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HomeMy WebLinkAbout2545 . i Borrower and l.e~der c~venant a~d a~ree as followe: 1. Paymeat ot Principal and Interest. Borrower ahall promptly pay when due the pri~cipal oi and interest on the indebtednees evidenoed by the Note, prepayment and late charges as pmvided in the Note, and the principal ot and intesest on any F~ture Advances eecured by this Mortgage. 2. Ptitnda for T~es attd Induranoe. Subject to applicable law or to a written waiver by l.ender, f3orrower ahaU pay to I.ender on the day monthly installmenta of principal and intereat ere payable under the Note, until the Note ia paid in full, a aum (herein "Fti?nds") equal to one ;1 twelfth of the yeatly taxes and aeeessments which may attain priority over this Mortgage, and ground renta on the Prvperty, if any, plus one ' twelfth of yearly prrmium installmenfs for hazard inaurance, plus onetwelfth ofyearly precnium inatallmenta fo~ mortgage insurance, if any. all aa reasonably eatimated initially and trom time to time by Lende~ on ?he baeie of aseeeamenta and bills and reasonable estimatea thereof. ; '11?e Fuads ahaU be held in an institutioa the deposifa or aocounts of which are inaured or guaranteed by a Foderal or State agency (including Lender if L,ender is such an inadtution). [.ender shaU apply the Funde to pay eaid ta:es, aeseasmeota, inaurance premiums and ; ground reats. I.et~der may not charge for so holding and applying the Plinda, analyzing said account, or verifying and compiling esid ~ents and bills, unleee I.ender pays Borrower interest on the ~nda and applicable law permits Lender to make such a charge. Borrower } and I.ender may agrea in writing at the time of execution of this Mortgage tha! interest on the Funds ahall be paid b Borrower, and unleas such agreement is made or applicable law requirea euch intereat to be paid. Lender ahall not be required to pay Borrower any inte~eat or earnings on the P~nds. Lender ehaU give to Borrower, without charge, an annual accounting of the Funde ahowing credits and debits to the ~nds and the putpoee for which each debit to the ~nda was made. The Funda are pledged ae additional eecurity for the aume eecured by thie ~ Mortgage. ; If the amount of the FLnda held by Lender, together with the future monthly inetallmente of Funda payable prior to the due datee of tsxea, asseeements. insnrance premiums and ge+ound renta. ahall e:c~red the amount required b pay eaid taxes, aeaessmenta. ineurance premiuma aad ground reats aa they faU due, such escees ehall be, at Borrower'e option, either prompdy repaid to Borrowec or credited to Borrower on moathly inatallments of FLnds. If !he amount of the Funde held by Lender ahall not be eui'Fcient to pay taxea, aseeasmenta, inaurance premiums and ground rente as they fall due, Borrower ehall pay to Lender any amount neceesary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requesting payment thereof. Upon payment in fiill of all anma secured by thia Mortgage, L.ender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 heseof the Property ie sold or the Property ia otherwiee acquired by Lender, I.ender ahall apply, no later than immediately prior to the sale of the Propedy or i!s aoquisition by Lender, any I~nds held by Lender at the time of application as a credit againat the aums eecured by this Mortgage. 3. Appllcation of Payments. Unless applicable law providea otherwise, all paymenta received by I.ender under the Note and paragraphe 1 and 2 hereof shall be appUed by Lender firat in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of thg Note. and then to interest and principal on any Future Advancea 4. Charges; Liene. Borrower ahall pay all taxes, aasessmente and other char(tes, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground rents, if any. in the manner provided under paragraph 2 hereotor, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower ahall prompdy fumish to Lender all notices of amounte due under this paragraph, and in the event Borrower shall make payment directly, Bornower shall promptly furnish to L.ender reoeipta evidencing auch payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shaU not be required to diBCharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by sueh lien in a manner acoeptable to I.ender, or ahall in good faith rnnteat such lien by, ordefend enforcementotsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the impmvements now e:ieting or hereafter erected on the Property inaured against losa by fire. hazarde included within the terw "e:tended rnverage," and auch other hazards as Lender may require and in such amounta and for such periode ae Lender may require; pmvided, that