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HomeMy WebLinkAbout1037Borrower and I.cnder cove~ant and agree as follows: 1. Payment of Prir~cipal and lnterest. Borrower shall promptly pay when due the principal of and i~tereet o~ the indebtedness evidenced by the Note, prepayme~t end lete charges us provided in the Note, and the pri~cipal uf and inlereat un eny Ftiture Advances eecured uy this Mort~age. 2. Ftiu~ds [orTase. and lnaurance. Subject to applicable law or to a written waiver by Ixnder, Horruwerehall pay to l.enderon theday monthly installmente ot.principal and inte~est are payable under the Note, until the Note ia paid in full, a eum (herein :'~b~ds"1 equal to one twelRh otthe yearly taxea and asseasments which may attai~ priority over thie Mortgage, and ~und rents on the Piroperty, if eny, plue one twelRh of yearly premium instaUments for hazard inaurance, plue onetwelfth ofyearly premium installmenta for morlgaKe inaurance, if any, all as reaeonably estimated initially and fi~om time to tirue by I.ender on the basia ot asaeasments and biUs and reasonable estimatea thereot. The FLnds ehell be held in an inaeitution the deposite or accounta of vihich are ineured or guaranteed by a Federal or State agency lincluding Lender i[ I.ender ia such an inatitution). L.ender ahall apply the Funda to pay said taxes, aeaeeaments, insurance p~emiuma and ' Bround rents. L.ender may not charge tor so holding and applying the Funds, analyzing aaid account, or verifying and compiling said aeaeaements and bills, unleas I.ender paya Borrower intereat on the Funds and applicable law pe~nite I.ender W make such a charge. E3orrower and Lender may agree in writing at the time otexecution of this Mortgage that intereet on the Funds shall be paid Lo Borrower, and unleas such agreement ie made or applicable law requirea auch intereat to be paid, l.e~der ahall not be required to pay Borrower any intereat or earnings on the ~nde. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debit8 to the Funds and the purpoae [or which each debit to the Funda wae made. 71-e Funcia are pledged as additional eecurity for the euma secured by thie Mortgage. If lhe amount of the F1nde held by I.ender, together with the tuturn monthly installments of Funda p1lyrable prior to the du~dates of taxea, asaeaemente, inaurance premiuma and ground rente, sha11 ea~ed the amount required to pay said taxes, asseaeimenta, inaurance premiume and ground rente aa they fall due, euch excesa shall be, at Eio~rower e option, either prompUy repaid to E3orrower or credited to l3onower on monthly inetallmenta of ~nde. If the amount o! the Funds held by Lender ahall not be aumcient to pay taxea, assesamente, inaurance premiume and ground renta as they tall due. Borrower ahali pay to l.ender any amount necessary to make up the deficiency within 30 days trom the date notice ie mailed by I.ender to Borrower requesting payment thereof. Upon payment in fuU of all auma secured by thia Mortgage. I.ender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Penperty is aold or the Property is othervi,~ise acquired by I.ender, [.ender ahaU apply, no later than immediately prior to the eale of the Propertp or ita aa~uiaition by I.ende~, any ~nds held by I.ender at the time of applics+tion as a credit against the auma secured by this Mortgege. 3. Application o! Payments. Unleae applicable law providea othetwise, all payments received by I.ender under the Note and paragraphe 1 and 2 hercof ehall be applied by Lender firat in payment of 8mounis payable to [.ender by Borrovrer under paragraph 2 hereof, then to intereet payable on the Note, thgn to the principal of the Note, and then to intereat and principal on any Future Advaneea_ 4. Charges; laene. Borrower ahall pay all taxes, assesaments and othercharges, finea and impositions attributable lu the Property which mey attain a priority overthis Mortgage, and leasehold paymentx or ground mnts, if ~ny, in the manner provided under parugraph'l hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the pnyee thereof. F3orn~wershall promptly turnish tu l.ender all noticea of amounts due under thia paragraph, and in the event F3orrower shall make payment directly, fi~-rrower shall promptly furnish to I.ender receiptg evidencing auch paymenta. f3orrower ahall promptiy discharge any lirn which h.ts priurity oeer this 11ortKage; provided, that Borrower shall not be required to diacharge any auch lien ao long ax Borruwer shall aqree in writing to lhe payment of the ubligation secured by such lien in a manner acceptable to Lender, or ahall in goud faith conteat surh lien by, ordefend enforcrmrnt of such lien in, legal procecdings which operate to prevent the enforcement of the lien or forfeiture of the Froperty or any part thereof. 