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HomeMy WebLinkAbout1086 Aorrower and Gender covenant and agree aa follows: 1. Peymeat ot Principal and Interea~ Borrower ahall promptly pay when due the prinripal of and interest oA the indebtedneas evide~ced by the Note, prepayment and late charges ae provided in the Note, and the principal of and iaterneton any Future Advances aecured by this Mortga~e. • 2. l~nds for Tazes and ln~utance. Subject to epplicable law or to a written waiver by l.ender. Horrower ehaU pay to I.ender on the day monthly instellments o[ prirtcipal and interest arc payable under the Note, until the Note ia paid in full, a sum lhereio "Ftinds") equal to ono- twelith otthe yearly taxes and easeeemente which may attain priority over thie Mortgege, and ground renta on the Property. if any, plus one twelfth of yearly premium inatallmenta for hazard insurance, plua onetwelRh oty~arly ~,re~uiutn iiiaiaiimenie~ fur murigu~e ineurance, iiany, all aa reaaonably eetirnated initially and from time to time by I.ender on the basis of seaesamenta and bille and reaso~able eatimates lhereof. The Phnde sha11 be l+eld in an institution the deposits or aooounts of which are insured or guaranteed by a Federal or State agency (including I.ender if I.ender is auch an iastitution). Lender shall apply the Funds to pay eaid taxes, aseesaments, ineurance premiuma and gtound rents. Lender may not charge for so holding and applying the ~nds, analyzing eaid account, or verifying a~d rnmpiling eaid asseasments and bills, unlesa Lender pays Borrower intenat on the F~nds and applicable law permits I.ender to make euch a charge. Borrower and Lender may agree in writing at the time of execution of thi,a Mortgage that interest on the ~ada ahall be paid to Borrower. and unleas such agrcement is made or applicable law requiree auch interest to be paid, [.ender ehall not be required to pay Borrower any intereet or earnings on the fi~nds. l.ender ehaU give b Bon~ower, without charge, an annual aocounting of the Funda ahowing credita and debita to the ~ Funds and the purpose for which each debit b the Funde was made. The Funde are pledged as additional aecurity for the euma eecured by this ! Mortgage. . If the amount of the Funds held by Lender. together with the future monthly inatallmenta of Funda payable prior to the due dates of tauee, ; eseeeamente. insurance premiums and ground renfa, ahall e:c2ed the amount required to pay esid tazea. aseeasments. insurance premiuma and ground rents as they fall due, auch e:ceee ehall be. at Borrower e option. either prompUy repaid to Borrower or credited to Borrower on monthly installments of fi~nds. If the amount of the Funde held by Lender ahall not be sufficient to pay taxea, asseeamenta, inaurance ' premiuma and ground rente as they fall due, Borrower ahaU pay to I.ender any amount neceasary to make up the deficiency within 30 daye ' from the date notice is mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of all euma eecured by thie Mortgage. l.ender ahall prompdy refund to Borrower any funda held by l,ender. If under paragraph 18 heseof the Property ia eold or the Property ie otherwise acquind by Lender, Lender ahaU apply, no later than immediately prior to the sale of the Propedy or ite aequieition by L.ender, any Fnnda held by l.ender at the time of application ae a credit against the auma secured by this Mortgage. - 3. Applicadon of Psymeats. Unlesa applicable law providea otherwise, ail paymenta received by L.ender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of emounta 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 end principal on any Future Advancea_ 4. Chargee; Liens. Borrower shall pay all tauea, assesaments and other charges. finea and impositione sttributable to the Property which may attain a priority ov~ thie Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. f;orrower shall promptly furniah to Lender all notices of amounts due under thia paragraph, and in the event Borrower shaD make payment directly, Borrower shall promptly furnish to Lender receipta evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shal) agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall 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 for[eiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvements now exieting or hereafter erected on the Property inaured againat losa by fire, hazards included within the term "eztended coverage, ' and auch other hazards ae I.ender may require and in such amounts and for such periode as I.ender may require; provided, that I.ender ahall not require auch coverage amount exceeding the minimum, as may be required by atate or federal regulations governing activities of I.ender, or that amount of rnverage required to pay the auma secured by thie Mortgage, whichever ia the