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HomeMy WebLinkAbout2284 Borrower and I.ender covenaat and agree as [oUows: 1. Paymeat ot Priacipal aad Interes~ Borrower ahall pmmptly pay when due ihe principal of and interest on the indebted~eea evidenced by the Note. prepayment and late charges as pmvided in the Note, and the principal of and iniereet on any Fliture Advances secured by tbie Mort~a~e. ~ 2. I~unde for Ta~ce~ arid insurance. Subject to applicable {aw or to a written waiver by Lender, Aorrower ahall pay to l.ender on the day monthly installments of principal and intereat are payable under the Note, ~niii the Note ia paid in full, a sum (herein "Funda") equal to one- twelRh of the yearly taxes and assesements which may attain priority over thia Morlgage, and ground rents on the Property, if any, plus one twelRh of yearly premium installments [or hazard inaurance, plus onetwelfth ofyearly premium installments for mortgage insurance, i[any, all aa reaeonably.eatimated initially and from time to ti~rie by I.ender on the basis of assessmenta and bills and reasunable estimatea thereof. 'IR~e Ftinds ehall be held in an inatitution the depoaita or accounts of which are insured or guaranteed by a'Federal or State agency (including Lender if Lender ia such an inatitution). Lender ehal! apply the Funda to pay aaid taxea, aesesamenta, ineu~ance premiuma and ground renta. Lender may not charge for so holding and applyi~g the Funda, analyzing said account, or verifying and compiling said asseasmeats and bille, unlese Lender paye Borrower intereat on the ~nde and applicable law permita l.ender to make auch a charge. Bo~ower and Lender may agree in writing at the time of execution of thia Morigage that interest on the F`unda ahall be paid to Borrower, and unlesa such agrcement ie made or applicable law requirea such inteceat to be paid, Lender shall not be required to pay Borrower any intee~eet or earninga on the Fnnds. Lender ehall give to Bormwer, without charge, an annual accounting of the Funda showing credita and debita to the Funds aad the purpoee for which each debit to the Funds was made.'t7~e Funds are pledged as additional security tor the aums secured by this Mortgage. If the amount of the flu?da held by Lender, together with the future monthly installments of Funds payable prior to the due datea of taxes, asaeasmente, inaurance premiume and ground renta, ahall excz~ed the amount required to pay said taaes, assessmenta, inaurance premiume and gmund rente as they fall due. such excese shall be. at Borcowei a option, either promptly repaid b Borrower or credited b Borrower on monthly installmenta of ~nde. If the amount of the Funda held by l.ender shall not be su~cient to pay ta:ee, aeseasmenta, inaurance premiuma and ground rente as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full otall auma secured by lhis Morigage, l.ender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwiae acquired by Lender, l.ender shall apply, no iater than immediately prior to the eale of the Property or its acquisition by Lender, any Funds held by I.ender at the time of application as a credit against the suma secured by this Mortgage. 3. Application of Payments. Unleas applicable law provides otherwise, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firxt in pnyment of amounts pay~ble to l.ender by Borroveer under parngraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargee; Liene. Borrower shall pay all taxes, assessments and other charges, ~nes and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, i[any, in themanner provided under paragraph 2 hereofor, if not paid ip auch manner, by Borrower making payment, when due, directly lo the payee thereof. I3orrower shall promptly furnish to [.ender all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly. BorroNer shall promptl~ furnish to I.ender receipts evidencing such payments. Iiorrower shall promptiy dischargr any lien which h:is priority over lhis Mortgage; provided, that ~ Sorrower shall not berequired todischargeany such lien so lonR as Rorrower shall aRree in writinR to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in guod faith contest such lien by. or defend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the i'roperty or any part thereof. 5_ Hazard lnsurance. Borrower shall keep the impm~•ements now existinR ur hereafter erected on the Property insured against loas by fire, hazards included within the term "extended rnveraKe," and such other hazards as l.ender may require and in such amounts and for such periods as I.ender may require; provided, that Ixnder shall not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MortKaQe_ i ~ The insurance carrier providinQ the insuranm shall t~ chusen by Rurn~Ker subject to approva! b~• Ixnder, pn~vided, th~it such approval ! shall not be unreasonably withheld. All premiums on insurancr p~dicies ~hall !x paid in the manner pro~•idc~cl under paraKraph 'l hereof or, if f not paid in such manner, by F3nrrov?er makinK p:~ym~~nt, Nhen du~~, dinY•tly to the in~urance carrier_ . rtqage clause in favor ot ~ A11 inaurance policies and renewals thereof shaU be in form acceptable tu [.ender and shall include a standarci mo ; and in form acceptable to Lender. I.ender shall have the right to h.