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HomeMy WebLinkAbout0624Borrower and I.ender covenant and agree as [ollows: , 1. P~yment of Ptincipal and lnterest. Borrower ahall promptly pay when due the ~principal of and intereat on the indebtednees evidenced by the Note, prepayaaent a~d late charges as provided in the Note, and the principal of and interest on any Future Adva~cee secured by this Mortga~e. . 2. E~nd~ for Tuea and Ineurance. Subject to applicable law or to a writlen waiver by I.ender, Borrower shall pay to l.ender on Ihe day monthly inatallments of principal and i~tereet are payable under the Note, untit the Note ia paid in full, a aum Iherein "Funds") equal to ont twelfth oithe yearly taxes and aseessments which may attain priority over this Morigage, and ~rqund rents on the Property. if any, plus o~e~ tweifth of yearly premium installmenta for hazard ioaurance. plua onetwel tih of yearly premium installments for mortgage insurance, if any, all as reaeonably catimated initially and trom time to tiR~e by l.ender on the basis of assesaments and billa and reasonable eatimates thereof. The I~nds shall be held in an institution the deposita or accounta of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender is such at~ institution). Lender ahall apply the Funda to pay said taxes, asaeaements, inaurance premiuma a~d ground nnts. I.ender m~y not charge for so holding and applying the ~nds, analyzing said account, or veri[ying and compiling said aesesamenta snd bille. ut-less I.endu pays Borrower intereat on the F~nds and apRlicable law permita I,ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution o[ this Mortgage thet interest on the FL~de ahall be paid to Borrower, and unless such agreement is made or applicable law requiree auch interest to be paid, i.ender shall not be required to pay Borrower any interest or earnings on the E1~nds. Lender shal) give to Borrower, without charge, an annual accounting of the Funde showing credila and debits to the Funds and the purpose for which each debit fo the Funda was made. The Funds are pledqed as additional eecurity for the eums aecured by this Mortgage. If the amount of the fi~nds held by Lendec. together with the [uture monthly installments ot Funda payable prior to the due datea of taaes. aeseeaments. ineurance premiuma and ground rente, ahall e:cred the amount required to-pay said taxea. assesamenta, insurance pnmiums and ground rents as they fall due, such excess sl~all be, at Bo~mwer s option, either prompUy repaid to Borrower or eredited to Borrower on monthly installmenta of Fnnds. If the amount of the Funds held by Lender shall not be su~cient to pay taxea, assessments, inaurance preminms and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by L.ender to Borrower requesting payment.thereof. Upon payment in tull of all sume secured by this Mortgage, l,ender ahall promptly retund to Burrower any funds held by Lender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender, l.ender shall apply, no later than immediately prior to the sale uithe Property or ita aoquieition by Lender, any Funds held by I.ender at the time of application se a credit ngainat Lhe suma secured by thia Mortgege. 3. Applieation ot Payments. Unlesa applicable law provides otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereo[ shall be applied by Leader ~iist in payment otamounts payable to Lender by Eiorrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liens. Bor[ower ahall pay all taxes, as.gessments and other rharges, fines and impositions atUibutable 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 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Bortower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so long as Borrowershall agree in wriling to the payment of theobligation secured by such lien in a manner acceptable tu Lender, or shall in good faith contest such lien by, ordetend en[urcement of such lien in, legal proceedinge which operate to prevent the enforcement ot the lien or forfeiture of lhe Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured againaE laea by fire, hazards included within the term "extendrd coverage," and such other hazards as Lender muy require and in such amounts and for euch periods ae L.ender may require; provided, that Lender shall not requim that the amount of auch coverage exceed that amount of coverage required to pay the suma secured by this Mortgage. The inaurance carrier providinq the insurance shall he chusen by Borrower subject to approval by l.ender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance ~~licies shall he paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directi~ to the insur:~nce carrier_ - All inaurance policies and rnnewals thereof shall 1-e in form acceptable to l~ender and shall include a standard mortgageclause in favorof and in form acceptable to [.ender. I.ender shall have the riqht to hold the policies and renewals thereof, and Borrower ahali promptly furniah to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Rurrvwer shali give prompt notice Lo the ineurance carrier and Lender. Lender may make proof of loss if not made promptly by F3orrov-er. Unlese Lender and Borrower otherwise agree in writing, insurance proceeL: shall be applied to restoration or repair of the Property dameged, provided auch restoration or repair is economically feAsibie and thetsecurity of thia Mortgage is not thereby impaired. If auch restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds ahall be applied to the aums eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond fa Lender within 30 days from the date notice is mailed by l.ender to E3orrower that the insurance carrier offers to eettle a claim for insurance benefite, Lender is authorized to coilect and apply the insurance proce~eds at I.ender's option either to rnstoration or repair of the Property or the sums secured by this Mortgage. Unless I.ender and Borrower otherwise agree in writing, any such application of prareds to principal ahall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 F~ereuf ar change the amount of auch installmenta. If under paragraph 18 hereof the Property ia acquired by l.ender, all riqht, iitle 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 acqu~sition shali pass to. l.ender to the extent of the suma secured by thia Mortgage immediately prior to auch sale or acquisition. 6. Preaervation and Maintenanceof Property; I,easehoida; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the provieione of any lease if this Mortgage is on a teasehold. If this MortgaKe is on a unit in a condominium or a planned unit development, Borrowet ehal) pertorm all uf Borrower'a obligations under the declaration or covenants creatinKor governing thecondominium or planned unit development, the by-laws and regulations ot the condominium or planned unit development, and constituent documente. If a condominium or planned unit developmeot rider is ~xecuted by E3orrower and recorded toqether with this Mortgage, the rnvenants and agreementtr of such rider shall be incorporated into and shall amend and supplement thecovenants and aRreements of this bfortgageasi[the rider were a part hereof. ?. Protection of L.ender'e 3ecurity. If Borrower faila to per[orm the covenante and agreemente contained in thie Mortgage, or if any action or proceeding is commenced which materially affecte [.ender'e interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender et Lender's option.upon notice to Borrower may make such appearances, diaburee auch aums nnd take such aMion ae ie neceaeary to protect Lender's intete~t~ including,. but notjl~mited to, diebureement ot reasonable attomey's fees and entry upon the Property to make repain. If Lender requised mortgage ineurance as e condition of ineking the loan eerured by this Mortgage. Borrower ehall pay the premiums required to maintain euch insarance in effect nntil auch time ae the requirement for euch inaurance terminateH in accordance with Borrower's and Lendd~ written agreement or applicable Lew. Borrower ahall pay the amount ot ali mortqage ineurance premiuma in the manner provided under paragraph 2 hereof. My amounte disbureed by Lender pereuant to this paragraph 7, with intemat thereon, ahall beoome additional indebtedness oI Borrower eecured by this Mortgage. Unleas Borrower and Lender agree to other terms o[ payment, such amounts shaU be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from time to time on outstanding principal under the Note unlesa payment of interest at such rate would be contrary to applicable lew, in which event such amounts ahal) bear intrreat at the higheat rate permiaeible under applicable law. Nothing rnntained in this paragraph 7, ehall require I.ender to incur any expenee or teke any action hereunder. d.~ 3~7 P~ ~1 . , ~ _.~ ~_~ ~~-~;~:k ~ - ~~ - ; - ,~~~`~~ ;~ ~ 'f _,.~~:, .