5. Hazard Inaurance. Borrower ehall keep the improvements now exieting or hemafter erected on the Property insured againat losa by fire, hazarde included within the term "e~tended rnverage," and euch other hazards ae I.ender may require and in such amounts and for such periode as Lender may require; provided, that Lendet ehall not require euch ooveraqe amount exceeding the minimum, as may be required by state or federal regulationa goveming activities of Lender, or that amount of coverage required to pay the sums secured by this Mort~aQe, whichever ia the greater. . • The insurance carrier providing the inaurance shall be chosen by E3orrower subjeM to approval by Ixndrr: pmvidcd, that such approval ahall not be unreasonably withheld. All premiums on inaurance policies shall F~e paid in the manner pmvidcrf under p.ira~raph `L hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier: All insurance policiea'and renewala thereof shall be in torm acceptable to I.ender and ahall include a standard mortgage clause in favor of and in form acceptable to L.ender. I.endershall have the right to hold the policiea and renewals thereof, and F3orrower shall promptly furniah to i.ender all renewal noticee and all receipte. of paid premiuma. In the event of loss, E3orruwer shall give prompt notice to the insurance carrier and [.ender_ Lender may make proof of loas it not made prompdy by Borrower. " Unleae Lender and Borrower otherwiee agree in writing, inaurance proceeda ahall be applied to reatoration or repair of the Property damaged, provided such reste~ration or repair is economically feasible and the security of this Mortqage is not thereby impaired. If such restoration or repait ie nos economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda ahall be applied to the aume secured by thia Mortguge, with the exceae, if any, paid to Borrov-er. If the Property ie abandoned by Borrower, or if E3orrower fails to reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier ofiera to setde a claim for inaurance benefits, Lender ie authorized to coliect and apply the inaurance proceeds at Lender's option either to reatoration or repair of the Property or the auma secured by thie Morigage_ Unless Lender and Sorrowetotherwise agree in writing, any auch apptication of proceeda to principal shall not extend or postpone the due date of the monthly inetalimenta referred to in paragrapha i and 2 hereof or change the amount of such inatallmente. If under paragraph 1R hereof the Property ie aoquired by Lender, all right, title and intereet of Borrower in and to any inaurance policiea and in and to the proceeda thereof reaulting frdm damage to Property prior to the sale or acquiaition ahall paea tn Lender to the extent of the euma eecured by thie Mortgage immediately prior to auch aale or aoquieition. 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmentb. Borrowerahall keep the Property in gnod repair and ahal) not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the provieiona of any IeaBe if this Mortgage ia on a leaeehold. It thie Mortgage ia on e unit in a rnndominium or a planned unit development. Borrower ahal! perform all of Borrorver's obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent dceumente. If a c•ondominium or planned unit development ader is execated by Borrower and recorded together with thia Mortgage, the aovenants and :igreementa of auch rider ehall be incorporated into and ahall amend and supplement thecovenants and agreemente of thia Mortgage aa ifthe rider were a part hereof. 7. Protection ot I.ender'~ 3ecurity. If Borrower tails to perform the oovenants end agreements oontained in this Mortgage, or if any action or proceeding is rnmmenced which materially affects Lender a interest in the Property, including, but not limited to, eminent domain, insol~ency, a,de enforcement, or acrangec~ents or pm~eedings involving a bankrupt oY deoedent, then Lender e! Lender's option.upon notice to Borrower may make such appearanoee, diaburee such aums and take such action •as ia neceesary to protect Lender's interest, including, but not limited to, disbvrseme~t of reaeoneble attorney's feee and entry upon the Property to make repairs. If Lende: required mortgage insarance as a rnndition of malcing the loan eecured by this Mortgage, Borrnwer shell pay the premiums required to maintain such ineurance in effect until snch time aa the requirement for such ineurance terminatea in accordance with Botmwer's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgege ineurance premiums in the manner provided under paragraph 2 hereof. • My amounts diaburee~ by Lender pereuant to thie paragraph 7, v~ith intereet thereon, shall become additional indebtednesa of [iorrower secnred by this Mortgege. Unless Borrower and Lender agree to other terme of peyment, auch amounts ehal) be payabie upon notice trom Lender to Botrower requesting payment thereof, and sha0 bear interest from the date of dinbureement st the rate peyable trom time to time on outatanding prinripal under the Note unlese payment of interest at such rate would be oontrary to applicable law, in which event such amounte ahall bear intereet et the highest rate permiesible under applicable law. Nothing contained in thie paragraph 7, shall requue Lender to incur any expense or take any action hereunder. ~ ~ -- ~. ~~~~ .~.~~_ ._ _~- - -= s~~x.~48 f~aUE10,37 .s_ ~