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HomeMy WebLinkAbout1335 Borrowe~ and l.ender covenant and ag~ee aa follows: l. Payment of Pri~cipel and Intereet. Aorrower ehall promptly pay when due the principal of and internat on the indebtedneaa evidenced by the Note, prepayment and late charRes as provided in the Note, and the DR~cipal of and intereat on anv Fliture Advanrea x~rnrrri by thia Mortgage. 2. F~nds for Ta~cee and Insurance. Subject to applicable luw or to a written waiver by l.ender, E3orrower ahnll pay to I.enderon the day monthly instalimenta of principal and interest are payable under the Note, until the Note ia paid in full, a aum Iherein "Funde") equal to one twelfth of the yearly taxes and uesesaments which may attain priority over this Mortgage, and grvund renta on the Property, if any, plus o~e- twelfth of yearly premium installmenta for hazard inaurance, plua onetwelfth of yearly premium installments for mortgage insurance, itany, all as reaeonably extimaled ioitially and from time to tirr~e by I.ender on the basis of assessments and bills t?nd reusonable catimatea thereof. The F~nda ahall be held in an inatitution the deposita or accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if l.ender is auch an inatitution>. l.ender shall apply the Funds to pay said taxee, assesamenta. inaurance premiuma and ground rente. I.ender may not charge for eo holding and applying'the Funda, analyzing said account, or verifying and compiling said aasesamente and bills, unleae l.ender paye Borrower intereat on the Funds and applicable law permita [.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that intere8t on the Funde shali be paid to Borrower, and unleaa euch egreement is made or applicable lave requirea "such intereat to be paid, l.ender shall oot be required to pay Borrower any intereat or ' earninga on the Funds. Lender shaU give to Borrower, without charge, an ennual accounting of the Runds ahowing credits and debita to the Funde and the purpoee for which each debit to the Funde was made. The Funds are pledged as additional security for the aume secured by this Mortgage. If the amount of the Fl~nds held by Lender, together with the future monthly inatallments of Funds payable prior to the due datea of taxea, asseasments, inaurance premiuma and ground renta, ahall eacYed the amount required to pay eaid taxes, assessments, inaurance premiums and ground renta aa they fall due. such e:ceee ahall be, at l~orrower's option. either prompUy repaid to Borrower or credited to Borrower on monthly inetaUmenta of Ftinda. If the amount of the Funds held by [.ender shall not be aufficient to pay taxea, sasessmenta, in$urance premiums and ground rents ae they fall due, Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by l.ender to Borrower requesting payment thereof. Upon payment in full of all euma secured by this Mortgage, Lender ahall promptly retund to E;orrower any funds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is othenvise acquired by Lender, l.ender ahali apply, no later than immediately prior lo the sale of the Properly or ita acquiaition by l.ender, any Funda held by I.ender at the time of application as a credit against the sums secund by thie Mortgage. 3. Application ot Paymente. Unlesa applicable law pmvides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender fimt in payment of amounts payable to Lender by E3orrower under paragraph Y hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Futnre Advances. 4. Charges; Liena. Rorrowe.-shall pay all taxes, assessments and othercharges, fines and im{wsitions uttributable to the Property which may attain a priority over this blortgage, and leasehold pay ments or ground rents, if any, in the manner provided under pHragraph 2 hereof or, if not paid in such manner, by ~3orrower making pavment, when due, directly to the payee thereoL Bormwer shall promptly furniah to Ixnder all notices of amounts due under this paragraph, and in the event F3~rtower shali make payment directly, E3c~rmwer ahall promptly furnish to I.ender receipts evidencing such payments. Eiorrower shaU promptly discharge any lien which ha.g pri~~rity over this Mortgake; provided, that t3orrower shall not be required todischarge any such lien so long as Borrower shall aRree in writinK to the payment of theobliqation secured by such lien in a manner acceptable to I.ender, or shall in R«xl faith contest such lien by, or defend enforcement of such lien in, leQal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard (neurance. Borrower shall keep the improvementa now existing or hereafter erected on the Yroperty insured aguinst loss by fire, hazards included within the term "extended coverage," and auch other hazarde as I,ender may requirn and in such amuunta and for such periods as Lender may require; provided, that I.ender shaU not requirn sunc ~overage amount exceeding lhe minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. . The insurance carrier providing the insurance shaU be chosen by 13orrower subject to appmval by Ixnder, provided, that ~;uch appro~•al sha11 not be unreasonably withheld. All pmmiumc on insurance policies shall be paid in the manner provided under paraKr.