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HomeMy WebLinkAbout1032Borrower and l.ender covenent and a~ee as follow~: l. Poyment ot Principal and Intere~t. Borrower shall pcomptly pay when due the principal of end inte~eat on the indebtedness evidenced by the Nots. prepayment and latechargc~ as provided in the Note, and 1he principel o[and intereston any Future Advances secured by this Mortga~e. 2. [~Lndo for Ta:e~ aed In~ura~ce. SubjM to epplicable law or to a written waive~ by l.ender, HoROwer shall pey to I.ender un the day monthly inataliments oi principal and interest are payable under the Note, until the Note is paid in full, a aum Iherein "Funds") equal to one twelRh of the yearly tax~ and aaseasments which may attain p~iorily over this Mortgage, and ground ~enta on the Ptoperty, if any, piu~ one twelfth of yearly premium instxllmenta for hazard insutaoce, plus onetwelfth of yearly premium installments [or mortgage insu~ance. i[any, all as reasonubly eetimated initially and from time to ti~ne by l.ender on the baeis uf assessmenta and bills and reaaonable estimatea thereoL The ~Lnda shall be held io an institutio~ the deposits or accounta ot which are insured or guaranteed by a Federel or State aQency lincluding Lender if l.ender is such an institution). Lender ahall apply the Funds to pay said taxes, assesaments, inaurance premiums and gin,und nnts. I.ende~ may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said essessments and bills. unless I.enderpsys Borrower interest on the Funda end applicable law permite Lende~ to makesuch acharge. Borrower and l.ender may agree in w~riting et the time of execution of this Mortgage that intereat on the Flinds shall be paid to Borrower, and unless auch agreement is made or applicable law requirea such intereet to be paid, I.ender ahall not be required to pay Borrowe~ any intereat or eaminge on the Funds. Lender ahall give to BoROwer, without cha~ge, an ennual accounting otlhe h unds showing credits and debits to the Funds and the purpoee for which each debit to the Funda was made. The Funds ~re pledged as additional eecurity tor the aums secured by this Mortgage. If the amount of the Flinds held by l.ender, together with the future monthly inatallments of Funds payable prior to the due dates of taxea, aeseasments, inaurance premiums and geound renta, ahall excred the amount required to pay said ta:es, aaseasmenta, inaurence premiums and ground renta as they fall due, such exceas ahall be, at Boirower's option, either pmmptly repaid to Borrower or credited tn Borrower on monthly instaUments of Funds. If the amount of the Funds held by Lender ahall not be sutficient to pay taxes, asseeaments, insurance premiume and ground rente ae they taU due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by l.ender to &-rrower requesting payment thereof. Upon payment in full of all auma eecured by this Mortgage, I.ender shall promptly retund to Borrower any tunda held by Lender. lf under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by l.ender, [.ender ahall apply, no later than immediately prior to the eale oI the Property or ite acquieilion by l.e~der, any Funda held by I.ender at the time of spplication aa a credit againat the suma eecured by this Mortgage: 3. Applieation ot Payments. Unlesa applicable law provides otherwiae, all payments received by Leoder under the Note and paragraphs 1 and 2 hereo[ shall be applied by Lender ~rst in payment of amounla payable to I,ender by Borrower under paragraph 2 hereof, then b intereat payable on the Note, then tu the principa! of the Note, and then tu interest and principal on any Future Advancea_ 4. Charges; Liena. I3orrower sha11 pay al! taxes, assessments and other rhargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if an~, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borruw~er making payment, when due, directly tu thr payee therm[. Borrower shall prompUy furniah to l.ender all notices of amounts due under this p:~ragraph, and in the event E3orruwer shall make payment direcqy. Born~wer shall prumptly furnish to I.ender receipts evidencing such paymentx. fiorrower shall prompd_r• diechargr any lien which has priority over this Mortgage; provided, that I3orrower ahail not be required to discharge any such lien su long aR Borruwer shall agree in writing to the payment of the obligation secured by such lien in a manner accepGsble t~~ Ixndrr, or shall in K«xf f:iith contest such lien b~+, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcrment of thr lien ur forfeiture uf the I'ruperly or any part therc~f ~ 5. Hazard 1 nsurance. Fiorn-w~er shall keep the improvements n~~w existing or hereafter erecled on the Property insured aga~nat loas by fire, hazards included within the term "extrndcd coverage." and xuch othrr hazards as l.ender may require and in auch amounts and for euch periods as l.ender may require; provided, that Ixnder shall not reyuirr that the amount of euch coverage exceed that amount of coverage required to pny the sums secured bt this :41orSKaKe. The insuran~r carrier pro~•~dinK the ~nsuraniti• shaU t~ chus~~n by Rormw~er subjcrt 1o