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HomeMy WebLinkAbout1415 Borrower and Lendes covenant and agsee ae follows: 1. Payment ot Petncipel sad i~tere~~ Horrower shall promptly puy when due the ~principal of and intereat on the indebtedness evidenoed by tha Note, pcepayment and lete charges ea pmvided i~ the Note, and the pri~cipal of and intereat on any I~Lture Advanrea eecured by this Mortgage. - Z. Ptind~ [or Tases and Ineurance. Subject Lo applicable law or to a written waiver by l.eoder, I3orrower shall pay to l.ender on the day monthly i~stallments of principal und interest are payable under lhe Note. until the Note ia paid in full, a aum (herein "~unds") equal to one twelfth of the yearly taxes and aeeessmenLs which may attain priority over this Mortgage, and ground renta on the Property, i[any. plua one~ twelRh of yearly premium inatallments for hazard inaurance, plus onetwelRh of yearly premium inatallmenta [or mortgage insurance. if any. all ae reaeonably ~timated initially and trom time to tima by I.ender an the basis otaeaesaments and billa and reasoneble eatimatea thereoL The Phnda shall be held in ait inatitubio~ the deposits or eceounta of which an ineured or guaranteed by a Federal or State agency ~ (including Lender if Lender is such an institution). Lender shall apply the ~nds to pay said taxea, assessmente, inaurance premiums and ground renfs. Lender mqy not charge for s~ holding and applying the ~nde, snalyzing eaid account, or verifying and compiling said eseesements and bills, unlees I.ender pays Borrower intereat on the Funds and applicable lavn permite Lender to meke such a charge. Borrower and I.ender may agree in writing at the time of ezecution of thie Mortgage that interest on the Fl~nds ahall be paid to Botrower, and unleee euch agreement is made or applicable law reqairee such intereaL to be paid. Lender ahall not be required to pay Borrower any interest or eart?inge on the ~nda. I.ender shall give to Borrower, without charge, an annual accounting of the Funde ahowing credits and debita to the Flinda and the purpoee for which each debit to the Funde wae made. The Funde are pledged ae additional eocurity tor the eums secured by thie Mortgage. If the amount of the ~nda held by Lender, together with the future monthly installmente of Funde payable priorlo the due dates of taxee, asseeaments. insurance premiume and gronnd rents, shall e=ceed the amount required to pay said tazes, asseasmenta, inaurance premiums and ground renta as they fall due, euch excess shall be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on monthly inataUments of ~nds. If the amount of the Funds held by Lender ehall not be eufficient to pay tauea, aseeesmenta, inaurance ` premiums and ground rents as they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of aU auma secured by this Mortgege. l,ender ehaU prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ie eold or the Property is otherwiee acquired by Lender, Lender shall apply. no later than immediately prior to the eale of the Property or ite soquiaition by I.ender, any ~nda held by Lender at the time of application as a credit againat the auma secured by thia Mortgage. 3. Application o[ Payments. Unless applicable law providea otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 herEOf ehall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, _ then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Futnre Advancea. 4. Chargea; Liene. Borrower shall pay all taxe8, assesamente and other churges, finea and impoaitions attributable to the Property which ~ may attain a priority over thie Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. Bornower shall promptly furniah to Ixnder - all notices of amounta due under thia paragraph, and in the event Borrower ahaU make payment directly, E3orrower ahall promptiy [umish to Lender receipts evidencing auch paymenta. Borrower shall promptly dischtvge any lien which ha?a priority over thia Mortgage; provided, that E3orrowet ahall not be required to diacharge any such lien so long ae Borrower ahatl agree in writing to the payment of the obligetion secured by such lien in a manner acceptable to Lender. or ehall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforoement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuraace. Borrower shall keep the improvementa now ea~isting or hereafter erected on the Property ineured against losa by fire, hazarde included within the term "extended rnverage," and auch other hazards as Lender may require and in auch amounts and for such perioda as Lender may require; provided, that I.ender ahall not require auch ooverage amount exceeding the minimum, as may be required by state or federal regulations goveming ectivitiee of Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever ia the greater. ~ The inaurance carrier providing the inaurance