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HomeMy WebLinkAbout0627 Borrower and Lender covenant and agree ae follows: 1. Payme~t ot Princlpal and latere~~ Borrower shall promptly psy when due the principal of and intereat on the indebtedneee evidenced by the Note. pnpayment and late charges as provided in the Note, a~d the principal of and intereet on any Fliture Adv~sncee secured by this Mortgage. 2. Ftinda torTaues wnd Insuran~. Subject t~o applicable law or to a written waiver by I.ender, Borrowerehall pay to I.enderon the day monlhly installme~ts of principal and inte:eet are payable under the Note. until the Note ia paid in full, a aum (herein "I~l~ndB") equal to one twelN? olthe yeariy taxes and asaessments which may attain priority over thie Murtgage, and ground rente on the Property, if any, plua one- twelfth of yearly premium installtnents for hazard insurance, plus onetwelRh of yearly premium inatallme~te for mortgage inaurance, if any, all es reasonably eatimated initially and from time to time by l.ender on the baeis of aesesements and billa a~d reasonable estimatea thereof. The P1?nds ehall be held in an institu4on the deposita or aocounts of which are inaured or guaranteed by a Federal or State agency (i~cluding I.ender if Lender is such an institution). L.ender shall apply the Funde to pay said taxes, seaesaments, inaurance premiume and ground reats. I.ender may aot charge for so holding and applying the fi~nda, analyzing said account, or verifying and compiling esid ~ assessments and bills, unlesa Lender pays Borrower intereat on the Funds and epplicable law permits l.ender to make euch s charge. Borrower and Lender may egree in writing at the time of e:ecution of this Mortgage that intereat on the Fl~nde ahall be paid to Borrower, and unleaa such agreemei?t ia made or applicable law requirea such intereat to be paid, I.ender ahall not be required to pay Borrower any intetest or earnings on the FLnde. Lender ahaU give to Borrower, without charge, an annual aooounting of the Funda showing credita and debits to the Funda and the purpose for which each debit to the Phnde was made. The ~nds are pledged as additional aecurity [or the aums eecured by this Mortgage. ' . If the amount of the ~nds held by Lender, together vrith the future monthly installmente of Funds payable prior to the due datee of taues, asseeamente, insurance pnemiums and ground rents, shall ra~oaed the amount required to pay eaid taxea, aaeesamenfa. ineurance premiume and gmuad renta as they fall due. such excess shall be, et Borrower s option, either pmmpdy repaid to Borrower or credited to Borrower on monthly iastallments of ~nds. 1f the amount of the Funds held by. Lender shall not be aufficient to pay taues, seseeementa, inaurance premiums and ground rente se they fa11 due, Borrower ehall pey to Lender any amount neoeaaary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in fiill of all eums eecured bv thia Mortga¢e. I.endet eiil~ll ptom~r rdund t~Berrower any funda hel~l hy i~n~ior, ~~~~d~ paragraph 18 hereof the Property is aold or the Property is otherwiee acquired by~R desti I.en~er ehall apply. no later than immediately prior to the sale of the Property or its aoquisition by Iender, any Funde held by I.ender at the time o~applica' tion aB a credit againet the suma secured by thia Mortgage. ' . . . ~ ~ 3. Applieation ot Payments. Unleas applicable law providea othenviae, all paymente received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable W I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the prinripal of the Note, and then to interest and principal on any Fnture Advances. 4. Chargee; Liene. Borrower ahall pay all taxee, aaeessments and other chargea, fines and impositiona attributable to ihe Property which may attain a priority over this Mortgage, and leasehold paymente 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, dirertly to the payee thereof Borrower shall promptly furniah to Lender all notices of amounta due under thia paragraph, and in the event Borrower ahall malce paymenl directly, Borrower shall promptly fumiah to L.ender receipta evidencing euch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that i Borrower ahall not be required to discharge any auch lien so long aa Borrower ahall agree in writing to the payment o[the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest auch lien by, ordefend enforcementofsuch lien in, legal proceedings which operate to prevent the enforcement o[ the lien or [orfeiture of the Property or any part thereof 5. Hazerd Iasurance. Borrower ehall keep the improvementa now e:isting or hereafter erected on the Property insured against losa by fire, hazarda included within the term "e:tended coverage,° and ~uch other hazerds se Lender may require and in such amounta and for such p~riode as Lender may require; provided. that