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HomeMy WebLinkAbout1818 a Borrower and Leader covenant aad a~res aa follovv~: ' 1. Payment oi Peiacip~l end Iatar~s~ Bocmw~ ~haq pmmptly pay whea due the p:iacipal of and interest on the indebtedneas evidenoed by the Note, prepsyment and l~te charger ~u provided in the Noee. and the priacipsl of and intereat on any fl~ture Advanoes aecured by this Morf~a~s. 2 Ftinds for T~uce~ ~nd Ia~uraaae. Subjeet to applicable law or to a written waiv~ by Lender. Borrower shall pey to Lend~r on the day oQOnthly instalLpents of prinripal aad interest are pqyable under the Note. unti! the Note is paid in full. a sum (herein "Ptiu?ds'1 equal to ono- twelRh of the y~rl y taues and asseeaments which may attain priority over thia Mortgage. and ground renta on the Property. if eny. plns one tw+eltth of yearly premium installmenta for hesard insuranoe. plus onetwelRh of y~r~y premium installments for mortgage insuranoe, if any, ali as reasonably eetimated initially and irom time to time by Lendec on the basis of assessments and bills and reasonable.estimates thereof. 'IUe FLnd~ ~6aU bs hdd ia an inditation the deposits or aooounta of ~rluch are insared or guaranteed by ~ Fed~ral or 3tate ageacy (including Lc~der if I.ender is such an institution). [.ender shall apply the I~nds b pay said iues, aaseasments, insuranoe premiuma and , griwnd rents. l.ander may not charge for w holdin~ and applying the ~nds. analyzing said accaunR or verifying and oompiling said es~eesmenta and bills. unless Lender payn Borrower interest oa the Funda and applicable law permits I.ender b make euch a charge. Borrowr.r and I.ead~ may agree in ~?ritin6 at the time of execution of this Mortgage that interest oA the hl~nds shall be paid to Borrower. aad unless ~uch a~resment is made or applicabk law require~ euc!? int~rest to be paid, Lender shall not be required b pe~y Borrower any interest or earnings on the F~nds. Lender shall give to Borrower. without charge, an annual aaoountin'g of the I~nde abowing credits and debits to the F~nds and the purpose for which each debit to !he I~nds wae made.'t1~e F~nds are pledged as additional eecurity for the sums eecured by thia Mortgage. • If the amount of the I~luids held by Lender, together with the future monthly installmenfa of Funds payable prior to the due datee of taxes, easessmenta, inaurance premiums and ground rents. shall e~cozed the amouat e+equired b pay said tases. aeaesamenta. insuranoe preauums and ground reats ea they fall due. such eucess shall be. at Borrowei a optioa. either pmmpt~y rrpaid to Borrower or credited to Borrow~ on monthiy inatallmeata of P1~nds. If We amount of the F~nds heW by Lenda shall not be sufficien! to pay ta:ea. aseessments, inaurance preminms aad gronnd rents as Wey fall dne. Borrower shall pay to Lender any amount neceasary to make vp the deficiency within 30 days from the date notice is mailed by Leader to Borrower requesting payment th~eof. Upon paymeat in full of aU sums secured by this Mortgage, Lender ahall prompdy refund to Borrower any funda held by L.ender. If under paragraph 18 henof We Property ia sold or the Property ia otherwise acquired by I.ender, Lender shall apply, no later than immediately prior to the eale of the Property ar its aoquisition by Lender. any I~Lnda held by Lender at the time of application as a crediL agaiaet the auma eecured by this Mortgage. 3. Application of Payments. Ualeas appUcable law pmvidea otherwise. all paymente received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then b interest payable on the Note. then to the principal of the Note. and then to intereat and principal on any Future Advances. 4. Char~es: I.iens. Borrower ahall pay all taxea, ae..~esaments and other chargea, fines and impoeitiona attributable to the Prc~perty which may attain a priority over this Mortgage, and leaeehold paymente or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower.mating payment, wheit due, directly to the payee thereof. Borrovrer ahall pt~ompdy fumish to Lender all notioee of amoante due undet this para8raph. end in the event ~iorrower ahall make payment directly. Borrower ehall prompdy furniah to I.end~ receipts evidencing auch paymenta. Borrower ahall promptly diacht?rge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to diecharge any anch lien eo long as Borrower ahall agree in writin8 to the payment of the obligation secured by auch lien in a manner sooeptable to Lender. or ahall in good faith contesi such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part therEOt. 