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HomeMy WebLinkAbout1340 t Borrowe~ and l.ender covena~t and agiree as follows: 1. Paytaent ot Principal and Intereat. Borrower shall promptly pay when due the principal of and intereat on the indebtedneae evidenced by the Note, prepayment apo late charges aa pmvided in the Note, and the principal of und intemst on any Future Advancee aecured by thie Mort~aRe. 2. I~ltnde !or Ta~cee and l~surance. Subject to applicable law or to a written waiver by I~ender, Horn,wer ehall pay to I.ender un lhe day monthly inatallmente of principal and intereat are payable under the Note, until the Note iB paid in full, a sum (herein "M unds") equal to one twelfth of the yearly taxes and assesamente which may attain priority over thia Mortgage, and ground renta on the Praperty, if any. plua one twelfth otyearly premium inatallmenta for hazard inaurance, plua onetwelRh ofyearly premium inatuliments for murtgoge inaurance, if any, aU an reasonably eetimated initialty and from time to time by I.ender on the baeia of asaeasments nnd billa and reusonable eatimates thereof. The F1nds ahall be held in en institution the deposits or accounta of which are ineured or guaranteed by a Federal or Stste agency (including [.ender if Lender ie auch an inetitution). I.ende~ ahall apply the Funds to pay eaid taxea, asaeeamente, inaurance premiuma and grou~d re~ta. I.ender may not charge for ao holding and applying the Funda, anAlyzing said account, or verifying and compiling said aave~mente and bille, unlesa l.ender pays Borrower intereet on the Funds and applicable law permits [.ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage thxt interest on the I~tinde shall be paid to Borrower, and unleae euch agreement is made or applicable law requirea euch interest to be paid, I.ender ehall not be required to pay Eiorrower any intereat or earninga on the Funde. I.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debita to the Funde and the purpoee for ~vhich each debit to the Funds was made. The Runda are pledged as additional eecurity fortheauma secured by thie Mortgage. If the amount of the ~nds held by Lender, together with the future monthly inetallments o[ Funda payable prior to the due dates of tauea. eaeeesmenta, ineurance premiuma and ground rente, ehall excred the amount required to pay said taxes, asaesamente, ineurance premiuma and ground rente se they fall due, auch e:ceae ahall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of hl~nde. It the amount of the Funde held by I.ender ehaU not be eufficient to pay taxes, asseasments, inaurance premiums and ground rente aa they fall due, Borrower ahall pay to I.ender any amount necesaary to make up the deficiency within 30 daye from the date notice is mailed by [.ender to Borrower requeating payment thereof. Upon payment in full of all auma eecured by this Mortgage, Lender ehall promptly refund to E3orrower any fu~ds held by Lender. If under peragraph 18 hereof the Property is aold or the Property is otherwise acquired by l.ender, Lender ahall apply, no later than immediately prior W the eale of the Property or ita aoquisition by Lender, any F~nda held by I.ender at the time of applicalion as a credit againat the suma secured by thie Mortgage. 3. Applicatjon of Paymente. Unleas applicable law providea otherwiae, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lende~ firxt in payment otamounte payable to l.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Nute, and then to internst and principal on any Future Advancee. 4. Chargee; Liena. E3orrowershall pay all taxes, assexsments and other charges, fines and impositions attributable to the {'roperty which may atlain a priority over this Mortgage, and leasehold paymenta or ground rents, ifany, in the mnnner provided under parA~raph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. Bormwer shail promptly furniah to I.ender all noticea of xmounta due under this para~raph, and in the event Borrower shall make payment directly, Borrower ahall promptly furniah tu l.ender receipta evidencing such payments_ E3orrower shall pr~?mplly dischnrge ~ny lien which has priority over this Mortgaqe; provided, that Borrower shall not be required todiacharge any such lien so long as Borrowershall agree in writing to the payment of theubligation aecured by such lien in a manner acceptable to I.ender, or shall in Rood faith contest such lien by, ordefend enforcement of ~uch lien in, legal proceedinKs which operate to pre~ent the enforcement of the lien or forfeiture of the Properiy or any part thereof. 