approval by I.endrr: pr~-vidrd, that such approval shail not be unreasonably withhrld. All premiums un ~nsurancr pdii•irs shall br paid in the manner prov~ded under paraKr:~ph `L hereof or, if not paid ~n sueh manrier, b~• tic~rrorrer makinK paymt•nt, w•hen due. dirrctly to the insurance c:~rrier All insurance policies and renewals thereof shaU be in form acceptable to l.enderand shaH include a standard mortgageclause in fuvorof and in form acceptable to l.ender. Irnder shall have the riKht tu hold thr {H,licies and renewals thereuf, and Borrower shall promptly furniah to ~.ender all renewa) noticrs and all receip~g of paid premiums. !n thr event of luss. Born~wer shall give prompt notice to the insurance carrier and Lender. [.ender may m:~ke prouf of loss if nut made pmmptly by fiurrower. Unleas l.ender and Borrower otherv-ise agree in writing, inxur:~ncr proceeds shall be applied to resstoration or repair of the Property damaqed, provided such resturation ur repair is erunomically feastble and the srcurity of this Mortgage is not thereby impaired_ If such reaturation or repair is not economically f~asible.~r if the serurity uf this Mortg:~ge would be impaired, the insurance prceeeda shall be applied to the auma secured hy this MoAgage, with thr rxceag, if :iny, paid to ~~rrovver. I(the YrupeRy is abandoned by E3orrower, or it E3omower faila to re~pond to Lender within :30 days trom the date nutice is mailPd by I~ender to Borrower that the insurance camer offers to settle a claim for inaurance benefit8, I.ender ia authorized to collPCt and apply the insurance proceeds at l~ender's option either to restoration or repair of the E'roperty or the suma secured by this hlortK:~Ke. Unlesa Lendrr and Borrower otherwise aqree in wntinK, any such applic:~tion of procerda to principal ahall not extend or poatpone thedue date of the monthly installmentr~ referred to in paraKraphh 1 and'l l~erer-f or change the amount of auch installments. If under paraqraph 18 hereof the Property ia acquired by I.ender, atl right, title and interest of &~rrower in and tu any insurance pnlicies and in and to the proceeda thereof reaulting from damaqe to Property prior to the sale or acqwsition shall pass to I.ender to the extent of the sume secured by thie 1~toRgage immediately prior to such sale or acquisition. 6. Preeervation and Maintenance of Property; l.easeholda; Condominume; Planned linit Developments. E3~rrowershall keep the Property in qood repair and shall not commit waste ~~r permit impaument or deterioration of the Property and ahall comply with the provisione of any lense if th~a lllortgage is on a leaxehold. If this 111ortgage ia on a unit in a cundominium or a planned unit development, F3orrower ahall perform all o[ liorrower's obligations under the declaration or covenants creatinRor governmg the condominium or planned unit develupment, the bylaws and reKulationa of the condominium or planned unit development, and conaiituent documente. I[ a c~~ndominium or planned unit development rider ix rxecated by Fiorrower and recurded lc*ether with thia Mortgage, the rnvenante and agreementa nf such rider shall br incorporated inta and vhall amend .ind supplernent the cu~enants and agreements of this Mortgage as if the nder were a part hereof. 7. Protection o[ Lender's 3ecurity. If Borrower faila to per(orm the mvenante and agreemente contained in this Mortgage, or if eny action or proceeding is commenced which materially effecte Lender's interett in the Property, including, but not limited to, eminent domain~ insolvency, oode enforcement, or arrangements or proceedinge involving a benlwpt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, diaburee auch eume and teke such action as is necessary to protect I.ender i interest, ~ncluding, but not limited to, diebursement of reasonable attorney'e fees and entry upon the Property to make repairs_ If Lender reqaired mortgage insurance ae a condition oi making the loan aecured by thie Mortgage, Borrower shall pay the prcmiums required to maintain nuch ineurance in eftect until such time as lhe requirement for such insurance terminates in accordance with Borrower's and Lendei s written agreement or applicable Law. Borrower ahall pay the amount uf all mortgage inaurancr premiume in the manner provided under paragraph 2 hereof. Any amounts disbureed by Lender pereuant to thia paragraph ?, with intereat them,n, shall become additional indebtedneas of Borrower secured by thix Mortgage. Unless Borrower and Lender agree to other terms of payment, ~uch amounts shall be payeble upon notice from Lender to F3orrower requesting payment thereof, and shell bear interest fmm the date ot diabursement at the rate payable from time to time on outstanding principal under the Note unleae payment of interest et such rate would be cont~ary to applicable law, in which event euch amounte shal) bear interest at the higheat rate permieeible under applicable law. Nothing rnntained in this paragraph 7, shall require Lender W incur any expense or take any action hertunder. ' E,-:`~K348 ~~~E10:32 ~ . . , ~ ~ ~ _- ~.:~. ~:::`~-=,~:~_ _ .~.,.~ ., _.. .- ~ - - __ __ .=-~ ..