Lender ahall not require auch ooverage amount eaceeding the minimum, as may be required by state or federal regulationa governing acti~ities of Lender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever is the greater. The inaurance carrier providing the inaurance ahall be chosen by Borrower subject to approval by l.ender, provided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies ahall be paid in the manner provided under paragraph 2 hereof or, iC not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and tenewals thereof ahall be in form acceptable to I:ender and ehall include a atandard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof. and Borrower ahall promptly furniah to i.ender all renewal notices and all receipte of paid premiuma. In the event of lose, Borrower shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of lose if not made promptly by Bonower. r Unleae Lender and Borrower otherwiee agree in writing, insnrance proceeda shall be applied to restoration or repair of the Property 4 damaged. provided such restoration or repair is economically feseible and the eecurity of this Mortgage ie not thereby impaired.'If auch ~ reatoration or repair ie not eoonomically feseible or if the aecurity of this MortgagE would be impaired, the inaurance proceeds shall be applied to the suma secured by this Mortgage, with the excees, 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 ia mailed by L.ender to Borrower that the insurance carrier of~era to settle a claim for ~ inaurance benefifs, Lender is authorized to coltect and appljr the ineurance praceeda at L.ender's option either to restoration or repair of the Property or the euma eecund by thia Mortgage. • Unleae Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal ahall not extend or postpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereot or change the amount of auch inatallments. If under paragraph 18 hereof the Property ie acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or soquieition ahall pass to Lender to the extent of the sume eecored by this Mortgage immediately prior to euch sale or aoquieition. 6. Preservation and Maintenaace of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower shall keep the Property in good repair and ehall not rnmmit waste or permit impairment or deterioration of the Property and ehaU comply with the provieione of any lease if this Mortgage is on a leasehold. If this Mortgege ie on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all ot Borrower'a obligatione under the declaration or covenants creatingor governing the rnndominium or planned unit development. the by-laws and regulatione of the condominium or planned unit development, and rnnstituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and ahall amend and aupplement the covenanta and agreementa of this Mortgage as itthe rider were a part hereof. 7. Peotectioa of I.ender's Security. If Borrower faila to perform the oovenants and agreemente oontained in this Mortgage, or if any action or proceeding is oommenoed which materially eftecte Lender s interest in the Property, including, but not limited to, eminent domain, ~ iniolvency, oode enforcement, or errangements or proc~eedings involving a bankrupt or decedent, then Lender at Lender's optioa,npon ~ notice to Borrower may maice such appearances. disburee such sums and take such action ea is neoessary to protect Lender's intRre~t, ~ including, but not limited to, diebursement of reseonable attorney's fees and entry upon the Property to meke repairs. If Lender required : mortgage inaurance as a condition of mal~ing the loan eecured by this Mortgage, Borrower ahall pay the preaniume required to maintain ~ snch inaurance in effect nntil snch time as the requirement for euch inaurance terminates in accordance with Borrower's and Lende~s written agreement or applicable Lew. Borrower ehall pay the amount of all mortgage inaurance premiuma in the manner pmvided under ~ paragraph 2 hereof. 6 Any amounte disburaed by Lender perauant to thie paragraph 7, with interest thereon, ehall become additional indebtedness of ~ Borrower eecured by thie Mortgage. Unlesa Borrower and Lender agree to other terme of payment, euch amounta ehall be payable upon notice from L,ender to Borrower requeating payment thereof, and shall bear intereat from the date of diebursement at the rate payable 5rom time to time on outatanding principal nnder the Note unlees payment of interest at such rate would be oontrary to applicable law, in which event euch amounte ehall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall °J require Lender to incur any expenee or take any ection hereunder. I ,;R `I ~ ~ : ?r 312 ~,~E 2541 ~ ~