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HomeMy WebLinkAbout2677 t Borsower end Lender covenant and agree as follows: 1. Paymeat ot Principal ~ad Iaterest. Borrower shall pmmptly pay when due the principal of and intereet on the indebtednees evidenced by the Note. pcepayme~t and late charges as provided in the Note. and the principal o[ and interest on any F~ture Ad~ ancee secured by thia Mortgage. 2. F~unds tor Taxes atid Ineurance. 3ubject to applicable law or b a written waiver by I.ender, Fiorrower ahall pay to I.ender un the day monthly installmenta of principal and interest are payable under the Note, until the Note ia paid in full. a aum (herein "F~nde'7 equa! to one twelRh of the yearly ta:es and aaseaementa which may attain priority ove~ this Mortgage, aad qround rente on the Property, i[any, plua ono- twelfth of yearly premium inatallmenta tor hazard ineurance, plua onetwelRh of yearly premium inatallmente for morigage inaurance, if any, all as reasonably eatimaLed initially and trom time to time by l.ender on the baeis of asseaements and bille and reneonable eatimates thereof. The ~nda shaU be held in an inatitution the depoaits or accounte of which are insured or guaranteed by a Federal or State agency (inclsding [.ender if I.ender is auch an inatitutiun). L.ender ehall epply the I~nde to pay said ta:ea, aseeasmente, inaurance premiuma and ground rents. Lender may not charge for eo hoWing and applying the Ftinde, analyzing said account, or verityiry~ and compiling said aeeessmenta and bille. unleee I.ender pays Borrower in~t on the ~nds and applicable law permits Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of e:ecudon of this Mortgage that intereat on the Flinda ehall be paid to Borrower, and unlesa such egreement is made or applicable law requitea euch intereet to be paid, I.ender ehall not be required to pay Borrower any interest or earnings on the F1nds. Lender eha11 give to Borrower, without charge. an annual accounting of the Funde ehowing credite and debiLe to the Funda and the purpoee for which each debit to the FLnds wae made. The Funds are pledged se additional security for the aums eecured by this Mortgage. If the amount of the ~nda held by Lender. together with the future monthly inatallmente oEFunds payable prior to the due datee of taxea, aeeeeaments, insurance preaniums and ground rente, shall exc~aed the amount required to pay esid ta:ee, aseesaments, inaurance premiuma and ground rents aa they fall due. auch ezceas ehall be. at Borrower s option, either pmmpdy repaid to Borrower or credited to Borrower on monthly inetallments of Funda. lf the amount of the Funds held by Lender ehall not be aufficient to pay taxea, aaseasmenta, insurance premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the dete notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aama eecured by thia Mortgage, Lender ehall promptly refund to Borrower any funda hefd by I.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwiee acquired by Lender, [.ender ahall apply, no later than immediately prior to the eale of the Property or ite aoquisition by Lender, any Funda held by I.ender at the time of application ae a credit againet the auma secured by this Mortgage. ~ 3. Application of Payments. Unieae applicable law providea otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragreph 2 hereof, then to interest ;iayable on the Note, then to the principal of the Note, and then to interest and principal on nny ~ture Advancea_ 4. Charges; Liens. Borrower ahall pay all taxes, assessmenta and other charges, 6nea and impositions attributable to the Property which may attain a priority over this Mortgage, snd leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof_ Borrower shall promptly furnish to Ixnder all noticea of amounts due under this paragraFh, and in the event Borrower shall make payment di~ectly, Borrower shall promptly fumish to Lender receipts evidencing auch paymenfs. Borrower eha11 promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ehall not be required ta discharge any such lien so long as Borrower ahall agree in writing to the payment ~f the obligation aecured by such lien in a manner acceptable to Lender, or shall in good faith contest auch lien by, ordefend en[orcement of such lien in, legal Prceeedin~s which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Insurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insured againat loss by fire, hazarde included within the term "extended coverage," and auch other hazards as I.ender may require and in such amounta and forsuch periods as Lender may require; provided. that I.ender ahall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of