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HomeMy WebLinkAbout0768Borrowe~ and Lende~ covenant and a~ee a~ folbws: l. Payment ot Principal and Intereat, Borrower ahall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late chargea as provided in the Note, and lhe principal of and intereat on aoy Future Advancea aecured by thie Mortgage_ 2. Ftitnde for Ta~cee and Insursnce. Subject eo applicable law or to a written waive~ by [.ender, Borrower ehall pay to I.ender on theday monthly inetaltments of principal and inte~est are payable under the Note, until the Note ia paid in tull, a aum (he~ein "F`unds") equal to one twellth of the yearly taxes and aseessmenta which may altain priority over ihis Mortgage, and gtound rents on the Property, itany, plua one twelRh of yearly premium inatallmenta for hazard i~surance, plus onetwelfth ofyea~ly premium installmenta for mortgage inau~ance, if any, al! as reasonabiy estimated initially and from time to tirr~e by I.ender on the basis of assessments and biUs and reasonable estimatea thereof. 1'he Funds shall be held in an institution the deposita or accounte of which are inaured o~ gua~anteed by a Federal or State agency Iincludi~g Lender if Lender is such an inetitution). Lender ahell apply the Funds to pay eaid tazea, assesamenta, ineurance premiume and ground rente. Lender may not charge for so holding and applying the ~nda, anelyzing eaid account, or veritying and compiling said asaeasmenta and billa, unleae [.ende~ pays Bormwer interest on the Funda and applicable law permits I.ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that intereat on the Funda ahall be paid to Aorrower, and unlees auch agreement is made or applicable law requirea euch inte~eet to be paid, Lender ahall not be required to pay Borrower any intereet or rarninge un the Funde. Lender ehaii give lo Borruwer, without charge, an annuai accounting of ihe Funda showing credita and debita to the Funda and the purpose for which each debit to the Funda was made. The Funda are pledged as additio~al security for the auma secured by thie Mortgage. If lhe amount of the F~nds held by Lender, together with the [uture monthly inatallmenta of Funda payable prior to the duedatea of tazes, asaeasmenta, insurance premiuma and ground rents, ahall e:cxd the amount required W pay said taxea, assessmenta, inaurance premiumn and'ground rents as they fall due, auch exceas ahall be, at Bo~TOwer's option, either promptly repaid b Borrower or credited to Borrower on monthly inetalimenta of Funde. lf the amount of the Funde held by [.ender ahell not be aufficient to pay taxee, aseeasmenta, inaurance premiume and ground rente as they lall due. Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by l.ender to Borrower requesting payment thereof. Upon payment in tull of ali sums aecured by this Mortgage, L.ender ahall pmmptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold oz the Property is otherwise acquired by l.ender, I.ender ahaU appl~, no later than immediately prior to the sale o[ the Property or its'acquiaition by Lender, any Funds held by I.ender at the time of application as a credit against the sums secured by thie Mortgage. 3. Application of Paymenta. Unlesa applicable law provides otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by I.ender firxt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Nute, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liens. Bormwer shall pay all taxes, assessments and other charges, fines and impusitions attributable to the Property which inay atta~n a priorily over this INortKage, and leasehuld payments or ground rents, if any, in the manner pruvided under paragraph 2 hereof or, if not paid in such m~nner, by Borrower making payment, when due, direcdy to the payee thereo( F3orrower shall promptiy furnish to I.ender .~Il nolices of amounts due under this paraKraph, and in the event E3orruwer shall makp payment directly, Borruwer shall pmmptly fumish to I.rnder receip~s evidrncing such paymenLc. Borrower sh.~ll promptly dischargr any lien which has priority o~ er this MortKaKe; provided, that f3orrower shaU not he required to dischargr any such lien so IonK ac F~rrower shall agree in v- riting tu the payment uf the obliKation secured by such lien in a manner acceptable to Ixnder, or sh.ill in good faith contrst such lien by, ordefend enforcement of such lien in, legal proceedings w•hich operate tu pre~ent the enfurcement of thr lien or forfeiture of the Property ~-r any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ineured against loss by fire, hazards included within the term "extended coeeraRe," and such other hazards as l.ender may requi.e and in such amounts and forauch Ex•riods as l.ender may reyuire; pruvided, that Ixnder shall not reyuire that the amount of such coveraKe excecd that amount of corer:~ge rt~uind to pay the sums sec•ured by