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HomeMy WebLinkAbout1774~ . ~ . : ,, Borrower end Leads~ ooveaant and e~ree as folbws: 1. Payment o[ Priacip~l ~nd Iatere~~ Borrower shell promptly psy when due the princ~al of aad interest on the indebtednea evideaosd by the Note, pr~ayment and leta char~es aa pmvided i~ the Note. and the principsl of and intereat on a~y F1tun Advancee ~ecured by thia Mort~a~e. 2. P'uAd~ ~or Tiuce~ ~nd Inauranoe. Subject to applicable law or to a written waiver by Lender, Borrower ahall pay to I.ender on the day monthly iiutallmenta of principal and intereat are payable under the Note, until the Note ia paid i~ full, a sum (herei~ "I~~ds'~ equal to oas twelRh of the yearly taxea and assessments which mey attain priority ove~ this Mortgage. and g~ound rent~ on the Property. if eny. plw ons twelRh of yearly premium inatallments [or hazard insurance, plus onetwelRh of yearly premium installments !or mortgege inaurance, if any, all as reasonably estimated iaitially and from time to tiR~e by Le~de~ on the basia of assessments and billa and reasonable eatimates thereof. The I~nds shaU be held in aa inetitution the depoeits or aocounts of which an insured or guaranteed by a Federal or State agency (including Lender if Lender is such an instilution). Lender shall apply the PLnds to pay said taxea. asseaaments, inaurance premiums and ground nnts. Le~der may not charge for so holding and applying the I~nds. enalyzing said account~ or verifyiag and rnmpiling said aesessmenfa and bills, unle~s I.ender paye Borrower inte~est on the ~Lnda and applicable law permita I.ender to make such a charge. Borrow~ and Lender may agree in writing at the time of executio~ ot this Morigage that interest on the Funda ahall be paid to Borrower, and unless such agreement ia made or applicable law requins such in~t to be paid, LendeT shall not be required to pay Borrower any interest or earnings on the bl~nds. Lender shall give to Bon~ower. without charge. an an~ual acconnting of the ~nds showing credits and debita to We Funde aad the purpoee foT which each debit to the FLnds vyaa made.l'he Funda an pledged aa additional security for the aums secured by thi~ Mortgage. ~ • . If the aniount of the I~nda held by Lender. together with the future monthly installmenta of ~nda payeble prior eo the due dates of taxe~, asseeaments. ineurance premiums and ground renta, shall exceed the amount required to pay esid taxes, asaessmenta, inaurance premiums and ground nnts as they fall due, such exc~eas shall be. at Bortower s option, either pmmpUy repaid to Borrower or credited to Borrower on moathly installments of I~nds. If the amount of the Funda held by Lender~ shall noE be aufficient to pay taxes, asaessments, insurance ptemiums and ground rente aa they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by I.ender b Borrower requesting payment thereof. Upon payment in fiill of all sutns secured by thia Modgage, Lender ahall promptly refi~nd to Borrower any funda held by Lender. Itnader paragtaph 18 hereoithe Property is sold or the Property ie otherwise acquired by Lender, Lender shall apply. no later than immediately prior to the eate of !he Property orite aoquisition by l.ender, any Funds held by Lender at the time of application as a credit against thesums eecured by this Mortgage. 3. Application ot Paymeats. Unleaa applicable Iaw pmvidea otherwiee, all payments reoeived by Lender under the Note and paragraphs 1 and 2 hereof ehall be applied by Leader first in payment of amounta payable to Lender by Borrower under peragraph 2 hereof, 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. Charges; Liet~s. Borrower ahall pay all taxea, assessments and other rhargea, finea and impositions attributable to the Property which m~y attain a priority over this Mortgage, and leasehold payments or ground rents, if any. in the manner provided under paragraph 2hereof or. if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promplly furniah to I.ender aU notices of amounts due under this paragraph, and in the event Bonower shall make payment directly, Borrower shull promptly fnmiah to Lender rer.eipta evidencing such paymenta_ Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided. that Bortower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secuted by such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proeeedings which operate to prevent the enforcement o[ the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrow~er shall keep the improvements now e:isting or bereafter erected on the Property insured againet loes by fire. hazarda included within the term "eatended coverage; ' and such other hazards ae Lender may require and in auch amounte and for eucb perioda ea Lender