~ld the policies and renewals thereof, and &?rrower shall promptly fumish to ~ i.ender all renewal notices and all receipts of paid premiums_ In the event of loss, E3orn~wer shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by f3~rrow•er. ~ Unleas Lender and Eiorrower otherwise agree in writing, insurance proceeds shall be applied to mstoration or repair of the Property damaged, pmvided such restoration or repair is economically feasible and the security of this Mortgage is ~ot thereby impaired. If such ~ restoration or repairis not economically leasible or if the securitv of this Mortgage would beimpaired, the insurance proceeds ahall be applied ~ to the suma secured by this Mortgage, with the excess, if any, paid to I3orroveer. If the Property is abandoned by Borrower, or if Rorrower fails to ~ respond to Lender within 30 days from the date notice is mailPd by t.ender G~ Borrower that the insurance carrier ofiers to settle a claim for ineurance benefita. I.ender is authorized to collect and apply the insurance proceeds at I.ender's option either to restoration or repair of the Propetty or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such applicatiun of proceeds to principal shall not extend or postpone thedue date of the monthly installmenLa referred to in paragraphs I and 2 Eirreot or chanKe the amount of such instaliments. If under paragraph 18 hereof the Property is acquired by l.ender, all right, title and inlerest of Bormwer in and tu any insurance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or acqwsition shall pass tn l.ender to the extent of the suma secured by this ~ Mortgage immediately prior to such sale or acquisition. 6. Preeervation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developmenta. E3orrowerehail keep ~ the Property in good rnpair and shall not commit waste or perniit impairment or deteridration of the Property and shaU comply with the ~ provisiona of any lease it thia Mortgage is on a leasehold_ If this MortKaKe is on a unit in a condomenium or a planned unit development, ~ Borrower ehall perform all of F3orrower's obliQations under the derlarati~m or co~~enzints creatinKor governing the condorninium or planned ~ anit development, the bylaws and regulations of the condomini~m or planned unit development, and conatituent documenta. If a ~ condominium or planned unit development rider is exPCUted by 13orrow~er and recorded together with this biortgage, the wvenants and aKreements otsuch rider shall be incorporattd into and ~hall aimend and supplemrnt thecovenanls and agreements of this ~tortgageas if the rider were a part hereof. : Protection ot Lender's 3ecurity. If ~3orrower faila to perform the covenanta and agreements contained in thie Mortgage, or if any ~ action or proceeding is commenced which materially affecte Lender'e interest in the Property, including, but not limited to, eminent domain. ~ ineolvency, aode entorcement, or arrangements or proceedinge involving a bankrupt or decedent, then L.ender at Lender e option,upon ? notice to Borrower may make euch appearances, dieburee euch sums and take auch action as ie neceeaary to protect Lender's interest. ` including, but not limited W, diebureement of reseonable attorney's feee and entry upon the Ptoperty to make repa'ue. If Lender required ~ mortgage inaurance aa a condition of making the loan secured by this Mortgage, Borruwer shall pay the premiume required to maintain ~ euch inearance in effect until auch time as the requirement for auch inaurance terminates in accordance with Borrowei s and Lender s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ~ paragraph 2 hereof. ; ~ Any amounte diebureed by Lender perauant to thie paragraph 7, with intereat thereon, aha11 become additional indebtednese of ' ~ F3orrower eecured by this Mortgage. Un?eae Borrower and I.ender agree b other terma of payment, euch amounta ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahall bear intereet from the date o[ dieburaement at the rate payable from ~ time to time on outetanding principal under the Note unlesa payment of intereet at such rate would be contrary to applicable law, in which ~ event auch amounte ehall bear interest at the higheet rate pertnissible under applicable law_ Nothing contained in this paragraph 7, shall ~ require Lender to incur any e:pense or take eny action hereunder. ~ ~ ~ p ~ ; 1 A . • ~ ;~n~ ; ~ 1 !!i r /~Q~ +