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HomeMy WebLinkAbout0918 ' ~ Borrowe~ and Lender rnvenant and agree as follows: 1. Paymeat ot Priacipai euid I~teres~ Borrower ahall promptly pay when due the principel of and interest on the indebkdnese evidenced by the Note. prepayment and late chargea as provided in the Note, and the principal uf and inter~t on any Fliture Advancee eecured by chis Moreguge. 2. Ftinda for Ta~cee aad Ineurance. Subject to applicable Inw or to a wtitten waiver by Ixndet, E3~rruwer shall pay to I.enderon the day monthly inatallmenta of principal and interest are payable unde~ the Note, until the Note ie paid in full, a aum (herein "F~nde") equal to one~ twelfth of the yearly taxee and asaessmenta which may atti?in priority over this Mort~age, and ground rents on the Property, if any, plue one twelfth of yearly premium inatallmeots for hazard inaurance, plue one~twelRh of yearly premium inatallmenta [or mortgage inaurance, if any, all ae reaaonably estimated initiaUy and from time to time by I.ender on the basie of aeecasments nnd billa and reasonable eatimates thereof. The I~nda shall be held in an institutior. the depoeits or aocounts o[ which are ineured or gaaranteed by a Faieral or State agency (including Lender if I.ender is such an inetitution). Lender ahall apply the Funde to pay said taxes, asseasmente, inaurance premiuma and ground rents. Lender may not charge for so holding and epplying the ~nds, analyzing said account, or verifying and compiling aaid assessmenta and bills, unlaas Lender pays Borrower inf~rrst on the Funds and applicable law permits I.ender to make euch a charge. Borrower and I.ender may agree in writing at the time of e:ecution oi thia Mortgage that intereet on the Funda shall be paid to Borrower, and unlesa auch agreement is made or applicable law requires auch intereat b be paid, Lender ahall not be required to pay Borrower any intereat or eaminga on the Flinds. l.ender ahall give to Borrower, without charge, an annual accounting of tlie ~nds ahowing credits and debite to the E'unds and the purpoee for which each debit to the ~nde wae made.ll~e Funds are pledged aa additional eecurity for the aume aecured by this Mortgage. If the amount of the ~nds held by Lender, together with the future monthly inatallmenta of Funda payable prior to the duedatee of tanes, aeseeamente. ineuraace premiums and ground renta, ahall exc~ed the amount requind to pay eaid ta:ea, aseesaments, insurance premiuma and ground renta as they fall due, auch exceea ahall be, at Borrower a option, either prompdy repaid to Borrower or credited to Borrower on . monthly installmente of PY~nds. If the amount of the Funde~held by l.ender ehall not be aufficient to pay te:es, asseaemente, insurance premiume and ground rents as they fall due, Borrower ehall pay to Lender any amount neceseary to make~up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requeating payment thereof. - Upon payment in full of all aume eec~ued by thia Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwise acquired by Lender, [.ender ahall apply, no later than immediately prior to the eale of the Property or its acquiaition by l.ender, any F~nda held by Lender at the time of application as a credit againat the aums secured by thie Mortgage. 3. Applieatioa ot Payments. Unlesa applicabte law providea otherwiae, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Nute, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Borrower shall pay all taaea, assessmenta and other chargea, fines and impositions attributable to the I'roperty which may attain a priority over this Mortgage, and leasehold payments or gruund rnnts, if any, in tF~e manner pro~ ided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, direMly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under thia paragraph, and in the event Rorrower shall make payment directly. Borrower shall promptly furniah to I.ender receipts evidencing auch payments. I3orrower shall promplly discharge any lien which has priorit~ over this Mortgage; provided, that Korrower shall not be required to discharge any such lien so long as Iiormwer shall agree in writing to lhe payment of the obligation secured by such lien in a manner acceptable to I.ender, or ahall in good faith conteat 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. Haaard Insurance. Borrower ahall keep the improvemente now existing or hereafter erected on the Property inaured againat loss by fire. hazarde included within the term "e:tended coverage." and $uch other hazards as Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender ahail not