Lender ahall not require auch rnverage amount exceeding the minimum, as may be requircYi by ~ state or federal regulaliona governing adivitiea of l.ender, or thst amount of rnverage required to pay the aume secured by this Mortgage, whichever ia the greater. The insurance carrier providing the inauranceshall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld_ All premiuma on inaurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policiea and renewala thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender shall have the right to hold the policiea and mnewala thereof, and Borrower shall promptly furnish to i i.ender all renewal notices and all receipta ot paid premiuma. In the event of lose, Borrower ahail give prompt notice to the insurance carrier ; and Lender. Lender may make proof of loae if not made prompdy by Borrower. ~ Unleea Lender and Borrower otherwise agree in writing, inaurance ptnceeds shall be applied to restoration or repair of the Property i damaged, provided auch reatoration or repair is economically [easible and the security of this Mortgage ia not thereby impaired. If auch ~ restoration or repair ie not economically feseibte or if the security of this Mortgage would be impaired, the ineurance proceede ahall be applied € to the euma secured by this Mortgage, vrith the excx~a, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to reapond to I.ender within 30 daya from the date nodce ia mailed by Lender to Borrower that the inaurance carrier offere to aettle a claim for ~ insurance benefite, Lender ie authorized to collect and apply the inaurance proceeda at Lender s option either to restoration or repair of the ~ Pmperty or the suma secured by this Mortgage. Unleea Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e:tend or poetpone the due ~ date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inataUmente. If under paragraph 18 ~ hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any ineurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or aoquisition ahall pase to Lender to the e:tent of the sums eecured by thie ~ Mortgage immediately prior to anch eale or aoquiaition. 6_ Preeervation end blsintenance of Property; Leaeeholda; Condominums; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ehall not commit waate or permit impairment or deteriorstion of the Property and ehall comply with the ~ provieiona of any lease if this Mortgage ia on a leasehold_ If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ehall perform ail of Borrower e obligationa under the declaration or rnvenante creatingor governing the rnndominium or planned ~ unit development, the by-laws and regulatione of the condominium or planned unit development, and constituent documente. If a i rnndominium or planned unit development ride= is e:ec~ted by Borrower and recorded together with this Mortgage, the oovenante and agreements of auch rider aha11 be incorporatrd into and ahall amend and aupplement thecovenants and agreementa of thia Mortgage as if the rider wern a part hereof = T. Protectlon of I.eader'a Security. If Borrower fails to perform the oovenante and egreementa contained in this Mortgage, or if aay ~ action or proceeding is commenoed which matrrislly affecta I.ender s intereet in the Property, including, but not limited to, eminent domain. ~ insolvency. aode enforoement, or arrangemeats or proceedings involving a banlwpt or de~xdeat, then Lender at L.ender e option,upon ~ notice to Borrower may make such appearances, disburse such snms aad take euch action ea is neceaeary to protect Lender's interest. 3 induding, bnt not limited to, disbursement of reasoneble attomey'e fees and entryr upoa the Property to make repairs. If I.ender required ; mortgage inaurance as a condition of malcing the loan secured by this Mortgage, Borrower ahall pay the premiums reqnired to maintain ~ auch insurance in effect antil each time as the requirement for snch insurance terminatee in accordance with Borrower'e and Lende~s = writtrn agreement or applicable Lew. Borrower sha11 pay the amonnt of aA mortgage ineurance premiuma in the manner pmvided under paragraph Z hereof. ? My amounts disbureed by Lender persuant to thie paragraph 7, with interest thereon, ~hall beoome additional indebtednees of ~ Borrower se~vred by this Mortgage. Unlese Borrower and Lender agree to other terma of payment, such amounts shell be payable upon ' notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of dieburoement at the rate payable from ~ time to time on outstanding principa) under the Note unless payment of interest at auch rate would be contrary to applicable law~ in which ~ event such amounts shall bear intereat at the higheat rate permiaeible under applicable law. Nothing rnntained in thia paragraph ahall ~ e+equire Lender to incur any e:pense or take any action hereunder. ~ ~ ~ - ' 3`'J~r ~~1 'Al.: