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HomeMy WebLinkAbout0174 t3orrower and l.ender covenant and agree ae followb: 1. Payment ot Principal and Intereat. Borrowe~ ahall promptly pay when due the principal of and interest on the indebtednesss evidenced by the Note, prepayment and late charges ae~ provided in the Note, and the principal of and intereat on any F uture Advances aecured by thie Mortgage. 2. F~r?ds for Tazes and lnaurance. Subjeci ta applicable law or k~ a written waiver by l.ender, I;orrower sht~ll pay to I.ender on the day monthly installmente of principal and intereat arn payable under the Note, until ihe Note ia paid in full, n aum Iherein "N uncis") equal to one~ twelfth of the yearly taxea a~d assesamenta which may attain priority over this Mortguge, und ground rentz: on the !'ruperty, if nny, pius one twelfth of yearly prnmium installmenta fon c~uard inaurance, plus une~twelfth of yearly premium installments fur mortgz?ge insurance, if any, all as ms~sonably estimated initiaUy and from time to lime by l.cnder on the basis of .u+sessments and bills nnd rrasonnble estimatex thereof. The ~nde ehall be held in an inetitution the depoaita or accounte of which are ineured or guarnnteed by a Federal oT State agency (including Lender if [.ender ia such an institution). I.ender shall apply the Funda to pay aAid /axea, asseasments, inaurance premiuins and ground rente. Lender may not charge for eo holding u~?d applyinR the Funds, analyzing said Accuunt, or verifying and compiling said uaeeaements and bills, unless I.ender paye F3orrower intereat on the Funda and applicable law permita I.ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage that interest on the Funda shall be paid to E3orrower, and uniesa euch agreement ia made or applicable law requirea such interest to be paid, Ixnder ehall nut be required to pay Borrower any intereat or earninga on the fi~nds. I.ender ahall give to Borrvwer, without charge, an annual accounting of the Funda showing credita and debita to the Funda and the purpoae for which each debit to the F unda was made. 7'he Funda are pledged as additional security for the aums secured by this hiortgage. If the amount of the Funda heid by Lender, together with the future monthly inatallments of Funds payable prior to the due datea of taxea, assessmente, insurance premiums and ground rents, shall excaed the amount required to pay said taxea, asseae;ments, insurance premiums and ground rente as they faU due, euch e:ceas aha11 be, at Borrower's option, either pmmptly repaid to Borrower or cred•.ted to I3orrower on monthly inatallmenis of ~nda. If the amount of the Funds held by l.ender ahall not be su~cient to pay tz~xea, assesamenta, inaurance premiume and ground rente ae they fali•due. Borrower shall pay to l.ender any amowit necessa~y to make up the deficiency within 30 days from the date na:ice ia mailed by l.ender t<? E3orrower requesting payment thermf. Upon payment in full o[all sums secured by thie Morigage, l.ender ahall promptly refund to Borrower any funds held by Lender. lf under paragraph 18 heteof the Propetty ix sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by I.ender, any Funds held by I.ender at the time of application as a credit againat the suma secured by this Mortg~ge. 3. Application of Paymente. Unless applicable law provides otherwise, all pavmenta received by I.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender fimt in payment of amounts payable to I.ender by Borrower under paragraph 2 hereot, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liens. E3ormwer shall pay all taxes, a~.ases.gments and other charges, fines and impositions attributable k, the Property which may attain A priority over this MortRaRe, and leasehold paymentx or Kmund rents, if any, in the manner pruvidcd under paraqraph 2 hereof or, if not paid in xuch manner, by Borrower making payment, when due, direcUy to the payee thereut [;ormw•er shall promptly furnish to l.ender all notices of amounta due under this paragraph, and in the event Rorrower shall make payment dircrtly, Rorn,wer shall prompdy [urnish to l,ender receipts evidencing such payments. 13unower shall promptly discharKe any lien which h~s priority o~~er this MortKage; prvvided, that f;r~rrower shatl not be required to discharg~ any such lien so IonK ax Rorrower shall a~ree in writtnK to the p.?y~nent uf lheobliKalion secured by such lien in a mnnner acceplable to I.ender, or shall in q«xl faith cti~ntest such lien by, or defend enforcement uC:~uch lic•n in, l~~al procecdinKs which operute to prevent the enforcement of the lien or forfeiture uf the Propertp ur any p.irt there~~f. 5. Hazard Insurance. F3orrower ahall keep the improvements now existing or hereafter erecteci on the Property insured against loas by firn, hazards included within lhe term "extended coverage," and euch other hazards as I.ender may require and in such amounts and for such periods as I.ender may require; provided, that l.ender shal! not require such coverage amount exceeding the minimum, as may be required by vtate or fideral regulationa governing activities of I.ender, ur that amount of coveraRe required to pay the sums secured by this MortKage, whichever is the greater. The insurance carrier providing the insuranc~ shall he chusen by R~~rrower subject to appru~•al by I.endFr, pnn•idcd, th.