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HomeMy WebLinkAbout0519Borrower end Lender eovenant and a~ree es folb~n: 1. P~weat of Prlacipa! aad Iatena~ Borrower shall pmmptly pey when due the principal ot s~d interat on the indebeednaa evide~ced by the Note. prepayment snd late char~e~ aa pmvided in the Note. and the prirtcipal of and intetesto~ any F~ture Advances ~ecured by thu Mott~a~e. 2. I~nds for Tese~ ~d Irtsurance. 3ubject to applicable law or b a written waiv~ by Lender. Borrower shall pay to I.e~der on the day mo~thly installments o! principal snd interest ara paysble under the Note, until the NM,e is paid in full. s sum (herein "FLnda") equal to ons twelRh of the yearly taxes and aseesame~ta which mey attain priority over this Mortgage. and ground renta o~ the Property, if any. plw one~ twelRh of yearly premium installments [or hasard insurance. plua onatwelfth of yearly premium instaUmenta (o~ mort~age inaurance~ if any. all as reawnably eetimeted initially and [r~m time to time by I.ende~ on the besia of assessments and billa and reasonable eatimates thereoL The PLndr shall be held in an in~titutio~ the depwita or accounts of which are insured or guarar~tced by a Federal or State a~ency (it-cludin~ Lender if I.ender ie auch an uutitution). Lender ihall apply the Funds to {-ay said taxes, asseasments, insuraoce premium~ and ground nnts. Lender may not charge for w holding and applying the Ftinds. enalyzinQ said accou~t, or verifying and rnmpiling said esaesameafa and bills, unteas i.ender pays Borrower interest on the [~nds and applicable law permits L.ender to makeauch a charge. Bormwer and Lender may agree in ~vritin~ st the time of e:ecution of this Mortgage that interest on the I~nde shall be paid to Borroae~, and unlas such agreement is made or applicable lew requires such interest b be paid, Lender shall not be nquired to pey Borrowe~ any interat or earnings on the FLnds. Lender shell give to Borrower, without charge, an annual accounting of the Funds showing crediLs and debit+~ to tbe Funds and the purpose for which each debit to the Flinds wus made. The Runda are pledged as additional security for the sums secured by thi~ Mortgege. If the amount of the I~nde held by Lender, together with the future monthly installmenta o[Funds payable prior to the due dates of t~e~. aasessmenta, inswance premiums and ground nnt~, shall excxd the amount required to pay said taxes, aasesaments. insurance premium~ and ground renta as they fall due. such e:ceas sha114e. at Bor~ower'a option, either prompdy repeid to Borrower or credited.to Borrower o~ monthly instapments of ~nds. If the amonnt of the Runds held by Lender shell not be sufficient to pay ta~ces, asseasments. ins~uance premiums and ground rents ae they tall due. Borrower shall pay to [.ender any amount necessary to make up the deficiency within 30 day~ from the date notice ie mailed by Lender to Borrower requeating payment thereof. Upon peyment in full of all suma secu~ed by this Mortgege, l.ender shal! promptly refund w Borrower any [unds held by Lender. If under paragraph 18 hereof the Property is eold or the Property is otherwiee acquired by Lender, Lender ahaU apply, no lattr than immediately prior to the sale of the Property or its aoquiaition by Lender. any Funda held by I.ender at the time of application aa a credit against the aums secured by this Mortgage. . 3. Applicatian of Paymedts. Unless applicable law providea otherwise, all paymen~s rcceived by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounl8 payeble to Lender by Borrower under parA~raph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advanoea. ~. Chatges; Liens. Borrower shall pay all taxes, assessmenta and othrr rharges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leaeehold paymenta orground rents, if any, in the manne~ provided under paragraph 2 hereotor. if not paid in such manner, by fiorrower making payment, when due, directly to the payee thereot Eiorrowershall promptly fumish to Lender all notices of amau~ts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower ahall prompUy furnish to Ixnder receipts evidencing such paymenta. E;orrower ahal) promplly discharRe any lien which has priority over this Mortgage; pr~ovided, that E3orrawer shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to Ixnder, or shall in good faith contest suck lien by, ordefend entorrement of such lirrlin, legal proccedinga which operate to prevent the enforcement of the lien or forfeilure of the Property or any pari thereof. S. Hazard lnaurance. Borrowrer shall keep the improvementa now existing or hereafter erected on the Property inanred againat loes by fire, hazerds included within the term "extended coverage," and such other hazarda as Lender may require and in auch amounts and forsuch periods ae l.ender mav require; pruvided, that I.ender shall not require that