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HomeMy WebLinkAbout2300 Borrower and l.ender covenant and agree as follows: 1. Payment ot Prlacipal and Iatere~t. Bormwer ehall prompdy pay when due the principal of aad intereat on the indebtedness evidenc~ed by the Note. prcpayment and late chargee as pm~-ided in the Note, and the principal of and i~tereat on any Phture Advancee secured by thi~ Mortgage. 2~nds [or Tuea and Ineurance. Subject b applicable law or to a writtea waiver by Lender, Rorrower ahall pey to Lender on the day monthly installments of principal and intereet are payable under the Note, until the Note ia paid in full. a aum (hernin "F~nds") equal to one- twelRh of the yeasly tuea and aseessmente which may attain priority over thie Mortgage, and g~ound renta on the Property. if any. plus ont twe1R}? of yearly premium installments for hazard insurance, plua onetwelRh of yearly pnmium inatallments for mortgage inaurance, itany, all es reaeonably eetimated initiaUy and itom time to time by I.ender on the basis of aeaessments and bills and reasonable ~timates thereof. The ~nda ahall be held in en institution the depoeits or aocounts of which are insured or guaranteed by a Federal or State agency (including I.ender if ;.,ender is auch an inetitution). Lender ahall apply the P~nda to pay said t~es, seeeeame~ts, inaurance premiuma and ground rents. I.ender may not charge for eo holding and applying the Flinde. analyzing esid account, or verifying and compiling said aeeeeaments and bille, unlees Lender pays Borrower intereat on the Ptinds and applicable law permite Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that interest on the ~nds ahall be paid to Borrower. and unleea such agreement is made or applicable law requiree auch intereat to be paid, Lender shall not be required to pay Borrower any intereat or earninga on the Fl~nds. Lender ahall give to Borrower. without charge, an annual acoounting of the Fn~da showing credite and debits to the P~nda and the purpose for which each debit to the FLt~da was made.'R~e ~nds are pledged ae additional eecurity for the aume eecured by this Mortgage. If the amount of the ~nde held by Lender. together with the future monthly installmenta of Funda payable prior to the due dates of taxea, aeeeesmente, ineurance premiuma and ground rents. ahall ex~ed the amount required to pay said tazes. aeseasmente. insurance premiame and ground reate aa they fali due, auch exceea ehall be. at Botrower's option, either pmmptly repaid to Borrower or credited to Borrower on monLhl~r inetallments of FLnds. If the amount of the I~nda held by I.eader shali not be aufficient to pay ta~cee. aeeesamenta, inaurance preminma and ground nnts ae they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by I.ender to Bonower requesting payment thereof. Upon payment in full of all euma eecured by thia Mortgage, I.ender shall promptly refund to Borrower any funda held by I.ender. Itunder paragraph 18 hereof !he Property ia eold or the Property ie otherwiee acquired by Lender. Lender shall apply, no later than immediately prior to the sale of the Property or its aoq~isition by I.ender, any Ftinda held by L.ender at the time of application as a credit againat the aums aecured by this Mortgage. 3. Applleation ot Payments. Ualeae applicable law providea otherwiee. all payments received by Lender under the Note and paragraphe 1 and 2 henof shall be applied by LendEr first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereet payable on the Idote, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. C6argee; Liens. Borrower ahall pay all taxea, asseasments and other rharges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such unanner, by Borrower making payment, when due, directly to the payee thereof Borrower ahall promptly furnish to Lender all noticea of amounta due under this paragraph, and in the eve, t Borrower shall make payment directly, Borrower shall promptly furniah to l.ender receipts evidencing euch paymenta. Borrower ahall promptly discharge any lien which has priority over thia Mortgage; provided, that Borrower ahall not be required to diacharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acoeptable to Lender, or shall in good taith contest auch lien by, or defend enforcrment of such lien in, legal proceedings which operate to prevent the enfurcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Insurance. Borrower shall keep the impmvementa now existing or hereafter erected on the Property insured againat losa by fire, hazarda included within the term "e:tended coverage.