5. Hazard Insurance. Borrower ehall keep the improvementa now existing or hereafter erected on the Property insured agAinst loss by fire, hazarda included within the term "extended rnverage," and nuch olher hazarda as L.ender may require and in auch amounts and [or such periods ae I.ender may requim; provided, that Lender ahall not require auch coverage amount exceeding the minimum, as may be required by state or [ederal regulations governing activities of I.ender, or that amount of coverage required to pay the sums secured by this Mort~cage, . whichever is the greater_ ' The insurance rarrier providing the inaurance shall be chosen by Korrower xubject to approvnl b~~ I.ender, pmvided, that such appruval ~ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paraQraph 'L hereof or, if '4 not paid in such manner, by l3orrower making payment, when due, directly to the inaurance carrier. i All inaurance policies and renewala thereof ehall be in form acceptable to Lender and shall include a standard mortgage clause in favor ot k and in form acceptable to Lender_ t.ender ehall have the right to hold the policies and renewals thereof, and Rorrower shall promptly furnish to i i.ender all renewal n~tioea and all teceipta of paid premiums. In the event of loss, E3orn~wer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loes if not made pmmptly by Borrower. Unless [.ender and Borrower otherwiee agree in writing, insurance proceeda ahal) be applied to restoration or repair of the Property damaged, provided such restoration or repair ia eronomically feaeible and the security of this Mortgage is not thernby impaired. if such reaturation or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda ahaU be applied to the aume secured by this Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ; respond to Lender within 30 daye from the date notice ie mailed by I.ender to Borrower that the inaurance carrier offers to aettle a claim for s insurance benefits, I.ender ie suthorized to collect and apply the insurance proceeda at [.ender e option either to rextoration or mpair of the ~ Property or the auma eecured by thia Mortgage. ~ Unless L.ender and Botrower otherwiae agree in writinq, any such application of proceeda to principal ahall not extend or poetpone the due date of the monthly inatallmenta referred to in paragraphe 1 and 2 hereof or change the amount of such installmente_ If under paragraph lA hereot the Property ie acqnired by Lender~ all tight, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof resulting from damage to Property prior to the eale or aequisition shall pass to L,ender to the extent of the eums secnred by this ~lortgage immediately prior to auch eale or aoquisition. ~ 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Plenned Unit Developmenta. Borrower ahall keep the Property in good repair and ahall not-cammit waete or permit impairment or deterioration of the Property and ahall comply with the ~ provisiona of any lease if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Rorrower shall perform all of E3orrower's obligations under the declaration or covenante creatinQor goveming the condominium or planned unit development, the by-lawa and requlatione of the conduminium or planned unit development, and ccnetituent dceumenta. If a ~ condominium or planned unit devetopment rider is executed by Borrower and rerorded together with thia Mortgage, the o~venanta and = agreements of auch rider ahall t?e inrorporated into and shall amend and aupplement thecovenanta and agreementaof this Morigage as i[the rider were a part hereof. ~ 7. Protection ot Lender's Securlty. If Borrower faile to ptr[orm the oovenanta and agreemente contained in thie Mortgage, or if any aMion or proceeding is rnmmenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain. ~ ineoivency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or deoedent, then Lender at Lender's option,apon notice to Borrower may make euch appearancea, disburse euch aums and take auch action es is neceseary to protect Lender'e interest, ~ including, but not limited to, diabureement of reasonable attorney's fees and entry upon the Property to make repairs. If I.ender required ~ mortgage insurance ae e condition of making the loan eecured by this Mortgage, Borrower shaU pay the premiume required to maintain euch ineurance in effect nntil ench time ee the requirement for auch ineurance terminatee in accordance with Borrower'e and Lender's ~ written agrcement or epplicable Lew. Borrower ehall pay the amount ot all mortgage inaurance prnmiume in the manner pmvided under ~ paragraph 2 hereoL ~ ~ My amounte disbureed by Lender persuant to thie paragraph with interest thereon, ahall become additional indebtednesa of ~ F3orrower secured by thie Mortgege. Unleas Borrower and Lender agree to other terme of payment, euch amounts shall be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diabureement et the rete payable from ~ time to time on outetanding principal under the Note unless payment of intereet et euch rate would be aontrery to applicable law, in which event such amounte ahal) bear interest at the higheat rate permiasible under applicable law. Nothing contained in thie paragraph 7, ahall ~ reyuire Lender to incur any expenee or take any aMion hereunder. ~ ~ ;a s . ~ k, 3_1_~. ; ~339 ~