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HomeMy WebLinkAbout0985 1 . ~ • Borrower and I.ender covenant and egree as follows: - 1. Payment ot Principal and Intere~~ Borrower shall pmmptly pey when due the principal of and intereat on the indebtedness evidenaed by the Note. pnpsyment and laee charges as provided in the Note, and the principal of and interest on at~y Fliture Advancea secured by thia Mortgage. 2 I~nde for T~es and Ineuranoe. Subject b applicable law or to a written waiver by Lender, Borrower ehall pay to I.ender on the day monthly inatallmenta of principal and i~terest are payable under the Note, until the Note is paid in tull, a aum (herein "~nds") equal to one twelfth of the yearly tauee and aseesamenta which may attain priority over this Mortgage. and ground rents on the Property. if any. plus one twelRh of yearly premium installmente for hazard inaurance, plua onetwelfth of yearly premium installmente for mortgage ineurance, i[any, aU ae reasonably eatimated initiaUy and from time to time by I.e~der on the basis of asaesamenta and billa and reasonable eatimates thereof. The PLnde ehall be held in an inatitution the deposits or aceounte of v~hich are inaured or guaranteed by a Federal or State agency (including Lender if Lenda is such an inatitution~. Lender ehall epply the ~?nds to pay said taxea, asaeasments. inaurance premiums and ground renfa. Lender may not charge for so holding and applying the PLnds, analyzing said accounR or verifying and rnmpiling said aesessments aad bills. unlese Lender pays Borrower inter~t on the ~nda apd applicable law permits I.ender to make such a charge. Borrower and Lender mey agree in writing at the time of e:ecntion of thia Mortgage that intereet on the I~nds ahall be paid to Borrower. and unleae such agreement is made or applicable law requirea euch interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the I~nds. I.ender shaU give to Bormwer, without charge, an annual acoounting of the F unda showing credits and debite to the Funda and the purpose for which each debit to the Ptinds was made. The Funde are pledged as additional eecwity for the sums secured by thie , Mortgage. - ~ If the amount of the I~l~nds held by Lender, together with the future monthly installments of Funda payable prior to the due datee ofta~cea, seeeasmenta. inaurance premiume and ground rents. ahall euc~ed the amount required to pay esid taxea, asaesaments. ineurance premiuma and gronnd rents as they fall due. such ~oess ahall be. at Borrower'e option. either pmmpdy repaid b Borrower or credited b Borrower on monthly installments of F~nds. If We amount of the Funda held by Lend~ ehall not be euffipent b pay taues, asseaementa, insurance premiums and ground rents as they fall due, Borrower ehall pay to Lender any amount neceeeary to make up the deficiency within 30 daye from the date notioe ie mailed by Lender to Borrow~ requesting payment thereof. Upon payment in fuU of a11 eums aecnred by thia Mortgage, I.ender shall prompdy refund to Borrower any fur?ds held by I,ender. If nnder paragraph 18 hereof the Pcoperty is eold or the Property ie otherwise acquired by I.ender. I.ender shali apply. no Iater than immediately prior - to the sale of the Property or ita aaqaisition by Lender. any I~nda held by Lender at the time of application as a credit againat the suma secured by this Mortgage. 3. Applieation of Payments. Unless applicable law pmvidea otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be apglied by I.ender firat ia payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable oa the Note. then to the grincipal of the Note, and then to interest and principal on any Fut~ue Advances. 4. C6arges; Liens. Borrower ahall pay all ta~ces, aseeasments and other charges, finea and impositions attributable 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 mannez. by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment directly, Borrower ehall promptly furnish to I.ender receipta evidencing such paymenta. Borrower ahall promptly discharge any lien which has priority over this Morigage; provided. that Borrower ehall not be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of the obligation aecured by such lien in a manner aocepteble to Lender, or shall in good faith oontest such lien by, or defend enforcement of such lien in, legal proceedinga which opezate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuranoe. Bormwer shaU keep the improvemente now ezisting or hereafter erected on the Property inaured againat lose by fire. hazards included within the term "eztended ooverage." and auch other hazarde aa Lender may require and in euch amounts and for auch periods as Lender may reqaire; pmvided. thst Lender ehell not require auch ooverage amount e:ceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the auma securad by this Mortgage, whichever ia We greater. The insurance carrier providing the ineurance ehall be choeen by Botrower aubject to approval by I.ender; provided, that