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HomeMy WebLinkAbout2171Borrower aad Lender covenant and a~res w folbwc 1. Payment ot Principal aed Interea~ Borrower shall pmmptly pay when due the pri~cipa) of and intereat on the indebtednes~ evidenced by the Note, prepayment and late chuges aa provided in the Note, a~d the principal oi and interest o~ a~y E~turc Advances secured by thu Mortgage. ~ 2. FLnds [or Taxes ~nd Ia~urance. Subject to applicable law or to a written waiver by Le~der, Borrower shall pay (o l.ender on the day monthly installmenta of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funda") equal to ont twelfth of the yearly taxes and aasessnnenq which may attain priority over thie Mortgage. and ground rents on the Property. itany. plus ont ewelfth otyearly premium installments for hazerd inaura~ce, plus on~twelRh of yearly pmnium iostallments [or moetgage ineurance, iEany, all as reaaonably estimated initially and trom time to ti~r.e by Lende~ on the basis of assesamente and bills and reaaonable estimatea thereoL 1'he Fl~nds shall be held in an inetitution the deposits or eccounts ot which are insured or guaranteed by a Federal or State agency I~~cluding Lender if Lender i~ such an institution). Lender shall apply the Funds to pay said taxes, assessmenta. insurance premiums and ground nnta. Lender may not charge foe~ w holding and applying the Funds, analyzing said account, or verifying and rnmpiling said asaeasmaita and bills. unleas L.ender psys Borrower intereat on the fl~nds and applicable law permita Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution ot this Mortgage that intereet on the ~Lnds shall be paid to Burrowes, and unleas auch egmment is made or applicable lew requires such intereat to be paid, l.ender shall not be required to pay Borrower a~y interest or earnings on the FLnds. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debita to the Funds and the purpoae for which each debit to the Funds wae made. The Funds are pledged as additio~al eecurity for the sums eecured by this Mortgage. [f the amount of the fi~nda held by i.ender, together with the future monthly inatellments of Funda payable prior to the due datea of ta:ea, easessmenta, inswance premiums and ground rents, shall excaed the amount required W pay said taxee, asseeamenta, inaurance premiums and ground renta as they tall due, such exceas ehall be. at BoiTOwei e option. either pmmptly repaid to Bormwer or credited to Borrowa on monthly inatallmenta of flinde. If the amount of the Funds held by Lender ehall not be sufficient b pay taxee, aaseasme~ts, inaurance premiume and ground renta as they fall due, Borrowe~ shail pay w Lender any amount neceaeary to make up the de6ciency within 30 days from the date notice is mailed by Lender to Borrower requesting psyment thereof. Upon payanent in [ull of all aums aecured by this Mortgage, Lender ahall promptly refund W Botrower any fu~ds held by L.ender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender. Lender shall epply, no later than immediately prior co the sale of the Property or ita aoquiaition by Lender. any Funda held by Lender at the time otapplication as a credit againat the auma secured by this Mortgage. 3. Application of Payments. Unleas applicable law provides otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahaU be applied by Leader firat in payment otamounte payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liens. E3orrower shall pay all taxes, aetessments and other chargea, finee and impositions attribulable to the Property which ~nay attain a priority over this Mortgage, and leasehold payments or ground rents, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower ehall promptly furniah to l.ender receipts evidencing such paymenta. I3orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Korrower shall not be required todischarge any such lien so long as Borrower shall agree in writing to the paymen! of theobligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcemento[such lien in, legal proceedinga which operate to prevent the enforcement of the lien or lorfeiture uf the Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now existing or hereafter erect..4d on the Property inaured against losa by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounts and for auch periods as I.ender may require; provided, that I.ender shall not require that the amount of such rnverage exceed that amuunt o[coverage required to pay the sums secured by this Mortgage_ ~ The inaurance carrier providing the insurance shall be chosen by Rorrower subject to approvai by I.ender, pmvided, that such approval shall not be u~reasonably withheld. All premiums on insurance p~~lieirs shall be paid in the manner pmvideJ under paraKraph 2 hereof or, if not paid in such manner, by Eic~rrower making payment, when due, direcdy to the insurance carrier. A11 inaurance policies and renewals thereof ahall be in form acceptable to l.ender and shaU include a standard mortgageclause in favoT of and in form acceptable to t.ender. (.ender shall have the right to hold the policies and renewats thereof, and Aorrower shall promptly furnish to -.ender all renewal notices and all receipts of paid premiuma. In Ihe ever~t of loss, E3orwwer shall give prompt notice to the insurance carrier and I.ender_ Lender may make proof of loss if not made promptly by Borrower_ lJnless l.ender and $onower otherwise agree in writing, insurance proceeds shal! be applied to reatoration or repair of the Property damaged, provided auch resloration or mpair is econumically feasible and lhe aecurity of this Mortgage ia not thereby impaired. If auch rrstoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the auma aecured hy this Mortgage, with the excrss, if any, paid to Borrower. lf the Property is abandoned by Borrower, or if Borrower faila to reapond to I.ender within 30 days from the date notice is mailed by I.ender to E3orrower that the insurance carrier offers to aettle a claim tor insurance benefits. I.ender is authorized to cnltect and apply the insurance proceeds at I.ender'a option either to reatoration or repair of the F'roperty or the auma eecured by this Morlqage. Unlesa [.ender and E3orrower otherwise agree in writing, any such application of proceeds W principal ahall note:tend or poatpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of auch inataUments. lf under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof reaulting from damaqe to Property prior w the sale or acqu~sition shall pasa to Lender to the extent of the aums aecured by this ~lortgage immediately prior to auch sale or acquiaition. 6. Preservation and Maintenence otProperty; Leaseholds; Condominume; Planned Unit Developments. Borrowrr ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahal) comply with the proviaiona of any lease if this Mortgage is on a leasehold. !f this Mortgage ia on a nnit in a condominium or a planned unit development, Rorrower ahall perform all of E~rrower'e obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent~documente. If a candominium or planned anit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and :igreementa of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hezeof. , 7. Protection ot Lender's 3ecurity. If Borrower faila to pertorm the eovenants and agreements rnnisined in thia Mortgage, or if any action or proceeding is commenced which meterially affects I.ender s interest in the Property, including, but not limited to, eminent domain. insolvency, oode eniorcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'~ option,upon notice to Borrower may make auch appeerances, disburse such aums and take such action aa ia na~asary to protect Lender's intere~t, including, but not limited to, disbursement of reaaonable attorney's fees and entry upon the Property to make repain. If Lender required mortgage insurance a.e a~ondition of ineking the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain euch insurance in effect until such time as the requircment for such insurance terminates in accordance with Borrowtr's and Lendd~ written agreement or applicable Law. Borrower shall psy the amount of all mortgage insurance premiums in the manner pmvided under peragraph 2 hereof. Any amounte disbureed by Lender persuant to this paragraph T, with interrt thereon, shall become additional indebtedness oI E3orrower secured by this Mortgage. Unless Borrower and Lendrr agree to other tenns of payment, such amounts shall be payable upon notice from i,ender to Borrower requesting payment thereof, and shall b~ear interest from the date oi disbursement at the rate payable from time to time on outstanding principal under the Note unleas payment of interest at ~uch rate would be oontrary to applicable law, in which event such amounta shall bear interest at the highest rate permissible under applicable lew. Nothing rnntained in this paragraph ?. shall require Lender to incur any e:pense or take any action hereunder_ ganK350 YA~~E2169 _ - _ _µ~:~