5. Hasard Insuraaoe. Burrower shall keep the improvementa now existing or hereafter erected on the Property insured against loss by fire. hazarda included within the term "~tended coverage; ' and euch other hazards as Lender may require and in such amounte and for such periods as I.ender may require; provided. that Lender ahall not require anch ooverage amount e:ceeding the minimum, as may be required by etate or federal regulationa governing activities of I.ender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the greater. The insurance carrier providing the inaurance shall be choaen by Borrower subject to approval by Ixnder, pravided, that such approval ahall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if . not paid in auch mannes, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewale thereof shall be in form soceptable b Lender and ahall include a standard mortgage clauee ia favor of ~ and in form aocepLable to Lender. Lender shall have the right to hold the policies and renewale thereof, and Borrower shall promptly furnish to ' i.ender all ienewal notices and all reaeipte of paid premiums. In lhe event of loae, Borrnwer shall give prompt notice to the insurance carrier ~ aad I.ender. Lender may make proof of loea if not made prompdy by Borrower. ~ Unlees I.endrr and Borrower otherwiee agree in wribing, insurance prooeeds ahall be applied to reatoration or repair of the Property damaged, provided such restoration or repair is economicallY feaaible and the security of this Mortgage ie not thereby unpaired. If such restoration or repair ie not ecoaomically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda ehall be applied to the euma eecared by thia Mortgage. with the ~ceas, if anY. Paid to Borrower. [f the Property is abandoned by Borrower, or if Borrower fails to reapond b Lender within 30 daye from the date notice ia mailed by Lender to Borrower thaL the insurance carrier offere to settle a claim for inauranoe benefita. Lender is anthorized to coUect and apply the insurance proceeds at I.ender's option either to restoration or repair of the Property or the sums eecured by thia Mortgage. Unleae Lender and Borrower otherwiae a8ree in writing, any auch application of proceeds to principal ehall not ~tend or postpone the due date of the moathly inatallmenta referred to in paragrapha 1 and 2 hereof ot change tt~e amount of auch installmente. If under paragraph 18 hereof the Properly is aoquired by Lender, all right, tide and intereat of Borrower ia and to any ineurance policiee and in and to the proceede thereof resulting from damege to Property prior to the eale or soquiaition ahali paea to Lender b the eztent of the auma eecured by thia Mortgage immediately prior to such sale or acquiaition. ~ 6. Preservation and Ysinteaance of Property; Leaeeholde; Condomiaums; Planned Unit Developments. Borrower ehall keep the piroperty in good repair and shall not commit waete or permit impairment or deterioration of the Property end shall comply with the pmviaione of any lease if thie Mortgege ia on a leaaehold. If thie Mortgage is on a unit in a oondominium or a planned unit development, ~ Bonower shall perform all of Borrower a obligationa under the declaration or covenanfa creatingor governing the rnndominium or planned unit development, the by-laws and regulatione of the rnndominium or planned unit developmen~ and oonstituent documente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and agreemente of auch rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage aa if the ~ rider were a part hereof. ~ ~ Protectioa of Lender's Securitp. U Borrow~r fails to pertorm the oovenants and agreementa oontained in this Mortgage, or if any ~ action or prooeeding is commenced which meterially affects Lendefs interest in the Prope:ty, including, bnt not limited to. eminent domain, ~ insolvency. oode enforcement, or arrangemeate or proceedings invoiving a baniQUpl or deoedent, then I~nder at I.ende~s option,npon notioe to Borrower may mal~e snch appearanoe~. diaburee such sums and take anch action aa is neceseary to protect Lender's interest, ~ includiag, but not limited to, disbureement of reasonable attarney's fces and entry upon the Property to make repain. If Lender required ~ mortgage ineurance as a condition of making the loan eecnred by this Mortgege, Borrower ehall pay the preminms reqnired to maintain ~ snch insyrance in effect until snch time as ihe requirement for such insurance terminates in sooordance with Borrower's and I.endds written agrcement or applicable Law. Borrower shall pay the amonnt of all mortgage insurance premiuma in the manner provided under ~ paragraph 2 haeof. Any amonnts diabnreed by Lender persuent to this peregraph 7, writh in~t thereon, shall become additional indebtednese of Borrower secnred by thia Mortgage. Unleas Borrower and Lenda agree to other terms of payment, euch amounts aha11 be payable upon nodce from I.ender to $orrower requesting payment thereof. and shali bear intereet from the date of disbureement at the rate payable from ~ ~ time to time on outstanding principal under the Note nnleea payment of inter~t ai euch rate would be oontrary to applicable 1aw, in which ~ event such emounte ahaU bear interest at the highest rate permissible under applicable law. Nothing oontained in this paragraph 7, ahall require Lender to incur any e~cpense or take any action hereunder. ~ ~ i i ~ ~ • ca - ~ - f~,~~311 a~~F1~17