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HomeMy WebLinkAbout2373 ' i _ ( Borrower and Lender ooveaant and ~sre~ e~ foUovin: 1. Pa~rmeat of Principal and Iateeeat. Borwwer shall promptly pay when due the principal oi and intereat on the indebtednew evidenoed by the Note, prep~ymentand late chu~es as pmvidod in the Note, and the principal oi and interest on any ~ture Advancee eecured bY thii Mortss~e. 2 bLnd~ for Ta~ce~ and Insurance. 8ubjed to applicable law or to a written vraiver by l.ende~. Borrower shall pay to I.ender on the day monthly uutalld~~t~ of principal and interest are payable u~der the Note, until the Note is paid in full, a aum (herein "~nds'~ equal to onr twelRh of the ya~r~y taxes and ss~essments which may attair? priority over this Mortgege. and ground rents on the Property. i[any, plw o~e~ twelRh of yearly pmaium instaUments fa~ hazard insurance, plus onetwelflh of yearly prernium inatallmente for mortgage inaurance. i[any. all es reasonably estimated initially and from time to time by I.ender on the basia of aeesaaments and biUa and reasonable estimates thereof. , 71ie Pbnd~ ~hall bs held ia an institution the deposits or aocounts of which are inaured or guarante~d by a Federel or State agency (it~cludin~ Lendet if I.ender is iuch an institutioa~ Lender ahall apply the ~nds to pay said taxcs, asseesments, ineurance premiume and groupd rents. Iender mey not cbar~e fot w holding and applying the Ftinds. analyzing aaid account, or verifying and rnmpiling said as~b aad biW. nnlea Lsnder pay~ Borrower intereston the Funds and applicable Iaw permit8 Lender to make auch a chasge. Borrower and Leader may a~res ia ~?ritinB st We time of e:ecution o[ thia Mortgage that interest on the ~nda shall be paid to Borrower, and unless euch agreement is made or applicable law requires such intecest to be paid, I.ender shall not be required to pay Borrower any intereat or earninp oa the P~nd~. Lender shall give to Bormwer, without charge, an annual accounting of the Funda ahowing credita and debits to the Ftind~ and the purpo~e for which ee?ch debit to the ~nds was made. The Funde are pledged aa edditional security for the suma secured by this Mortgage. If We amount of the F~nd~ held by Lender, together with the future monthly inetailments of Funda payable prior to the due dates of tazes. assesaments~ insuranae premiums and ground rents, shall e:czed the amount required to pay eaid ta~ces. asseasments, inaurance premiums and ~ronad renta aa they fall due. such e:ceae ahall be. at Borrower a option. either prompdy repaid to Bor~ower or credited to Borroweron monWly installments of FLads. Ii the amount of the Funds held by Lender ahall not be anfficient to pay taxes, assesaments, ineiurance premiums and ground rtnts as they fall due. Borrower ahall pay to lender any amount neoessary to make up the deficiency within 30 days from the date notioe is mailed by Lender to Borrower requesting payment thereof. Upon payment in t~ill of aU sutus secured by thia Morigage, Lender ahall promptly refund to Borrower any funds held by i~eoder. if under paragraph 18 hereof the Property ia eold or tke Property is otherwiee acquired by I.ender, I.ender ahall apply, no later than immediately prior to the sak of the Property or ita soquiaition by I.ender. any Funds held by I.ender at the time of application as a rredit s+gainat the auma secured by this Mortgage. 3. Application o[ Paymeets. Unless applicable law provides otherwiae, all paymenta received by l.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender first in payment of amounts payable to l.ender by Borrower under parngraph 2 hereof, then to interest payable on the Note, then to the principai of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liene. Borrower shall pay a~l taxes, aasessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. E3orrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to Lender reoeipta evidencing such payments_ Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, tha? Borrower ahall not berequired to discharge any such lien so lon~ as E3orrower shall agreein writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good taith c~ntest such lien by, ordefend enforcement of such lirn in, legal proceedings which operate to prevent the enforcement of the lien or furfeiture of the Property or any part thereoL 5. Hazard Ineurance. Borrower shall keep the impruvements now existing or hereaRer erected on the Property inaured against loss by fire, hazards i~cluded within the term "extended coverage; ' and such other hazards as I.ender may require and in such amounta and for auch periods as I.ender may require; provided, that Lender ahall not require