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HomeMy WebLinkAbout0965 • ' • _ , Borrower and Leader covenartt and a~ee aa folbvw: t. P~yment oi Prirnipal aAd Interea~ Borrower ahall pmmpily pay when due the principal of and interest on the indebtednesa evidenoed by the Note. prepay~nent and late chuges as pcovided in the Note, and the principa! of and ir?terest on any fi?tun Advances secured by this Mort~a~e. 2. Ftiada tor Teu~es wad lasuranoe. Subject b applicable law or to a written waiver by Lender, Bormwer shall pay to Lender on the day monlhly installmenta of prir?cipal and i~terest an payable under the Note. u~til the Note is paid in tull. a sum (htrei~ "Funds'~ equal to one~ twelfth of the yearly taxes and assessments which mey attain priority over this Mortgege, and ground cents on the Propetty, if any. plus ont twelfth of yeatly premium inatallme~ts for hazard insurance. plua onetwelfth of yearly premium inatallments for mortgage inaurance, if any. al1 as nasonably eatimated initially and from time to tiR~e by l.ender on the basis of aaseasments and billa and reaaonable eatimetea thereof. The Fl~nds shall be held in an institution the deposits or accounta of which are inaured or guaranteed by a Rederal or State agency , (including Lender i[ Le~der is auch an inetitution). Lender ehall apply the Funda to pay eaid ta:es, aeaeasmeats. insurance premiwas and ground reab. Lender may not charge for so holding and applring the FLnda, analyzing eaid account, or verifying and rnmpiling said aaseeamenta and bills. unleas Lender paye Boirower intenest on the I~nds and applicable law permits Lender to make auch a charge. Borrower and L.ender may agree in writing at the time of execution of thia Mortgage that intereat on the I~nds ahaft be paid to Borrower. and unlesa euch agreement is made or applicable lew requirea auch intereat to be paid, Lender ahall not be required to pay Borrower any interest or earnings on 1he Fnnds. I.ender ahall give to Borrower, without charge, an annual accounting of the Funds ahowing ~redits and debits to the . Funds and the purpoae for which each debit to the ~?nds was made. The Funde are pledged as ad~litional eecuiity for the eums eecured by this Mortgage. lf the amount of the Plinds held by Lender, together with the future monthly inatallmente of Funds payable prior w the duedatee of taues, asaeeaments. insurance pre~niume and ground renta, shall ex~ed the amount reqaired W pay said ta:ea, asaeasments, insurance premiums and ground rents as they fall due, such excesa ehall be, at Bonower s option, either pmmpt{y npaid b Sorrower or credited to Borrower on monthly installments of Plinds. If the amount of the Funds held by Lender ahall not be aufficient to pay taxes, aaaessmentn. insurance premiume and ground nnte as they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender tn Borrower requeating payment thereof. Upon payment in full of all suma secured by thia Mortgege, Lender shall pmmptlv refund tn BQrrower any fuss~s hr1s3 by L~nder. If sn~z paragraph I$ hKeof the Property is sold or the Propedy is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the sak of the Properiy or ite soquisition by Lender, any Fl~nds held by Lender at the time of application ae a credit against the auma eec~red by this Mortgage. 3. Application of Payments. Unleas applicable law provides otherwiee, aU payments received by Lender under the Note and paragraphs l and 2 hereof shall be applied by Leuder firs+t in payment of amounts payable W Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Nott, and then to interest and principal on any Future Advances. 4. Cherges: Liens. Borrower shall pay all taxes, assessments and other charges, finea and impositions attributable Lo Lhe 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 sucfi manner, by Sorrower making payment, when due, direcily to the payee thereof. Borrower shall promptly fnrniah to Lender all notices of amounts due under this paragraph, and in the evenl E3orrower shall make payment directly, Borrower shall promptly furnish to Lender receipta evidencing such payments. E;orrower shall promptly discharge any lien which has priority ove~ this Mortgage; provided, that Borrewer shall not be required to discharge any such lien so long as Bonower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to I.ender, or shall in good iaith contest such lien by, ordefend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or for[eiture of the Property or 3ny part thereof_ - 5. Hezard Inaurance. Borrower shall keep the improvements naw exiating or hereafter erected on the Property insured againat Ioss by fire, hazards included within the term "extended covera~Ce," and such other hazards as l.ender may require and in such amounts and for auch periods as Lender may require; provided, that Lender shall