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HomeMy WebLinkAbout2778Borrower and Lendec wvenant and a~ree as [olbws: I. Payment o[ Prineipa! and Intere~t. Borrower shall pmmptly pny when due the principa! of and iatereat on the indebGxlu~w evidenced by the Note. prepayment and late chugea aa pmvided in the Note. and the principal of and interest on any Futurc Advences eecured by this Mortga~e. 2. FLnda tor Taues ~nd Iasurance. Subject to applicable law o~ to a written waiver by Lender. Bonower shall pay to Lender on the day monthly inetallmenta of principal and interat are payabie under the Note. unW the Note is paid i~ full. a aum (htni~ "Ftinda") equal to one twelRh of the yearly taxes and assessmenta which may attai~ priority over this Mortgage. and ground re~ta on the Properiy, if any. plus ont twelfth of yearly precnium installments for hazard insnrance, plua onetwelRh of yearly premium inatallments for mortgage ineu~ance, ilsny, all as reasonably estimated initially and trom time to time by Lende~ on the baeie of aseessmenta a~d billa and reasonable estimates thereot. 1'he Ftinds shall be held in an institation the deposite or accounts ot which are inaured or guaranteed by a~ederal or State agency (including Lender if I.enda is such an institution). I.ender shall apply the Funda to pay said taxes, asaessments, inaurance premiums and gtound renta. landet may not charge f~ eo holding and applyirg the ~nds, aaalyzing said account, or verifying and compiling said esseasments and DiUs, unless Leader paya Borrower intereat on the Ftinds and applicable lew permits I.ender to make such a charge. Borrower and Lender may agtee in writing at the time of execution of this Mortgage that interest on the fli~da shall be paid to Borrower, and u~less auch agteement is made or applicable law requurea such interest to bt paid, Lender shall not be tequired to pay Borrower any intereat or earnings on the Plinds. L.ender ahall give to Borrower, without charge. an ennual accounting of the Funds ahowing credita and debits to the Funds and the pnrpose for which ~ch debit b the ~nds waa made. The Funda are pledged aa additional security for the sums secured by this Mortgage. Itthe amount of the Fl-c-ds held by Lender. together with the future monthly inatal{ments of Funds payabie prior to the due datee of taxes. esseesments, ineurence premiume and graund nnta, shall e:c2cd the amonnt required to pay esid taxes, aeaesaments. inaurance premiums and ground renle as they fall due, such excese ahall be, at Bo~TOwer a option, either promptly repaid to Borrnwer or credited to Boaower on monthly installments of ~nds. If the amount of the Funds held by Lender ahall not be enfficient to pay taxes, asaeasmente, inaurance preminma and ground rents as they fall due, Borrower ahall pay W Lende~ any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by l.endet b Borrower requesting payment thereof. Upon payment in full of ail sume eecured by this Mortgage, I.ender aha11 promptly retund to Borrower any [unda held by Lender. If under paragreph 18 hereof the Property ie sold or the Property is otherwise acquired by Lender, i.ender shall apply, no later than immediately prior to the sak of the Property or ite acquisition by Lender, any Funds held by Lender at the time of application as a ccedit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law providea otherwiee. all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lende~ fi~st in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future AdvanePS. 4_ Chargee: Liena. Borrower shall pay all taxes, assessments and other rharges, fines and impositions atfributable 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 hereof or, if not paid in such manner, by Borroveer making payment, when due, directly to the p8yee thereof Bor[ower shall promptly furnish to [xnder all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promPtly turniah to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as E3orrower shall agree in writing w the payment of the obligation secured by such lien in a manner accegta~+le te L~rnder, ~s sha!! in g~ fsith caziesi such lien by, ordefend enfor~~nrnt utsuch iien in, Iega[ proceedinge which operate to prevent the entorcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Sorrower shall keep the improvements now existing or fiereaRer erected on the Property insured against loas by fire, hazards included within the term "extended coverage; ' and such oiher haza~ds as Lender may require and in such amounts and for auch periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortqage. The insurance carrie~ providing the insurance shall be chosen bp Rorrower subject to approval by Ixnder: provided, that such approval aFsa~~ n..