require auch cove;age 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 eecured by this Mort{;age, whichever is the greater. The insurance carrier providing the insurance shall be chosen by 13orrower subject to approeal by l.ender, provided, that such approval ~hall not be unrexsonably withheld. All premiums on insur:~nce policics shall be paid in thc manner pruvided upder paragraph `L hereof or, if not paid in such manner, by Borrower makinR payment, when due, direclly to the insurance carrier. All insurance policiea and renewals thereof ahall be in form acceptable W Lender and shall include a standard mortgage clause in favor of , and in form acceptable to Lender. L,ender ehall have the right to hold the policiea and renewals thereof, and &,rrower ahall promptly fumiah to i.ender aU renewal noticea and all receipta of paid premiuma. In the event of loss, Borruwer shall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ ~ Unleas Lender and Borrower otherwiee agree in writing, insurance pra.~eeds shall be applied fo rer+toration or repair of the Property j damaged, provided such restoration or repair ia economically feasible and the security of thia Mortgaqe ia not thereby impaired. If such j restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied ~ to the aums eecnred by thia Mortgage, with the exceas, 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 ihat the insurance carrier offers to aetde a claim for ineurance benefite, Lender ia suthorized to collect and apply the insurance proceeda at Lender's option either to reatoration or mpair of the Property or the auma secured by thie Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any anch application of proceeda to principal shall not extend or postpone the due ~ date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch inataliments. If under paragraph 18 hereof the Property ia soquired by Lender, all right, tide and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof reaulting from damage to Property prior to the sale or aoquisition ahall paes to Lender to the e:tent of the eums secured by this Mortgage immediately prior to such sale or acquiaition. 6. Preeervation and Maintenance of Property; I.easeholde; Condominume; Planned Unit Developmente. Borrower ahall keep the Pmperty in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisione of any tease if this Mortgage is on a leasehold_ If this Mortgage is on a unit in a condominium or a planned unit development, fiorrower ahall perform all of Borrower's obligationa under the declaration or covenante creatinqor governing the condominium or planned unit development. the by-laws and regulationa of the condominium or planned unit development, and conatituent documenta. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and agreemente of such rider ahall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgaqe as if the rider wem a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perform the oovenante and agrcemente oontained in thie Mortgage, or if any ~ artion or proceeding is commenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or deoedeat, then Lender at Lender's option,upon ~ notice to Borrower may make euch appearancea. dieburee auch eums and take auch action ae ie neceesary ta protect Lender'e intereat, ~ inclnding, but not limited to, diabursement of reaeonable attomey e fees and entry upon the Property to mal~e tepairs. If Lender reqnired ~ mortgage ineurance as a condition of making the loan secured by thie Mortgage, Borrower ahall pay the premiums required to maintain ~ euch insurance in effect until such time ae the requirement for auch inaurance tenninatee in accordsnce with Borrower'e and Lende~s ~ € written agteement or applicable Law. Borrower ahell pay the amount of all mortgage inaurance premiuma in the manner provided under ~ paregraph 2 hereof. ~ My amounts diebureed by Lender persuant to thia paragraph 7, with interest thereon, ehall become additional indebtedneee of Borrovrer secared by thie Mortgage. Unleae Borrower and Lender agree to other terms of payment, auch amounts shaU be payable upon notice from Lender to I3orrower requeeting payment thereof, und ahall bear intereet from the date of diebureement at the rate payable from time to time on outetanding principal under the Note untese payment of interest at auch rate would be contrary to applicable law, in which event euch amounte ehall bear intereat at the highest rate permissible under applicable law. Nothing contained in thie paragreph 7, ehall require Lender to incur any e:penee or take any action hereunder_ ~ ` `'~3i2 ~vE ~16 Bi1~)K ~ . i. a . ~ _ -