~ph 'L hereof or, if i not paid in such manner, by Borrower making payment, when due, directh to the insurance carricr. i All insurance policies and renewala thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favor o[ ; and in form acceptable to I.ender. Lender ahall have the riqht to hold the pulicies and renewale thereof, and &~rruwer shall prompUy furnish tn i i.ender all renewal notices and all receipts of paid premiume. In the event of losa, f3ornuwer shall give prompt notice to the insurance carrier j and Lender_ I.ender may make proof ot loss if not made pmmptly by Borrower. f Llnleae I.ender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property ~ damaged, provided such restoration or rnpair is economically feaeible and the security of this Mortqage is not thereby impaired_ If such ~ reatoration or repair ia not economically teaaible or if the security of this Mortqage would be impaired, the insurance proceeds shall be applied to the aums aecured by this Mortgage, with the excess, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daya from the date notice ia mailed by l.ender to Borrower that the insurance carrier offers to aettle a claim for ~ inaurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to reatoration or repair of the ~ Property or the suma secured by this Mortgage. ~ Unleea L.ender and Borrower otherwiae agree in writing, any auch application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly inxtallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of Rorrower in and t~ any insurance policies and in and to the proceecls ~ thereof resulting from damage to Property prior to the sale or acqu~sition ahall pass to Lender to the extent of the aume aecured by this s btortgage immediate[y prior to such sale or acquiaition. ~ 6. Preaervetion and Maintenance otProperty; Leaseholde; Condominums; Planned Unit Uevelopmente. Borrower shali keep s the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shaU comply with the ~ provieions of any lease if this Mortqage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ~ fiorrower ehall perform all of f3orrower's obligationa undez the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the rnndominium or planned unit development, and conatituent documents. If a ; condomin'sum or planned unit development rider ie executed by E3orrower and recorded together with thia Mortgage, the covenanta and _ :~greements of such rider shail be incorporated into and shall amend and supplement thecovenanta and agreements of thia Mortgaqeas if the ~ rider were a part henrof. 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenante and agreementa rnntaine~ in thie Mortgage, or if any ' action or proceeding ia rnmmenced which materially affecte I.ender'a interest in the Property, including, but not limited to, eminent domain, ? ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon ` notice to Borrower may make euch appearancee, diaburee euch sume and take auch action ae is neceseary to proLect Lendei s intereet, ~ including, but not limited to, diebureement of reaeonable attorney'e feee and entry upon the Property to ma1~e repaire. If Lender required ~ mortgage insurance aa a condition of making the loan serured by thie Mortgage, Borrower ehall pay the premiums required to maintein " euch inaurance in effect until euch time aa the requirnment for such inaurance terminatee in accordance with Borrower e and Lender e i written agreement or applicable Law. Borruwer ehall pay the amount of all mortgage ineurance premiums in the manner provided under r paragraph 2 hereof. My amounts dieburaed by Lender persuant to thia paragraph 7, with intereet thereon, ahall become additional indebtedneee of Ronower eecured by thie Mortgage. Unleas Borrower and I.ender agree to other terma of payment, euch amour~ta eha11 be payable upon s notice from Lender to Borrower requesting payment theteof, and ahall bear intereat from the date of diebureement at the rate payable from ~ firt~o fn limo ^::~~°.:3n~l~n.~ : y..^.'~£: :~SC :~3~ payment of inter~ai o? ? ••~u l. ~ Y~ '--L~- ~ ~ ~ ~ ••s ~~mj~+ ou~... tu.8 7:vu uc i,vuwm w u ~icau~c ~nw, i~~ ri~~iC 1 ~ event euch amounte ahall bear intereet at the higheet rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall ~ require I.ender to incur any expenee or take any action hereunder. ~ ~ ~ ~ 3J~r311 ~a~11334 ~ .