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HomeMy WebLinkAbout2296 Borrower and Lender rnvenant and agree as follows: 1. Puyment ot Principal end Interest. Borrower shaU promptly pay when due the principal oi and intereat on the indebtednees ~videnoed by the Note, prepaymeat and late chargee as provided in the Notc. and the principal of artd intereat on any Future Advances aecured by thu Mortgage. 2. Ptinds for Tazes and lneurunce. SubjecL to applicable law or to a written waiver by Lender, I3orrower ahall pay to Lender on ihe day monthly installments of principal and intereat are payable under the Note. until the Note ia paid in iull, a aum (hemin "~nde") equal to one twelfth of the yearly taxea and assessments which may attain priority over this Mortgage. and ground rents on the Properly, i[any, plue one twelfth of yearly premium inatallments for hezard inaurance. plue onetwelfth ofyearly premium inatallments [or mortgage ineurance, if any. all as reasoaabiy estimated initially and from time to time by I.ender o~ the basis of aseessments and bills and reasonable eatimatea thereof. The Etinds ehall be held in an institution the deposits or aocounts of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). L,ender shall apply the Funda to pay said taxea, aeaeeaments, inaurance premiume and ground nnts. Lender may not charge for so holding and applying the ~nde, analyzing eaid account, or ~erifying and compiling said easessments and bills, unlees I.ender pays Borrower interest on the fi~nde and applicable law permite I.ender to make such a charge. Borrower and Lender may agree in writing at the time of e:ecutioa of this Mortgage that interest on the ~nda ahall be paid to Borrower, and unleae auch agreement is made or applicable law reqniree euch intereat to be paid, Lender ahall not be required to pay Borrower any interest or earnings oa the ~nds. I.ender shall give to Borrower. without charge. an annual accounting of the Ftinds ahowing credits and debite to the Funde and the purpoae for which each debit to the Flinde was mede. The Funds are pledged ae additional eecurity forlhe aums aecured by thia Mortgage. If the amount of the ~nda held by Lender, together with the fature monthly inetallmenta of Funda payable prior to the due dates of taxes, aeaessments. ineurance premiums and gtound rents, ahall e:eaed the amount required to pay said taxea. aaseasmente, ineurance premiums and ground rents se they fall due, euch e~coees ahall be, at Borrowei a option, either promptly repaid to Borrower or credited to Borrower on monWly iastallmenta of FLnda. If the amouat of the Funds held by Lender ehall not be eufficient to pay ta:ea, aeseasmenta, insurance premiame and ground rents as they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requesting payment thereof. . Upon payment in full of all aums aecured by this Mortgage. Lender ahall promptly refund to Borrower any funde held by Lender. If under ' paragraph 18 hereof the Propedy ie sold or the Property is otherwiBe acquired by Lender, Lender ahall apply, no Iater than immediately prior to the sale of the Property or ite soquiaition by Lender, any Plinde held by Lender at the time of application aa a credit against the suma eecured by thia Mortgage. 3. Applieation of Payments. Unlesa applicable law providea otherwiee, all paymente received by Lender under the Note and paragrapha 1 and 2 hereof ahaU be applied by Lender first in payment of amounta payable to [.eader by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Cbarges; Liens. Borrower ehall pay all taxes, asaessments and othercharges, fines and impositions attributable to the Property which may nttain a priority over this Mortgage, and leasehold paymente orgronnd rents, itany, in the manner provided under paragraph 2hereofor, if not paid in auch manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furniah to I.ender all noticea of amo~~nfs due under this paragiraph, and in the event Borrower shap make payment directly, Borrower ahall prompdy furnish to I.ender n~ceipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this 111ortgage; provided, that Borrow~ ahall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of thP obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend en Corcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hezard Ineurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insurnl againat losa by fire, hazarde included within the term "exlended coverage," and auch other hazards as Lender may require and in such amounts and [or auch periods as Lender may require; pmvided, that L.ender shail not require auch rnverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. The inenrance catrie~r providing the insurance shall be choaen by Borrower subject to approval by lxnder, pmvided, that such approval shall not be unreasonably withheld_ All prnmiuma on insurance policies shall be paid in the manner pro~ ided under paragraph 2 hereof or, if not paid in auch manner, by Borrower malcing payment, when due, directly to the insurance carrier_ Ail ineurance policiee and renewals thereof ahall be in form acceptable to Lender and shaU include a standard mortgage clause in favor of and in fotm acceptable to Lender. L.ender ahall have the right to hold the policie8 and rnnewals thereof, and E3orrower shall prom ptly furniah to i.ender all renewal notices and all e+ec~eipts of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loea if not made prompdy by Borrower. ! Unlees Lender and Borrower otherwiee agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property f damaged, provided such reatoration or repair is economically feaaible and the security of this Mortgage ia not thereby impaired. If such ! reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the inaurance proeecda shall be applied ~ to the aums eecured by thie Mortgage, with the e:ceae. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daya from the date notice ia mailed by Lender to Botrower that the ineurance carrier ofCers to eettle a claim for ~ ineurance benefita, l.ender ia authorized to collect and apply the insurance procceda at Lender a option either to reatoration or repair of the ` Property or the sums eecured by 1h~4~Vlortgage. 4 r Unleae Lender and Borrower otherwise agree in writing, any auch application otprooeeda to principal ehall not e:tend or poatpone the due ~ date of the monthly inatallmenta referred f,o in paragraphe 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ~ hereof the Property is aoquired by Lender, aA right, tide and intereat of Borrower in and to any ineurance policies and in and to the proceede ~ thereof reeulting ~om damage to Property prior to the eale or aoquieition ahall pass to Lender to the eztent of the eume eecured by thia ~ Mortgage immediately prior to auch eale or aoquieition. 6. Preservation and Maintenance of Property; Leaeeholde; Condominuma; Planned Unit Developmente. Borrowershall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ provisiona of any leaee if this Mortgage ia on a leaeehold. If this Mortgage ia on a uni~ in a rnndominium or a planned unit develupment, Borrower shall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent dceuments. If a condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage. the oovenanta and ~ agreementa of such rider ahall be incorporated into and shall amend and supplement thecovenants and agreementa of thia Mortgage as if the rider were a part hereof. 7. Protection of I.ender's Secarity. If Borrower faile to perform the oo~ enante and agreemente oontained in this Mortgage, or if any = action or proceeding is commenced which materially affecte Lender's intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enforcement, or arrengementa or proceedings involving a banicrupt or deoedeat, then Lender at Lender s option,upon ~ notice to Borrower mey make such appearanoes, disburee such anme and take such action as is neceesary to protect Lender's interes~ ~ including, bnt not limited to, disbursement of reasonable attoraey's fees and entry upon the Property to make repairs. If Lender ieqnired ~ mortgage ina~uance ae a condition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiume required to maintain ~ auch ineurance in dfect until euch time as the requirement for euch insuranoe terminatea in accordance with Borrower'a and Lendrr'e written egreement or applicable I.aw. Borrower ehall pay the amount of all mortgage insarance premiums in the manner provided under E paragraph 2 hereof. c My amounte disbursed by Lender pereuant to thia paragreph 7, with intereat thereon, ahall beoome additional indebtednees of ~ Borrower secured by thia Mortgage. Unlesa Borrower and Lender agree to othPr terme of payment, such amounte ehell be payable upon ~ notice irom Lender to Borrower requeating payment thereof, and shall bear interest from the date ot diabureement at the rate payable from ~ time b time on outetanding principel under the Note unlese payment of intereet at auch rate would be contrary to epplicable law, in which g event auch amounts ehall bear intereat at the higheet rate permiaeible under applicable law. Nothing rnntained in thie paragraph 7, ehall ~ require I.ender to incur any ~penee or tal[e any action hereunder. ~ ~ t ~ 311 ~~<< 2~95