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HomeMy WebLinkAbout1344 Sorro~er and l.ender covenunt and ugree as follows: 1. Payment o[ Prl~clpal and Intereat. Aorrower ehall promptly pay when due the principal of und intemst on the indebtednesa evidenced by the Note, prepayment and late cha~ges ae provided in the Note, and the principal of and intereet on any Future Advancea secured by this Mortgage. 2. ~Lt~de for Taxes and Ineurance. Subjecl b applicable law or to a wrillen waiver by l.ender, f~,rruwer shnll pay to l.ender un the day monthly inetallmenta of principal and intereal are payable under the Note, until the Note ie paid in full, n sum (herein "Fu~de") eyual io one twelfth of the yea~ly taxea and assesamente which may attain priority over this Mortgage, and ground renta on the t'ruperty, if any, plue un~ twelfth of yearly premium inetallmenta for huzard i~aurance, plus onetwelRh of yea~ly premium instailmentss for murtgage inaurance, if nny, aU as reasonably eetimated initially and trom time to ti~r~e by I.ender on the basis of nasessments nnd bills and reusonnble extimates thereof. The Ftinds shall be held in an inetitution the depoaite or accounts of which are ineured or guaranteed bv a Federal or State agency (including Lender if [.ender is such an inetitution). l.ender ahall apply the Funda to pay eaid taxee, asaesamenta, inaurunce premiums and ground rente. I.ender may not charge for eo holding and applying the F~nda, analyziag said account, or verifying and compiling said aaseasmente and billa, unlesa l.e~der paya Borrower intereat on the Funda a~d applicable Iaw permita I.ender to make such a charKe. E3orrower aad Lender may agree in writing at the time of execution of thia Mortgage that intereat on tlie Funda ehall be paid to Borrower, and unlesa . euch agceement ia made or applicable law requires auch intereat to be paid, l.ender ahall not be requind to pay Borrower any intereet or earnings on the ~nda. I.ender ahall give to Borrower, without charge, an annuul accounting of the Funde showing credita und debita to the Funde and the purpoae for which each debi/ to the Mlinds was made. The Funde are pledged as udditional security for the auma secured by this Mortgage. If the amount of the ~nde held by l.ender. together with the [uture monthly inatatimenta of Funds payable prior to the due datea of laxea, aeaetlamenfa. insurance premiuma and ground renta, ahall e:c~.~ed the amount required to pay said t:.xes, assesamenta, insurance premiums and ground rente as they fall due, euch exceae ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of Ftinda. If the amount of the Funde held by l.ender shall not be aufficient to pay tazes, assessmenta, insurance premiume and ground rente ae they [all due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within :~0 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aume aerured by this Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwiae acquired by [.ender, I.ender shall apply, no later than immediately prior to the eale of the Property or ite acquisiiion by I.ender, t?ny Funda held by Ixnder at the time of application as a credit againat the aums secured . by this Mortgage. 3. Applieation ot Payraente. Unleas applicable law providea otherwiae, all payments receivrd by [~ender under the Note and paragtaphs 1 and 2 hereot ahall be applied by [.ender first in payment of amounla payable to l.ender by Borrower under paragraph `l hereof, then to interest payable on the Note, then to the principal of the ~Iote, and then to interest and principal on any Future Advances_ 4. Chargea; Liens. Borrowershall pay all taxea, nsseasments a~d otherrhargea, fines and impositions altributable to the I'rc~pertv which nsay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under par:~graph'L hereofor, " if not paid in auch manner, by Borrower making payment, when due, directly to the payee thermf. Rorn,wershaU promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Born?wer shall promptly furnish to l.ender receipta evidencing such paymente. E3orrower shall promptly dischargr any lien which has priority m~er this Mortkage; provided, th~t Borrower ahall not be required to discharge any such lien so lonq as t3orrower ahall agree in writing to ihe payment uf the obligativn secured hy such lien in a manner acceptable to Lender, or shall in good faith conlest such lie~ by, or de[end enfun~ment of such lien in, lekal proceeclings which operate to prevent the enforcement c?f the lien or forfeiture of the Pmperiy or ~ny part thereoL 5. Hazard Ineurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured aRainst loas by fire, hazarde included within the term "extended coverage; ' and such other hazards as l.ender may require and in xuch amounts and [or such periods as I.ender may require; provided, that Lender ahall not requirn such coverage amount exceeding the minimum, as may be required by state or federal