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HomeMy WebLinkAbout1152 Borrower a~d l.ender covenant and agree as [ollowa: 1. Payment o[ Princlpal and InLereat. Borrower shaq pmmptly pay when due the principal oi and interest on the indebtedneae evidenced by the Note, pnpay~nent and late charges ae provided in the Note, and the principal of and intereat on any ~Lture Advances secured by this M~rtgage. 2. Ft~ads for TaYes and Insurance. Subject to applicable law or to a written waive~ by I.ender, Borrower ahall pa~r to Ixnder on the dey monthly inatallmenta of principal and intereat are payable under the Note, until the Note ia paid in full, a sum (herein "~nde") equsi to one twelfth of thc yearly teucee and asseeamenta which may attain priority over this Morigage, and ground rents on the Yropecty, if any, plus one twelfth of yearly premium installments for heza?~1 insurance, plus onetwelfth of yearly premium installmenta for mortgage insura~ce, if any, al~ aa reasonably eatimated initially and from time to time by Lender on the basis of assessments and bills and reasonable eatimatea theceof. TAe ~Lnda shall be held in an inatitutiort the depoaits or accounts of which are inaured or guaranteed by a Federal or Stete agency (including Lender if Lender ia auch an inetitution). Lender shall apply the Funda to pay said taxes, assessmenta, inaurance premiuma and gmund rents. Lender may not charge for so holding and applying the F'unda, analyzing said account, or verifying and compiling said asaesements and bille, unleas I.ender pays Borrower intereat on the Funda and applicable law permits Lender to make such a charge. Borrower and Lender may agree ia writing at the time of execution of thia Mortgage that intereat on the Funda ahall be paid to Bormwer, and unleas auch sgreement ia made or applicable law requires auch intemat to be paid, Lender shall not be required to pay Borrower any intereat or earnings on the Phnds. Lender ehal! give to Borrower, without charge. an annual accounting of the Funds ahowing credita and debite to the Funds end the purpoee for which each debit to the F~nds was made. The Funda are pledged as additional security for the aums secured by this Mortgage. If the amount oithe ~nda held by Lender, together with the tuture monthly installments of Funds payable prior to the due datea of taxee, aaeeaemente, inaurance premiume and gmund renta, ahall excaed the amount required w pay said taxee, asaessments, inaurance premiums and ground rents as they fall due. such e:cesa shall be, at Bonower a option, either promptly repaid to Borrower or rredited to Borroweron monthly inatallmenta of ~nds. I[ the amount of the Funda held by Lender shall not be sutficient to pay taxea, aeseeaments, inaurance premiuma and ground rente as they fall due, Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 daya from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aums secured by this Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by I.ender,l.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any flinds held by l.ender at the time of application as a credit ags~inat the sums secured by this Mortgage. 3. Applicetion of Payments. Unlesa applicable law pmvidea otherwise, all payme~ts received by Lende~ under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firat in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principat of the Note, and then to interest and principal on any Future Advances. 4_ Chargee; Liene. Borrowershall pay al! taxes, as.ses.gments and uther charKes, fine+and impositions attributable to the Property which may attain a priority over this Mortgagr, and leasehold payments or ground rents, if any, in the manner p~ovided under paragraph 2 hereotor, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Bormwer shall promplly furnish to Gender all notices of amounts due undPr this paragraph, and in the e~•ent Korrower shall mlke payment directly, Bormwer shpll promptly furnish to Lender receipts evidencing such payments_ E3orrower shall prompdy dischargr any lien which has priority over this Mortgage; provided, that Horrower shall not berequired to discharge any such lien so long as Borrower shall aKree in writinK t~~ the payment di theobliKation secured by such lien in a manner acceptable to Ixnder, or shall in good faith cuntest such lien b~, or defend enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitum af the Propert~• or ant part thereof. 