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HomeMy WebLinkAbout0240 . ~ ; V Borrower and I.ender covenant and aQree as follows: 1. Paymeat ot Principwl ~nd lntsre~t. Borrower shall pmmptly peY when due the principal oi and interest on the indebtedneas evidenced by the Note. prepayment and lata charges as provided in the Note, and the principal of and interest on any Future Advancee eecured by this MortQage. ' 2. Fuad~ for Te?=es and Insurance. Subject to applicable law or to a v~Ritten waiver by Lender, Borrower shull pay to l.ender o~ the day t monthly installme~ta of princ+pal and intereat are payable under the Note, until the Note is paid in full, a sum (he~ein "fl~nda") equal to one ; twelfih of lhe yearly taxea and aseeesments which may attain priority over thie Mortgage, and ground renta on the Property, i[any, plus one- # twelfth of yearly premium installments for hazard inaurance, plua onetwelfth of yearly premium installmenta for mortgage inaurance, if any. ~ all ae nasonably eatimated initially and trom time to tia.e by l.ender on the basis ot assessments and bills and reasonable eatimates thereof. The Plrnds ahall be held in an inetitution the depoeits or aecounte o! which are ineured or guaranteed by a Federal or Stete agency (including Lender ii Lender ia such an inetitution). Lender shall apply the Funda to pay said taxea, aesessments, ineurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling eaid seaeasments end bills, unless Lender peys Borrower interest on the ~nds and applicable law permita Lender to make such a charge. Borrower and Lender may asree in writing at the time of execution of this Mortgage that interest on the Funds shal) be paid to Borrower, and unless such agreement is made or eppGcable law requires auch inLereat to be paid, I.ender shall not be required to pay Borenyver any intereat or eamings on the P1~nde. Lender ahall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the ~ Funds and the purpose_for which each debit to the Funde wa8 made. The Funda are pledged as additional eecurity for the auma eecured by this Mortgage. • If the amount otthe I~nds held by Lender. k?gether with the future monthly installmenta of Funda payable prior to the due datea of taxes, } aeaeeaments, insarance premiums and ground renta, ahall eacred the amount requind w pay said taxee, asaeasmenta, ineurance premiuma and ground rents as they fall due, euch excesa ahall be, at Boirower s option, either promptly repaid to Borrower or credited to Bo:rower on monthly inatallments of I~nde. If the amount oi the Funde held by I.ender shall not be sumcient to pay taxea, asaesamenta. insurance premiums and gronnd nnts as they fall due, Borrower shall pay to Lender any amount necessary to make up the deSciency within 30 daya , from the date notice i+ mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aums aecured by this Mortgage, I.ender shall promptly refund to Borrower any funds held by I.ender. lf under paragraph 18 hereof the Property is sold or the Property is otherwiae acquired by l.ender, I.ender shall apply, no later than immediately prior to the sale af the Property or ite acquieition by Lender, any Funda held by Lender at the time of application as a credit againat the aums secared by thie Mortgage. 3. Applicatioa of Paymente. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Leoder firxt in payment ~f amounta payable to Lender by Borrower under paragraph 2 hereof, then W interest payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4_ Chargea: Iaene. Borrower ahall pay all taxes, asses_4ments and other rharges, 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 in such mannet, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to [.ender all notices of amounts due under this paragraph, ~nd in the event Borrower shall make payment directly, Eiorrr~wer shall promptly furnish to [.ender receipts evidencing such payments. Bo[rower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not berequired todischarge any such lien so long a.4 E~~rn+wer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [xnder, or shall in good faith n~ntest such lien by, ordefend enformment of such lirn in, tegal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or :?ny part thereof. 5. Hazard Insurance. Borrower shail keep the impmvements now existing or hereafter erected on the Property insured against loas by fire, hazards included within the term "extended coverage." and such other hazards as l.ender may require and in such amounts and [or such periods as i.ender may require; provided, that Lender shall not require that the amount of such coveraKe exceed that amount of coverage required to pay the sums secured by this MorlgaRe. The inaurance carrier providing the insura~nce shall be chusen by Borruwer subject to appruval b}• l.ender; provided, that such approval shal! not be unmasonabl~ wi/hheld_ All premiums on insur.imr p~~licie. shall t~c p.iid in the manner pru~ idr~i under paraKraph `L hrreof or, if , not paid in such manner, by F~rrower makinK payment, when due, directly tu the insuranee carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgageclause in favor of ~ and in form acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly fumish to ~ ?.ender all renewal noticea and all receipts of paid premiums_ In the event of loss, Borruwer shall Kive prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by I3orrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shaU be applied to restoration or repair of the Property damaged, provided auch restoration or repair is ec~,nomically feasible and the security of this Mortgage is not thereby impaired. If such reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the suma eecured by this Mortgage, with the exmss, if any, paid to Borruwer. If the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 days from the date notice is mailed by I.ender tn I3orrower that the insurance carrier offers to settle a claim for ineurance benefita, [.ender is authorized to collect and apply the insurance proceeds at I.ender's option either to reatoration or repair of the Pmperty or the sums secured by this Mortgage. Unl~s Len~er and Borrower otherwise agree in writing, any such applicativn of proceeds to principal ahall not extend or postpone thedue date of the monthly instalimenta referred to in paragraphs 1 and 2 l~ereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, ail right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds thereof reaulting firom damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the suma secured by this itortgage immediately prior to auch sale or acquisition. 6. Preeervation and Maintenanceof Property: Leaseholds; Condominums; Planned Unit Developmenta. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaiona of any lease if this Mortgaqe is on a leasehold. If this MortKage is on a unit in a condominium or a planned unit development. f3orrower shall perform all of fiorrower's obligatiuns under the declaration or coven.+nts creatinKor qovern~ng thecondominium or planned nnit deve?opment, the by-laws and regulations of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider is executed by Borrower and recorded together with this hiortgage, the oovenants and :~~;reements of such rider shall t?e incorporated into and shall amend and supplement the rn~ enants and agreements of thia Mortgage as if the rider were a part hereof. ~ 7, Protection of Lender'e 3ecurity. If Borrower faila to perEorm the covenants and agreements contained in thie Mortgege, or if any action or proceeding ie commenced which materially affecte [.ender'e interest in the Property, including, but not limited to, eminent domain. ineolvency, oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender'a option,apon notiee to Borrowet may make auch appearances, disburse such same and talce euch action ae is neceesary to protect Lender's interest, including, but not limited to, diebureement of reasonable attorney's feee and entry upon the Property to make repaire. if Lender required ~ mortgage ineurance ae a rnndition of making the loan secured by this Mortgage, Borrower ahall pay the premiums required to maintain ~ euch ineurance in effect until euch time ae the requirement for euch inaurance terminatee in accordance with Borrower's and I.ender s ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortqage insurance premiuma in the manner provided under I paragraph 2 hereof. My amounte diabureed by Lender pereuant to this paragraph 7, with intereat thereon, ehall become additional indebtedneae of F3orrower eecnred by thie Mortgage. Unleas Borrower and l.ender agree to other terms of payment, such amounte ahe11 be payable upon notice from I.ender to Borrower requeeting payment thereof, and ahall bear intereet from the date of diabureement at the rate payable firom time to time on outatanding principal under the Note unleea payment ot intereat at such rate would be contrary to applicable law, in which i event euch amounte ahaU bear inlereat at the higheat rate permisaible under applicable law_ Nothing contained in this paragraph 7, ehaU ''I require Lender to incur any e:pense or take any action hereunder. - _ `~_~k312 24~-- . . - - ~ _ _ . _ _ _ _ _ . _ t. . ~y:~x