~t such appru~•al ~hall not be unreasonably withheld. All pmmiums un insurance pulicies shall t?e p.iid in the munner pnwided under paraKraph'l hercY?f or, if I; n~~t paid in such manner, by I3orrower makinQ payment, w•hen due, directly tu the in~urance carrier. ; /U) inaurance policies and renewals thereof shull be in form acceptable to I.ender and ahaU include a atandard moriK~ge clause in favor of and in form acceptsible to Lender. I.ender shall have the right to hold the policies and renPwals thereof, and Borrower shall promptly Curnish to ~ ~.ender all renewal noticet; and all re~ eipts of paid premiums. In the event of loss, Korruwer shall Kive prompt notice to the inaurance camer ~ and I.ender. i.ender may make proof of loss if not made promptly by E3orrower_ € Unleas I.ender and E3orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Yroperty ~ damaged, provided such restoration or repair is economically feasible and the security of thia MortRage is not themby impaired. If such € reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance prceeeda shal! be applied s to the suma secured by this Mortgage, with the excess, i[ any, paid to Rorrower. l f the Property is nbandoned by E3orrower, or if E3orrower fails to ~ respond to L.ender within 30 days irom the date notice is mailed by l.ender tn Borrower that the inaurance carrier of~ers to xettle a claim for ' insurance benefits, [.ender ia authorized to collect and apply the insurance procc~eds at I.ender's option either to restoration or repair of the ~ Properiy or the sums secured by thia MortKage. % Unlesa I.ender and Borrow er otherwise agree in writinq, any auch application of pruceeds to principal ahall not extend or postpone the due ~ date of the monthly inslallmenls refetred to in paraKraphs 1 and `L hereof or chanQe the amount of such inatallmentx. If under paragraph 1R ; hereof the E'ropert} ia acquired by Lender, all right, title and interest of Borrov?er in and to any inxurance pnlicies and in and to the proceeds " thereof reault~ng from damage to Property prior to the sale or acqu~sition ahall paag to I.ender to the extent of the suma secured by this ' Mortgage immediately prior Lo such sale or acquisition. ~ 6_ Preaervation and Maintenance of Property: Leaseholds; Condominume; Planned Unit Uevelopmente. Barrowerahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahali comply with the : proviaions of any lease if this Mortgage is on a leasehold_ [f this MortAaKe~is on a unit in a condominium or a planned unit development, ~ Rorrower shall perform all of E3orrower's obligations under the declaration orcovenants creatinKor Qoverning thecondominium or planned ; unit development, the by-lawa and requlationa of ihe condominium or planned unit development, and conatituent documentn. If a g condominium or planned unit development rider is executed by Borrower and recorded tr~ether with thia Mortgage, the rnvenante and ~ agreemen~s of such rider shall be incorporated inU~ and shall amend and supplement the covenantx and agreemente; of this MortgaKe as if the ~ ~ rider were a part herenf. ~ Protection of Lender'a 3ecurity. If Borrower fails to perform the oovenante and agreemente contained in thie Mortgage, or if any action or proceeding ie commenced which meterially affecte Lender's intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender at Ir_nder e option,upon - notice to Borrower may make auch appearancee, dieburee euch eums and take auch action as is neceaeary to protect Lender's intereat, inctuding, but not limited to, diaburaement of reaaonable attorney'e feee and entry upon the Property to make repaire. If I.ender required s mortgage inaurance as a condition of r.~aking the loan secured by this Mortgage, i3orrower ahall pay the premiume required Lo maintain euch ineurance in effect until such time se the requirement for auch ineurance terminates in accordance with I3orrewer'e and Lendei e written agreement or applicable Law. Borrower ahall pay the amount of all mortgaqe ineurance premiuma in the manner provided under paragraph 2 hereof. _ Any amounta diabaraed by I.ender perauant to thie paragraph 7, with intereat thereon, ehall become additional indebtednesa of _ Borrower eecured by thie Mortgnge. Unleae Borrower and [.ender agree to other terms ot payment, such amounta eha11 be payable upon ~ notice from [.ender to I3orrower requeHting payment thereof, and ehall bear intereet from the date of diaburaement at the rate payable from time to time on outatandinq principai under the Nole unleas payment of intereet at euch rste would be rnntrary to applicable law, in which ~ event such amounte ahall hear intereat at the highest rate permisaibie under applicable law. Nothing contained in thie paragraph 7, ehall ~ require I.ender to incur any expense or take any action hereunder. ~ ~ . ~+R ~ . a~~~K31:3 P~cE 174 ,