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HomeMy WebLinkAbout0909 Borrower and Lender covenant and agree as follows: 1. Psyme~t ot Principal and Iateres~ Borrower ahall promptly pay when due the principal o! and intereet on the indebtednesa evidenced by the NoLe, prepayment and late charges as ptovided in the Note. and the principal of and iatereat on any Flture Advancea secured by this Mortgage. ~ 2. Ftitads for Teu~ea at~d Inourance. Subject to applicable law or to a written waiver by I.eader, Borrowe~ shall pay to I.ender on the day ' monthly installmente of principal and interest ure payable under the Nute. until the Note ia paid in fuU, a sum (herein "Funds") equal to one ~ twelRh of the yearly taxes and asaeasmente which may attain priority over this Mortgage, and ~ound rente on the Properiy, if any, plus one tvyelRh of yearly premium inatallments for hazard inaurance. plus onetwelfth of yearly premium installments far mortgage inaurance, if any. a~l as reasoaab~jr estimated initial~j? and irom time to time by l.ender on the baaia of aesessmenta and bills and reasonable eatimatea thereof. The I~iads ahaU be held in an iastitntion the depoeita or accounts of which are insured or guaranteed by a Federal or State agency (iaclnding Lender if I.ender ie such an inatitution). l.ender ahall apply the ~nda to pay said taxea, aaseaemente, ineurance premiuma and gwund rents. Lender may not charge for so holding and applying the ~nds, analyzing said account, or verifyi~g and compiling eaid ~ aesessmenta and bille, unleae Leader pays Borrower intereat on the ~nds and applicable law permita Lender to make auch a charge. Borrower . and I.ender may agree in writing at the time of execution of thia MortEtage that interest on the Fnnda ahali be paid to Borrower, and unleas such agrcement is made or applicable 1aw e+equirea auch interest to be paid, I.ender ehall not be required to pay Borrower any intereat or earninga on the I~nds. I.ender shall give to Borrow~i, without charge, an annual accounting of the Funda showing credita and debita to the Funde and the purpoee for which each debit to the ~nda wae made. The Funda are pledqed as additional aecurity for the suma secured by this Mortgage. If the amount of the FLnda held by Lender, together with the future monthly inetallmenta of Funds payable prior to the due datea of taxea, aeeeeaments, insuranoe premiuma and gronnd rente, ehall e~[aed the amount required to pay eaid ta:es, assessmenta, insurance premiums and ground reats as they fall due, such exceee shall be, at Pbrrower s option, either proroptly repaid to Borrower or credited to Borrower on monthly inetallments of FLndn. U the amouat of the ~nds held by Lender shaU not be aufficient to pay taxes, aeseasments, insurance premiwne and ground renta as they ~fap due. Borrower ahall pay to I.ende~r any amount nec~essary to make up the deficiency within 30 days from the date notice ia mailed by [.ender to Borrower requeating payment thereof. Upon payment in full of aU eums secured by thia Mortgage, Lendei ahall promptly refund to Borrower any funda held by Lender. If under peragraph 18 hereof the Property ia aold or the Property is otherwise acquired by [.ender, I.ender ahall apply, no later than immediately prior to the aale of the Property or ita aoquiaition by Lender, any I~nds held by Lender at the time of application as a credit against the aume secured by thia Mortgage. ~ 3. Application of Paymeats. Uniese applicable law provides otherwise, all paymenta received by I.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment ot amounts payable to I.ender by Borruwer under paragraph 2 hereof, then to interest payable on the Note. then to the principal oLthe Note, and then to interest and principal on any Future Advances. 9. Chargea; I.iens. Botrower shall pay all taxes, assessmenta and other charges, finea and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold paymenta 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. I3orrower shali promptly furnish to Lender all notice8 of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly [urnish to Lender receipis evidencing such paymente. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a menner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement 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. Hazard Ineurance. Borrower ahall keep the impmvemente now existing or hereafter erected on the Property inaured againat loss by fire. hazarde included within the term "e~tended rnverage," and auch other hazatds ae Lender may require and in such amounta and for such periods as Lender may reqnire; pmvided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by etate or federal regulationa goveming activities of I.ender, or ihat umount of coverage required to pay the sums secured by this Mortgage, whiChever ia the greater. The inaurance carri~ providing the insurance shall be chosen by $orrower aubject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner pro~•ided under paragraph 2 hereof o~, if not paid in such manner, by Botrower making payment, when due, directly to the_insurance carrier. All insurance policies and renewala thereof ehall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form aocepLable to I.ender. l.enderahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticee and all receipts of paid premiams. In the event of losa, Borrower ahall give pmmpt notice to the insurance carrier ~ and Lender. Lendez may make proof of loss if not made promptly by Borrower. { Unlesa L.ender and Borrower otherwise agree in writing, insurance proceeda shall be applied to restoration or repair of the Property ~ damaged. provided euch restoration ~r repair ia economically feasible and the security o[ this Mort~age is not thereby impaired. If such i reetoration or repair ie not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda shall be applied to the aume eecared by this Mortgage, with the ezcess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier offera to eettle a claim for ' inaurat?ce benefite, Lender is authorized to rnilect and apply the inaurance ptoceeds at L.ender a option either to restoration or repair of the f Property or the sums eecured by thia Mortgage. Unlese Leader and Borrower otherwiee agree in writing, any such application of proceeds to principal ahall not eatend or poatpone the due date of the monthly inetallmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Pioperty ia acquired by Lender. all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquiaition ahall pase b Lender to the extent of the sums secured by this Mortgage immediately prior to auch sale or aoqaisidon. 6. Preaervation and Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrower ahall keep the Property~in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmpiy with the provisione of any lease if thie Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planne~ unit development, and rnnstituent documenta. If a condominium or plenned unit develupment rider ia executed by Borrower and recorded together with this Mortgage, the aovenants and ~ agreements of such rider ehall be incorporated into and shall amend and supplement the covenanta and aAreementa of thia blortgage as if the rider were a part hereof. 7. Protection of I.ender'e Security. If Borrower faile to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or proceeding is commenced which materially at~ecte Lender'e intereet in ttie Property, including, but not limited to, eminent domain, ' insolvency, oode enforcement, or anangements or proceedings involving a banlmipt or deceden~ then I.ender at I.ender'e option,upon ~ notice to Borrower may make such appearances, disburse such eams and take such action ae is necessary to protect Lend~'e interest, ~ incl~ding, bnt not limited to, disbursement of reaeonable attomey's fcea and entry upon the Property to make repaire. If Lender reqnired mortgage inaurance ae a condition of making the loan secured by thie Mortgage, Borrower ahall pay the premiums reqnired to maintain ~ euch ineurance in eNect until snch time as the requirement for euch inaurance terminatee in accordance with Borrower'e and Lender's ~ written agreement or applicable Law. Borrower ehall pay the amoun! of ell mortgage inaurance premiuma in the manner provided under : paragraph 2 hereof. ~ My amounte disbureed by Lender pereuant to thie paragraph 7, with intereet thereon, ahall beoome additional indebtedneas of ; Borrower eecured by thie Mortgage. Unlesa Borrower and Lender agree to other terms of payment, such arnounte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from a~ time to time on outetanding principal under the Note unieae payment of intereat at sach rate would be oontrary to applicable law, in which event euch amounta shall bear interest at the hignest rate permiasible under applicable law. Nothing contained in thie paragreph 7, ehall require Lender to incur any expenae or take any aMion hereunder. ~ ~ ~ 6 . . ~r~'i~31? ?~~E 907 . _ _ = _ _ _ - _ ~ _ . ~:.ti