ftinde held by I.ender at the time of epplication as a credit against the auma eecund by thia Mortgage. 3. Application of Payments. Unlesa applicable law providea otherwiee. all payments received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by I.ender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; I.ieas. Borrower ehall pay all tauea, asseasments and other charge8, fines and impositions nttributable to the Property which may attein a priority over this Mortgage. and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manneT. by Borrower making paymen~ when due, directly to the payee thereo! Borrower ahail prompdy furniBh to Lender atl noticea of amounta due under this paragraph. and in the event Borrower shall make payment directly, Borrower ehall prompdy furnish to Lender receipts evidencing such paymente. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ehaJl not be required to discharge any auch lien so long as Borrower ahall agree in writing to the payment of theobligation secured by such Gen in a manner acceptable to Lender, or sha11 in good faith conteat auch lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazerd Ineuranoe. Borrower shall keep the improvements now ezisting or hereafter erected on the Properly inaured against losa by 6re, hazarde included within the term "e:tended rnverage," and euch other hazarde as Lender may require and in such amounta and for such peziode as Lender may req~ire; provided, that Lender shall not require auch ooverage amount exceeding the minimum, as may be required by etate or federal regulations governing activitiee of Lender. or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ia the greater. The inaurance carrier providing the insurance ahall be choeen by Borrower eubject to approval by Lender, provided, that such approval ' shap not be unreasonably withheld. All premiume on inaurance policiea shall be paid in the manner provided under paraRraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in fot~n acceptable to Lender and shall include a atandard mortgage clauee in favor of aad in form acxeptable to Lender. Lender ahall have the right to hold the policies and renewala thereof, and Borrower shall pmmptly fumish to i.ender all renewal notioes and all receipta of paid premiuma. In the event of loes, Borrower ahall give pmmpt notice to the insurance carrier i and Lender. Lender may make proof of loes if not made prompdy by Borrower. ~ Unleae Leader and Borrower otherwise agree in writing, inanrance prooeede ahall be applied to restoration or repair of the Property ~ damaged, provided such reatoration or repair ia economicaUy feasible and the eecurity of this Mortgage ia not thereby impaired. If such rnatoration or repair ia not economically feasible or if the eecurity of thia Mortgage woald be impaired, the insurance proceeda shall be applied ~ to the sume eecur~ed by this Mortgage, with the eacese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to ~ respond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the ineurance carrier of[ere to aetde a claim for 's insurance benefita. I.ender ie authorized to rnllect and apply the inaurance proceede at Lender'a option either to reetoration or repair of the ~ Prnperty,6r the anms eecured by this Mortgage. Unless Lender and Borrower othetwise agree in writing, any euch application of pmceeda to principal shall not e~ctend or poatpone the due ~ date of the monthly installmente referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. If under paragraph 18 hereof the Property is soquired by Lender, all right, title and interest of Borrower in and to any insnrance policies and in and to the proceeda 4 thereof reaulting from damage to Property prior to the eale or aoquieition ehall paes to Lender to the extent of the sams secured by this ~ Mortgage immediately prior to auch sale or aoquisition. 6. Preaervation and ~Iaintenance of Pcoperty; Leaeeholde; Condominums; Planned Unit Developmenta. Borrower shell keep the Property in gaod repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the pmvisione of any lesee if this Mortgege is on a leseehold. If thia Mortgage ie on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower'a obligatione under the declaration or rnvenants creatingor goveming the condominium or planned ~ unit developmen~ the bylaws and regulatione of the condomininm or ptanned unit development, and constitaent documenta. If a ~ oondominiam or planned unit development rider ia e:ecuted by Borrower and recorded togeiher with thia Mortgage, the oovenanta snd ~ agreements of auch rider ahal) be incorporated into and ahal) amend and aupplement the covenants and agreements of thia Mortgage as if the y rider were a part hereof. ~ 7. Protectlon of I.ender'~ Security. It Borrower faila to perform the oovenants and agreements contained in this Mortgage, or if any " action or prooeeding is commenced which materially affects Lender s interest in the Property. incladiag. but not limited to, rminent domain, ~ insolvency. aode mforcement, or arrangemenb or pmoeedinga involving a bankrnpt or decedent, thea Lender at Lender's option.npon a notioe to Borrower may make such appearances, dieburse snch sums and take such action as is neoessary Eo pmtect I.endez'~ int~rest, ~ incinding. but not limited to, diabursement of nasonable attomey'e fees and entry upoa the Property to mal~e repain. If Lender reqaired ~ mortgage insnrance as a condition of making the loan secnred by this Mortgage, Borrower shall pay the premiums required to maintein k~ snch insurance in effect until euch time as the requirement for such inaurance terminatea in aceor~ance with Borrower's and Lender's ~ written agreement or applicable I.aw. Borrower shell pay the amount of all mortgage insuranoe premiums in the manner pmvided under < paragraph 2 hereof. ~ My amounts disbursed by Lender persuant to this paragreph 7, with intereat thereon, shall become additional indebtednees of ~ Borrower secured by this Mortgage. Unless Borrower and Lender agree !o other terms of payment, such amounts shaU be payable upon ~ aotioe from I.ender to Borro~rer requeeting payment thereof, and shall bear interest from the date of disbareement at the rate payeble 5rom ~ time to time on outstanding principal undrr the Note unless payment of interest at such raLe would be contrary to applicable law, in which event snch amounts shell bear interest at the higheat rate.prrmiseible under applicable law. Nothing contained in this paregraph 7, shall - require Lender to incnr any eupense or take any action hereunder. ~ ~ ~~.K~ 311 ~N~: 438 - ~ ~ . - - ~