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HomeMy WebLinkAbout1549Borro~rer a~d Lender oovenaat aad asree a~ folbw~: 1. Pyrmeat o! Prlacip~l wnd lntere~~ E3orrower ~haU promptly pay when due the principal o! and i~tecest on the i~debtednesa evidenced by the Note. prepayaaent and late charge~ aa provided in the Note, ar-d the principal of and iatereet on any Flituro Advances aecured by thu Moce~a~e. , 2. Flu~d~ for Teuce~ and Ia~urwnoe. Subject to applicable law or to a writte~ waiver by Lender. Borrower shall pay to Lenderon the day monthly installments of principal and intereat aro payable under the Note. until the Note is paid in tull. a sum (herein "Ptindi") equal b ona twelfth of the yearly taxes and a~aessme~ts which may sttain priority over this Mortgage, and gmund nnts on the Property, if any, plw ont twelfth of yearly premium installmenls for hasard insura~ce, plus one~twelRh of yearly premium inatal lments [or morigage inaurance. if any, sll ea reasonably estimatcd initiatly and from time to time by l.ender on the basis of asseasmenta and billa and reasonable eatimates thereof. TAe FLnde shaU be held in an inatitutio~ the depoeits or accounts of which are inaured or gua~anteed by a Federal or State a~ency (includins Leader it I.ender is auch an institution). Lender shall apply the Fur-ds to pay said taYea, assessments. insuranee premiwaa and ground rents. Lender may r-ot charge tor so holding end applying the F~nds, analyzing said account, or verifying and compiling ~aid asacsamenta and biUs, unless L,ender paya Borrower intenst on the Funds and applicabk law permita I.ender to make such e charge. Borrower end Lender may agree in writing at the time of esccution of this Mortgage that intereat on the F~nds shaU be paid b Borrower, and unlesa auch xgreement is made or applicable law requires such interest to be paid, Lender ahall not be required b pey Borwwer any intere~t or eamings on the I~nds. Lender shall give to Borrower, without charge, an annual aocounti~g of the Funda showing credits and debib to the Funda end the purpase fo~ which each debit to the ~nda waa made. The Funds an pledged aa additional security for the suma eecured by thi~ Mortgage. If the amount of the F1nds hetd by I.ender, together with the future monthly installmente otFunda payable prior W the due dates of taues„ e~aeeaments, insurance premiums and qround rents. shall ra~czed the amount required to pay said Laxea, asseasments, ineurance premium~ and gmund rents as they fall due. such e:ceas shell be, at Bo~TOwer's option, either pmmptly repaid to Borrower or credited to Borrower on monthly installments of ~nds. I[ the amount of the Funds held by Lendet ehall not be sufficient to pay taxea, assesamente, inaurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requeating payment thereoL .• Upon payment in fuU of aU auma eecured by this Mortgage, Lender shall pmmptly cefund to Borrower any lunda held by l.ender. !f under paragraph 18 hereof the Property is eold or the Property is otherwise acquired by Lender, Lender shell apply, no later than immediately prior to the sale of the Nroperty or ite soquiaition by Lender, any ~nda held by Lender at the time olapplication as a credit againat the sums secnred by this Mortgage. . 3. Apptieation of Payments. Unleas applicable law providea otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 herEOf shall be applied by Lender f rat in payment of amounta peyable to Lender by Borrower under paeagraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liens. Borrower ahall pay all taxes, assesamenta and ather rhargea, fines and impositions attributable to lhe Property which may attain a priority over this Mortgage, and leasehold payments orground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Eiorrower shall promptly furniah to Lendtr all noticea ot amou~ts due under this paraqraph, and in the event Borrower shall make payment directly, Borrower shall pmmptly turnish to [.ender receipts evidencing such payments. Iiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall agree in writing to the pa~ ment of the obligation secured by auch lien in a manner acceptable to I,ender, or shall in good taith contest such lien by, ordefend enforcementof such lien in, legal proceedinga which operate ta prevent the enforcement of the lien or forfeiture of the Pro~-erty or any part thereof. 