such approval shall not be unreaeonably withheld. All premiume on inaurance policies ahall be paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making paymen~ when due, directly to the insurance carrier. ~i~ All inaurance policies aad nnewala thezeof shell be in form acceptable to I.ender and shall include a atendard mortgage clauee in favor of 'I and in form soceptable to Lender. Lender ehall have the right to hoW the policiea and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal aotices and all receipte of paid premiuma. In the event of loss, Borrower ahaU give prompt notice to the inaurance carrier ~ and I.eader. I.ender may make proof of loes if not made pmmptly by Borrower. Unlees Lender and Borrower otherwise agree in writing. insurance proceede ehalt be applied to reatoration or repair of the Property damaged, pmvided such restoration or repair ia economically feaeible and the eecurity of this Mortgage is not thereby unpaired. If auch f restoration ar repair ie not eoonomically feaaible or if the eecurity of thia Mortgage would be impaired, the insurance proceede ahall be applied ! to the aume eecured by this Mortgage. with the e~oess. if any. paid to Borrower. If the Propedy is abandoned by Borrower, or if Borrower faila to reepond to I.ender within 30 daye ~om the date notice ia mailed by Lender to Borrower that the ineurance carrier offers to eetde a cleim for inanraace bene~fits. I.enda is authorized to collect and apply the inaurance prooeede at I.ender s option either to reatoration or repair of the Property or the snms secnred by this Mortgage. Unleea I.endu and Bormwer otherwise agree in v?riting, any auch application of proceeds to principal ehsU not e~ctend or postpone the due ~ date of the monthly inatallmenfa referred to in paragraphs 1 and 2 hereof or change the amount of euch insfsllments. If under paregraph 18 ~ hereof We Property ia aoquired by Lendez. all right, tide and interest of Borrower in and to any insurance poliries and in and to the pmcReda ' thereof reaulting from damage b Propetty prior to the sale or aoquiaition shall pase to Lender to the ertent of the sums eecwred by thie ~ Mortgage immediately prior to ench eale or aoqnieition. 6. Preservation and Maintenance of Property; Leaseholda; COAdOmIIIUm/~ Planned Unit Developments. Borrower ahall keep the Property in good repair and shell nd oommit waete or permit impairment or deterioration of the Property and ahall oomply with the ~ pmvieione of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in e oondominium or a planned unit development, Borrower shall perform ell of Borrower's obligatioas nnder the declaration or oovenante creatingor governing the oondominium or planned unit development, the by-lawe and regulations of the ooadominium or planned nnit devdopment, and oonatituent documents. If a ~ rnndomini~un or planned unit development rider is ezeciited by Borrower and recorded together with this Mortgage, the oovenante and agreementa of such rider ahal! be incorporated into end ahall amend and eupplement the covenanfa and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protedion ot Lender'~ Sec~riip. If Borrower faiL to pafarm the oovenants and agrcements oontained in this Mortgage, or if any ~ action or proixeding is oommenoed which materially affects Leade~s intered in the Property, inclnding, bui not limited to. eminent domain, ~ ineolvency, aode eaforameat, or arrangement~ or pmceeding~ involving a banlaupt or decedmt, then Lender aR I.enda's option.npon notioe to Barrower may make such appearauaes, disbnrse such snms and take such action as is neoasary to proted Lendda interea~ ~ inclnding. but not limited to, disbursement of nasonable attorney's fecs and entry ngon the Property to meke npairs. If Lender reqnired ~ mortgage inenranoe as a condition of malong the loan eecnred by this Mortgage, Borrower ehall pay the premiums required to maintain ~ euch insnrance in e~ect until such time as the requuemeat for snch insurance terminates in aocordaace wiih Borrower's end I.endes'~ ~ written agrcemeat or applicable Law. Borrower ~hall pay the amoant of all mortgage insurana premiums in the manner provided unde: ~ paragraph 2 hec~eof. ~ My amounte dirbnrsed by Lender ~ persaant to this paragraph 7. with interest thereon. shall become additional indebtedness of ~ Borrower ~ecured by this Mortgage. Unle~s Borrower and Lenda agree to otha i~erms of paymeat, such amounts ehall be payable upon s notioe irom I.euder b Borro~ver requesting payment thereof, and shaU bear in~t from the date of diabursement at the rate payable from ~ ~ time to time on ontstanding principal nnda the Note unlees payment of interest at such rete would be oontrary to applicable law. in which eveat such amounts ehali bear interest at the highest rate permissible under applicable law. NolhinQ oont~ined in this paragraph 7, ~hall ~ ~ require I.ender to incnr any d~pense or t$ke any action h~reunder. ~ ~ s ~ , ~~ox352 PA~E 984 : ~ ~ , ~ - . ~ ~ . _ _ _ - .