° and auch other hezards as Lender may require and in such amounta and for auch periods as I.ender may require; pmvided. that Lender shall not require auch ooverage amount ezceeding the minimum, as may be required by atate or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums aecured by thie Mortgage, whichever ia the greater. The ineurance carrier providing the inaurance shall be chosen by Borrower subject to approva! by I.ender, provided, that such approval shall not be unreaeonably withheld. All prem'tums on insurance poliries ahall be paid in the manner provided under para~-aph 2 hereof or, if not paid in such manner, by Fiorrower making payment, when due, directly to the insurance carrier. All inaurance policiee and rnnewala thereof ehall be in form acceptable to Lender and shall include a standard mortgage clauee in favor of and in form acceptable to Lender. I.ender ehall have the tight to hold the policies and renewals thereof, and Borrower shall promptly furnish to i~ i.ender all renewal notices and all receipte of paid premiuma. In the event of losa, Borrower shali give prompt notice to the inaurance carrier and Lender. Lender may malce proof of loes if not made prompdy by Borrower. i Unleae Lender and Borrower otherwiBe agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property f damaged, provided auch reatoration or repair is economically feseible and the eecurity of this Mortgage ia not thereby impaired. If such restoration or repsir ie not economically feaeible or if the eecurity of thie Mortgage would be impaired, the inaurance proceede ahall be applied ~ to the eums eecured by this Mortgage, with the exceea, if any. paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to ! respond to I.ender within 30 days from the date notice ie mailed by Lender to Borrower that the inaurance carrier otTera ta setde a claim for insurance benefite, Lender ie authorized to rnllect and apply the inaurance proceeda at Lender e option either W restoration or repair of the Property or the sums eecured by thia Mortgage. Unleae Lender and Borcower otherwiee agree in writing, any such application of proceeda to principa! ahall not extend or poatpone the due date of the monthly installmenta referred to in paraqrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 ~ hereof the Property ie aoquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the prooeeda thereof resulting from damage to Property prior to the sale or acquiaition ahaU paes to L.ender to the extent of the auma eecured by ihis ~ Mortgage immediately prior to auch eale or aoqaiaition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominuma; Planned Unit Developmente. Borrower ahall keep R the Property in good repair and ahall not oommit waste or permit impairment or delerioration of the Property and ahall oomply with the s proviaiona of any leaee if lhis Mortgege ie on a leaeehold. If thie Moetgage ia on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all of Borrower'e obligatione under the decleration or covenanta creatingor governing the condominium or planned unit development, the by-lewe and regulationa of the condominium or planned unit development, end conetituent dceuments. If e ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ; aqreementa of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ Protection ot Lender's Security. If Borrower fails to perform the oovenante and agreemente contained in this Mottgage, or if any aMion oz proceeding ie commenced which materially affecte Lender s interest in the Property, including, but not limited to, emineflt domain, ~ insolvency, aode enforoanent, or anangements or pmceedinge involving a bankrupt or deoedent, then Lender at I,ender's option,upon ~ notice to Borrower may malce auch appearanoes, disbaree euch eume and take such action as is neceasary to protect Lender's interest, € including, but not limited to, diabursement of reasonable attorney's tees and eatry upon the Rroperty to make repairs. If Lender required 5 m~rtqage ineurance as a rnndition of making the loan eecured by this Mortgage, Borrower ehall pay the pr~iuma required to maintain z wch insurance in effect until euch time aa the reqnirement tor auch ineurance terminatee in accordance with Borrower's and Lender'e ~ written agreement or epplicable Lew. Borrower ehall pay the amount of all mortgage inaurance premiums in the manner provided under paragraph 2 hereof. t My amounte disburoed by Lender pereuant to this paragraph 7, with intereat thereon, ahall become additional indebtedneae of ~ Borrower secnred by thia Mortgage. Unleee Borrower and Lender agree to other terms of payment, euch amounta ahall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diebureement et the rate payeble from ~ time to time on outetanding principal under the Note unleea payment of intereet a! auch rate would be rnntrary to appGcable law, in which event auch amounts ahall bear intereat at the higheat rete permiaeible under applicable law. Nothing contained in thia paragraph 7, shall ~ require Lender to incnr any expenee or take any action hereunder. ~ ~ r ~ `~~p, 311 ~.~..:2299 ~ .