not requirn tfiat the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. I The insurance carrier providinq the insuranm shall be chusen by Rorrv?wer subject to approval by I.ender; provided, that such approval j shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if , not paid in such manner, by E3orrower making payment, w•hen due, directly to thQ insurance carrier. A1l inaurance policies and renewals thereof shaU be in form acceptable to I.ender and shall include a standard mortgageclause in favorof and in form acceptable to I.ender. lxnder shall have tfie rigfit to fiold the poiicies and renewals thereof, and Borrower shall promptly furnieh to :.,ender all renewal notices and all receipts o[paid premiums. In the event o!loss_ Bormwer ahalt g~ve prompt renlic~ the insuranee csrrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. i Unlese Lender an~ Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ot the Property = ~ damaged, provided auch restoralion or repair is economical{y feasible and the security of this Mortgage is not thereby impaired. If euch ~ ~ reatoration or repair is not economically [easible or if the security of this Mortgage would be impaired, the insurance proceeds shalt be applied to the aums secured by this Mortgage, with the excess, if any, paid to E3orrower. If the Property is abandoned by Borrower, or if Borrower laile to ! reapond to Lender within 30 days from the date notice is mailed by l.ender ta Borrower that the insurance carrier of~ers to settle a claim for inaurance benefite, I.ender is authorized to collect and apply the insurance proceeda at Lender'a option either to resioration or rnpair of the I Property or the sums aecured by this Mortgage_ E Ualeae Lender and Borrower otherwise agree in writing, any such applicaUon of proCeeda to ~rinci~u+l ahall r~n~ o;ien~ ~i ~asl~:te Lhes3se i date ot the monthly instatlments referred to in paragraphs 1 and 2 hereof or cfiange the amount of auch inatailments. If under paragraph 18 hereof the Proptrty is acquired by I.ender, all right, title and inlerest of Borrower in and to any inaurance policiea and in and W the proceeda ~ ~ there~f reaulting from damage to Property prior to the sale or acqu~sition shall pass to I.ender to the e:tent ot the auma aecured by thie ~ Morlgage immediately prior to auch eale or aoquisition. 6. Preservation and Maintenance of Property; Leaseho{ds; Condominuma; Planned Unit Deveiopments. Borrowerahall keep E the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall rnmply with the ~ proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development. r Bonower ahall perform all of Borrower's ob{igations under the declaration or covenants creatinQor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituent documents. If a f• ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and i agreements of auch rider shail be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as i[the ! rider were a part hereof. ~ 7. Protection of Leoder'e 3ecurity. If Borrower tails W perform the oovenanta and agreements contained in this Mortgage, ~ if any ; aMion or proceeding is commenced which meterially affects Lender s interest in the Property, including, but not limited to, eminent domain. d ! insolvency, code enforcemenk or arrangemente or proceedings involving a bankrupt or decedent, thm I.ender at Lender's option,upon notice to Borrower may make auch appearances, disburse such aums and take such action as is neceasary to protect Lender s intaest~ ~ including, but not limited to, disbursement of reseonable attorney'a fees and entry upon the Propedy to mahe repairs. It Lender required ~ mortgage insurance as a condition of making the loan secured by thia Mortgage, Borrower ahall~ pay the premiums reqnired to maintein ~ such insurence in effect ~ntil such time as tht requirement for such insurance terminates in accordance with Borrowrer's and Lendd~ ; written agreement or applicable Lew. Borrower shall pay the amount of all mortgage iweurance premiuma in the manner provided nndar paragraph 2 hereof. ' ' My amounts disbureed by Lender pereuant to this paragraph 7, with interest thereon, ahall beoome edditional indeM~edness of ~ I Borrower secared by this Mortgage. Unless Borrowe~ and I.ender agree to other krms of payment, such amounta shell be peyable upoa ~ ~ notice from Lendrr to Borrower requesting payment thereot, and shall bear intereat from the date of disbursement at the rate payable irom ~ ~ time to time on outstanding principal under the Note unlesa payment of interest at such rate would be contrary to applicable law, in wrhich ~ , event such amounte afiall bear inlereat at the highest rate permiasible under applicable law. Nothing rnntained in thu paragraph shall ~ ' require Lender to incur any e:pense or take any action hereunder. ~ ` 8~352 P~~ 964 . . . .