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HomeMy WebLinkAbout0949 Bormwer and l.ender covenant and agree as tolbwr 1. Payment ot Principal and lpteres~ Borrower ahell prompqy pay when due the principal of and intsrest on the indebtedneas evidenced by the Note. pnpayme~t and late charges as provided in the Note, and the principa! of and interest on any ~ture Advancee secured by this Mortgage. 2. I~Y~nds for Ta=es and Insurance. Subject to applicable law or to a wrilten waiver by l.ender, Bormwer ahall pay to l.ender on the day monthly inatallmente o[principel and intereat are payable under the Note, until the Note ie paid in full, a sum (herein "Ftinda") equal to on~ twelfth of the yearly taucee and aasesaments which may attain priority over this Morigage, and ground rente on Ihe Property, if any. plw ona twelfth of yearly premium installments tor hesard insu~ance, plus onetwelRh of yearly premium inatallmenta for mortgage inaurance, if any. all se reasonably eatimaled initially and from time to time by Lender on the basis of assessmenta and bille and reasonable eatimatea thereof. The ~nda ahall be held in an institution the depoaita or accounts of which an inaured or guaranteed by a Federal or State agency (including Lender if Lender is auch an institution). Lender shall apply the Funds to pay said taxea, seaeasments, inaurance premiums and ground nnts. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aesesaments and bille, unless I.eader pays Borrower intereet on the Funda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the tima of e:ecation of thia Mortgage that intereat on the Flinde ahall be paid to $orrower, and unleea euch agreement is made or applicable law requires euch intereat to be paid, Lender shell not be required b pay Borrower any intereat or earninge on the F1~nda. Lender ehall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debifa to !he Funds and the purpoee for which each debit to the Ftinde ~yas made. The Funda are pledged as additional eecurity for the aume aecured by this Mortgage. If the amount of the ~nds held by I.ender, together with the future monthly inatallments of Funds payable prior to the due dates ofla:es, aeeeesmenta. ina~ance premiuma and ground rents, shall excred the amount required to pay said taxea, aesessments, inaurnnce premiuma and g?ound rents as they fal! due. such excess shall be, at BoiTOwer s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nda. If the amount of the Funda held by Lender ehall not be sutficient to pay taxea, aeseasments, insurancx premiums and ground rente ae they fatl due. Borrower shall pay to (.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by L.ender to Borrower requesting payment thereot. Upon payment in full of all sums aecured by this Morigage, I.ender ehall promptly refund to Borrower any tunda held by Lender. If nnder paragraph 18 hereof the Property is aold or the Property is otherwiee acquired by Lender, I.ender shall apply, no later than immediately prior to the sale of the Property or ite soquieition by L.ender, any Funds held by Lender at the time of application aa a credit againat the auma secured by thie Mortgage. 3. Application of Paymenta. Unless applicable law provides otherwiee, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liene. Borrower sha11 pay all taxes, assessments and other charges, fines 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 manner, by Borrower making payment, when due, directly to the payee thercof. Borrower shall promptly fumish to Lender all notices of amounts due under this paragraph, and in the event Horrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. Borrower shall promptly aischarge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as F3orrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend ertforcement of such lien in, legal ~roceedings which operate to prevent the enforcement of the lien or furfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againet loss by fire, hazards included within the term "extended coverage," and snch other hazards as I.ender may requirn and in such amounta and for auch periods as Lender may require; provided, that Lender sF.ali not require that the amount of such rnverage exceed that amount of coverage ' required to pay the aums secured by this Morigage. The insurance carrier providinq the insurance shall t?e rhosen by tiorro~+er subject to approval by Ixnder, provided, that such approval ahall not be unreasonably withheld. All premiums on insurance p~~liciew shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making p~?yment, when due, directiy to the insurance carrier. I All inaurance policies and renewals thereof shall be in [orm acceptable to l.ender and shall include a standard mortgageclauee in favorof and in form acceptable to Lender. I.ender shall have the right to hotd the policies and renevrals thereof, and F3orrower shall promptly fumish to i.ender all renewal noticea and all receipts ot paid premiums. In the event of loss, Rorruwer shall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss it not made pmmptly by Fiorrower. Unleae Lender and Borrower olherwiae agree in writing, insurance procee~i: shall be applied to restoration or repair of the Property damaged, provided auch reatoration or repair is economically feAsible and the~se~cunty of thia Mortgage is not thereby impaired. If auch I~ restoration or repair is not economically teasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the auma secured by this Mortgage, with the excess, if any, paid to F3o~rowe~. if the ['roperty is abandoned by ~3orrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice is mailed by I.ender to Fiorrower that the insurance carrier ofters to settle a claim for ~ ineurance benefifs, Lender is authorized to collect and apply the insurance proceeds at I.ender's option either to reatoration or repair of the Property or the sums secured by this Mortgage. Unlesa Lender and F3orrower otherwise agree in writinK, any auch applEcalion of proceeds to principal ehall not extend or poatpone thedue ~ date of the monthly installments referred to in paragraphs 1 and `L l~ereof or change the amount of auch installments. I[ under paragraph 18 s hereof the Property is acquired by Lender, all right, title and interest of Bonower in and to any insurance policiea and in and to the proceede ~ thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to such sale or acquisition. ~ 6. Preeervation and MaintenanceotProperty; Leaseholda;Condominums; Planned Unit Developmente. Borrowershallkeep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahal) comply with the + pruvisiona of any leaae if this Mortgage is on a leasehold. If this MortgaRe is on a unit in a candominium or a planned unit development, ; Borrower shall perform al) of I3orrower's obligations under the declaratiun or covenants creatin~or governing thecondominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documente. If a ~ condominium or planned unit development rider is eaecuted by Borrow~er and recorded together with this Mortgage, the oovenante and agreements of such rider shall be incorporated into and ~hall amend and supplement the cuvenants and agreemenlsof this Mortgaqe asifthe rider were a part hereot. ~ 7. Protection of I.ender'e Security. (t Borrower faila to per[orm the covenants and agreemente contained in this Mortgage, or if any ~ action or proceeding is commenced which materially atfecte Lender'e interest in the Property, including, but not limited to, eminent domain, ' insolvency, aode enforcement, or anangemente or proceedinqs involving a bankrupt or decedent, then Lender at Lender's option.upon i notice to Borrower may make euch appearances, diaburee euch aume and take auch action se ie neceeeary to protect Lender'~ int~eres~ including, but not I~mited to, diebursement of reasonable attorney'a feee and entry upon the Property to make repairs. If Lenda required ~ mortgage inaurance as a condition of making the loan secured by thie Mortgage, Borrower ahall pay t~?e premiums required to maintain such insurance in effect until euch time ae the requirement for such ineurance terminates in accordance with Borrower's and Lendd~ written agreement or applicable Law. Borrower shall pay the amount o[ all mortgage insurance premiuma in the manner provided under i paragraph 2 hereof. My amounte diebursed by Lender perauant to thie paragraph with intereat thereon, ahall become additional indeMedness of ~ Borrower eecured by thie Mortgage. Unleas Borrower and I.ender agee to other terme of payment, auch amounte shall be payable upon : notice from Lender to Borrower requeeting payment thereof, and ehall bear intereat from the date of diRbursement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereet at auch rate would be contrary to applicable law, in which event euch amounte shall bear intereet at the higheet rate permiaaible under applicabte law. Nothing contained in this paragraph 7. shall require I.ender to incur any expense or take any aCtion hereunder_ . ~ F ~ . . ~ ~ - ~ ~uox 35~ racE ~49 ~ ~ . ~r ~ ~ _ ~ . - , _ - _