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HomeMy WebLinkAbout0705 e - e i. ~ - ' ~ y ~ + { Borrower and IAerdsr covenant sad agew a• folbws: 1. Pa~rmsat of Prtndpal and Iatoreat. Borrower shall promptly P+U? when dw the principal of sad iatseest oa fire indebtedness evidaroed by the Kota. prepaynrsat and lab charges as Provided is the Note, and the principal o[aerd interest oa say Flttuee Advances secured by this Idoetgage. 2. Fgerds for Taxers and Iaanraaos. Subject to applicable law or to a written waiver by Lender. Borrows shall pay to Leader oa the day monthly installeaenb of principal sad iabnat are payable under the Note. natal the Note is paid is full, a sum (hen "Fbnds'~ equal to oas twelRh oithe yearly tars and assesamsats whidt may attain Priority over this Mortgage.. and ground rents oa the Property, if say, plus one• twel!!h ofY~Y pewninm ieutdlmenb far hawed ietsuranos, plw oae~twdtUr ofyear~y premium indallments for mortgage insurance. if any. all as reasoaabiy estimated iaitialjy and from time to time by Leader oa the basis of apesemenb aetd biW sad rmsonable estimates thereof The Faads shall be held in an institation ties depwib or accounts of which are iaaneed or guaranteed by a Federal or State agency , (including Lender if Leader is such an institntioa). Lender shall apply the Funds to pay said taxes, aneaenent0. iersuranae premiums and i ground rash. Lserdsr rosy not charge for so holding sad appU?ierg the Fonda, aeuly:iag said aooowrt, or verifying and compiling said ; awasmarb sad bills, ualsss Leader pays Borrower interest oa the Fends and applicable law permits Deader to make such a charge. Borrower and Lender enay agree iA writing at tbs time of axecatioa of this Motagage that interest oa the Funds shall be paid to Borrower, acrd unless ench.ageeemeat is made or applicable law requires such interest to bs paid, Lender shall not be required to pay Borrower say iabeest err earnings oa the Fends. Leader shall give b Borrower, without charge: sn annual accounting of the Funds showing credits and debits to the Funds sad the parlwse for which each debit to the 1+lrnds was made.'1'he r ands are pieaged as addiiioasi security for rnesums w,-urvu uy w,r Mortgage. V the amount of the Funds held by Leader. together with the future mpnth~y inatallmenb of Funds payable prior to the due dates of taxes, assessments, iasuraaoe premiums and ground rents. shall exoaed the amount acquired to pay said taxes, aaaessmenb. insurancs pnmiams and ground teats as they fall due, etch excess shall be. at Borrower's option. either promptly repaid to Borrower or credited to Borrower oa monthly ieuWlmeab of Funds. ff the amount of We Funds held by Lender shall sot be sufficient to pay taxes, assessments, insurance premiums sad ground rash as they fall due. Borrower shall Pay to Lender any amount necessary to mate up We deficiency within 30 days from the date »otioe is mailed by Lender b Borrower requesting Payment thereof. Upon payment in foil of all cams secured by thin Mortgage. Leader shall promptly refund to Borrows any funds held by Leader. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Property err its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Applicption of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable oa the Note, then to the principal of We Note. and then to iatereat and principal on any Future Advances. # 4. CharPes; Liars. Borrower shall pay all taxes assessments 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, ,,-,at iu ands .:.::r:.r:ei, ls, ~--e: making pa3~'mt+~nt, when due: dirrrtly to the payee thereof. Borrower shall Proanptly famish to Lends paid ' - t all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority ova this Mortgage; provided, that ~ . Bon-over ahaU not be repaired to discharge any such lien so long Borrower shall agree in writing to the payment of the obligation necur+ed by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, or defend enforcement of such lien in, legal proceedings i which operate to prevent the enforcement of the lien or fortliture of the Property or any part thereof. 5. Hazard Inanraace. Borrower shall keep the improvements now existing or hereaRer erected on the Property insured against loss by fire, hazards inducted within the term "extended coverage," and ouch other hazards as Lender may require and in such amounts and far such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hoW the policies and renewals thereof, and Borrower shall promptly famish to ' i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier ' and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property . damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such resbration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for E insurance benefits, Lender is authorized to rnllect and apply the insurance pra~eeda at Lender a option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. U under paragraph 18 hereof the Property is acquired by Lender, all right, title 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 acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit wa8te or permit impairment or deterioration of the Property and shall comply with the provisions 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-caws and reguiations of the rnndominium or planned unit development, end constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the eovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is oommenoed which materially affects Lender's interest in the Property, including. bat not Waited to, eminent domain, insolvency. Dodo enforeemerrt, or arrangements or proceedings involving a bankrupt or deosdent. then Lender at Lender's optioerupon notice to Borrower may make such appearances, disburse ouch soma and take such action a. is necessary to protect Lender's interest, inducting, but not Wruted to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leader required mortgage assurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain ! such iruarance in effect until such time as the requirement for such iwurance terminates in aeoordance with Borrowrer's and Lender's written agresenart err applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided ender paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon. shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable neon notice from Lender to Borrower requesting payment thereof, sad shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary b applicable law, in which _ event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or fate any action hereunder. . s~ 3z5 PEE X02 . ~ ~