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HomeMy WebLinkAbout2175Borrower and Lende~ cove~ant ~nd a~ree a~ folb~ra: l. Pwyment of Principal and latere~~ Born,wer sball promptly pay when due the principa) ot and i~tereat on the indebted~ess evidenced by the Note, prepayment and lete chuge~ aa provided in the Note, and the pri~cipal o[and ir-terest on any Ftiture Advances secured by this MortQage. 2. ~unds forTese~ ar~d lnsuraece. Subject b applicable law or to a written waiver by Lender, Borrowershall pay toLendero~ thedey monthly instellmenta of principal and i~terest are payable under the Note, until the Note is ptud in full, e sum therein "Fu~de") equal to ont tweiRh of the yearly taxea and assesements which may attain priority over this Mortgage, and ground renta on the Properly, if any, plus ono- twelfth of yearly premium inatallments for hazard insurance, plus o~etwelRh of yea~ly premium instalimeots fo~ mortgage ineurance, if any, all aa reasonably estimated initiaUy and from time to time by l.ender on the basia of assesements and bills and reasonable estimates thereoL The FLnda ahall be held in a~ institution the deposits or accounts ot which are insured or guaranteed by a Fedetal or State agency Iincludi~g Lende~ if Lender is such an institution). l.endar ahall epply the Fu~ds to pay said taxes, aaeesaments, insurance premiuma and ground rents. Lender may not cl-arge for w holding and applying the Fl~nds, analyzing esid aceount, or verifying and compiling said aeaessments and bille, unless Leade~ pays Borrower intereat on the ~nds and applicable law permits Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of execution oi thia Moctgage that intereat on the ~nds ahall be paid to Bormwer, and u~less auch agreement is made or app-icable law requires such intereat Lo be paid, Lender shall not be required to pay Borrower any interest or earninga on the ~Lnds. l.ender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credite and debita to the Funde and the purpose for which each debit to the Funda was made_ The Funda are pledged ae additional aecurity for the sums eecured by this bSortgage. If the amount otthe ~Lnds held by I.ender, together with the future monthly inetallmente of Fu~da peyable prior to the due datea of taues, asaeeamente, ineurance premiums end ground renta, ahall excred the amount required ta pay said ta:es, asseasments. inaurance premiums and ground rente ae they faU due, such excess ahaU be, at Bo~mwer's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments ot F~nde. If the amount o[ the Funds held by Lender ahall not be sufficient b pay taxes, aeaessmenta, insurance premiums and ground rente as they fall due, Borrower ehall pay to [.ender any amount necessary to make up the deficiency within 30 daye firom the date notice is mailed by Lender to Borrower requeati~g payment thereot. Upon payment in full of all sums secured by thia Mortgage, Lender shall promptly refund to Borrower any funda held by l.ender_ If under paragraph 18 hereotthe Property'ia sold or the Property is otherwiee acquired by i.ender, I.endei ehall apply, no Iater than immediately prior to the eale of the Property or ite acquiaition by l.ender, any Funde held by l.ender at the time of application an a credit againat the suma eecured by this Mortgege. 3. Applicetion of Payments. Unless applicable law providee otherwise, all payments received by Lender under the Note and paragraphs i and 2 hereof shall be applied by L.ender first in payment of amounta payable to Lender 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 Advancea_ 4. Chargee; Liena. E3urrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehuld payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower makinq payment, when due, directly to the payee thereot Kormwer shall promptly furniah to Lender all notices of amounts due under this paragraph, and in the event F3orrower shall make payment directl~, Bormwe~ shall prompdy furnish to I.ender receipts evidencing such payments. Rorrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Korrower shall not be reyuired todischarge any such lien so long as E~rrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith cuntest such lien by, ordefend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or (orfeiture of the I'roperty or any part thereoC. 