rnverage required to pay the suma secured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval shall not be unreasonably withheld. Al) prnmiums on inaurance policies shall be paid in the manner provided under paragraph 2 hermf or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of and in farm acceptable to Lender. L.ender ehall have the right to hold the policies and rnnewals thereof, and Borrower shall promptly furnish to i.ender all renewal notivea and all receipts of paid premiuma. In the event of loae, Borrower ahall give p~ompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. ! Unleae Lender and Borrower otherwiee agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property ' damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. I! auch ~ restoration or repair ia not economically feaeible or if the eecurity of this Mortgage would be impaired, the ineurance proceede shall be applied f to the aums eecured by this Mortgage, with the excesa, if any, paid to Borrower.lf the Property ie abandoned by Borrower, ar if Borrower faila to reepond to Lender within 30 daya from the date notice iB mailed by I.ender to Borrower that the insurance carrier offera to aettle a claim for ; insurance benefite, Lender is authorized to collect and apply the inaurance proceeda at I.ender s option either to reatoration or repair of the ( Property or the sume eecured by thia Mortgage. ~ Unlese L.ender and Borrower otherwiee agree in writin an anch a lication of roceeds to nnci al shall not extend or 8. Y pp p p~ p poatpone the due q date of the monthly inatallmenfe referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ hereuf the Property ia aoqnired by I.ender, all right, title and intereat of Borrower in and to any inaurance policieu and in and to the proceede thereof reaulting from damage to Property prior to the eale or acquieition shall paea to Lender to the eztent of the s~n?e secured by this Mortgage immediately prior to auch eale or aoquisition. ~ 6. PreBervation and Maiatenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower shall keep the Propetty in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ pmviaione of any iesee. if thie Mortgage ia on a leasehold. If thie Mortgage is on a unit in a rnndominium or a pianned unit development, q E3orrower ehall perform al) of Borrower's obligationa under the declaration or rnvenante creatingor governing the condominium or planned ~ unit developmen~ the by-laws and regulationa of the rnadominium or planned nnit development, and constituent documente. If a ~ condominium or planned unit developmenk rider ia executed by BoTrower and recorded together with thia Mortgage, the oovenanta and agreements of such rider ahall be incorporated into and ahall amend and supplement the covenants and agreementa of thia Mortgage as if the rider wern a part hereof. ; Protection of Lender's 3ecurity. If Borrower faile to perform the oovenante and agreementa contained in this Mottgege, or if any ~ action or proceeding is commenoed which materially affecta I.ender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency~ oode eaforcement, or arrangements or proceedings involving a banlm~pt or decedent, then Lender at Lender's option,upon ~ notice to Borrower may make euch appearances. disburse such sums and take auch action es ia necesaary to protett I,ender's interest, ~ including, but not limited to, diebureement of reasonable ettorney's feee and entry upon the Property to make repairs. If I.ender reqaired ; mortgage insurance as a rnndition of making the loan secnred by thie Mortgege, Borrower ehell pay the premiume required to meintein euch ins~rance in effect until euch time ae the requirement for such inaurance terminatee in accordance with Borrower'e and I.ender'a ~ written egreement or epplicable Iaw. Borrower shall pay the amount of all mortgage inaurance premiums in the manner provided under f paregraph 2 hereof. # My amonnta disburaed by Lender perauant to this paragraph 7, with intereet thereon, ahali beoome additional indebtedneas of ~ E;orrower secvred by this Mortgage. Unlese Borrower and Lender agree to other terma of paymant, auch amonnts ,~hall ioe payable upon ~ notice from I.ender to Borrower requeating payment thereof, and shall bear intereat from the date of disbureement at the rate peyable from ~ time to dme on outstanding principal under the Note unlesa peyment of interest at snch rate would be contrary to applicable law, in which event such amounta ehall bear intereat at the higheet rate permiasible under applicable law. Nothing contained in this paragraph 7, ehall require Lender to incur any eapenee or take any action hereunder. 2 ~ `'')C~ ~ 5`;~r 1 U ; ~