the amount of such eoverage exceed that amount otcoverage required to pay the sums secured by thia Mortgage. - The insarance carrier prm~idinK the insurance shall t-e chosen by tiorrower subjecl tn approval by Ixnder, pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance p~dicies shell be paid in the manner pro~ ided under paragraph 'L hermf or, if not paid in such manner, by Eiorrower mak~ng payment, when due, directly to the insurance carrier. Al) inaurance policiea and renewala thereotshall be in form acceptable to Lender and ahall include a standard mortgage clauae in favorof and in form acceptable to Lender. l.ender shall have the right tu hold thepolicies and renewals thereof, and E3~-rrowershall promptly furnish to i.ender all renewal notices a~d all receipts of paid premiums. In the eveut of loss, Born-wer shall give prompt notice to the insurance carrier and Lender. I~nder may make proo[ of loss if not made promptly by Borrower. Unless Lender and Bonower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Pmperty damaged, provided such rest~,ration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impeired, the insurance proceeda ahall be applied to the auma eecured by this Mortgage, with the excexs, if any, paid to Borrower. lf the Property is abandoned by Borrower, or i! Rorrower [sils to re~pond to Lender within 30 da~s from the datP notice is mailed by I,ender to Bnrrower that the insurance carrier of'fers to settle a claim for inaurance benefita, I.ender is authorized to collect and apply the insurance proceeda at Lender'a option either to reatoration or rnpair of the Property or the aums eecured by this MoRgage. Unlesa Lender and Borrower otherwisr agree in writing, any such application of proceeda to principal ahall not extend or postpone thedue date of the monthly inataUments referred to in paragraphs 1 and 2 hereof or change the amount of such inslailments. If under paragraph 18 herPOt the Property is acquired by [.ender, all right, title and inlereat of Borrower in and to any inaurance policiea and in and W the proceeds thereof resulting from damaqe to Property prior W the sale or acqu~sition shall pass to I.ender to the extent of the eums secured by thia Mortgage immediately prior to auch sale or acquisition. 6. Preservetion and Maintenance of Property; I.easeholda; Condominums; Planned Unit Developments. Borrower ehall keep the Property in gaod repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the proviaiona of any lease if ihie Mortgage ia on a leasehold_ If this Mortgage ia on a unit in a condominium or a planned unit development, Korrower ahall perform all of Eiorrower'e obligatiuns under the declaration or covenants creatinRor goveming the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and eonstituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortg:~e, the rnvenants and agreementa of auch rider shall be incorporated into and shall nmend and supplement thecovenants and agreementeof thia Mortqageaaifthe rider were a part hereof. 7. Protection of I.ender's Security. If Borrower faile to perform the oovenants and agreementa rnntained in thia Mortgage, or if any action or proceeding is rnmmenoed which matrrially affects Lender s interest in the P~operty, including, but not limited to, eminent domain. inaolvency, oode entorcwnent, or arrangements or proceedings involving a bankrupt or decedeat, then Lender at Lender i option,npon notice to Borrower may make auch appearances, diabune such sums end take such action as is neoasary to protect Lender'~ int~t, including, but not limited to, disbursement of reasonable attorney'a fees and entry upon the Propecty to make repairs. lf Lender required mortgage insurance as a rnndition of making the loan secnred by this Mortgage. Borrower shall pay the premiuuu reqnired to maintain snch insurance in eKect until snch time as the requiremeot for such ineurence .terminates in accordance with Borrowrer'~ and Lmdd~ written egrcement or applicable Law. Bormwer shall pay the amount of all mortgage insurance premiums in the manner ~ovided nnder paragraph 2 hereof. ' ~ Any amounts diebursed by Lender persuant to this paragraph T, with interrst thereon, shall become additiona) indebtednea of Borrower secured by this Mortgage. Unless Borrower and Lender agree to othrr terms of payment, such emounta ~hall be payabk npoo notice from I.ender to Borrower requesting payment thereof, and ahal! bear intereet tmm the date of duburseme~t at the rate payable ~om time to time on outatanding principal under the Note unlese payment of interest at such rate would be oontrary to applicable law, in wrhich event such amounte shall bear interest et the higheat rate permissible under applicable law. Nothing contained in this paragraph 7. rha11 require Lender to incur eny e:penie or take any action hereunder_ k ~ f~~..~ _ _.. a~~K 348 PaGE 519 , . ~ ,~_~~_~- :~~