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HomeMy WebLinkAbout1479Borrower a~d l.ende~ covenant and agree a~ [ollows: 1. Payment of Principal wnd Intere~t. Bormwe~ ehall promptly pay when due the pri~cipal of and intere~t on the indebtednea~ evidenced by the Note, prepeyroent a~d late char~ea aa provided in the Note, and the principal of and interest on any Future Advancee secured ~y thia Mortga~r. ~ 2. ~nds for Ta:es and lnsuru~ce. Subject to applicable law or io a written waiver by Lender, Borrower shall pay to t.ender on the day monthly inetallmente otprincipal and interest are payable under the Note, unti) the Note is paid in full, a sum (herein "Funds") equal to one twelhh of the yearly taxea and asseasmenta which may attain priority over this Morigage, and ground rents on the Property, if any, plus on~ IwelRh of yea~ly premium installmenta fo~ hazard innurance, plus onetwelflh ofyearly premium instaliments for mortgage insurance, if any, all ue reasonably eatimated initially and trom time to tirr~e by t.ender on the basis of asaesameota and biils a~d ~easonable estimatea thereof. The ~nda shall be held in an inetitution the depoeits or accounts of which are insund or guaraRteed by a Federal or State agency lincluding I.ender if Lender is euch an institution). I.ender ahall apply the Funda to pay said taxee, asseasments, ineura~ce premiums and ground renta. l.ende~ may not charge for so holding and applying the Funds, analyzing aaid account, or veri[ying end compiling eaid asseesmeots and bills, unless Lender pays Borrower i~lereet on the Funds and applicable law permite l.e~der to m~ke euch a charge. Borrower and l.ender may agree in writing at the timc of execution of ihia Mortgage that interest on the Funds ehell be paid to Borrower, and unleas euch agreement is made or applicable law requires euch interest to be paid, L.ender shall not be required to pay Borrower any interest or earnings on the F`unds. Lender ahall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debite to the Funde and the purpoae for which each debit to the Funda ws-a made. The Funda are pledged as additional eerurity for the sums secured by this Mortgage. If the amount of the ~nds hetd by Lender, together with the future monthly inetallmenta of Funds payable prior to the due datea of taxes, asseaements, inaurance premiums and ground rente, shall excaed the amount required to pay said tazee, asaesamenta, inaurance premiume and ground rente as they fall due, auch excess shall be, at Bmmwer'a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of ~nds_ If the amount of the Funda held by I.ender ahall not be sufficient to pay taxea, aseesamenta, inaurance premiums and ground rents as they tall due, Bormwer ahall pay to Lende~ any amount necessery to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requestinK payment thereof. Upon payment in [ull of all aume aecured by this Mortgage, Lender shall promptly refund to Borrower any funda held by t.ender. l[under paragraph 18 hereof the Property is sold or the Property is otherwiae acquired by Le~der, Lender ahall apply, no later than immediately prior to the sale of the Property or ite acquisition by Lender, any Funds held by I.ender at the time of application as a credit againat the sums secured by thie Mortgage. 3. Applicetion ot Payments. Unless applicable law provides otherwiee, all paymenta received by Lender under the Note and paragrephe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borronrer under paragraph 2 hereof, then to intereat payable on the Note, then to lhe principal of the Note, and then to interest and principal on any Future Advancea. 4. C.hargee; Liena. E3orruwer shall pay all taxes, assessments and other charges, fines and impusitions attributable to the Property which may attain a priority over this MortKage, and leasehold payments or ground rents, if any, in the manner provided under parag~aph 2 hereofor, if not paid in such manner, by E3orrow•er making payment, when due, directly to the payee thereof. Borrower shall promptly fumish to [,ender al) notices of amounts due under this par:igraph, and in the event E3orrower shall make payment directly, Born-wer shall promptly furnish to I.ender receipts evidencing surh paymentx. f3orrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that I3orrower shall not be required tu discharge any such lirn so long as &xrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to l,ender, or shail in good faith contest such lien by, ordefend enfonrmentof such lien in, legal proceedinga which operate to preeent the enfon ement of the Iten or for[eiture of ihe Properh• or any part thereuf. 