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HomeMy WebLinkAbout1407 . c Borrower and I.ender covenant and a~ee as folbws: 1. Payment ot Prir~cipal aad lbteres~ Borrower ahall prompdy pay when due the principal of and interest on the indebtedneas evide~ced by the Note, prepayme~t and late charges as provided in the Note, and the prinripal of end intemst on any ~ture Advancee aecured by thu Mort~age. . 2. Ftiutd~ tor Te~es and Insurance. Subject to applicable law or to a written waiver by t.ender, Borruwer ahall pay to I.ender on the day ?nonthly instalimenta of prinapal and intereat are payable under the Note, until the Note is paid in tull, a aum (herein "Funda") equal to one `twelfth of the yearly taxea and aseessme~ts which may attain priority over this Mortgage, and ground re~ts on the Property, i[any, plus onc twelEth of yearly premium inatallmenta for hazard ineurance, plua onetwelfth of yearly premium instaUments for mortgage insurance, if any. all as reasonably eatimated initialiy and from time to tirr~e by l.ender on the basis of assesaments and billa and reasonable estimates thereof. 'tl~e flmds ahall be hald in an inetitution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lenda if Lender ia such an institution). Lende~ ahall apply ?he Funda to pay eaid taxea, aseesaments, insurance premiuma and ground nnta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aseessments and bills, unteea I.ender pays Bor=ower intereet on the ~nda and applicable law permits l.ender to make such a charge. Borrower and Lendet may agree in writing at the time of execution of this Mortgage that interest on the Funde ahaU be paid to Borrower, and unless auch agreement ia made or applicable lew requirea auch intereat to be paid, Lender shalt not be required b pay Borrow~ any intereat or earnings on-the PY~nda. Lender shaU give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debite to the Funda and the purpoee for which each debit to the FLnda wae made. The Fu~ds are pledged as additional security for the auma eecured by this hiortgage. If the amount of the Flinda held by I.ender, together with the (uture monthly inataliments of Funds payable prior to the due datea of ta~cea, aseesaments. insurance ptemiume and ground renls, ahall excrcd the amount required to pay said taxes, asseasments, insurance premiume and grouad renta as they fall due. such excess ehall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inataUmenfs of fi~nds. If the amount of the Funda held by Lender shall not be sutficient to pay taxea, aeseasmente, insurance premiums and ground rtnta as they fall due, Bormwer shall pay to Lender a~y amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in tull of all sums aecured by this Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, Ixnder ahall apply, no later than immediately prior to the sale of the Property or ite aoquieition by Lender, any Funda held by I.ender at the time of application as a credit against the sums secared by thia Mortgage. ' 3. Application of Paymente. Unless applicable law ptovides otherwiae, al! payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firxt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principa) of the Note, and then to interest and principal on any Future Advances. 4. Chargee; Liena. Borrower shall pay all taxes, assessments nnd other rharges, fines and imposilions attributable to the Property which may attain a priority over ihis 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 Lender all notices of amounts due under this paragraph, and in the event I3orrower shall make payment directly, Borrower shall promptly furnish to [,ender reoeipta evidencing such paymenls. Bnrrower shall promptly disch:?rge any lien which h~is priority over this Mortgage: provided, that Borrower ahall not berequired to discharge any such lien so long as E3orruwer shall agree in writing to the paymrnt of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prnvent the enforcement of the lien or forfeilure of the Property or any part therenf. - 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loas by fire, hazards included within the term "extended co~ eraRe," and such other hazards as I.ender may require and in such amounts and for such ~eriods as Lender may require; pmvided, that Ixnde~ sh:+ll not reyuire that the amount of such coveraKe exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pro~ idinR the insurance shall be chosen h~• liorruw•er subje~•t to approval by Ixnder, provided, that such approval shall not be unreasonably wilhheld. All premiums on insuram•e policirs ~h.~ll i~ ~~aid in the manner providecl under par.iKraph'L hereof or, it i not paid in such manner, by F~rrower makinR payment, when dur, dirErtl~• tu the in~urance carrier. All inaurance policies and renewals thereof shall be in fortn acceptable to l.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Ixnder shall have the right to hold the policies and renewals thereof, and Borrower shall promptty furnish to ~ i.ender all rnnewal notices and all receiptx of paid premiums_ in the event of loss, Borruwer shall Rive prompt notice to the insurance carrier ~ and Lender_ Lender may make proof of loss if not made promptly by Borrower. ~ Unlesa Lender and Borrower otherwise aqree in writing, inaurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically [easible and the serurity of this Mortga~te is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be irnpaired, the insurance proceeds shall be applied ~ to the suma aecured by this Mortgage, with the excess, 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 I.ender to E3orrower that the insurance carrier oflers to settle a claim for inaurance benefits, Lender is authorized to coliect and apply the insurance pmceeda at Lender s option either to restoration or mpair of the Property or the snma secured by this MortRage. Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principai ahail not extend or postpone thedue date of the monthly installmenta reterred to in paraQraphs I and 2 herev?f or change the amount of such installments. if under paragraph 18 hereof the Property ia acquired by l.ender, all right, titie 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 acqu~sition shall pass to l.ender to the extent uf the sums secured by this 4lortgage immediately prior to such sale or acquisilion. 6. Preservation and Maintenance otProperty; Leaseholds; ('ondominums; Planned Unit Developmente. Borrowershall 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 Mortgage is on a leasehold. If this AtortgaKe is on a unit in a condominium or a planned unit devetopment, E3orrower ahall perform aU of Iiorrower's obligations under the declaralion or covenants cre:itin~; or governing the condominium or planned unit development, the by-lawa and regulations of the condominium ur planned unit development, and constituen! documente. If a condominium or planned unit development rider is executed by E3~,rrower and recorded t~ether with this Mortgage, the oovenants and aqreementa of such rider shall be incurporated into and shall amend and supplement thecovenants and agreementsof this Morigageas ifthe rider wern a part hereof. ~ i_ Protection ot Lender'e 3ecurity. If Borrower fails to per[orm the covenante and agreemente contained in this Mortgege, or if any ~ action or proceeding ie commenced which materially affecte l.ender'a intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency. code enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender et Lender 8 option,upon notice to Borrower may make euch eppearancee, diaburee auch auma and take auch action ae ie necessary to protect Lender's interest, ~ including, but not limited to, diebureement of reasonable attorney's fees and entry upon the Property to make repaire. If L,ender required ~ mortgage inanrance ae a rnndition of making the loan secured by this Mortgage, Borrower shal) pay the premiume required to maintain ~ euch ineurance in effect until euch time aa the requirement for auch ineurance terminates in accordance with Borrower'a and Lender s ~ writt~m agreement or epplicable [.aw. Borrower shall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. Any amounta dieburaed by Lender perauant to thia paragraph 7, with intereat thereon, ahall become additional indebtednees of f3orrower eetured by thie Mortgage. Unlesa Borrower and Lender agree to other terma of payment, euch amounts ehall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diabureement at the rate payable from time to Lime on outetanding principal under the Note unleae payment of intereat at auch rale would be contrary to applicable law, in which ~ event auch amounte ehall bear intereat at the highest rate permiseible under applicable law. 1lothing contained in thia paragraph ehall require Lender to incur any expenae or take any action hereunder. ~ _ ~ ~ ~ ~ ,",k 312 P~~,E 1405 ~ ~ ; ~ ~