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HomeMy WebLinkAbout0926 Borrower and Lender covenant and agree as followe: 1. Payment ot Principai and Intereet. Borrower ahaU promptly pay when due the principal of and intereat on the indebtedness evidenced by the Note, prepeyment and late charges as provided in the Note, and the principal of and intereat on any Future Advances eecured by thia Mortgage. 2. ~tnda tor Taxes and Inauranee. Subject to applicable law or to a written waiver by [.ender, Borruwer ahaU pay tu I.ender un the day monthly inatallmenta of principal and intereat ara payable under the Nole, until the Note i~ paid in full, a sum (herein "Funds") equal to one twelfth of 2he yearly taxee and asaeaemente which may attuin priority over thia Mortgage, and ground renta on ihe Property, if any, plua one- twelRh of yearly premium instalimenta for hazard inauranrn, plua onetwelfth ofyearly premium instal)ments for mortguge insurance, if any, all ae reaeonably estimated initially and from time to tiR~e by I.ender on the basis of assessments and bills and reusonable er3timatea thereof. The ~nda shall be held in an inetitudon the deposita or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is euch an inetitution). I.ender ehall apply the Funds to pay said taxea, assesemente, insurance premiuma and ground rents. Lender may not charge for eo holding and applying the Funds, analyzing aaid account, or verifying and compiling said assessments and bills, unlesa Lender paya Bonower intereat on the Funds and applicable law pPrmite I.ender to make euch a charge. E3orrower and Lender may agree in writing at the time of execution oi this Mortgage that intereat on the Funds ehall be paid to Bormwer, and unlesa such agreement ia made or applicable law requiree s~ch interest to be paid, I.ender ehall not be required to pay E3orrower any intereat or earnings on the FLnde. I.ender ehall give to BorroNer, w~ithout charge, an annual accounting of the Funds showing credits and debits to the Funde and the purpose for which each debit to the Funds was made. The Funda are pledged ae additional security for the suma aecured by thie Mortgage. If the amount of the Funda held by Lender, together with the future monthiy inatallments of Funds payable prior to the due dates of taxee, asaesamenta, ineurance premiums and ground rents, ahall excred the amount required to pay said taxes, asaessmente, insurance premiums and ground rente ae they fal! due, euch excesa shall be, at Bo?YOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of Funde_ If the amount of the Funda held by [.ender ahall not be sufficient to pay taxea, asaesamenta, insurance premiuma and ground ~ents as they fall due, Borrower shail pay to l.ender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by L,ender to I3orrower requesting payment thereof. Upon payment in full of a11 suma secured by this Mortgage, l.ender shall promptly refund to &~rrower any funds held by Lender. If under paragraph I8 hereof the Property is sold or the Property is otherwise acquireci by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any F'unda held by I.ender at the time of application as a credit against the auma secured by this Mortgage. 3. Application of Peymenta. Unless applicable law provides othervti•ise, all payments received by I.ender under the Note and paragraphe 1 and 2 hereof ahall be applied 5;~ I.ender fir:zt in payment of amounts payable to I.ender by Borruw~er 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 Advances. 4. Chargee; Liens. ~rrowershail pay all taxes, aissetisments and ~~ther ~•harKes, fines and impositions attributable to the Yroperty which may attain a priority over this MortKaKe, and leasehold payments ur ~ruund rents, if an~~, in the munner provided under paragraph'l hereofor, if not paid in such manner, by Borrow•er makinK payment, when c~ue, dirc~~tly to the payee thereof. fiorrow~er shall promptly furnish to [xnder all notices of amoun~4 due under this paraKraph, and in the e~•ent Borr:~wer shall make pa}•ment directly, Borrow~er shall promptly furnish to [.ender receipts evidencing such pa~ menG~. i3orruw•er shall promptly di~charKr any lien which has pri~~rity u~'rr lhis M~~riK~~Ke; provided, that Borrower shall not be reyuired to discharxe :iny such lien su lonK.is R~~rruw~~r,h.:ll ak~rer in w•ritinK tu the pa>•ment ~~f the ubliKatiun secured by such lien in a manner acceptable to (xnder, or sh:?11 in ~;oocl faith cuntetit such lien hy, urdefend enturr~~ment ufsuch lien in, le~;cil proceedings which operate to prevent the enfurcement of thc lien or fnrG•iture ~~f thc• Prup~•rt~• or ant• part ther~r~f. 5. Hazard Insurance. Rorrower shnli kec•p the impruvements nuw• rxistinK ur herrafter erected on the F'ruperty insurecl aKainst loss by fire, hazards included within the term "extendeci cin~erukr," and such ~~ther h.rr.ards as Lender may require and in such amounls and forsuch periods as I.ender may reyuire: procidcd, that Iw~nd~•r ~hal1 n~~t reyuirc th:?t the umuunt of such coveraKe exc~d that amr~unt of co~•erage required to pay the sums securcd by this 11~~rt~;.+kt~. The insurance camer pro~•idin~; th~~ in~ur:~n~•t~ sha11 h~• ~•h~~~~•n h~~ li~~rn~w~rr wh;~•ct ti~:~ppr~~~•al h~~ I.