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HomeMy WebLinkAbout1156 Borrower and l.ender covenant and agree as foliows: 1. Paymeat ot Principal and [nteteat. Borrower ahall promptly pey when due the principal of and i~terest on the indebtedneas evidenced by the Note, pnpayme~t and late chargee ae provided in the Note, and the principal of and intereat on any ~turc Advancee aecured by chis Mortgage. 2. Ptiuids for Tazes and Ineurance. Subject to applicable law or to a written waiver by I.ender, Bom~wer ahall pay to I.ender on the day . moathly installmente of principal and intereet are payable un~er the Note, until the Note ia paid in full. a aum (herein "A'unde") equal to one twelRh of the year~yr taxes and asseaements which may attain priority over this Mortgage, and ground rents on the Property. if any. plue ono- twelfth of yearly premium i~atallments for hazatd inaurance, plus one-twelfth ofyea~ly premium iastallments for mortgage inaurance, if any, s'1 as reasonably eatimated initially and trom time to time by Lender on the basis of aesesamente and bille and reaaonable eatimates thereof. The F1nds ahaU be held in an inatitution the deposits or accounta of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is auch an inatitution). I~nder ehall apply the Flinds to pay oaid taxes, aseesamente. insurance premiums and ground renb. Lender may not charge for so holding and applyiag the Ptit~ds, analyzing said account, or verifying and compiling said aeeeeamente and bills, unleae I.ender pays Borrower interest on theFunds and applicable law permite I.ender to make auch a cherge. Borrower and Lender may ~ree in writing at the time of e:ecution of thia Mortgege that interest on the ~nde shall be paid to Borrower, and unleas euch agreemant is made or appUcable law require±e such intereet to be paid, Lender ahall not be required to pay Bor~ower any intereat or earninga on the F1nds. I.end~ ehaU give b Borrower, without charge. an annual aocounting of the Funda ehowing credite and debita to the Funds and the purpoee for which each debit to the ~nds waa made. The Funds are pledged as additional eecurity for the euma secured by this Mortgage. If the amount of the Ftinda held by Lender, together with the future monthly inetallmente of Ftinds payable prior to the duedatee of ta~ces. aeeeeaments, inauranoe premiume and ground renta. ahall exa~ed the amount requited to pay aaid taxea, aseesamente, inaurance premiuma and ground rente aa they fall due. such exceas shall be. at Borrowei a option. either promptly repaid to Bomower or credited to Borrower on monthly installmenta of ~nds. If the amount of the Funds held by Lender ehaU not be aufficient to pay taxes, asseaemente. inaurance premiums and ground rents as they fall due, Bon~ower shall pay to l.ender any amount neoessary to make up the deficiency within 30 daye 'firom the date notioe ie mailed by Lender to Borrower requeating payment thereof. . Upon payment in full of sU aums secured by thia Mortgage. L.ender ehall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiee acquired by Lender, I.ender ahall apply; no later than immediately prior to the eale of the Property or its aoquiaition by I.ender, any ~nda held by Lender at the time of application as a credit against the aums aecured by thie Mortgage. 3. Application of Paymeats. Unlesa applicable law provides otherwiee, 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 pa~agraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargee; Liens. Borrower shall pay all taxes, assessmenfs and other charges, fines and impositions attributable to the Property which may attain a priority over thie Mortgage, and leasehold paymente or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making pavment, when due, directly to the payee thereof. Borrower shall promptly furniah to I.ender aU noticea of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing auch payments. Borrower shall prompdy discharge uny lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any such lien ao long as E3orrower shal) agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal procESedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hezard Ineurance. Borrower sha11 keep the improvementa now existing or hereafter erected on the Property inaured against loss by fire, hezarda included within the term "e:tended coverage,° and euch other hazarde as Lender may require and in such amounts and for auch periods aa Lender may requi~+e; provided, that Lender ahall not require auch rnverage amount exceeding the minimum, as may berequired by etate or federal regulationa governing activities of Lender, or that amonnt of rnverage required to pay the sums secured by this Mortgage, whichever ia the greater. The insurance carrier providing the inaurance shall be chosen by E3orrower subject to appmval by I.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to [.ender and ahall include a standard mortgage clause in favor of and in form acoeptable to Lender. Lender ehall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid premiuma. In the event of losa, Borrower ehall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unleea Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to reHtoration or repair of the Property ~ damaged, pmvided auch reatoration or repair ia economically feasible and the security of this Mortgage is not thereby impaired. If such reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeda ahall be applied ~ to the aums eecured by this Mortgage. with the e:ceae, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to L.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier oYters to aettle a claim for ' ineurance benefite, Lender is suthorized to collect and apply the inaurance proceeda at Lender e option either to restoration or repair of the ~ Pcoperty or the suma eecured by thie Mortgege. • i Unless I.ender and Borrower otherwiee agree in writing, any auch application of proceeda to principal shall not extend or postpone thedue F date of the monthly inatallments referred to in paragraphe 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 hereof the Property ie acquired by I.ender, all right, title and intereat of Borrower in and to any ineurance policies and in and to the proceede thereof resulting from damage to Property prior to the sale or aoquiaition ahall paea to Lender to the extent of the sums secored by this Mortgage immediately prior to auch sale or aoquiaition. 6. Preaervation and Maintenance of Property; Lease6olds; Condomiaume; Planned Unit Developmente. Borrower ahall keep the Property in good repa'v and ahall not commit waete or permit impai~ment or deterioration of the Property and shali comply with the provisiona of any lease if this Mortgage is on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, Borrowet ahall perform all of Borrower e obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent documents_ If a condominium or planned unit development rider is eaecuted by Borrower and recorded together with this Mortgage, the oovenante and agreements of auch rider sha11 be incorporated into and shall amend and supplement the rnvenanta and agreements of this Mortgage as if the rider were a part hereof ~ 7. Protectlon of Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreementa contained in thie Mortgage. or if any action or proceeding is commenoed which materially affects I.ender s intereet in the Property, induding, but not limited to, tminent domain, ineolvency, oode enforcement, or arrangemente or pmceedinga involving a bankrupt or deoedent, then Lender at Lender's option,upon i notice to Borrower may ma1~e euch eppearanoes, dieburse auch aums and take such action se is neoeeeary to protect L.ender's intereet, ~ including, bnt not limited to, diebursement of reaaonable attorney's feee and entry upon the Property to make repairs. If I.end~ required ~ mortgage ineurance ae a rnndition of making the loan secured by thia Mortgage, Borrower ahall pay the premiums require~ to maintain ~ euch inanrance in effect until ench time ae the requirement for auch ineurance terminatee in accordance with Borrower'e and Lendels s written agreement or applicable I,aw. Borrower ehall pay the amount of all mortgaAe inaurance premiuma in the manner provided under ~ paragraph 2 hereof. ~ Any aawunta diebureed by Lender pereuant to thia paragraph 7, with intereet thereon, ahall beoome additional indebtedneae of Borrower eecured by thie Mortgege. Unleee Borrower and Lender agree to other terms of payment, auch amounte ehall be payable upon ~ notice from I.ender to Borrower requesting payment thereof, and ehall bear interest from the date of diebureement et the rate payabte from time to time on outetanding principal under the Note unleea payment of intereet at auch rate would be oontrary to applicable law, in which ~ event each amounte ehall bear intereat at the higheat rate permisaible under applicable Iaw. Nothing contained in thie peragraph 7. ahall require Lender to incur any expenae or take any action hereuader. ~ ~ ~ ~ i ~ ~ ,:~'~K312 P,~;~1154 ~ _ - - : _ :