that the amount uf such coverage exceed that amount of coverage required to pay the sums secured by this Mortqage. ' The insurance carrier providing the insurance shall be chosen by Korrower suhject tn approval by I.ender; provided, that such approval shall not be unreasonably withheld. All premiums on insur.?n~r pulicies sh:~ll be paid in the manner pro~ idcd under para~raph 'l hereof or, if not paid in auch manner, by E3orrower making paymrnt; when due, dircrti~ to the insurance carrier. All inaurance policies and renewais thereof shall be in form acceptable to l:ender and shall include a standard mortgage ciauae in favorof and in form acceptable W Lender_ [.ender shall have the right to hold the policies and renewals thereof, and ~rrower shall promptly furnish to i.ender all renewal notiees and all receipts of paid premiums. In the event of loss, E3orruwer shall give prompt notice to the insurance carrier ! and Lender. Lender may make proof of loss it not made promptly by Rorrower. I Unlese I.ender and Borrower otherwise agree in writing, insurance proceeds shaD he applied to restoration or repair of the Property ~ damaged, provided such restoration or repair is economically [easible and the security of this Mortgage is not thereby impaired. If such f restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shaU be applied to the suma eecured by thie Mortgage, with the excess, if any, paid to Eiorrower_ I[the Property is abandoned by Eiorrower, or if E3orrower taile to ~ respond to Lender within 30 daya trom the date notice is mailed Ly I.ender to E3orrovrer that the insurance carrier offers to settle a claim for ~ insurance benefita, Lender is suthorized to collect and apply the insurance proceecis at [.ender s option either to restoration or repair of the Property or the sums aecured by this Mortgage. Unleea Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not eatend or poatpone the due date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the praceeda thereof reaul6ng from damage to Property prior to the sale or acqwsition shall pass to Lender to the extent of the auma secured by thie Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceofProperty: Leaseholds;Condominume; Planned Unit Developmente. Borrowerahallkeep the Property in good rnpair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply w~th the proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, l3orrower ahall perform all of I3onower's obligations under the declaration or covenants creatinKor qoveming the condominium or planned unit development, the by-laws and regulationa of the cundominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider ia executed by Rorrower and recorded together with this Mortgage, the rnvenante and agreements of such rider shall be incorporated into and sh:ill amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. c T. Protection of Lender'e 3ecurity. If Borrower faile to per[orm the oovenante and agreements rnntained in thie Mortgage, or if any ~ action or proc•.eeding is commenced which materially affecte I.ender a intereet in the Property, including, but not limited to, eminent domain, ~ inaolvency, oode enforcemen~ or arrangementa or proceedinge involving a bankrupt or decedent, then I.ender at Lender'e option,upon ~ notice to Borrower may make such appearances, dieburee euch aume and teke auch action as ie neoeseary to protect Lendtr's in~t, $ including, but not limited to, disbursement of reseonabie attorney'e feeH and entry upon the Property to make repairs. If Lender required mortgage insarance as a rnndition of making the loan eecured by thie Mortgage, Borrower shall pay the premiuma required to maintain ~ euch insurance in effect until euch time as the requirement tor auch inaurance terminates in accordance with Borrower'e and I.ender's ~ ' written agreement or applicable Law. Borrower ahall pey the amount of all morlgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. ~ ¢ My amounta diebureed by Lender perauant to this paregrap~ with intereet thereon, ahall become additional indebtedneas of Borrower secured by lhie Mortgege. Unleae Borrower and I,ender agree to other terma of payment, auch amounte ahall be payable upon ~ notice from L.ender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebursement at the rate payable from p time to time on outatanding principal under the Note unleas payment of intereat at aucb rate would be rnntrary to applicable law, in which event sueh amounts shall bear intereat at the higheat rate permiasible under applicable law. Nothing contained in this paragraph 7, shall ! require [.ender to incur any e:penae or take any aMion hereunder. ~ , ~ i "~312 PaUE2371 ' G•I , ~ ; _ .