~•n~l~•r, prn~•idtYi, th:~t wch a~ppru~•al shall not be unrc•asonably withh~•Id. All pmmium~ ~~n in.ur:~nrt~ ~~+~li~~ii•s .h:~l~ hi• p;ud in th~• m,uint•r pn~~~idwl un~l~•r par.iKr.~ph hercr~f+,r, if not paid in such manner, by Fiurr~~w•e~r makin~ paym~~nt. ~ch~m du~•. ~1in~~~tl}• ru thi• in.ur:mc~~ camt•r. All insurance policies and renewals thereof shail tx~ in fonn acceptablt• t~~ I,~~nd<•r and shall include a stand.~rd murtKaKe clause in fa~~orof and in form acceptable to I.ender. I.ender ~hall ha~•e the riKht to h~~ld the~ ~ulicirs .~nd ren~•w•al~ therenf, and F~~~rruw•er shall promptly furnish to ! i,ender all renewal notices and all receipts ut paid prFmiums. In the evc•nt uf luss, 1{~rrruw•er vhall Ki~~t~ prumpt nutice to the insurance camer i and [.ender. Lender may make pruof of locs if nut madr prumptly b~• fiurruK•er. ~ Unlesa I.ender and Borrower otherwise aKree in aritinK, insuranct~ pr~x•erd~ ,hall tw applied to resturation or repair of the f'roperty F damaged, provided such restoration ur repair is ecunumic.+ll~• fra.ible and the sc-c•urity of this ;11ortKaKe is not thereby impaired. If such f restoration or repair is not economically ie<.::ihle ~~r if the strurity uf this ~1nrtKaKe w•c~uld be impaired, the insurance proceeds shali be applicd to the sums aecured hy this AlortKaKe, ~~~th the c~xc~~.s, if .~ny~, paid to Rurruw•er. 1 f the Yruperty is ~+bandoned by Rorrvwer, or if &~rrower faila to ~ respond to Lender within :30 days from the date n~iticc• is muil~d by I.c~nder tu Rurn~wrr that the insurance camer uffers to settle a claim for ~ inaurance benefits, l.ender is authurizeYi to colltrt and appl}• ihE• insurance pr~x•rt•ds at l.c~nder's optior. either to restoration or repair af the Property or the sums secured by this 111ortKaKr. Clnless I.ender and Borrower otherwise a~;rc~• in µ•ritinK, any such a ppli~•atiun uf pr~~rreds to principal shall not extend or postpone thedue date of the monthly installments referred to in paraK; aphs I and'l hereuf ur ~•h.inKe• the a~muunt of such instalimenis. [f under paragraph IR hereof ihe Pmperty is acquired by I.rnder, all riKht, title and intrrect uf Korrnw•er in and tu any in~urance policies and in and to the proceeds thereof resulting from damage tn Yroperty prior t~~ the s~ile ur acywsitiun shall pass to I,ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; I.ea~eholds; ('ondominums; Ylanned Unit Developments. Ronowershail keep the Property in Rood repair and shall nut commit wa~tt~ ur pe~rmit impairment ur deterioratiun of the Yroperty and shal! comply w-ith ihe provisions of any lease if thi5 ~tort~;aKe is un leasehnld. If thi~ !11urtKaKe i, un unit io a condominium or a planned unit de~•elopment, E3orrower ehall perform all of Rorruwer's obli~;atiuns under the dee•I:ir.iti~~n ~~r cu~•en.~nts ~ matin~or Ko~•ermnK the condominium or planned ~ unit development, the by-laws and reRulatiunc of the c~mdominium or plannr~l unit de~~el~~pment, and constituent document.g. If a ~ condominium or planned unit development rider is ext•cutecl by fi~~rroa~er :+nd nrorda~d tuKether with this MortRaQe, the covenanta and aKreements of such rider ~hall he inc~~rpor.~ted int~~ and ~hall amend and wppleme•nt the ~•m~rncints and aKreements of this 31ortKaQe as if the ~ rider were a part hereof. 7. Protection of Lender'e °~curity. If Borrow•er fails tn perform the rnvenants and agreemente contained in thie Mortgage, or if any action or proceeding is cummenced which materially affecte [.ender's intereat in the F'roperty, induding, but not limited to, eminent domain, ri inaolvency, code enforcement, or arrangementa or pmceedinRa involvinQ a bankrupt or decedent, then I.ender at (.ender'e option,upon ~ notice to Borrower may make such appearancee, diaburee euch auma and take auch action ae is neceasary to protect Lender's intereet, € including, but not limited to, diebureement o~ reat+onable attorney's fees and entry upon the Property to make repaire. If Lender required ~ mortgage ineurance as a candition of making the loan aecurfd by this Mortgage, Aorrower ahaU pay the premiuma reqaired to maintain ! such ineurance in effect until euch time as the requirement for auch insurance terminates in arcordance w~th Borrower's and Lender'e ~ written agreement or applicable Iaw. Borrower ehall pay the amount uf all mortKaKe ineurance premiume in the manner provided under ~ paragraph 2 hereof. ~ Any amounte dieburaed by Lender perauant tu thie paraKraph 7, with interest thereon, ahall become additional indebtedneae of ~ Borrower eecured by thie Mortgage. Unlesa Borrower and I.ender aKree u~ other terms of payment, auch amounts ehall be payable upon ~ notice from Le~der to Borrower reqaeatinR payment thereof, and ahall bear interest,from the date of dieburaement at the rate payable from ~ time to t~me on outatandinR principal under the Note unlesH payment o~ intereat at such rate would be contrary to applicable law, in which ~ event auch amounts ahall bear intereat at the higheat rate permissible under applicable law. NothinK contained in thie para~raph 7, ehall ~ require I.ender to incur any expenae or take any action hereunder. ~ ~ BO~K •J~ PaGE J~6 . : - ~ >x~ - ~ _d .