- ~u. n.nES^n~{.~.. ::•:i f`e!.a, ~~ ..~.._-_.~.- -- -------- -- '' . s _ "!s.. _:~.. ~,.~.....,...~ .,.~ ~u~wa~~. r~~~~~,r. ~i~aii i,r paia in ine manner provided under paragraph 'L hereo or, i not paid in anch manner, by Eiorrov-e~ making payment, when due, directly to the insurance carrier. Al) inaurance policies and renewals thereof shall be in [orm acceptable to lxnder and shall include a atandard morigageciause in favor of and in form acceptable to I.ender. I.ender shall have the right W hold the policies and renewals thereot, and Borrower shali promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, E3orruwer shali give prompt notice to the insurance carrier and Let-der. lxnder may make proof of loss if not made pmmptly by Korrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shaU be applied to restoration or repair of ihe Property damaged, provided auch restoratiun or repair is econumicaUy feasible and the security of this Mortgage is not thereby impaired. If auch reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied to the sums aecured by this Mortgage, v-ith the excess, if any, paid to E3arrower. If the Property ia abandoned by Borrower, or if Borrower faila to rexpond to [.ender within 30 days from the date notice is mailPd by I.ender to Borrower that the inaurance carrier offers to eetde a claim for inaurance benefita, [.ender is authorized to collect and apply the insurance proceeds at l.ender's option either to restoration or repair of the Property or the aums secured by this Mortgage. Unlesa I.ender and Borrower otherwise agree in writing, any such application of proceedato principal ahall n~t extend or postponethedne date of the monthly inslallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property ia acquired by Lender, al) right, title and interest of Borrower in and to any inaurance policies and in and to the proceede theteof ceaulting trom damage to Property prior W the sale or acqutisition shail pass to Lender to tfie eatent of the s~ms aecured by this Mortgage immediately prior to auch sale or aoquisition. 6. Preservation and MaintenanceotPropeHy; Leaseholds; Condominume; Planned Unit Developments. Borrowerahall keep the Prc-perty in g~~d repair and 9ha1! nnt comm'st sYastr os grrmi! imgairment os deierioraiian uf thr Pruperiy and sha11 comply with the proviaiona of any lease if this Mortgage is on a teaseho[d. I[ this Modgage is on a unit in a condomin+um or a planned unil development, Borrower shall perform all of Borrower'a obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-lawa and reECulations of the condominium or planned unit development, and eonstituent documente. I[ a condominium or planned unit development rider is eaecuted by Borrower and recorded together with thie Morigage, the eovenanta and agreements of such rider shall be incorporated into :+nd shall amend and supplement the covenants and a~eementa of this Mortgage as if the rider were a part hereof. T_ Protection ot Lender's 3ecurity. If Borrower faila to perform the oovenants and agreements conlained in this Mortgage, or if eny action or pmceeding is commenoed which materialty af[ecte Lender'e intereat in the Property, incfuding, bnt not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedinge involving a bankrupR or deoedent, then Lender at Lender's option,apon notice to Borrower may make such appearances, dieburee such auma and take such action as is necaaary to protect t.ender'~ interat, including, but not limitad to, disbursement of reaeonabte attorney'e feee and eniry upon the Property to meke repairs. It Lender required mortgage insurance ae a rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiams required to maintain snch insurance in effect until euch time as the requirement for such inaurance terminetes in accordance with Borroaer's an~ I.endds written agreement or applicable Law. Borrower ehaU pay the amount of all mortgage ineurance premiums in the manner pmvided under paragraph 2 hereof. Any amounts diaburscd by Lender persuant to this paragraph T, with interest thereon, shall become additional indebt~edness oi Borrower secured by this Mortgage. Unleas Horrower and [.ender agree to other terms of payment, iuch amounts shell be payable upoa notice from Lender to Borrower requesting payment theneof, and ahall bear interest from the dete of d'ubursement at the rate payeble irom time to time on outatanding Qrincipal under the Note unleas payment ot +ntereat at such rate woufd be contrary W applicable law, in which event such amounte shal) bear interest at the higheat rate permiseible under applicable law. Nothing oontained in this paragraph 7. shall require Lender to incur any e:pense or tal~e any action herennder. B!lOK 350 P~~f 2775 ~~ ~_. i ~ ~ ~_