ahall be chosen by Borrower subject to appmval by I.ender, provided, that such approva! ~ shall not be unreasonably withheid. All premiums on insurance policies ahall be paid in the manner pmvided under paraRraph 2 hereof or, if - not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. _ All inaurance policies and renewale thereof shall be in fotm acceptable to Lender and ahall include a atandard mortgaqe clause in favor of and in form acceptable to I.ender. L.ender ehall have the right to hold the policies and renewals thereof, and Borrower ahall promptiy furnish to i,ender ap renewal noticea and all receipta of paid premiums. In the event of loes, Borrower shall give prompt notice to the insurance carrier Ik and Lender. Lender may make proof of loas if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, ineurance procceda shall be applied to reatoration or repair of the Property i damaged, provided auch reetoration or repair ia economically feasible and the eecurity of thie Mortgage is not thereby impaired. If euch I restoration or repair is not economically feasible or if the eecurity of thie Mortqage would be impaired, the ineurance proceede ahall be applied ~ to the sume eecured by thie Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or J Borrower fails to F reapond to Lender within 30 daya hom the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settie a claim for ~ ineurance benefita. Lender is suthorized to collect and apply the inaurance proceeda at Lendei s option either to restoration or repair of the ~ ! Property or the aums aecured by thia Mortgage. ~ Unleee Lender and Borrower otherwiae agree in writing, any such application of proc~da to principal ahall not extend or postpone the due date of the utonthly inatallmente referred to in paragraphe 1 and 2 her+eof or change the amount of auch inetalimenta. If under paragraph IR hereof the Property is aoquired by Lender. all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof resalting from damage to Property prior to the eale or aoquiaition shall pass to Lender to the extent of the auma eecured by thia Mortgage immediately prior to auch sale or aoquieition. ~ 6_ Preaervation and Maintenance of Property; Leaeeholda; Condominume; Planned Unit Developments. Borrower ahall keep ~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Properly and ahall comply with the proviaions of any lease if thie Mortgage is on a leasehold_ If thie Mortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower ahall perform all of Borrower e obligatione under the declaration or covenants creatingor governing the condominium or planned unit developmen~ the bylawe and regulatione of the condominium or planned unit development, and conatituent documenta. If a ~ condominium or planned ~nit development rider ie executed by $orrower and recorded together with thia Mortgage, the oovenants and agreemente of such rider ahall be incotporated into and shall amend and supplement the covenanta and agreementa of thia Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower feila to perform the oovenante and agrcementa contained in this Mortgage, or if any ~ action or proceeding is commenoed which materielly aftecte Lender s inter~t in the Property, including, but not limited to, eminent domain, ~ insoivency, oode enforcemeat, or arrangements or proc.eedings involving a bankrupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrower may make euch appearances, disbnrse such snms and talce auch action as ia neceseary to protect Lender's intaest, £ including, but not limited to, disbureement of reasonable attorney's fe~ and entry upon the Property to make repairs. If Lender reqoired ' mortgege insnrance ae a oondition of making the loan secured by this Mortgage, Borrower ahall pay the premiuma required to maintain ; euch ineurance in effect until euch tiwe as the requirement for euch ineurance terminates in acoordance with Borrower'e and I.ender'e ~ written agreement or applicable Law. Borrower ehall pay the emount of all mortgage inaurance premiume in the manner provided under s ~ paragraph 2 hereof. , ; My amounte disbursed by Lendez pereuant to this paragraph with intereet thereon, shall become additional indebtedneea of ~ E3orrower sec~red by thia Mortgage. Unlesa Borrower and Lender agne to other tercne of payment, euch amounte ehaU be payable upon notice from I.ender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebursement at the rate payable from time to time on outatanding principel under the Note unlese payment of intereat at snch rate would be oontrary to applicable law, in which event such amounte ahall bear interest at the higheet rate permiasible under applicabie law. Nothing contained in thia paragraph 7, ehall require Lender to incur any expense or take any action hereundeT. ~ ~ . ~ - ! ~ . . s ~ ~K.,~~ P~GE1413 ~ . . _ ~ _ _ ~ _ . _ ~ .