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HomeMy WebLinkAbout2288 E3orrower and Lender covenant and agree as folbws: 1. PsymeAt oi Prlacipel and Intere~t. Borrower shall promptly pay when due the principrl of and iatereat on the indebtedneae evidenced by the Note. prepayment and late chazges as provided in the Note, and the principal of and interest on any fi~ture Advancee eecured by thia Mortgage. 2. bLnde for Tazes and Insurance. Subject to applicable law or b a written waiver by I.ender. Borrower ehall pay to I.ender on the day monthly instaliments of principal and iat~ereat are payable under Lhe Note. until the Note ie paid in fuU, a eum (herein "~Lnds") equal to ~ne twelfth of the yearly taues and asseasmenta which may attain priority over this Mortgage, and ground rente on the Property, if any. plua one twelfth of yearly premium inatallmenta for hazard ineurance, plua onetwelRh ofyearly premium installmenta for mortgage inaurance, if any, all as reasonably eatimated initially and from time to time by I.ender on the t?asis of assessmente and billa and reaxonable eatimates thereof. The fi~nds shall be held in an inetitution the depoaits or accounts of which are ineured or guaranteed by a Federal or State agency (including Lender if Lender is euch an institution). Lender ehall apply the ~nde to pay said ta:es, aeseasmente, insurance premiuma and ground rents. Lender may not charge for ao holding and applying the ~Lnda, analyzing said account, or verifying and compiling said aesessments and biUa, unless I.ender pays Borrower intereat on the fl~nda and applicable lew pernaite Lender to make auch a charge. Borrower and Lend~ may egree in writing at !he time of execution of this Mortgage that interest on the flinds ahall be paid to Borrower, and unlese auch agrcement ie aaade or applicable law requiree auch interest b be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the fi~nds. Lender shall give to Bo~rrower, without charge, an annual aooouating of the fl~nds ahowing credits and debits to the Funds aad the purpose for which each debit to the Funde was made. The Funda are pledged as additional security for the auma eecured by this Mortgage. If We amount of the Pltnda held by Lender. together with the future monthly instullmenta of Funds payable prior to the due datea of taxes, asseasments, ineuraace premiuma and ground renfs. ehall euctied the amount required to pay eaid ta:es. aeseeamenfa, ineurance premiuma and ground rents as they fall due, such e=ceae ahall be, at Borrower'a optioi,, either pmmptly repaid to Borrower or credited to Borrower on monthly inetallmenta of ~nds. If the amount of the fl~nda held by Lender ahall not be aufficieat to pay ta:ea, aseesamenta, inaurance premiums and ground renta ae they fall due. Borrower shall pay to Lender any amount neceaeary to ma1~e up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon pay~nent in full of all aume eecured by thie Mortgage, L.ender ahall prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the PropeTty ie sold or the Property is otherwise acquired by I.ender, Lender shall apply, no later than immediately prior to the aale of the Property or ite soquiaition by Lender, any ~Lnds held by I.ender at the time of application as a credit ugainst the aums eecured by thia Mortgage. 3. Applieatioa of Paymeate. Unlesa applicable law providea otherwise, all paymente receiJ~by I.ender under the Note and paragrapha l and 2 hereof ehall be applied by I.ender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to t}~e prinripal of the Note, and then to interest and principal on any Fut~ue Advances. 4. Chargee; Liena. Borrower shall pay all taxes, asseasments and other rhargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid irrsuch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompdy furniah to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to I.ender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured against losa by fire, hazards included within the term "extended coverage," and euch other hazards as I.ender may require and in such amounte and for euch periods as I.ender may require; provided, that I.ender shall not require auch ooverage amount exceeding the minimum, as may be required by state or federal regulations governing adivities of Lender, or that amount of coverage required to pay the suma eecured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by ~rrower subject to approval by I.ender; provided, that such approval .hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraRraph 2 hereotor, if ~ not paid in auch manner, by Borrower making payment, when due, directly to the inaurance carrier. All insurance policiea and renewala thereof ahall be in form acceptable to Lender and shall include a standard mortgage clause in favor ot a nd in fortn aoceptable to Lender_ I.endet ShaU have the right to ho]d the policies and renewals thereof, and Borrower shall promptly furnish to ! i.ender all renewal notioea and all reoeipts of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier [ a~d I.ender. Lender may make proof of lose if not made promptly by Borrower. € Unlese Lender and Borrower otherwiee agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property ~ damaged, provided such restoration or repair ia economically feasible and the security of thie Mortgage ia not thereby impaired_ If auch { restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the sams secured by thia Mortgage, with the e:cess, if any. paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender Lo Borrower that the ineurance carrier oPfere to eettle a claim for E inaurance benefite, Lender is authorized to collect and apply the inaurance proceeda at I.ender's option either to restoration or repair of the ~ Property or the auma secured by thie Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahall not extend or postpone thedue date of the monthly inatallments referred b in paragraphs 1 and 2 hereof or change the amount of such installments_ If under paragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of Botrower in and to any insurance policies and in and to the proceede E thereof reaulting from damage to Property prior ta the eale or aoquisition ahall pass to Lender to the extent of the eume aecu:ed by this ~ Mortgage immediately prior to snch sale or acquieition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condominums; P~anned Unit Developmenta. Borrower shall keep ~ the Property in good mpair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the provisione of any lease if thie Mortgage ie on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ~ Borrower ahall perform all of Borrower e obligationa under the declaration or covenante creatingor governing the condominium or planned ~ unit development, the by-laws and regulatione of the condominium or planned unit development, and conetituent documenta. If a condominimn or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the aovenante and = aRreements of auch rider ahall be incorporated into and shall amend and supplement the covenante and ag*eementa of thia Mortgage as if the : rider were a part hereof. ~ Protection ot Lender's 3ecurit}~. If Borrower faila to perform the aovenanfa and agreements rnntained in thie Mortgage, or if any ~ action or prooeeding is commenced which maeerially effects Lender'a intereet in the Property, including, but not limited to, eminent domain, ^ ineolvency, oode enforcement, or errangements or proceedinga involving a baniaupt or decedent, then Lender at I.ender'e option,upon r notice to Borrower may make ench appearanoee, disburse euch auma and take euch action as is neoeeeary to protect Lender's in~t, r including, but not limited to, dieb~rsement of reaeonable attorney'e feee and entry upon the Property to make repairs. If I.ender required ~ mortgage insurance ae s rnndition of making the loan eecured by thia Mortgage, Borrower ahall pay the premiuma required to maintain ~ euch insurance in effect until such tune as the requirement for euch ineurance terminates in accordance with Borrower's and Lendei'e ! written agreement or applicable Law. Borrower ehall pay the amount of all mortBage ineurance premiuma in the manner provided under ~ paragraph 2 hereoL t Any amounts disbursed by Lender perauant to thie paragraph with interest thereon, ahall become additioaal indebtedneas of ` E3orrower secured by thie Mortgage. Unleea Borrower and Lender agree to oth~ terme of payment, auch amounts ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahaU bear intereet from the date of dieburaement at the rate payable from ~ time to time on outstandin nnci g p" pal under the Note unleas payment of interest at auch rate would be contrary to applicable law, in which ~ event auch amounte ahall bear intereat at the highest rate permieeible under applicable law. Nothing contained in thie paragraph 7, ahaU ~ require Lender to incur any expenae or take any action hereunder. _ :311; 2287 - ~ ~