5. Nazard 1 nsurance. Borrower shall keep the improvements n~~w existing or hereafter erecled on the Proper/y insured againat loas by fire, hazards included within the term "extended coveraqe," :~nd such other hazards as Gender may require and in such amounts and for euch periods as I.ender may reyuire; provided, that Ixnder shall not require that the amount of such mverage exceed that amount of coverage required to pay the sums sc~ured by this Mortgage. The insurance camer pro~~idinA the insurance shall t-e chosen bp It~~rr~,wer subject to approval by i.endrr; provided, that xuch approval shali not be unreasonably withheld. All premiums on insurance policirs shaU 1-e paid in the manner prov~drd under paraRr:~ph'l hereof or, iC not paid in such manner, by Korrower making payment, when due, dirrctly to the insurance camer. All insurance policies and renewals thereof shall be in form acceptable tn I.ender and ahall include a standard mortgage clause in favor of a nd in form acceptable to l.ender. l.ender shall have the right to hold the pulicies and renewals thereof, and &-rrowershall promptly turnish to i.ender all renewal notices and atl receipts of paid premiums. In the event of loss, l3orruwer shall give prompt notice to the inaurance carrier and (.ender_ l.ender may make proof of loss if not made prumptly by Borrower. , Unless [.ender and Borruwer otherwise agree in ~.riting, insurance proceede shall be applied to restoration or repair of the Property damaged, pruvided such resloration or mpair is cronumically feasible and the srcurity of this Mortgage is not thereby impaired. If such rrstoration or repair is not economically feasible or if the security c~f this Mortgage would be impaired, the insurance prceeeds shall beapplied to the sums aecured by this Mortgage, with the excess, if any, paid to Borrower. I[the Property ia abanduned by Borrower,or if Borrower taila to reapond to [.ender within 30 days fn,m the date notice is mailed by I.ender to E3orrower that the insurance carrier ofiera to settle a claim for ~naurance benefita. I.ender is authorized to collect and apply the insurance proceeds at Ixnder's option either to restoration or repair of ttie Yro~ierty or the aums aecured by this Mortgage. Unlese Lender and Rorrower atherwise agree in vrriting, any such application of proceeda to principal shall not extend or poatpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such inatailmenta. If under paragraph 18 hereof the Property is acquired by l.ender, all right, title and interest of Borrower in and to any inaurance policies and in and W the proceeds thereof resulting from damaqe to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the auma eecured by thia Mortgage immediately prior to such sale or acquiaition. 6. Preeervation and Maintenance of Property; Leaseholda; Condominuma; Planned Unit Developments. Borrower shaD keep the Property in good repair and shall not commit wabte or permit impairment or deterioration of the Property and shell comply with the provisiona of any lease if thia blortgage ia on a leasehold. If this Murtgage is on a unit in a condominium or a planned unit development, Fiorrower ahall perform all of Rorrower's obligations under the declaration or covenants creatinQor governing the ccndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documente_ If a c•undominium or planned unit development rider is executed by E3orrower and recorded together with thie Mortgage, the covenanta and :~Rreements of such rider shall be incorporated into and shall amend :~nd supptement thecovenants aod agreements of this Mortgaqeas ifthe nder were a part hereot. 7. Protection ot Lender's 3ecurity. If Borrower faila to perform the rnvenante and agrcements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender'~ option,upon notice to Borrower may make such appearances, disburse such aums and take such action as is necessary to protect Lender i inLaest, including, but not limiLed to, disbureement of reseonabte attorney's [ees and entry upon the Property to make npaira. It Lender required mortgage ineurance as a condition of making the loan secured by thi, Mortgage, Borrower shall pay the premiums required to maintain euch insurance in effect until euch time as the requirement for auch insurence terminates in accordance with Borrower's and Lendei s written agreement or applicable law. Borrower shall pay the amount ot all mortgage ineurance premiuma in the mennrr pmvided under paragraph 2 hereof. Any amounta disbureed by I.ender persuant to this paragraph T, with intereat thereon, shall become additional indebtedness of f3orrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of peyment, such amounts shall be peyable upon notice from L.ender to Borrower requesting peyment thereot, and shall bear interest trom the date of disburoement at the rate payable from time to time on outstanding principal under the Note unless peyment of interest at such rate would be rnr.trary to applicable Iaw, in which event auch amounte shall bear intereat at the higheat rate pertnissible under applicable law. Nothin~ ~ontained in this paragraph 7, shall require [.ender to incur any e~cpense or take any action hereunder. aQ'~3~i~ Qz~rt2~.?~ . , - -- - ---_ _ _ . -.:~~