reguletiona governing aclivitiea of Lender, or that amount of coverage required to pay the auma xecured by this MortKage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by I3orrower subject to approval by~ I.rnder, pn,~ ided, that such appruv:~l ahall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner providecl under paraKraph 2 hereK,f or, if not paid in such manner, by I3orrower making payment, when due, directh• to the insurance carrier. All inaurance pulicies and rnnewals thereuf ahall Le in furm acceptable tu I.ender xnd ahaii inciude a alandard murtgage clauae in favor of and in form acceptable to Lender. Lenderahall have the right to hold the policiea and renewals thereot, and I3orrower shall promptly fumish to ixnder all renewal notices and all receipta of paid premiums_ In the event of losa, Borruwer ahalf give prompt notice tn the insurance carrier ~ and Lender. I.ender may make proof of loas if not made promptly by Borrower. E Unlese Lender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to reatoration or repair of the E'roperty ~ damage~, provided such reatoration or rnpair ia economically feaaibie and the eecurity of this Mortgage ia not thereby impaired. If such i reatoration or repair ie not economicaUy feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied E to the auma eecured by thie Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if ~rrower faila to i rrxpond to Lender within 30 daya from the date notice ia mailed by Ixnder to Borrower that the insurance camer offers to eettle a claim for ~ inaurance benefite, Lender is authorized lo collect and apply the inaurance proceeda at I.ender's option either to restoration or repair of the Property or the suma eecured by this Mortgage. Unless Lender and Borrower otherwiae a[sree in writing, any auch application of proceeds to principal ahall not extend or postpone the due date of the monthly instalimenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph IS hereot the Property ie aoquired by Lender, all right, title and intereat of Borrawer in and to any inaurance policies and in and to the proceeda ~ thereof resultinq from damage to Property prior to the sale or acquiaition shall pasa to I.ender to the extent of the aume eecured by this ~ Mortgage immediately prior to auch eale or aoquieition. ~ 6_ Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahall not commit wa8te or permit impairment or deterioration of the Property and shall comply with the provieiona of any lease if thie Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a rnndominium or a planned unit development, ~ Borrower shall perform all of ~iorrower's obligationa under the declaratian or covenanta creatinRor goveming the condominium or planned ~a unit development, the by-lawa and regulations of the condu~ninium or planned unit development, and conatituent documenta. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with thie Mortgage, the rnvenanta and ~ agreements of auch rider shali be incorporated into and shali amend and supplemenl thecovenants and agreementaof this Niortgaqe as ifthe - rider were a part hereof. ' 7. Protection of Lender'e Security. If Borrower faila to perform the oovenante and agreemente rnntained in thi8 Mortgage, or if any ~ action or proceeding ia rnmmenced which materisily affecte Lender's intereat in the Property, including, but not limited to, eminent domain, y ineolvency, oode enforcement, or arrangements or proceedinga involving a bankrupt or decedent, then Lender at Lender'a option,upon d notice to Borrower may make euch appearances, dieburee euch enms and take euch action ae is necesaary to pmtect I.ender's intereet, ~ including, buE not limited to, diabureement of reaeonable attorney'e feee and entry upon the Property to matie repairs. If Lender required ~ mo a e inaurance as a condition of makin the loan secured b thia Mo ~8 6 B Y rt8a8e, Borrower ahall pay the premiume required to maintain ~ euch insurance in effect until such time ae the requirement for euch inaurance terminatee in accordance with Borrower's and Lender e ~ written agreement or applicable I~w. Borrower ehall pay the amount of ai1 mortgage inaurance premiuma in the manner provided under ~ paragraph 2 hereof. My amounte diabureed by Lender perauant to thie paragraph 7, with intereet thereon, ehall become additional indebtedness of ~ fbrrower secured by thie Mortgage. Unleas Borrower and Lender agree to other terme of payment, euch amounte ehaU be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diabureement at the rate payable irom ~ time to time on outetanding principal under the Note unlesx paymant of intereat at such rate would be contrary to applicable law, in which event such amounta shall bear inteteet at the higheet rete permiaeible under applicable law. Nothing contained in thie paragraph 7, shall require Lender to incur any expense or teke any action hereunder. ~ ~ ~ ~ t : ~iZ ~.13~3 ~ ~