may require; provided, that Lender shall not require that the amount of such ooverage exceed that amount of rnverage required to pay the sums secured by this Mortgage. The insuranee carrier providing the insuranrn shall be chosen by I3orrower subject to approval by [xnder, provided, that such approval ahall not be unrnasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, direclly to the insurance carrier. All inaurance policies and renewals thereof shalt be in form acceptable to [.ender and shall include a standard mortgage clauae in favorof and in form acceptable to L.ender. Lender shaU have the right to hold the policies and renewals thereof, and Borrower ahaU promptly furniah to iender all renewal nodcea and all receipts of paid premiums. In the event of loss, Bnrruwer ahall give prompt notice to the inaurance carrier and Lender. Lenda may make proof of loas if not made promptly by Borrower_ Unless Lender and Borrower otherwise agree in writing, insurance procee~ shall be applied to restoration or repair of the Property demaged. provided auch restoration or repair ia economically fef~sible and the~aecurity of this Mortgage is not thereby impaired. If such restoration or repair is not economically. feasible or itthe security of this Mortgage would be impaired, the inaurance proceeda ahall be applied to the anma sec~ued by this Mortgage, with lhe excess, if any, paid to Borrower. If the Property ia abandoned by Borrower. or if Borrower fails to reepond to Lender within 3(1 days from the date notice is mailed by I.ender to Borrower that the insurance carrier offers to setde a claim for ineurance benefita, Lender ia suthorized to collect and apply the insurance procreds at I.ender s option either to matoration or repair of the Property or the suma secured by this Mortgage. Unleae Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone thedue date of the monthly inatapments rnferred to in paragraphs 1 and 2 t~ereof or change the amount of such installmente. If under paragraph 18 hereof the Property ia acquired by I.ender, aU right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof naulting from damage W Property priur to the sale or acquisition ahall pass to I.ender to the eatent of the aums aecured by this Mortgage immediately prior to such sale or aoquisition. ~ 6. Preeervation end blaintenence of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisione of any Ieaee i[ this Mortgage is on a leasehold. If this Mortqage is on a unit in a rnndominium or a planned unit development~ Borrower ahall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the rnndominium or planned unit developmeot, the by-lawa and regulations of the condominium or planned unit development, and rnnatituent documenta. If a eondominium or planned unit development rider ia execuled by Borrower and recorded together with this Mortgage, the oovenants and agreements of such ridet shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgageas ifthe rider were a part hereof. 7. Protection of Lender'~ 3ecurity. If Borrower fails to perform the oovenante and agreernents contained in this Mortgage, or if any aMion or procxeding is commenced which materially affecLe [.ender s interest in the Property, including, but not limited to, emin~t domain. iiuolvency, oode enforoemmt, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'~ option,npon notice to Bon+ower may make euch appearances, dieburse such ewna and take ench action es is necessary to protect Leader ~ intere~t. inclnding, but not l~mited to, diebureement of reaaonable attomey'e fees and entry upon the Property to malce'repain. If Lender reqnired mortgage insurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums reqaired to maintain such insurance in effect until such time ae the requirement for euch insurance terminates in accordance with Borrower s and [.endd~ written agreement or applicable Law. Borrower ahaU pay • the amount of all mortgage ineurance premiume in the manner provided nnde~ paragraph 2 henoL " My amounts dieburaed by Lender pereuant to thie paragraph 7, with interest thereon, shall beoome additional indebtednea~ of Borrowrer secnred by thia Mortgage. Unleas $orrower and Lender agree to other terms of payment; such smounts shall be psyable upon notice from Lender to Borrower requesting payment thereof, and ahall bear interest fmm the date of dieburaement at the rate payabk irom time to time on outstsnding principal under the Note unlesa payment of intereet at such rate would be oontrary to applicable law, in which evtnt such amounts shaU bear intereat at the highest rate permisaible under epplicable 1aw. Nothing rnntained in thu paragraph ~, shall require Lender to incur any e:penee or take any action hereunder. ~ soiK~~ pacFi~