this MoriRage. The insurance carrier pruvidinK thr insuran~ sh~ll t-e chosen bp linrr~~w•Fr subjrct tn appro~•al by I.ender, pro~•~dw1, that such appru~•al ~h~ill not be unrrasunabl~ withheld. All prem~ums un insuram~e p~~li~•ire sh:~l) 1-r p:ud m the mannPr provide~d under paraKraph 'l hertr~f or, if not paid in surh manner, b>• li~~rr~~vrer mak~nK p:i~•ment, when due, dircY•th• to the in.urartce carrier. All insurance policies and renev-als thereof shall be in form acceptable tu l.e~der and shall include a standard mortgageclause in favor of and in form acceptable to I~ender. I.ender shall have the riRht tu hold tlie policies and renewals thereof, and E3orrovver shall promptly lumish to i.ender all renewal notices an~1 all re•_-eipts of paid premiums. In thr event of loss, E~~rn~wer shall give prompt nutice to the insurance carrier and I.ender. I.ender may make proof of loss if not made promptl~ by E3orrower. lJnless I.ender and E3orrower uthen+isr agree in writing. insurancr proceeds shall be app;ied to restoration or repair of the Property d:~maged, provided such restoration or ~epair is ecunumically feasible and the securit~ of this Morigage ia nnt thereby impaired. If such rrstoration or rnpair is not econumically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this A1ortKaKe, w~th the exces.g, it any. paid to E3orrower. lf the Yroperty is abandoned by E3orrower, or if Borrov-er faila to respund to~I,ender within :itl da~~s fnrm the d:~te m~tice is mailPd by I,ender W E3orruwer that the insurance carrier offers to setile a claim for insurance benefits, I.ender is authonzed to rollect and apply the insur~nce procerds at l.ender's option either to restoration or repair of the E'roperty or the sums secured by this MortKaQe. ~~ Unlesa [.ender and E3orruvrer otherw~se agree in v- ritinK, any such application of proceeds to principal ahall not extend or postpone thedue date of the monthly installmenLs referred to in paraKraphs I and 2 hereof or change the amount of such installments. I[under paragraph 18 hereof the Property is acquired by I.ender, al) right, title and interest of E3~rmveer in and to any insurance policies a~d in and to the proceeds thereof reaulting from damage to Vroperty prior to the sale or acqu~sition shall pass to Lender to the extent of the sums secured by this ~turtgage immediately prior to such sale or acquisition. 6. Preeervation and Maintenance of Property; Leaseholda; Condominuma: Planned Unit Developmente. Borrowershall ~Seep the Property in Kood repair and shall not commit v-aste or permit impairment or deterioration of the Property and shall comply w~th the provisions ~f any lease if this 11urtKage is on a leasehold. If this ~1ortRage is on a unit in a condominium or a planned unit deveiopment, Fionower ahall perform all of &~rrower's obliRations under the declaration or covenants creatinKor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conetituent documenta. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the euvenants and .+Krremenlg nf such rider shall be mcorpurated into and shall amend and supplement thecovenants and agreements of this Mortgageas i[the nder were a part hereof. . 7. Protection of Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thie Mo-tgage, or if any action or proceeding ia commenced which materially affecte I.ender'e intereet in the Property, includir~g, but not limited to, eminent domain, ineolvency, mde enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender's option.upon notice to Borrower may make auch appearances, diaburse such eums and take auch action as ie necessety to protect Lender's interest, including, but not limited to, diebursement of reaeonable attorney's feee and entry upon the Property to make repaire. If Lender required mortgage ineurance as a condition of making the loan eecured by thie Mortgege, Borrower shall pay the premiums required to maintain auch insurance in eftect until euch time ae the requirement for auch ineurance terminatee in accordance with Borrower's end [.endei s vvritten agreement or applicablr Law. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner provided under paragreph 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph 7, with interest thereon, shall become edditional indebtedness of Borrower 6ecured by thie Mortgage. Unleas E3orrower and Lender agree to other terme of payment, such amounta ehall be payable upon notice from Lender to Borrower requesting.payment thereof, and shall bear intereat (rom the date of diebureement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate wonld ~e contrary to applicable law, in which event auch amounts ahall bear intereet at the highest rate permiseible under applicable law. Nothing contained in this paragraph 7, ehall require I.ender to incur any eapenee or take any action hereunder. ~ R~~'K349 , ~~F 76~~ ; . a . _~c_r _ _ ~ - - - - - .