5. Haaard Insurance. E~orrower shaU keep the improvements now exiating or hereafter erected on the Property insured againat loss by fire, hazards included within the term "extended coverage," and such othe~ hazards as Lender may require and in auch amounts and [orsuch periods as Lendet mey require; provrided, that l.ender shall not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The inaurance camer providing the insurance shall be chusen by N~-rrc,wrr subject to approval by Ixnder, provided, that such approvat shall not be unreasonably withheld. All premiums on insuranc-r p~~licies shall be paid in the manner pn-vided under paragraph 2 hereof or, if not paid in such manner, by Eiorrower mak~ng payment, when due, directly to the insurance carrier. A11 insurance policies and renewals thereof shall be in forrn acceptable to I.ender and shall include a standard mortgage clanse in favor of and in form acceptable to [.ender. I.ender ahall have the right to hold thepolicies and renewals thereof, and Borrowershall promptly furniah to ~.ender all renewal notices and aU receipta of paid premiums. (n the evr~~t of loss, E3orruwer ahall give prompt notice W the inaurance carrier and I.ender. Lender may make prcwf of loss if not made promptly by f3~rrower. Unlese Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property damaged, provided such restoration or rnpair is economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or repair is not economically [easible or if the security of this Mortgage would be impaired, the inaurance proceeda ehall beapplied to the aums secured by this Mortgage, with the excess, if any, paid to E;orrower. lf the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier of~'ers to aettle a claim for insuranee benefits, I.ender is authurized to collect and applv the insurance proceecls at I.ender's option either to restoration or repair of the Yroperty or the aums secured by this Morigage. Unlesa [.ender and [3orrower otherwise agree in writing, any auch application of proceeda to principal ahall notextend or poatpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereo[ or change the amount of auch installments. If under paragraph IS hereof the Property is acquired by Lender, al) right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent oi the auma aecured by this Mortgage immediately prior to auch sale or acquisition. 6. Preeervation and MaintenanceotProperty; Leaseholda;Condominume: Plenned Unit Developments. Borrowerehallkeep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform aU of F3orrower e obligations under the declaratiun or cuvenants creatinQor governing the candominium or planned unit development, the bylawa and regulationa of the condominium or planned unit development, and rnnatituent documente. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenan/e and aqreements uf such rider shall be incorporated into and shall Amend and supplement thecovenants and agreements of this Mortgageasif the nder were a part hereof. 7. Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thu Mortgage. or if any action or proceeding is rnmmenoed which materielly affects Lender's interest in the Property, including, but not limited to, eminet~t domain, insolvehcy, oode enforcement, or arrangementa or proceedings involving e bankrupt or decedent, then I.ender at Lender's option,upon notice to Borrower ~nay make such eppearanoee, disburse such snms and take such action as is neceasary W proLect L.ender'~ intere~~ including, but not limited to, disbursement of reaeonable attorneyb iees and entry upon the Property to make repeirs. If Lenda required mortgage insurance as a condition ot making the loan secured by thia Mortgnge, Borrower shall pay the premiuma required to maintain euch insurance in effect until such time as the requirement for auch inaurance terminates in accordance with Borrower's and Lendet'~ written sgreement or applicable [~a. Borrower shall pay the amount of all mortgage inaurance premiums in the manner provided nnder paragraph 2 hereof. Any amounte disbureed by Lender perouant to this paragraph ?, with interest thereon, shall become additional indebtednew of Borrower serured by thie Mortgage. Unless Borrower and Lender agree to oti~er terms of payment~ such amounte shall be payable upon notice from Lender to Borrower requesting payment thereot end shall bear interest from the date of diebursement at the rate payabk from time to time on outatanding principal under the Note unleea payment ot interest at such rate would be rnntrary to epplicable law, in which event such amounte shall bear interest at the highest ~ate permissible under eppljcable law. Nothing coatained in this paragraph 7, ~haU require Lender to incur any expense or take any action hereunder. B~nK~48 PaGE1549 ,~ ~ , 6 ~,C„.'_ _ _ _..- . . - , ` ~ ~ `~+4.'m.d.'+ ~`~.~ ...,..-.. '_ ..a .~'/rt~ i~ .