5. Hazard Insurance. Borre~wer shall keep the improvements now existinK or hereafter erected on the f'roperty insured against loss by tire, hazards included within the term "extended rnverage," and such other hazards as Ixnder may require and in such amounts and for such periods as I.ender may require; provided, that Ixnder sh:~ll not require thal the amount of such coveraRe exceed that amount of coverage required to pay the sums secured by this Nlortgage. The insurance carrier providin~ the insuranm shal) be chusen hy Ii~~rruNCr subjcrt to appro~~al M• Lender; pro~~ideci, that such approval shall not be unreasonabl~ withheld. Ali premium~ un insuran~•~~ pulicic~ ~hall lx~ paid in the manner pmvidcrl under paraKraph 2 hereof or, if not paid in such manner, b~~ Borrower makinK payment, w~h~~n due, directh~ to lhe insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagecla~se in favor of and in form acceptable to L,ender. I.ender shall have the riKht t~i hold the policies and renewals therenf, and Korrower shall promptly furnish to i.ender all renewal notices and ail receipts of paid premiums. In the ever~t of loss, Borruwer shall give prompt notice to the insurance carrier ~ and Lender. I.ender may make proof of loss if not madc promptly by Borrower. " Unless Lender and Borrower othervvise agree in v?ritinQ, insurance proceeds shall be applied to restoration or repair of the PropeKy E damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is nnt themby impaired. If such ~ restoration or repair is not economicallq feasible or if the securitp o[ this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secund by this Mortgage, with the exmss, if any, paid to Rorrower. lf the I'roperty is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by i.ender tu Borrower that the insurance carrier otTers to settle a claim for ~ ~nsurance benefita, Lender is authorized to collect and apply the insurance proceeds at I.ender s option either to restoration or repair of the ~ Property or the sums secured by this lllortKaRe. ~ Unleas Lender and Borrower otherwise aKree in writinK, any such application of proceeds to principal shall not extend or postpone thedue ~ date of the monthly installments referred to in paraRraphs 1 and'2 t~ereof or change the amount of such installments_ If under paragraph 18 hereof the Property is acquired by l.ender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds g thereof resulting firom damage to Property priur to the sale or acyu~sition shall pass to I.ender to the extent of the sums secured by this 1lortgage immediately prior to such sale or acquisition. ~ 6. Preeervation and Maintenance otProperty: Leaseholds; ('ondominums: Planned Unit I)evelopmenta. Borrowershall keep the Property in good rnpair and shall not commil v~aste or permit impairment or deteriuration of the Property and shall comply with the ~ provisions of any lease if this Mortg:ige is on a leasehold. If this MortKaKe is ~~n a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under lhe declazatiun or co~enants creatinKor governing thecondominium or planned ; unit development, the by-laws and reQulations of the condominium or planned unit de~elopment, and constituent documents. If a ~ c-ondominium or planned unit development rider is executed by Korruwer and recorded together with this Mortgage, the rnvenants and ~ aKreements of such rider shall be incorporated into and shall amend and ,upplement thecuvenants and a~creements of this Mortgage as ifthe rider were a part hereof. ~ 7. Protectioa of Lender'e Security. If Bonower faila to perform the covenanta and agreements contained in thie Mortgage, or if eny ~ action or proceeding is commenced which materially affecte l.ender's intereBt in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrower may make auch appearancea, dieburee auch aums and take such action as ie necessary to protect Lender's intereat, ~ ~ including, but not limited to, diabureement of reasonable attorney'a feee and entry upon the Property to make repaire. If Lender reqaited ~ mortgage ineurance ae a condition of making the loan secured by thie Mortgage, Rorrower ahall pay the premiums required to maintain ; such ineurance in effect until euch time ae the requirement for euch ineurance terminates in accordance with f3orrower'a and Lendere written agreement or applicable Law. Borrower ahaU pay the amount of all mortgage insurance premiuma in the manner provided under ~ paragraph 2 hereof_ Any amounta diabursed by I.ender pereuant to this paragraph with intereat thereon, ahall becrome additional indebtednees of ~ Rorrower eecured by this Mortgage. Unleae Borrower and Lender agree to other terma of payment, auch amounte ehall be payable upon ; notice from I.ender to Borrower requeeting payment thereof, and ahall bear interest fr.~m the date of diabursement at the rate payable [rom ~ time to time on outetanding principal under the Note unless payment of intereat at such rate would be contrary to applicabie law, in which ; event such amounta ahall bear intereat at the highest rate permisaible under applicable law. Nothing contained in this paragraph 7, ahall ; ~ require Lender to incur any eapense or take any action hereunder. . _ ~ ~ t Y - ~ ~.~~~K312 r^A~E1150 ~ , , c - - - : . .