5. Hazard 1 naurance. Borrower shall keep the improvements nuw exiating or hereafter erected on the Property insured against losa by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in auch amounts and for euch periods as Ixnder may reyuire; pruvidrd, that Ixnder shall not require that the amount of such coveraKe exceed that amount of coverage required to pay the sums sl~cured by this MortQaKe. The insurance carrier pru~•~dinK the insurance shall be chosen by Rorrower subjrct to :~pproval by 1 xnder, providrd, that such approval shall not be unrrasunabh• w•~thhrld. All prem~ums on insuran~•e p~~G~•irs ~hall t~e paid ~n the mannrr proe~drd undrr paraKraph 'l hereof or, if not paid in such manner, by li~~rruwer makinQ pa~•mrnt, when due, diree•th~ tu th~• incurance carrier. All insuranrn policies and renewals thereof shall t-e in [orm acceptable G~ l.ender and shall include a standard mortgage clause in favor of ,- aau u. iorm acrrpiauir io I.rnder. i,ender anaii nave tne rignt u~ noid the poiir~es and renewals thereo(, and Korrower shall promptly furniah to i.ender all reuewal notices and all rereipts of paid premiums. In the event of loss, E3~rn~wer shall give pr~mpt notice to the insurance carrier and l.ender. I.ender may makr proof of loss if not made prompUy by E3orrower. Unless [.ender and F3orruwer utherwise agree in wriling, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restnration ur repair is rcunamicaUy (easible and the securit~ of this Mortgage is not thereby impaired. If such reatoration or repair is not economically frasiMe or if the gecurity of this Murtgagewould be impaired, the insurance proceeds shall beapplied to the aums secured by th~s MortKage, with the excess, if any, paid tu Borrower. itthe PropeRy ie abanduned by Borrower,or if Rorrower faila to respond to I.ender within :f0 days frum the datr notice is mailwl by I.ender to Borrower that the insurance carrier offers to settle a claim for inaurance benefits, I,ender is authonzed to collec-t and :~pply the insurance prceeeds at Lender's ~ption either to retstoration or repair of the Pmperty or the sums secured by this MortKaRe. ~ Unlesa I.ender and Borrower otherwise aKree in wnting, any such application of proceeda to principal ahall not extend or poatpone the due date of the monthly inatallmentg referred tr: in paraKr:~phs 1 and 2 hereof or change the amount of auch instaUmenta. lf under paragraph 18 hereof the Property is ae~uired by I.ender, 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 acqu~sition shal) pass to Lender to the extent of the auma secured by thia Mortgage immediately prior to such sale or acquisition. 6. Preeervation and Maintenenceof Property; I.easeholds; Condominuma: Planned Unit Developmente. I3orrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ~hall comply with the provisiona of any lease if thia Alortgaqe is on a leasehold. If this MurtgaKe ia on a unit in a condominium or a planned unit development, Eiorrewer ahall perform all of Fiorrower's obligations under the declaration or covenants creatinKor govem~ng lhe condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conetituent documents. If a cundominium or planned unit development rider is executed by I3orrower and recorded toRether with this Mortgage, the eove~ante and .iKreements of such rider ehall be ~ncor~wrated ~nto anJ sh.ill amend and supplement thecovenants and agreements of this MortgaRe as if the nder were a part hereof. 7. Protection o[ Lender's Serurity. If Borrower faile to perform the oovenante and agreements contsined in this Mortgage, or it eny action or proceeding is rnmmenced which materiaUy affecta Lender's interest in the Property, including, hut not limited to, eminent domain, inaolvency, code enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at Lender's option,upoa notice to Borrower may make such appearances, diaburee auch aums and teke euch action as is neceasary to protect Lender's interest, including, but not limited to, disbursement of reaeonable attomey e feee and entry upon the Property to ma1~e repairs. If Lender required mortgage inaurance ae a condition ot making the loan secured by thie Mortgage, Borrower shall pay the premiume required to maintain such insurance in effect until euch time as the requirnment for euch ineurance terminetes in accordance with Borrower's end Lender's written agreement or applicable Law. Borrower ehall pay the amount ot all mortgage ineurance premiums in the menner pro~~ded under paragraph 2 hereot. Any amounte disburaed by-[.ender pereuant to this paragraph 7, with intereat thereon, shall become additional indebtedness of Borrower aecured by thie Mortgage. Unleee Borrower and Lender agree to other terma of payment, euch amounta ahall be payable upon notice from Lender to f3orrower requeeting payment thereof, and ahall bear intereat from the date ot disburaement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereet at euch rate would be contrary to epplicable law, in which event euch amounta ehal) bear intereat at the highest tate permissible under applicable law. Nothing contained in this paragraph 7, shall require l.ender b incur any expense or take any action hereunder. , ~~;~K350 ~a~E1478 ; . S . ~ ~'..5;- _. _. - . -. - . - . . . . , _ . . ...