greater. " The insurance carrier providing the inaurance shall be chosen by Borrower aubject to approval by l.ender, provided, that such approval ; shall not be unreseonably withheld. All premiums on inaurance policies ahall be paid in the manner provided under paragraph 2 hereotor, it j not paid in snch manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All inaurance policiea and renewala~ thereof ehall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of ! and in form accepteble to Lender. I.ender shall have the right to hold the policiea and renewals thereof, and Borrower shall prompdy fumish to- i i.ender all renewal notices and all receipte of paid premiume. In the event of loss, Borrower ahali give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. _ Unleas Lender and Borrower otherwiee agree in writing, inaurance proceede shall be applied to restoradon or repair of the Property ~ damaged, provided anch reatoration Qr repair ie economicaUy feaeible and the eecurity of thie Mortgage ie not thereby impaired. If such reetoration or repair ie not economically feasible or if the eecurity of thie Mortgege would be unpaired. the ineurance proceeda ahall be applied ! to the sume eecured by thie Mortgage. with the e:cese, if any. paid to Borrower. If the Ptoperty is abandoned by Borrower, or if Borrower faile to ~ respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier offere to eettle a claim for ; ! insurance benefits, Lender ia authorized to collect and apply the insurance proceede at I.ender s option either to restoration or mpair of the ~ Property or the sume eecured by this Mortgage_ ~ Unleas Lender and Botrower otherwiee agree in writing, any auch application of proceede to principal ehall not extend or poatpone the dYe ~ date of the monihly inatailmenfia referred to in paragraphe 1 and 2 hereof or change the amount of euch inatalimenta_ If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceede thereof r+esulting from damage to Property prior to the sale or aoquiaition ahall pass to Lender to the exteni of the euma eecured by this Mortgage immediately prior to auch sale or aoquiaition. 6. Preaervation end blaintenance o[Property; Leaeehulde; Condominuma; Piaaned Unit Deveiopmente. Borrowerahall keep ~ the Property in good repair and ehall not rnmmit waste or pennit impairment or deterioration of the Property and shall comply with the provisione of any lesee if this Mortgage is on a leaeehold. If this Mortgage is on a unit in a oondominium or a planned unit development, E3orrower ahall perform all of Borrower'e obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulatione of the condominium or planned unit development, and conetituent documente. If a condomini~un or planned unit development rider ia ezecuted by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreements of auch rider shall be incorporated into and ahall amend and aupplement the covenanta and agreements of thie Mortgageas if the rider wern a pert hereof. ; 7. Protection o! Lender'~ Security. U Borrower fails to perform the oovenants and agreemente ooateined in thia Mortgage, or if any ~ aMion or proceeding is commenoed which materially aftects I.ende~s interest in the Property, including, but not limited to, eminent domain, ~ inaolvency. aode enforoement, or arrangementa or proceedinge involving a baniwpt or decedent, then Lender at I.ender s option,upon ~ notice to Bormwet mey make snch appearances, dieburee such anms and take such action as ia neoesaary to peotect I.eader's interest, including. bnt not limited to, disbureement of reasonable attomey's fees and entry upon the Property to make npairs. If I.ender reqtured ~ mortgage insnrence as a condition of making the loan secured by this Mortgage. Bomower shall pay the premiums required to mainiain ~ ench insurance in effect until such time as the requirement for auch insurance terminates in accordance with Borrower's and I.ender'a s written agrcement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiums in the manner pmvided under = paregraph 2 hereof. ~ My amonnse disbursed by Lender persuant to this peragraph 7, with intereat thereon, ahall beoome additional indebtedness of ~ Borrow~er secvred by thia Mortgage. Unless Borrower and Lender agree to othrr terma of payment, such amounts shall be payable upon notice from I.ender to Bosrower requesting payment there~f, and shall bear interest from the date of diebureement at the rale payable from ~ time to time on outstanding principal under the Note unleas payment of intereat at sach rete would be oontrary to applicable law, in which event such amounts shall bear interest a~ the highest rate perwissible under applicable law. Nothing contained in this paregraph 7, ehall ~ require Lender to incur any eupenee or take any action hereunder. ~ i ~ ~~.311 -r~ ~:10~5 ~ . Y~